Form 6-K Infosys Ltd For: Dec 31

We hereby furnish the United States Securities and Exchange Commission with copies of the following information concerning our public disclosures regarding our results of operations and financial condition for the quarter ended December 31, 2015.

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

On January 14, 2016, we announced our results of operations for the quarter ended December 31, 2015. We issued press releases announcing our results under International Financial Reporting Standards (“IFRS”) in U.S. dollars and Indian rupees, copies of which are attached to this Form 6-K as Exhibits 99.1 and 99.2, respectively.

On January 14, 2016, we held a press conference to announce our results, which was followed by a question and answer session. The transcript of this press conference is attached to this Form 6-K as Exhibit 99.3.

On January 14, 2016, the leadership team were part of a common television interaction in which they answered questions from the media. The transcript of this interaction is attached to this Form 6-K as Exhibit 99.4.

We have also made available to the public on our web site, www.infosys.com, a fact sheet that provides details on our profit and loss account summary for the quarters ended December 31, 2015 and 2014 (as per IFRS); revenue by geographical segment, service offering, project type, and industry classification; information regarding our client concentration; employee information and metrics; infrastructure information; and consolidated IT services information. We have attached this fact sheet to this Form 6-K as Exhibit 99.5.

On January 14, 2016, we also held two teleconferences with investors and analysts to discuss our results. Transcripts of those two teleconferences are attached to this Form 6-K as Exhibits 99.6 and 99.7, respectively.

We placed form of releases to stock exchanges and advertisements in certain Indian newspapers concerning our results of operations for the quarter ended December 31, 2015, under IFRS and IGAAP. A copy of this releases to Stock Exchanges and advertisement is attached to this Form 6-K as Exhibit 99.8.

We have made available to the public on our web site, www.infosys.com, the following: Unaudited Condensed Financial Statements in compliance with IFRS; Audited Financial Statements in compliance with IFRS in Indian Rupees and the Auditors Report; Indian GAAP Standalone Balance Sheet, Standalone Statement of Profit and Loss, Standalone Cash Flow Statement, Notes on Accounts and Auditors Report for the quarter and nine months ended December 31, 2015. We have attached these documents to this Form 6-K as Exhibits 99.9, 99.10 and 99.11 respectively.

SIGNATURES

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

Infosys Limited

/s/ David D. Kennedy

Date: January 19, 2016

David D. Kennedy

Executive Vice President - General Counsel and Chief Compliance Officer

INDEX TO EXHIBITS

Exhibit No.	Description of Document
99.1	IFRS USD Press Release
99.2	IFRS INR Press Release
99.3	Transcript of January 14, 2016 Press Conference
99.4	Transcript of January 14, 2016 television interaction
99.5	Fact Sheet regarding Registrant's Profit and Loss Account Summary for the quarters ended December 31, 2015 and 2014 (as per IFRS); Revenue by Geographical Segment, Service Offering, Project Type, and Industry Classification; Information regarding Client Concentration; Employee Information and Metrics; Infrastructure Information; and Consolidated IT Services Information
99.6	Transcript of January 14, 2016 11:30 a.m. IST Earnings Call
99.7	Transcript of January 14, 2016 7:00 p.m. IST Earnings Call
99.8	Form of releases to Stock Exchanges and advertisement placed in Indian newspapers
99.9	Unaudited Condensed Financial Statements in compliance with IFRS
99.10	Audited Financial Statements in compliance with IFRS in Indian Rupees and the Auditors Report
99.11	Indian GAAP Standalone Balance Sheet, Standalone Statement of Profit and Loss, Standalone Cash Flow statement, Notes on Accounts and Auditors Report for the quarter and nine months ended December 31, 2015

Exhibit 99.1
IFRS USD Press Release

Infosys (NYSE: INFY) Announces Results for the Quarter ended December 31, 2015

Q3 sequential revenue growth at 0.6% in USD terms and 1.1% in constant currency

Q3 yoy revenue growth at 8.5% in USD terms and 12.5% in constant currency

FY 16 revenue guidance increased to 12.8%-13.2% in constant currency and 8.9%-9.3% in USD terms on Dec 31^st, 2015 exchange rates

Volume growth at 3.1% quarter on quarter

Attrition declined to 13.4% on standalone basis

Continued adoption of grassroots innovation and Aikido offerings

Bangalore, India – January 14, 2016

Financial Highlights

Consolidated results under International Financial Reporting Standards (IFRS) for the quarter ended December 31, 2015

Quarter ended December 31, 2015

Revenues were $ 2,407 million for the quarter ended December 31, 2015
QoQ growth was 0.6% in reported terms; 1.1% in constant currency terms
YoY growth was 8.5% in reported terms; 12.5% in constant currency terms

Operating profit was $ 599 million for the quarter ended December 31, 2015
QoQ growth was (1.8%)
YoY growth was 1.2%

Net profit was $ 524 million for the quarter ended December 31, 2015
QoQ growth was 0.9%
YoY growth was 0.4%

Earnings per share (EPS) was $ 0.23 for the quarter ended December 31, 2015
QoQ growth was 0.9%
YoY growth was 0.4%

Liquid assets including cash and cash equivalents, available-for-sale financial assets and government bonds were $4,765 million as on December 31, 2015 as compared to $4,894 million as on September 30, 2015

"We are starting to see creative confidence blossoming within Infosys - David Kelley's beautiful idea that innovation is not specific to one department but is an ability within all of us, waiting to unleash our full creative potential. We are seeing Infoscions becoming innovators, bringing innovation and client value to each individual project. This confidence can only come from a culture of learning and empowerment, and this is the kind of company we are endeavoring to create," said Dr. Vishal Sikka, CEO and MD. "Alongside grassroots innovation, we continue to see growing adoption of our Aikido services, bringing the power of intelligent systems, automation and software to amplify the skills and imaginations of our people. This combination helped us deliver encouraging results despite the traditional seasonality of the quarter and the additional headwinds, and will strengthen the execution of our strategy towards consistent profitable growth."

“The healthy volume growth this quarter has been encouraging. The lesser working days and our investments into additional trainees resulted in softer pricing and utilization for the quarter.” said U B Pravin Rao, President & COO. “Our continued focus on employee engagement is paying dividends resulting in lower attrition. We continue to simplify our policies and enable greater agility within the company, with the goal of boosting our productivity.”

“We have been able to navigate the quarter, better than our earlier expectations”, said M. D. Ranganath, CFO. “We will continue to focus on enhancing operational efficiency through multiple levers in the coming quarters.”

Outlook*

The Company’s outlook (consolidated) for the fiscal year ending March 31, 2016, under IFRS is as follows:

Revenue guidance increased to 12.8%-13.2% in constant currency;

Revenue guidance increased to 8.9%-9.3% in USD terms based on the exchange rates as of Dec 31^st, 2015*

* Conversion: AUD/USD – 0.73; Euro/USD – 1.09; GBP/USD – 1.48

Investments and Acquisitions

Completed the acquisition of Noah Consulting, LLC, a leading provider of advanced information management consulting services for the oil and gas industry.

Invested in WHOOP, an early stage company that offers a performance optimization system for elite professional sports teams, and invested in CloudEndure, a startup that provides Cloud Migration and Cloud-based Disaster Recovery (DR) software.

Business Highlights

We continue to see a great opportunity to rethink the notion of services – bringing the best of human potential together with software and platforms, to drive the digital transformation of the world around us.

Investing in Artificial Intelligence

In December, we announced our participation in OpenAI, a non-profit organization dedicated to developing and advancing Artificial Intelligence, bringing the best AI talent in the world together in the interest of all of us. This initiative adds an important new dimension to our ongoing efforts in AI.

Increasing the Depth of Client Relationships

In Q3, we strengthened relationships with key clients, including renewing existing large scale contracts, opening new accounts and signing four large deals.

ALSTOM, a global leader in rail transport, selected us for next-generation services in application engineering, development and maintenance, in addition to product lifecycle management to reduce IT costs, improve user experience, and increase the efficiency of the product design process.

MRJ90, the flagship aircraft of the Mitsubishi Aircraft Corporation, Japan (MITAC) recently completed its maiden test flight. We helped MITAC in the mechanical design of fuselage structures, delivered continuous improvements through automation, and reduced both the cost and cycle time.

Mercedes Benz Research and Development Center, India, has partnered with us to run their complete datacenter and network operations support in 15 countries across the APAC region, increasing agility and automation and reducing cost of operations.

Delivering Grassroots Innovation through Zero Distance

Zero Distance, our program to drive innovation in every project, empowering all employees to be innovators, continued to grow in Q3. By the end of Q3, 90% of our delivery organization had done something innovative in an existing project, beyond the statement of work. As recognized in many client surveys the innovation quotient of the organization has improved and zero distance has been recognized in employee surveys as the most impactful and engaging movement in the company.

Matthew Pegge, Head of Service Delivery, TNT, said, "In the 12 months since we partnered with Infosys, they have consistently met or exceeded expectations. A seamless transition of over 721 applications in our complex application landscape, delivered by Infosys across 8 countries through more than 5500 SME sessions has helped establish a solid foundation for the partnership. Then as part of their Zero Distance initiative, Infosys pro-actively identified numerous opportunities to deliver additional value to TNT. For example, the non-invasive automation created for monitoring our mainframe based messaging app is enabling earlier detection and automated resolution of incidents – thus giving higher business stability. There are a number of additional developments in progress based around creating an ‘interactive visibility dashboard’ which will provide the business with greater insight to enable them to drive further service improvements and operational efficiencies. We are confident that our partnership with Infosys will help us deliver even more value for our business.”

Driving Innovation through Aikido Service Offerings

We are seeing continued adoption of our Aikido service offerings across all industries, as clients look to us to help renew their IT landscapes non-disruptively (Ki); leverage new platforms and technologies to open new opportunities (Ai); and bring the power of Design Thinking to find the great problems to solve (Dō).

DNB Bank of Norway selected us to transform their application landscape. Applying AiKiDo, we will leverage knowledge-based non-disruptive renewal to evolve DNB Bank’s entire data cluster, data warehousing services, regulatory reporting, and ERP functions. We will improve efficiencies in IT operations and data processing, and apply Design Thinking to development initiatives in the bank’s data cluster.

Commerzbank chose us for a multi-year application management program to develop a post trade utility for the bank, leveraging principles of Design Thinking and the AiKiDo framework to simplify application architecture, standardize and improve processes, and drive cost efficiency.

Infosys Information Platform (IIP) surpassed 200 engagements to date, with 30 in production.

Murray Swartzberg, Sr. VP IT and Digital Media, ATP, said, “We’re delighted with the technology leadership that Infosys has brought to our partnership. What Infosys demonstrated at the Barclays World Tour finals using their open data analytics platform - Infosys Information Platform (IIP) – made tennis so much more exciting for our fans and sport. Analyzing such huge volumes of data to find the right insights that helped deliver in-time foresight into the game was a first for ATP. We look forward to developing many such exciting initiatives, along with Infosys, to help reimagine the experience of tennis for us all.”

Infosys Automation Platform (IAP) surpassed 121 engagements with 47 in production.

Eric Keimes, Operations Team Manager (Selling & Ordering), Proximus said, “IAP helped us to automate bulk processing of data over multiple complex platforms in the ordering domain eg: Oracle, Unix, different GUI’s. This has helped us reduce significant effort, it has also helped us perform massive corrections in cases of production issues in a shorter time compared to traditional scripting. We have realized a saving of €1 million with no additional cost to Proximus. It has helped us in better servicing towards our customers, improving our KPI’s and resolution timeliness. I appreciate the Infosys team to have come up with this idea and collaborating with Proximus to have it implemented.”

Panaya, Skava & Edge software products continue to see strong adoption.

BNSF Railway, a leading North American freight railroad, leveraged Infosys Panaya’s deep impact analysis capabilities to adopt risk-based testing, automated test evidence capture and test acceleration during weekly releases for its mission-critical SAP platform.

Skava is seeing strong traction with clients across geographies, with a record Black Friday holiday weekend– traffic and m-commerce sales through the platform were up by 50% from last year.

The EdgeVerve business sustained momentum with 24 wins and 25 go-lives for both the Finacle and Edge suite of solutions across various markets.

We have had more than 151 Design Thinking engagements with clients to date, and more than 69,000 employees have been trained in Design Thinking.

Jan-Pieter Lips, President, International Coalitions, Aimia, said, “Infosys helped Aimia with a market strategy and roadmap leveraging Design Thinking. It was a powerful and effective method to bring convergent thinking across our cross functional team in just three days. The approach helped Aimia to evaluate the core needs of a market and its consumers and helped open the minds of our team to think of creative solutions rather than pushing predetermined ideas. We look forward to leveraging this methodology in other initiatives.”

Awards and Recognition

Awarded the ‘Corporate Citizen of the Year Award’ at the Economic Times (ET) Awards 2015.

Positioned as a Leader in Gartner’s November 2015 MQ for Application Testing Services Worldwide.*

Inducted into the ‘Winner’s Circle’ in the HfS Research IoT Services Blueprint Report 2015.

Named one of the most relevant brands for digital strategy in Everest Group survey.

Named as a Leader by IDC in its Worldwide PLM Strategic Consulting 2015 report

Finacle Mobile Banking solution named a leader by Forrester Research, Inc. in ‘The Forrester Wave™: Mobile Banking Solutions, Q4 2015’ report.

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Board Changes

On January 14, 2016, the Board appointed Dr. Punita Kumar Sinha as an Independent Director with immediate effect

Ms. Carol M. Browner resigned as Member of the Board effective November 23, 2015. The Board placed on record its deep sense of appreciation for the services rendered by her during her tenure as a Director

The Board recommended the reappointment of Prof. Jeffrey S. Lehman, Independent Director of the Company for a term of two years with effect from April 14, 2016 to hold office upto April 13, 2018, and not be liable to retire by rotation. Prof. Lehman’s current term of office as an Independent Director expires on April 13, 2016. The appointment is subject to the approval of the shareholder

Beyond Business

For this fiscal, Infosys has pledged 270 crore towards Corporate Social Responsibility (CSR) that is primarily being carried out through the Infosys Foundation, its philanthropic arm.

In Q3, continuing on its mission, Infosys Foundation USA awarded several new grants that broaden access to Computer Science Education and coding across all US public schools so that students – especially women and those belonging to under-represented minorities – have equal access to acquire the digital skills needed by the workforce of tomorrow. To celebrate the Computer Science Education Week 2015, the Foundation awarded five new grants to non-profits across America and hosted 10+ computer science boot camps.

On November 13, 2015, The Infosys Science Foundation (ISF) announced the winners of the Infosys Prize 2015 across six categories: Engineering and Computer Science, Humanities, Life Sciences, Mathematical Sciences, Physical Sciences and Social Sciences.

About Infosys Ltd

Infosys is a global leader in consulting, technology, outsourcing and next-generation services. We enable clients, in more than 50 countries, to stay a step ahead of emerging business trends and outperform the competition. We help them transform and thrive in a changing world by co-creating breakthrough solutions that combine strategic insights and execution excellence.

Visit www.infosys.com to see how Infosys (NYSE: INFY), with US$ 9.2 billion in LTM revenues and 193,000+ employees, is helping enterprises renew themselves while also creating new avenues to generate value.

Safe Harbor

Certain statements in this press release concerning our future growth prospects are forward-looking statements regarding our future business expectations intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, fluctuations in foreign exchange rates, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal or expiration of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2015. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company's filings with the Securities and Exchange Commission and our reports to shareholders. In addition, please note that the date of this press release is January 14, 2016, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. The company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the company unless it is required by law.

Contact

Investor Relations

Sandeep Mahindroo

+91 80 3980 1018

[email protected]

Media Relations

Sarah Vanita Gideon, India
+91 80 4156 3373

[email protected]

Pilar Elvira Wolfsteller

+1 510 944 4596

[email protected]

Infosys Limited and subsidiaries

Unaudited Condensed Consolidated Interim Balance Sheets as of

(Dollars in millions except equity share data)

	December 31, 2015	March 31, 2015
ASSETS
Current assets
Cash and cash equivalents	4,455	4,859
Available-for-sale financial assets	68	140
Trade receivables	1,641	1,554
Unbilled revenue	450	455
Prepayments and other current assets	747	527
Derivative financial instruments	8	16
Total current assets	7,369	7,551
Non-current assets
Property, plant and equipment	1,517	1,460
Goodwill	560	495
Intangible assets	157	102
Investment in Associates	16	15
Available-for-sale financial assets	255	215
Deferred income tax assets	78	85
Income tax assets	718	654
Other non-current assets	101	38
Total non-current assets	3,402	3,064
Total assets	10,771	10,615
LIABILITIES AND EQUITY
Current liabilities
Trade payables	20	22
Derivative Financial Instruments	1	–
Current income tax liabilities	448	451
Client deposits	5	4
Unearned revenue	211	168
Employee benefit obligations	192	171
Provisions	73	77
Other current liabilities	980	927
Total current liabilities	1,930	1,820
Non-current liabilities
Deferred income tax liabilities	40	25
Other non-current liabilities	24	8
Total liabilities	1,994	1,853
Equity
Share capital- 5 ($0.16) par value 2,400,000,000 (1,200,000,000) equity shares authorized, issued and outstanding 2,285,619,380 (1,142,805,132), net of 11,325,284 (5,667,200) treasury shares as of December 31, 2015 (March 31, 2015), respectively	199	109
Share premium	570	659
Retained earnings	10,550	10,090
Other reserves	–	–
Other components of equity	(2,542)	(2,096)
Total equity attributable to equity holders of the company	8,777	8,762
Non-controlling interests	–	–
Total equity	8,777	8,762
Total liabilities and equity	10,771	10,615

Infosys Limited and subsidiaries

Unaudited Condensed Consolidated Interim Statements of Comprehensive Income

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

	Three months ended December 31, 2015	Three months ended December 31, 2014	Nine months ended December 31, 2015	Nine months ended December 31, 2014
Revenues	2,407	2,218	7,055	6,552
Cost of sales	1,512	1,360	4,435	4,057
Gross profit	895	858	2,620	2,495
Operating expenses:
Selling and marketing expenses	130	124	388	362
Administrative expenses	166	142	482	430
Total operating expenses	296	266	870	792
Operating profit	599	592	1,750	1,703
Other income, net	121	136	362	419
Share in associate's profit / (loss)	–	–	–	–
Profit before income taxes	720	728	2,112	2,122
Income tax expense	196	206	593	607
Net profit	524	522	1,519	1,515
Other comprehensive income
Items that will not be reclassified to profit or loss:
Re-measurement of the net defined benefit liability/(asset)	1	(2)	(1)	(6)
Items that may be reclassified subsequently to profit or loss:
Fair value changes on available-for-sale financial asset	1	8	3	16
Exchange differences on translation of foreign operations	(69)	(169)	(448)	(428)
Total other comprehensive income, net of tax	(67)	(163)	(446)	(418)
Total comprehensive income	457	359	1,073	1,097
Profit attributable to:
Owners of the company	524	522	1,519	1,515
Non-controlling interests	–	–	–	–
	524	522	1,519	1,515
Total comprehensive income attributable to:
Owners of the company	457	359	1,073	1,097
Non-controlling interests	–	–	–	–
	457	359	1,073	1,097
Earnings per equity share
Basic ($)	0.23	0.23	0.66	0.66
Diluted ($)	0.23	0.23	0.66	0.66
Weighted average equity shares used in computing earnings per equity share
Basic	2,285,619,380	2,285,610,264	2,285,614,573	2,285,610,264
Diluted	2,285,732,052	2,285,654,792	2,285,715,960	2,285,630,846

NOTE:

1.	The unaudited Condensed Consolidated interim Balance sheets and Condensed Consolidated interim Statements of Comprehensive Income for the three months and nine months ended December 31, 2015 have been taken on record at the Board meeting held on January 14, 2016
2.	A Fact Sheet providing the operating metrics of the company can be downloaded from www.infosys.com
3.	Previous period share count and EPS has been restated due to issue of bonus shares in Jun-15

Exhibit 99.2

IFRS INR Press Release

Infosys (NSE, BSE: INFY) Announces Results for the Quarter ended December 31, 2015

Q3 sequential revenue growth at 1.7% in INR terms

Q3 yoy revenue growth at 15.3% in INR terms

Q3 sequential revenue growth at 0.6% in USD terms and 1.1% in constant currency

Q3 yoy revenue growth at 8.5% in USD terms and 12.5% in constant currency

FY 16 revenue guidance increased to 12.8%-13.2% in constant currency and 16.2%-16.6% in INR terms on Dec 31^st, 2015 exchange rates

Volume growth at 3.1% qoq

Attrition declined to 13.4% on standalone basis

Continued adoption of grassroots innovation and Aikido offerings

Bangalore, India – January 14, 2016

Financial Highlights

Consolidated results under International Financial Reporting Standards (IFRS) for the quarter ended December 31, 2015

Quarter ended December 31, 2015

	·	Revenues were 15,902 crore for the quarter ended December 31, 2015 QoQ growth was 1.7%
		YoY growth was 15.3%

	·	Operating profit was 3,959 crore for the quarter ended December 31, 2015 QoQ growth was (0.9%)
		YoY growth was 7.3%

	·	Net profit was 3,465 crore for the quarter ended December 31, 2015 QoQ growth was 2.0%
		YoY growth was 6.6%

	·	Earnings per share (EPS) was 15.16 for the quarter ended December 31, 2015 QoQ growth was 2.0%
		YoY growth was 6.6%

Liquid assets including cash and cash equivalents, available-for-sale financial assets and government bonds were

31,526 crore as on December 31, 2015 as compared to

32,099 crore as on September 30, 2015

“We have been able to navigate the quarter better than our earlier expectations”, said M.D. Ranganath, CFO. “We will continue to focus on enhancing operational efficiency through multiple levers in the coming quarters.”

Outlook*

The Company’s outlook (consolidated) for the fiscal year ending March 31, 2016, under IFRS is as follows:

Revenue guidance increased to 12.8%-13.2% in constant currency;

Revenue guidance increased to 16.2%-16.6% in INR terms based on the exchange rates as of Dec 31^st, 2015*

*Conversion: 1 US$ = 66.16

Investments and Acquisitions

Completed the acquisition of Noah Consulting, LLC, a leading provider of advanced information management consulting services for the oil and gas industry.

Business Highlights

Investing in Artificial Intelligence

Increasing the Depth of Client Relationships

In Q3, we strengthened relationships with key clients, including renewing existing large scale contracts, opening new accounts and signing four large deals.

Delivering Grassroots Innovation through Zero Distance

Driving Innovation through Aikido Service Offerings

Infosys Information Platform (IIP) surpassed 200 engagements to date, with 30 in production.

Murray Swartzberg, Sr. VP IT and Digital Media, ATP, said, “We’re delighted with the technology leadership that Infosys has brought to our partnership. What Infosys demonstrated at the Barclays World Tour finals using their open data analytics platform - Infosys Information Platform (IIP) – made tennis so much more exciting for our fans and sport. Analyzing such huge volumes of data to find the right insights that helped deliver in-time foresight into the game was a first for ATP. We look forward to developing many such exciting initiatives, along with Infosys, to help reimagine the experience of tennis for us all.”

Infosys Automation Platform (IAP) surpassed 121 engagements with 47 in production.

Panaya, Skava & Edge software products continue to see strong adoption.

Skava is seeing strong traction with clients across geographies, with a record Black Friday holiday weekend– traffic and m-commerce sales through the platform were up by 50% from last year.

The EdgeVerve business sustained momentum with 24 wins and 25 go-lives for both the Finacle and Edge suite of solutions across various markets.

We have had more than 151 Design Thinking engagements with clients to date, and more than 69,000 employees have been trained in Design Thinking.

Awards and Recognition

Awarded the ‘Corporate Citizen of the Year Award’ at the Economic Times (ET) Awards 2015.

Positioned as a Leader in Gartner’s November 2015 MQ for Application Testing Services Worldwide.*

Inducted into the ‘Winner’s Circle’ in the HfS Research IoT Services Blueprint Report 2015.

Named one of the most relevant brands for digital strategy in Everest Group survey.

Named as a Leader by IDC in its Worldwide PLM Strategic Consulting 2015 report

Finacle Mobile Banking solution named a leader by Forrester Research, Inc. in ‘The Forrester Wave™: Mobile Banking Solutions, Q4 2015’ report.

Board Changes

On January 14, 2016, the Board appointed Dr. Punita Kumar Sinha as an Independent Director with immediate effect

Beyond Business

For this fiscal, Infosys has pledged 270 crore towards Corporate Social Responsibility (CSR) that is primarily being carried out through the Infosys Foundation, its philanthropic arm.

As of December 31, 2015, the Infosys Foundation has invested 171 crore on areas related to Education, Healthcare, Destitute Care, Arts & Culture and Rural Development.

About Infosys Ltd

Safe Harbor

Contact

Investor Relations

Sandeep Mahindroo

+91 80 3980 1018

[email protected]

Media Relations

Sarah Vanita Gideon, India
+91 80 4156 3373

[email protected]

Pilar Elvira Wolfsteller

+1 510 944 4596

[email protected]

Infosys Limited and subsidiaries

Consolidated Balance Sheets as of

(In crore except share data)

	December 31, 2015	March 31, 2015
ASSETS
Current assets
Cash and cash equivalents	29,476	30,367
Available-for-sale financial assets	451	874
Trade receivables	10,857	9,713
Unbilled revenue	2,976	2,845
Prepayments and other current assets	4,939	3,296
Derivative financial instruments	54	101
Total current assets	48,753	47,196
Non-current assets
Property, plant and equipment	10,039	9,125
Goodwill	3,705	3,091
Intangible assets	1,040	638
Investment in associate	104	93
Available-for-sale financial assets	1,683	1,345
Deferred income tax assets	519	537
Income tax assets	4,750	4,089
Other non-current assets	671	238
Total non-current assets	22,511	19,156
Total assets	71,264	66,352
LIABILITIES AND EQUITY
Current liabilities
Trade payables	131	140
Derivative financial instruments	8	3
Current income tax liabilities	2,967	2,818
Client deposits	36	27
Unearned revenue	1,393	1,052
Employee benefit obligations	1,268	1,069
Provisions	482	478
Other current liabilities	6,486	5,796
Total current liabilities	12,771	11,383
Non-current liabilities
Deferred income tax liabilities	268	160
Other non-current liabilities	157	46
Total liabilities	13,196	11,589
Equity
Share capital- 5 par value 240,00,00,000 (120,00,00,000) equity shares authorized, issued and outstanding 228,56,19,380 (114,28,05,132), net of 1,13,25,284 (56,67,200) treasury shares, as of December 31, 2015 (March 31, 2015), respectively	1,144	572
Share premium	2,239	2,806
Retained earnings	54,058	50,978
Other reserves	–	–
Cash flow hedge reserves	1	–
Other components of equity	626	407
Total equity attributable to equity holders of the company	58,068	54,763
Non-controlling interests	–	–
Total equity	58,068	54,763
Total liabilities and equity	71,264	66,352

Infosys Limited and subsidiaries

Consolidated Statements of Comprehensive Income

(In crore except share and per equity share data)

	Three months ended December 31, 2015	Three months ended December 31, 2014	Nine months ended December 31, 2015	Nine months ended December 31, 2014
Revenues	15,902	13,796	45,891	39,908
Cost of sales	9,990	8,462	28,837	24,709
Gross profit	5,912	5,334	17,054	15,199
Operating expenses:
Selling and marketing expenses	859	770	2,522	2,205
Administrative expenses	1,094	875	3,132	2,611
Total operating expenses	1,953	1,645	5,654	4,816
Operating profit	3,959	3,689	11,400	10,383
Other income, net	802	840	2,353	2,546
Share in associate’s profit/(loss)	–	–	(2)	–
Profit before income taxes	4,761	4,529	13,751	12,929
Income tax expense	1,296	1,279	3,857	3,697
Net profit	3,465	3,250	9,894	9,232
Other comprehensive income
Items that will not be reclassified to profit or loss:
Re-measurement of the net defined benefit liability/(asset)	5	(12)	(9)	(35)
Items that may be reclassified subsequently to profit or loss:
Fair value changes on available-for-sale financial asset	3	56	21	101
Exchange differences on translation of foreign operations	1	(30)	207	(106)
Fair value changes on cash flow hedges	1	–	1	–
Total other comprehensive income, net of tax	10	14	220	(40)
Total comprehensive income	3,475	3,264	10,114	9,192
Profit attributable to:
Owners of the company	3,465	3,250	9,894	9,232
Non-controlling interests	–	–	–	–
	3,465	3,250	9,894	9,232
Total comprehensive income attributable to:
Owners of the company	3,475	3,264	10,114	9,192
Non-controlling interests	–	–	–	–
	3,475	3,264	10,114	9,192
Earnings per equity share
Basic ()	15.16	14.22	43.29	40.39
Diluted ()	15.16	14.22	43.29	40.39
Weighted average equity shares used in computing earnings per equity share
Basic	228,56,19,380	228,56,10,264	228,56,14,573	228,56,10,264
Diluted	228,57,32,052	228,56,54,792	228,57,15,960	228,56,30,846

NOTE:

1.	The audited Consolidated interim Balance sheets and Consolidated interim Statements of Comprehensive Income for the three months and nine months ended December 31, 2015 have been taken on record at the Board meeting held on January 14, 2016
2.	A Fact Sheet providing the operating metrics of the company can be downloaded from www.infosys.com
3.	Previous period share count and EPS has been restated due to issue of bonus shares in Jun-15

Exhibit 99.3

Press Conference

PRESS CONFERENCE

Q3 FY 2016 RESULTS

January 14, 2016

CORPORATE PARTICIPANTs

Vishal Sikka

Chief Executive Officer& Managing Director

Pravin Rao

Chief Operating Officer

Ranganath D Mavinakere

Chief Financial Officer & EVP

Ritika Suri

Head M&A

PRESS

Varun

Mint

Bibhu

Business Standard

Raghu

Business Standard

Venkatesh

Business Line

Poornima

CNBC TV18

Moderator

Good Afternoon, Everyone and Thank You for joining us today. We will start the Press Conference by going straight to Q&A Session. So if you have any questions just press the red buttons on to you and the mic will get on and the camera will pan to you as well. You can start off right now please.

Participant

Vishal, a quick clarification in terms of the top-5 and top-10 clients, could you take us through what the performance been because I believe for top 10-clients have gone down marginally and top-5 has also been fairly flattish this time, so what is the outlook on that?

Vishal Sikka

The outlook is a good one. In the last three quarters the top-5, top-10 and top-25 clients have significantly outperformed the company performance, so we expect that to continue and the negative results that you have seen in this quarter is because of the seasonality in the quarter. Some of our largest clients are in the Manufacturing industry which has a lot of furloughs and things like this in this quarter and we have a couple of few Australian clients that have some currency impact. So that is the reason.

Ranganath D. Mavinakere

Just to add on, I think even though sequentially top-5, top-10 have been flat, if you look at year-on-year basis top-5 have grown 13% in constant currency and top-10 has grown 9.5% in constant currency.

Participant

Vishal, recently in November the Grassley-Durbin Bill was tabled in US House of Reps. All those speakers is not keen on passing this bill till President Obama’s term gets over. But I was speaking to Scott Fitzgerald recently and he was saying and I quote “That this bill is basically intended at Indian IT companies.” Although there is very minimal chance of this bill getting passed along with the … Bill, but in case this Bill gets passed, now Indian IT companies given that lot of onshore operations are based in US, it will have an adverse effect. How do you plan to strategize on that front?

Vishal Sikka

Local hiring, local hiring, local hiring. We are working on some advanced ways to do better collaboration across borders, not only because of this reason but because we believe that those technologies are within our reach. We call it the Visa Independent Virtual Global Delivery Model, so we are doing a lot of innovation in that area to see how we can have shared experiences of distributed teams, more and more workforces of clients are like that, so we are working heavily on that, and we are working on things like onsite DCs that we will put together. So in general long term I am not concerned about all this kind of thing. We have between 1/5^th and 1/4^th of our employees in the US who are locally hired including myself. So I do not see that decreasing any time soon.

Participant

Have you set across any kind of contingencies in this regard in your accounts?

Vishal Sikka

We always model various risk scenarios and one that could mean what their mitigation could be and so forth. So we have done lots of analysis of this type of a thing. But the long term desire of the company is to move away from dependence on visas and instead focus on these three areas that I mentioned. If you are wondering we are not so concerned about this.

Participant

Again, moving on to the financials for this quarter; when we come to segmentation, on the industry segmentation there has been quarter-on-quarter and year-on-year decrease in Manufacturing segment, in Retail and Life Sciences there has been quarter-on-quarter decrease. Again in geographical trend, North America there has been quarter-on-quarter decrease, Europe it has been year-on-year decrease, and rest of the world it has been year-on-year decrease although this is very marginal. Any particular reason for this marginal decrease?

Vishal Sikka

No, it is nothing specific that we can attribute that to other than the general seasonality of the quarter. In Manufacturing there was a one-off effect of one client who paid us a large early termination fee in Q2 more than $21 or $22 mn, so that has had a negative impact on Manufacturing and also on Infrastructure Management and North America, but obviously US is still majority of our revenues comes there and we do not see any reason to be concerned there.

Participant

Your release also mentions that you acquired Noah Consulting recently in this quarter. What was this deal value? You did there is another investment which talks about you have invested in WHOOP Cloud Migration and Cloud based deliveries recovery. So how much was investment in that regard?

Ranganath D Mavinakere

Noah was $30 mn and the revenue from Noah during this quarter was $3 mn.

Participant

A couple of questions; why only local hiring? Will you also look at moving more work offshore because of increased costs and would not local hiring actually increase the cost because I am sure the wage differential is still there? Secondly, if you can tell us about the broader shifts that you are seeing in the industry because on the one hand people are talking about how a lot of consulting companies like the McKinsey, the Deloittes of the world are taking away a lot of digital spend because of their expertise in consulting, and on the other hand traditional segments like Infra is also coming under pressure because of Amazon Web Services and Microsoft Azure. So what place have you identified for Infosys here and will you need to make more hires in the Consulting space to really ensure that you do not lose out on Digital spend by clients?

Vishal Sikka

Amazon Web Services and Microsoft and these Cloud providers are tremendous partners for us and a huge opportunity that we see these days is the migration from legacy landscapes to the Cloud which companies like us can contribute to. So we have a very strategic partnership with both of them and we expect to continue to grow substantially because of that. When it comes to the so-called digital area, the ability to design experiences and get software and digital technology into areas, the software was never there before, this is also a big area of growth for us, in fact, our leadership team was just talking about this at lunch that building more expertise in the area of constructing experiences, constructing designs is an area that is very important to us. So we will continue to invest in that.

As far as Consulting is concerned, the traditional form of consulting has sort of been dominated by implementing package systems and you can call it a best practice from certain industries on certain scenarios, but the idea of a best practice itself is somewhat backward looking because you are identifying a practice that is only not innovative but it is the best one out of all the ones that have already been tried. So how can that possibly be something next generation? Instead I think that future of consulting especially when it comes to strategy and new areas is more like Design Thinking where we can help our clients identify the important problems and important strategic areas and work on that. So we are shaping our Consulting business in this direction. And then having said all of that, the fact that Consulting grew this quarter a little bit whereas the other ones did not, there is no particular significance to that, this is just the way individual quarters are. So I do not see any big trend there.

On the local hiring, it does not change the economics, because there are some variations and so forth, but generally there is a parity. If we transition to more local hiring and use these real-time virtual collaboration technologies to enable better experiences between remote teams, that will more than adequately compensate for sending people on visas and things like that.

Participant

Vishal, in terms of your revenue per employee you state within $51,000 to $52,000 roughly, you have a target of $80,000 by 2022. What is the near term given the innovation that you have been putting into place, the newer technologies that you have acquired, in the next couple of quarters, what is the scope to be able to inch up or increase revenue per employee say in the next immediate two to three quarters?

Vishal Sikka

I have said that before as well that we have three dimensions to our aspiration for 2020 -- there is $20 bn in revenue, 30% in margin and $80,000 in revenue per employee. I believe that from a time perspective, the revenue per employee of that will be the most trailing one, the revenue growth achievement because of the advanced nature of the offering and the more innovative offering will come first followed by the margin, followed by the RPE. So I would not see an effect on that in the immediate term. Ranga mentioned the numbers; our revenue per employee has dropped and the pricing has dropped about 4.5% on reported numbers over the last 1-year and on a constant currency it is about 1.1%. So that means that unlike the other fluctuations this is a more structural trend that is there in the industry and that impacts revenue per employee more than anything else. So we have to deal with that primarily with Automation and then taking advantage of the saved bandwidth with innovation. Last quarter we saved 1,100 people worth of work because of Automation which is a huge number, however, it is only 1% or little bit more than 1% of our entire delivery organization. So it is going to take time before the Automation-led revenue per employee productivity can kick in.

Ranganath D. Mavinakere

There are some short term levers, and as Vishal rightly mentioned some are medium term levers. If you look at the short term levers for example, our utilization is still at 80.6% and there is scope for improvement there, it used to be in late 70s as recent as last year, we had come to consistently above 80% in the last four quarters. Not doing anything just improving the utilization, all other parameters remaining constant, per capita can go up. So we have certain short term levers which we have to fully leverage and some are by definition like productivity improvement, automation are medium term levers, that is what Vishal talked about.

Participant

And what is the revenue per employee this quarter?

Ranganath D. Mavinakere

$50,500

Bibhu

Dr. Sikka, Bibhu from Business Standard. Just a couple of observations may be to clarify; I am just noticing your top client contributions has remained kind of flattish; the number of $300 mn client has remained stagnant, $200 mn remained stagnant, $100 mn has in fact one down by 1 whereas in the other end I can see all this $1 mn, $5 mn, $10 mn, $25 mn client numbers has really gone up. In the last few quarters where Infosys have been adding huge number of clients, people are wondering whether this is right approach, when they will start contributing to revenues? Even this quarter also you have added 75 new clients. I was trying to understand these clients when you are focusing on Digital, Next Generation Services kind of things, have those clients started contributing because you have been focusing on top client mining. So the clients who are not in the 50-70-100 mn kind of range, they have been growing faster or are you seeing that kind of trend? Is it a sign of non-linearity which you have been cultivating ever since you joined the company, is it at play? The next question is are you achieving industry leading growth as far as target next financial year?

Vishal Sikka

Let me answer the last one; yes, we do expect to get to industry leading growth in fiscal 2017 which is the financial year beginning in April, we feel confident about that.

Pravin Rao

In order to achieve industry leading growth, we have to fire on all cylinders. So in our business there is still enough headroom for opening new accounts, so we have to continue to do that. So whatever accounts we open today will probably be growth accounts for us 3 to 5-years down the line. Then we have this top-10, top-20 clients, we have to continue to mine them. So in some quarters you will probably see lower growth there because of the seasonality and other things. But nevertheless we have to focus because if your top accounts which significantly contribute high percentage of revenues, they do not grow, then it will have an impact. Then, obviously the opportunities in that $1 mn account to $5 mn, $5 mn to $20 mn, so we have to work on those as well. So it is a multi-pronged thing. You have to work on all those things for you if you have to really aspire to be the industry leading growth.

Ranganath D. Mavinakere

On the large clients’ growth, just to add on, generally Q3 is a seasonality; it is a soft quarter so you should not read too much into quarter-to-quarter, if you look at the year-on-year, as I was saying earlier the company grew 12.5% in constant currency. If you look at the top-5, they grew at 13% above the company average. Of course our endeavor is certainly to continue to mine the top clients and we will continue to do that.

Varun

Varun from Mint. Sir, a couple of questions to you and Pravin. Firstly there has been a sequential decline in revenue per FTE over the last four-five quarters. You have been embracing so many new technologies. By when can we really see this revenue per FTE which is a very important metric to really go up?

Vishal Sikka

That was the question that I answered earlier. As I mentioned there are short term measures that impact revenue per employee which is around utilization, onsite/offshore ratio, roll ratios and things of this nature, which will continue to press and work on but the main structural way to impact this is automation and to bring automation into everything that we do and to complement that benefit of automation with innovation, with more high end creative work that people can do. So therefore this particular metric unlike revenue and even margin will take the longest out of the three of them to adopt but we are not concerned about that, we still feel comfortable and the more time that goes by the more comfortable we feel with this aspiration that we have set of $80,000 revenue per employee by 2020, it is just that we expect that this will kick in a little bit later than the others and will grow faster than the others. Because the more productized services, the more software oriented technologies that you add into an existing people-oriented service, the economy of scale builds up over a period of time so that the marginal cost of adding new customers to that continuously goes down as the software has achieved bigger scale. So the benefit that you see of this revenue per employee improvement will increase as time goes by, but out of these three it will be the slowest one to kick in.

Varun

Pravin, some people believe that with Infosys signing so many large deals, there is always an element in the ways some of these deals are being structured which could impact the balance sheet, meaning you are taking some of the employees of some of your clients; some of the software may be proprietary software. Is there really some concern at least over the last 6-months when you have increased your total deal size wins from $400 to about $900 mn TCV, and what could be some of the more risks if at all there are any?

Pravin Rao

That is the nature of the beast, right, because in the past we shied away from many of those things and actually reflected in under performance. So that is the market reality. Today, clients clearly expect someone single person to take end-to-end responsibility there. Sometimes when they are outsourcing they have people who come with core knowledge to make the outsourcing successful, they would entail that you have to rebatch some of their core employees so that there is no loss of continuity and things like that. Because they are expecting end-to-end thing, they also expect you to take on hardware, software and things like that. So that is the nature of it. But this predominantly in your large deal involving Infrastructure Management and other things. But there are large deals which probably do not have this aspect as many other deals which are purely ADM-oriented or there BPO towers where it may not call for you to have Infrastructure deal. I do not think it is a concern. That is the nature of where things are heading and it has been in vogue for the last 3 to 4-5-years I would say, but we have not been very active in the early part, but in the last 12-18-months we have become very active in this space.

Varun

Vishal, you made a lot of investments in startups, bought three companies, how are you making sure that most of these technology is able to reach across to the clients, so say a Panaya Technology reaches out to a client or Noah Consulting or even WHOOP, the startup, that kind of technology reaches to the client. Are you incentivizing say some of your sales people that if they cross sell, sell more of the new technologies, will that be a fair question to ask, how do you…?

Vishal Sikka

We are seeing a great adoption of Panaya, Skava and Noah. This is just the first quarter of Noah. So it is still early. But if you look at Panaya, the largest deal that we did in Q2 was the smallest of the top-5 deals in Q3. So it is growing and tremendous adoption is happening in the Infosys clients, sold by the Infosys sales team. So I feel really proud of that. Perhaps Sandeep or Manish, Mohit or Rajesh could talk about this from their own experience. But both Panaya and Skava are being heavily embraced. More and more of the startups that we work with including the startups that we invest in are making their way into solutions that we build for clients. That is a good thing because we can bring the latest technology from startups to these clients and WHOOP is a particularly interesting company, Nicholas Negroponte is an advisor to the company. They do this variable technology for a more advanced scenario of professional athletes and optimizing their performance by measuring various kinds of data coming from their body and so on. If you look at the technologies like Jawbone and Fitbit and these things, they are advancing more and more. So these kinds of technologies are going to become increasingly prominent and become increasingly mainstream, and we believe that they have tremendous applications in many different industries. We invested in a small company called Spec, which is an air quality monitoring company, by the way in Bangalore we could use that in these days. Here in Bangalore our facilities team has dropped a few Spec appliances in a few buildings to measure our own air quality. These are very exciting new areas which can have a significant impact in the way businesses of the future work and we are working to integrate these into our offerings more and more.

Varun

Three quarters of industry-leading growth and you have always kind of under promised and over delivered, even the guidance what you have given unless you see something which we do not, why are you under promising and over delivering, why would not Infosys come out and make a bold call that we will be delivering industry-leading growth number by the end of this quarter?

Vishal Sikka

Varun, this whole under promise, over deliver, all these type, life is too short to believe in things like that. That is how I have lived. There is no under promise, over deliver going on here. The three of us, the visibility that we have on this quarter tells us that we will get to 12.8% to 13.2% and by the way the 12.8% is higher end of guidance that we gave earlier 10% to 12%. So this is basically based on what we see right now, this is what we think we will end up at. So that is what we have said, there is no more or no less to it than that.

Varun

Three quarters of industry-leading growth numbers. Can we confidently say that Infosys has now got its mojo back that where every quarter you will be able to deliver, match up with the industry matching growth number?

Vishal Sikka

All that kind of labeling is something I do not particularly believe in. But, when you walk around the campuses and I have been going around our DCs the last few weeks, one thing we can say and perhaps my leader colleagues can join and share their point of view, there is a tremendous sense of positive energy in the campuses, there is a great spirit of enthusiasm and creative confidence. I distinctly feel that compared to 1-year ago or even compared to 6-months ago. That I think, I have seen that continually and I feel that whenever I talk to employees and so forth, so that is something that we feel very good about. I think that is one of the key reasons underlying some of the good performance and which is the contribution and the spirit of the Infoscions. But beyond that all the other stuffs and mojo and all this, this is something for others to label us with, I do not pay particular attention to that.

Participant

I just wanted to ask if you could give us some details about your high margin segments like growth forecast in segments like Digital and Automation? What effects will the China’s economic situation have on the Indian IT industry, how serious is this concern and how will it impact global IT spending?

Vishal Sikka

How will it impact global IT spending? I have no idea. Our China business has grown significantly although it is a relatively small number, but it has continuously over the last four quarters grown. So we are very excited about our prospects in China. I think Chinese companies need both new kinds of services and renewal of existing legacy landscapes and we are seeing that in our own performance. So we feel very good about that. In terms of Automation and the prospects there, last quarter we saved about 1,100 people worth of effort because of bringing Automation to existing services primarily in Infrastructure, but then also in other areas, and as time goes by we are expanding this significantly both in terms of the kind of scope of the automation that we apply our software platform to as well as in the kinds of scenarios that we apply this to, for example, in Application Development that people typically do not think of Automation, we have been working on simplifying and integrating the experience of the software developer across tools and our quality team has been looking into that and something that is very promising, I feel quite excited about that, we feel that we can significantly improve and also improve the experience of a software developer but also their productivity. So we are bringing Automation in beyond the traditional basic rule oriented ways to more advanced areas and we expect to continue to see the benefits of that. The 1,100 people that we have saved with the Automation so far, it is relatively small amount of effort but we expect this to grow significantly over the next several quarters. Digital is the same kind of a thing, smaller projects, more innovation, more co-creation with clients and things like that. That requires us also to get into new areas, so for example, when we acquire the Skava technology, this is the area that we have been focusing on, and Skava has been going significantly. So we do expect to continue to see more growth in that area.

Raghu

Vishal, Raghu here from Business Standard. Just want to get a sense of till the time when your clients finalize annual budgets for the year end, what is the sense that you are getting from the clients, how would be the budget be?

Pravin Rao

There is still some uncertainty on the budgets, we are not finding budgets finalized yet, but our sense is budgets are likely to remain flat or marginally down, may be in one or two industries it may go up, but definitely in some of the industries which is challenged like Energy for instance definitely, there is tremendous pressure on budget. Having said that in the last few quarters or in the last couple of years, budgets in the traditional sense had not much relevance, because given the volatility, clients are really looking at quarterly budgets and the budgets move up and down based on the client own context and the industry macroeconomic and industry realities. There is always a tremendous focus on cutting costs and repurposing the saving into some of the transformational areas, new technologies and so on. That trend will definitely continue. So in that sense while budgets are still yet to be finalized, our sense is it will stay flat, but will continue to see quarterly variations.

Participant

For which you are telling budget?

Pravin Rao

We will see increased spend on discretionary but that spend will come from savings in non-discretionary, in the traditional burden but our operational side they are cutting cost and they are re-purposing so that they can spend more on the discretionary side.

Participant

Looks like the onus is on you as a vendor to do all this adjustment and tell them that don’t cut the budget we will save from here so you can put that all in the other one.

Pravin Rao

Yes absolutely. More you are able to give new ideas to clients, ideas on cost saving, at the same time give them ideas on how they can leverage some of the newer technology in terms of driving growth and improving their market share and so on, definitely whoever does it better will capture a larger share of the client spend.

Participant

Are you giving us an optimistic or what exact sentiment is there because the Gartners and then others have said the spending will be definitely be there, you are not sounding positive, I don’t know which of the thing it is?

Pravin Rao

On the discretionary side we said people are spending but the budgets by itself is not really increasing. There are odd clients here and there you will see some increased budget depending on their own context. Budgets are really a percentage of revenue, so in an absolute sense budget will increase because if the company is growing, if they are spending ‘x’ percentage of revenues on IT, so to that extent absolute number, budgets will grow. But at the same time today if they are spending ‘x’ amount of money on business and IT operations side, they want to do same stuff with lesser money and with the savings they are actually ploughing it back into investing in newer areas and so.

Vishal Sikka

The important thing that we see is that even though the client budgets, like Pravin said, are declining in some case and then they are taking advantage of the savings to get into new areas and we need to be agile to address that, the important thing is that if we are able to address their needs, then despite their decreasing budgets our growth continues to increase, this is I think the important point that needs to be made.

Participant

And you are exploring beyond the software to the products, this is all in so far as the software budgets are concerned, right? Are the clients looking at software products and then other kind of products which could be leveraged with your Services?

Vishal Sikka

We are a Services company and we have no desire to become a Product company. But yes, we are bringing software and software driven technology to the Services that we do so software is more and more a part of what we are doing. For example, the Automation platform or the Big Data machine learning platform or Panaya or Skava, these are all software components that we bring into our offering but we are not going to become a Product company.

Participant

There is a question regarding the start-up investments from here. You have invested around $25 million or so in a number of start-ups so far, so can we see more investments activity on this front and is there anything new on cards that you have to announce?

Vishal Sikka

Ritika is sitting back there, perhaps she can answer.

Ritika Suri

On the new one obviously I am not going to comment. On the existing ones as we have seen in the news releases we did two last quarter, we have done six in total so far but it’s a very agile as well as vibrant start-up community so as and when it makes sense, of course, we will be making the right moves.

Participant

You have set aside a certain amount to invest in Indian start-ups. We have not seen any action on that front yet so could you give an update on that?

Ritika Suri

I don’t think we have actively not tried to invest in the Indian start-ups. The way just structurally Indian start-ups are, most of the enterprise start-ups are Delaware or Singapore or Maldives entities, so even if you invest in them, structurally it comes across as its non-Indian but we have answered as you remember two quarters ago, we are also looking at other VC investments.

Vishal Sikka

Ritika, you were visiting those ANSR folks day before yesterday, perhaps you can talk about that.

Ritika Suri

Yes, ANSR helps with global in-house capabilities for multinationals, so they have a couple of GICs. They have set up one for L Brands and other one for Lowes. For me personally also I was telling Vishal, pretty eye opening, the kind of robotics work that is coming out of here, out of India. So we are very much interested. Obviously we want to make sure we invest in the right technologies.

Participant

Just two questions Mr. Vishal. I could not get a single quote from you today in the release which we could use with the results. You are giving more ‘gyan’ to us and more about Infoscions, about innovation and all which is very good. But in connection with the figure, cold or hard figures that you have given what you have to say about the performance, that was left to Mr. Rao very economical in his observations so also Mr. Ranganath, they don’t substantiate to us or qualify why this guidance has been revised because last time when I asked you were hesitant reluctant as usual being a conservative company not to share, so that is one thing. First if you could tell how do we interpret? This is not rocket science but we are not so technical, commercial. In the Dollar what is the difference Mr. Ranganath if you could tell? And also sir, you have tell, Mr. Sikka, about the performance, what you gave quote is about your people which is good but not about the results which is unusual. And you have to give us a sense of how the global spending is going to be because the reports say the global economy is not going to be as good as the Moody’s and others have projected.

Vishal Sikka

Thankfully predicting the global economy is not the business of Infosys. Maybe I have a nice quote for you - When the times are good people need the Infosys innovation and when times are bad people will need Infosys innovation, how about that? Does that sound like a good quote?

90 days ago when we were looking at this last quarter that just passed, we anticipated lots of seasonalities, the things that happen in our industry, furloughs, less number of working days, things of this nature. We also had additional headwinds in certain industries, in Oil and Gas, Telecom, Retail saw Black Friday, Cyber Monday and the holiday season coming. So there was a sense of apprehension about somethings that can happen and so our visibility was what it was and we said what we said back then. It is not about managing expectations or under-promise and over-deliver, none of that was at play but simply the visibility that we had and based on that we said what we have said. And despite that when the Chennai floods happened then obviously that was another headwind that we had to deal with. And I am very proud of what the company has done to navigate this atmosphere and to achieve the results that we have achieved. Obviously we want to see more growth than 1.1% on constant currency but under the circumstances and where we were, we had a remarkable Q2 and on top of it there were already a 6% growth and then including that one-time payment it was a 7% growth or something like that. So to achieve growth on such a quarter is a great achievement and I am very proud of the team for having done that. But having said that, this is based on what we see right now. We are optimistic about our prospects in the near term and so we are raising our guidance for this financial year to 12.8% to 13.2% on constant currency terms.

One other thing I will tell you about quotes which you have to think about a little bit before you will appreciate is that for every ‘out of sight out of mind’ there is an ‘absence made their heart grow fonder’.

Participant

Is it basically because of the volatility, because in the Dollar it is 8.9% to 9.3% while it is in Rupees 16% if you could explain, so we could supplement to our figures.

Ranganath D. Mavinakere

As Vishal said, in the beginning of the year we gave a constant currency US Dollar guidance of 10%-12% and that was based on the visibility we had at the end of that year. Q1, Q2 and even Q3 we reiterated that guidance throughout and as Vishal said, at the beginning of Q3 there are seasonality, furloughs and we anticipated more furloughs than actually happened, likewise some client specific headwinds, so we had to navigate through a tough quarter. So at the end of this quarter when we look at it if you look at the first nine months in constant currency basis we have grown 12.5% year-on-year, first nine months to last year’s nine months, that being already 12.5% and looking at the visibility that we have at this point in time we said that look first nine months we have already done 12.5% so if there is a need to re-look at this particular guidance, that's why we increased the guidance.

Participant

Non-operating impact because of the volatility, because you see, March 31^st it was 62.50 now it is 66.16, the Rupee. It is Rs. 4 if you see the difference. How much it has actually contributed than the operational side? The non-operating income, is it what making you to revise it upwards?

Ranganath D. Mavinakere

Actually it's not a non-operating income part because yes, in a way that the currency has two parts, the cross currency between Australian Dollar-USD, USD-Euro USD-GBP, about 70% of our revenues come from US Dollars and the rest from the others. So, for example, in this particular quarter, the cross currency has impacted close to about 0.5%. Rupee-US Dollar rate is beneficial to us because, for example, the offshore costs tend to be lower in Dollar terms when the Rupee depreciates. This particular quarter we got some benefit out of the Rupee depreciation as well. But when you look at the guidance, the US Dollar guidance is based on the constant currency, 12.8%-13.2% corresponds to 8.9% to 9.3% in reported currency, likewise in Rupees.

Participant

If you could clarify because we are not so familiar, does this constant currency which you tell us so much, does it really translate into real figures or is it only a comfort level?

Ranganath D. Mavinakere

The thing is currencies move from month to month, day to day, hour to hour. In the beginning of the year when we give guidance it has to be with reference to a benchmark otherwise people will get very confused because otherwise which currency are we talking about. So in pure transparency we publish both the numbers, 10%-12% constant currency along with that if you look at even this quarter we said based on December 31^st rates it will be 8.9% to 9.3%. So every quarter we come back and say that look based on the current currency rates what is the yearly growth look like, so we want to be transparent and give both the numbers.

Participant

And you tell your transparencies with respect to billing, is it in which currency, constant currency?

Ranganath D. Mavinakere

Our billing depends upon where the clients are located, for example, all the US clients obviously in the US, some of the UK clients will be in British Pounds, some of the Australian clients will be in Dollars.

Participant

Yeah but it is at the rate at which you tell us, conversion rate in the quarterly?

Ranganath D. Mavinakere

In a way, yes, for example, if our let’s say Australian Dollar we have certain income or rather revenues from Australian clients, if you translate that into the constant currency that we published at the beginning of the year, how much does it translate to, likewise based on the current currencies how does it translate to. So obviously as the currency mix of our revenue reflects the difference between the constant currency and the reported currency.

Participant

One sentence on the operating profit, EBITDA margin for nine months being 7.6 and 1.8 in Dollar terms for this quarter.

Ranganath D. Mavinakere

If you look at the operating margins for the first nine months was 24.8% and if you look at this sequentially from last quarter to this quarter it has dropped by 60 basis points which is 0.6%, last quarter we were 25.5% this quarter its 24.9%. The reason for drop, is the breakup is something like this, 1.1% drop was on account of the pricing decline which was offset by a combination of lower variable pay that we paid and Rupee depreciation amounting to 1.1% both put together, that kind of offset that pricing 1.1% decline. In addition, we had lower utilization, Noah acquisition consolidation plus also the higher subcontractor cost; all put together resulted in another 60 basis point reduction, that's the simple math.

Participant

Has the Total Contract Value come down?

Pravin Rao

TCV, this quarter we won four large deals, total TCV of $ 362 million whereas last quarter we had won five deals close to $1 billion. In addition to that we actually renewed a contract of close to $ 600 million. Since it doesn't fit into our classification of large deals we have not added to this. In addition there were about three deals which got pushed out to this quarter because of holidays. Two of those three deals we have closed in the last 15 days and we expect to close the third one any time soon. So overall we are pretty comfortable with the pipeline and the win rate on large deals.

Venkatesh

Dr. Sikka, this is Venkatesh from Business Line. Just want to understand here, the visa fees hike that has happened, what is the impact of that or does it kick in after four years since the average visa spans around four years?

Ranganath D. Mavinakere

I think it is difficult to estimate exactly how much it would be for the next year and yesterday there is some other announcement which is kind of giving a different picture from what we understood based on the earlier announcement. However, there are two components to the Visa fees. One is the new Visa applications that we apply, what is the fee increase there, that's about $ 2000. Likewise for all the Visa extensions H1 and L1 extensions that we undertake there is a fee increase of close to $ 4000. There is some element of confusion on what exactly is there on the extensions or not but at this point in time if we assume that it is there and if we assume that our visa new applications as well as the extensions are very much like last year or rather the current year then the impact would be around 30 basis points.

Participant

Today is Thursday. Saturday the start-up, Modiji is doing. In the light of all that hype that is being built up in Delhi - what are your thoughts as an industry player or as a company and how much of this what he is doing in Vigyan Bhawan, I don't know how many from Infosys are invited to participate there, big show, intent is good but one of your former Director said in Bombay, Mr. Pai, that maybe it’s a worldwide trend of about 70% or 80% of the start-ups will not actually click. In the light of this, as an industry player if you could give us is the realistic picture because last time also you shared with us your own reservations or serious observations about this Made-In-India, Digital India and all, you aren’t yet part of the big play.

Vishal Sikka

We are participating in both Make In India when the Make In India Week happens in February we will participate in that and we are participating also in the Prime Minister’s Digital India campaign in many different ways and working with many different ministries and government agencies. The start-up movement in India is actually a very healthy sign. It is a very good sign. It's a very positive sign of a growing economy, of innovation, of an innovative youth culture and that’s a very good thing and I think the more that can be done to encourage that, whether it is at the government’s level or by companies like us the better. Ritika mentioned this already, we are participating in that in many different ways, we are investing in start-ups and mentoring them wherever possible. One of the things that I am excited about is to help rethink the idea of incubation in a very interesting way and you will hear more about that in Make In India Week. We are also working on helping bring some scale to some of these start-ups and also to bring start-ups to our clients through their joint solutions. So I think that overall the emphasis that is being placed in India on start-ups and on entrepreneurs is a very good thing. Of course it is true that vast majority of start-ups fail, however, entrepreneurs never fail, this used to be a saying in Silicon Valley, that start-ups fail all the time but entrepreneurs never fail. So I think it is a good thing. Although frankly I wish that the bigger start-ups had more respect for profit margins that would be a good thing.

Participant

It’s like that cart put before a horse what about for closing down we don't have the law yet in place, exit?

Pravin Rao

I think that was one of the critical demands from the start-up industry and the government has recognized it and we believe it's a good move, because the bankruptcy law in India was pretty

Poornima

Poornima from CNBC TV18. Today there was an internal e-mail circulated announcing Michael Reh is quitting. Maybe this quarter he will be there but there will be a smooth transition. What is the plan for his role, have you already decided on his replacement?

Vishal Sikka

Michael is with us. He will stay with us for the foreseeable future. It is simply that he has four little children and lives in Germany; he has clients all around the world. Now we have in the last few quarters also added American Banks to the Finacle portfolio and with the integration of Edge, so that was just the amount of travel burden on him is just too much and we need to find a solution to this problem. He is still with us and he will be with us certainly until the end of the quarter but also beyond that in some kind of a capacity as a Consultant or something like that, we are still thinking through all of that. So I don't want to speculate on anything because we just talked about this yesterday but Michael is a very dear friend and he is an incredibly integral part of our team, but we have to figure out a solution to this problem of how do we make this work.

Thank you very much, thanks everyone.

Exhibit 99.4

Common TV Address

COMMON TV Address

Q3 FY 2016 RESULTS
January 14, 2016

CORPORATE PARTICIPANTs

Vishal Sikka

Chief Executive Officer& Managing Director

Pravin Rao

Chief Operating Officer

Ranganath D Mavinakere

Executive Vice President and Chief Financial Officer

PRESS

Chandra

ET Now

Rukmini Rao

Bloomberg TV

Vishal Sikka

Hi. Good morning everyone and thanks for Joining us. I am very pleased with our performance in Q3. Q3 has a lot of seasonalities traditionally in the industry and also in Infosys, it is a quarter with some challenges. So when we were looking ahead to Q3 a quarter ago especially coming off an amazing performance in our Q2, we were anticipating some headwinds, we were anticipating furloughs and less number of working days and things like that and then we had the devastating floods in Chennai. So despite that, I am extremely pleased with the really amazing performance by our team that we have achieved 1.1% constant currency growth, revenues have crossed 2.4 bn and we managed to grow by more than roughly 12.5% on a year-on-year basis and still delivered 24.9% margin and a small EPS growth. Volume growth was very strong at 3.1% in this quarter. So we are very happy about that. Based on all of these, we are increasing our guidance for this current financial year to 12.8% to 13.2% on constant currency terms compared to our previous guidance of 10% to 12% on constant currency terms.

Overall in the quarter we saw growth especially the thing that makes me proud is broad based growth coming from innovation. Some of the grass roots innovation initiatives that we have embraced have started to produce tremendous results. More than 90% of our delivery organization is now participating and Zero Distance has come up with some innovation, some value in every ongoing projects. So it is a very-very large scale innovation endeavor. We are very proud of that. On the systemic innovation, on the AiKiDo Services, we have seen significant adoption, we see continued great adoption. The automation that is powered by our Automation platform, in ‘AI’ in the last quarter we saw more than 1,100 people equivalent simplification meaning removal of 1,100 people worth of work because of Automation. So that has already started to show results. Our Information Platform, our Big Data and Machine Learning based Analytics Platform has now reached 200 of our clients. So that is something we are very proud of. We saw growth in Finacle, in Edge as well as in Panaya and Skava starting to reach scale.

In key, we are very proud of a lot of work that we have done with clients in managing the renewal of their legacy landscapes. We have launched a substantial effort in moving legacy systems to the Cloud with new modern architectures and new modern software development techniques, that has started to reach a good scale and in particular in Design Thinking we have crossed 150 client engagements now and that has started to show results.

Overall, quite pleased with the broad-based results that we have started to see in the quarter and that sets us up for a good quarter ahead and a financial year ahead of us.

Interviewer

You have upped the guidance for the next quarter. Do you still see a strong Q4 also despite what is going on globally in terms of the markets suffering so badly?

Vishal Sikka

People ask about what is happening broadly in the markets and my personal take always is we are seeing a tremendous disruption in every industry around us on the power of computing, on the power of digital technology. When the times are good people need innovation and especially when the times are bad, people need innovation. So we think that we are fortunate to be in an industry where all the capabilities of Infosys are perfectly aligned with the direction that our clients are looking for. Whether it is the renewal of their existing landscapes or getting into completely new areas where software is making its way for the very first time, with the power of intelligent systems and new digital experiences. So we are optimistic about the future. Obviously, we are not any more or less immune to the outside forces than anybody else and there is a lot of stuff going on in the world around us. But generally based on our visibility, based on what we see in our client atmosphere, we see enough confidence that we are improving our guidance for the remainder of this financial year.

Chandra

Hi! Chandra from ET Now. I have a question each for Vishal, Pravin and Ranga. Vishal, I think this is the third quarter when Infosys has come above what the street was estimating. So help us understand, is it because your mining existing business is better or has AiKiDo already started translating into growth because you articulated the strategy barely I think a few months back, so help us understand what has led to the sudden turnaround that we are seeing? And does this mean you will achieve the bellwether status even before the next fiscal? Are you on course for that? Pravin, give us a sense of the total TCV this quarter because there was an analyst report which said that you guys are targeting over $1 bn to $2 bn every quarter? Ranga, despite Chennai floods, despite cross currency margins have still been better so volume growth would have been a factor, but apart from that what has worked for you?

Vishal Sikka

So, it is difficult to say, Chandra. I have been here with my family in the last three weeks going around our different DCs and visiting our employees everywhere. There is a tremendous sense of optimism, a tremendous sense of positivity in the company, there is a sense of confidence. David Kelly talked about this idea of creative confidence and I see that. Yesterday Pravin and I did what we call our Zero Distance Session where 25,000 to 30,000 people show up and there is an incredible atmosphere and that I think more than anything else leads to all the positive atmosphere and the positive results. I think if you break it down, it is still too early for the big initiatives to have kicked in. It is largely a result of increased confidence. We have equipped our teams with much better tools, with much better solution, much better capability. If you look out our deal wins, our win rates have increased dramatically, our attrition has come down dramatically; we are at 13.4% now on a standalone basis. I think that the bad attrition of Infosys is a long and distant memory. So overall there is a lot of things that are starting to kick in. I would say the big contributors are this positive atmosphere, this equipping our teams to win better deals and delivery excellence which is now starting to show up in the work that our teams are doing in Zero Distance. I am a believer in Innovation, I have been in the innovation areas, basically my entire adult life and it is relatively easy for a company of our scale to set up an innovation center and establish a Center of Excellence at some corner of the world. But to get 90% of the delivery organization to think of themselves as innovators, this is not easy. I think that is something that our teams have managed to do. That has been quite amazing.

AiKiDo is kicking in and as you can see every quarter we make sustain progress, we have more than 40 deployments now of our Information Platform solving complex Big Data problems in a breakthrough new way. We have 200 clients now that have embraced this and 40 are already in production. So this is quite an amazing achievement already. We have done more than 150 Design Thinking Engagements, 70,000 of Infoscions have been trained on Design Thinking. So that has started to kick in. Some of the Knowledge-based, AI-based renewal efforts in our key initiatives have started to kick in. We have many clients who have shared their success with us – ABN Amro Bank, Deutsche Bank, Mitsubishi, Boeing. All these companies have started to see results of the work that we have been doing. So we are really proud of that.

Pravin Rao

In terms of large deals, we have won 4 large deals totaling about $360 mn TCV. In addition to that, we have won 1 potentially large deal which is more than close to $600 mn but it is not exactly committed. So being consistent with our criteria we are not calling it out, adding it to the large deal. We had 3 deals which we are about to close but because of the holiday season it got pushed out and 2 of the 3 deals in the last 12-days we have actually converted it. So from that sense, I think we are pretty confident about the large deal pipeline. We have a total pipeline of close to $3 bn. So all in all, I think the pipeline is very healthy and it is consistent with what we have been focusing on.

Ranganath D. Mavinakere

Hi! Good Morning everybody and Happy 2016. Many of you have reminded me, “This is your first quarter. This is your first quarter.” It is almost like first quarter feels like first love, in the sense that highly exciting, at the same time, a lot of unexpected pieces as well. I think this quarter we have navigated really well. Q3, as Vishal was mentioning, traditionally there are seasonalities, there are furloughs and lower working days and things like that. But I think we navigated better than our expectations. If you look at year-on-year growth in constant currency we grew 12.5% and reported 8.5%. If you look at the first 9-months likewise 12.5%. Coming to margin question that you asked; our margins if you look at the first 9-months are at 24.8% and this quarter the margin dip by 60 basis points from 25.5% to 24.9%. If you look at the math, it is very simple; the realizations which came down by 2.5% contributed to about 1.1% drop which was compensated by to some extent rupee as well as the lower variable pay which kind of compensated that 1.1%, In addition, we had the utilization as well as the lower consolidated and higher subcon cost average is additional 60 basis points. So net it was 60 basis points drop. But the point to remember is our medium-term outlook on margin continues at 25 (+/-1). For the first 9-months we have done 24.8%.

We have levers, for example, our utilization lever is still there; if you recollect about 4-quarters ago, our utilization used to be in the late 70s, now consistently over the last 4-quarters it is in early 80s. We still believe that we have scope for improvement of utilization. Likewise, onsite effort mix is at 29.5. We do believe that we have lever state to reduce that. Likewise, the onsite role ratios and so on. So, I think overall if you look at this quarter we have navigated well on multiple dimensions. There is scope for operational efficiency improvement and we will continue to focus on that as Pravin said. On the guidance, earlier it was 10% to 12%, now we have increased it to 12.8% to 13.2%. If you look at the first 9-months itself, it is 12.5%. So that is a broad perspective on the quarter.

Interviewer

Congratulations, Gentlemen, for a good quarter. Vishal, I wanted to understand from you; as far as FY17 is concerned, how sustainable is this growth? Keeping in mind areas which are fairly softer including Oil & Gas, Aerospace, Insurance, are you confident that this traction will continue? More importantly, for FY17, how sustainable is the IT budget pipeline, the deal uptick that you are seeing right now? Pravin, there is North America decline in terms of revenues. What is the outlook for the United States geography right now? Of course, there has been the ominous spending bill which will be increasing H1B and L1 visas. So what is your perspective, what is the kind of impact on margins? Ranga, first quarter not you had a good luck charm. So any possibility for increasing that 24% to 26% margin band for FY17?

Vishal Sikka

I think the overall climate looks good. We mentioned 12.8% to 13.2% for this financial year which means that we are comfortable with what Q4, this current quarter looks like. That will set us up for a nice ability to execute in the year ahead of us. We will give our guidance for the year in April or whenever we do our earnings next as we look ahead to the year in front. But as we have stated previously, our confidence to get to industry-leading growth next financial year which starts in April, so we are on track for that. I believe that this momentum is for sure sustainable. I believe certainly the impact of the grass roots innovation, the impact of many of the initiatives that we have put in place and certainly the systemic innovation work that we are doing will all start to become more visible as we get into the year in front of us, I think it is still early stages of that and these cycles are long.

So, we definitely believe that this momentum is sustainable and we are optimistic and excited about the future and we are maintaining our view that we will get to industry leading growth in the new financial year. In terms of the climate and the IT operating environment we have to adjust our offerings, our areas in which we engage based on the unique nature of every client and the uniqueness that are there in the individual industry so oil and gas, yesterday oil went below $30 per barrel and so forth. So we think that we have to adjust. We acquired this small company Noah Consulting which does more upstream exploratory work with data analytics and so forth. These kinds of offerings help us adjust our offerings, our solutions to the times that are at hand and I think that, therefore, despite the individual pressures in certain industries we feel comfortable with what the future holds for us.

Pravin Rao

On the visa front in the short-term we will continue to expect similar kind of measures across geographies. Initial estimate of potential impact for us because of the increased visa cost was about 0.3% impact on the margin but in the last couple of days we have got clarification that the increased cost applies only for new visas and not for amendments and transfers so the impact will be much lower. But in some sense it is the cost of doing business but in the longer term we have look at how to diversify our resource base, how to increase recruitment onsite, how to have a much more global workforce, how to create development centers onsite and so on. So those are some of the things we are working on over the next 2-3 years to mitigate this risk.

Ranganath D. Mavinakere

On the margin Vishal has multiple times reiterated we want consistent profitable growth. I think that's clearly the key focus of our strategy execution. On the margins we have said that 25% (+/-1) is our medium-term goal. The first nine months we have done 24.8%. As I said earlier we have levers and we want to optimize those levers. For example, the utilization last year typically used to be a late 70s, consistently now it is above 80s and we still believe from current 80.6% it can move up. Likewise in the onsite effort mix 29.5%, it can certainly - we are working towards moving down and the sub-contractor and employee cost, many other levers that we have that we would like to do through operational efficiency improvements further and more importantly I think the currency is always there. We need to actively manage the currency and this quarter has been extremely volatile and currency and through our proactive currency management and hedging we have been able to minimize the impact. So I think with these levers that we have, we have given this outlook for 25 (+/-1%).

Coming back to the other point that you asked, apart from the deal wins that Pravin talked about and which Vishal also briefly mentioned, our top account growth over the last three quarters if you look at the first nine months of the year, top 5 have grown 13% as compared to 12.5% in constant currency term for the company which is higher than the company growth. As recent as Q4 of last year we used to have a flat to negative growth of those top accounts. This quarter, of course, they have been flat but, however, if you look at nine months’ basis they have grown at 13% year-on-year. So they are some of the levers that is the reason we clearly look at strategy execution both in terms of large deal wins, top account mining and these operational efficiency improvements.

Rukmini Rao

Hello gentlemen, Rukmini Rao from Bloomberg TV India. Wish you all a very happy New Year. Vishal, want to understand from you since you handle the top 15 clients of Infosys, if you are looking at the top 10 clients we have seen a marginal de-growth and also in terms of the repeat business we have also seen some bit of softness. Want to understand from you what exactly is happening there? Is it just a quarterly phenomenon?

Pravin, want to understand from you manufacturing and Retail as industries, we are still seeing softness as for the numbers that you have given but Energy and Utility seems to have bounced back, so is the Energy crisis over essentially?

Ranga, want to get from you a sense of what the pricing has been like and also for the next quarter what do you expect? Thank you.

Vishal Sikka

Rukmini, the top accounts actually in the areas where we declined it was a seasonal decline, so some of those are very large manufacturing and hi-tech companies where there were furloughs and less number of days and so forth because of the holidays and things like that. So there is no particular systemic thing there that we are observing. Some of those clients are in Australia where the currency impact has hit us despite the actual growth in terms of locally reported currency and so on. Overall our engagement with the top clients, the top 10, top 25 clients is actually has never been stronger and we feel like our relationship at a strategic level with our clients, certainly our top clients, is the strongest that it has ever been, so I feel very confident about that. And look, broadly the world around us in every industry is going through this dramatic transformation with digital technology and last quarter we announced our strategic partnership with GE and GE has obviously it always talks about their own renewal as a software and a technology company. And this is happening in every industry, in every walk of life, and we at Infosys have the ability, we have the capabilities and the skills and the access to help clients achieve that objective. So in all the uncertainty in the atmosphere around us, in the broader economy around us I feel very good that we sit in a situation where by and large our ability to achieve our results is in our own hands, it is up to us to execute. And as Ranga and Pravin talked about we are on our path to doing that.

Pravin Rao

From a services perspective, the growth has primarily been in ECS where we have seen about 4.6% growth on a constant currency basis and in Financial Services its about 3.2%. While ECS in general has grown, its primarily come from the utility segment where we are seeing lot more investment in re-plan forming, legacy modernization, they are focusing lot of investments on the renewables, lot of investments on customer experience, CRM and so on. So we have been able to capture some share of that increased spend.

With respect to Manufacturing, traditionally Quarter 3 is a weak quarter. Energy is still soft. The oil price as we saw yesterday for a period of time it dropped below $30. We are seeing a fresh wave of cost-cutting in the Energy space so we expect challenges in Energy to continue the softness.

Telecom is another area again, another industry which continues to be soft, we are seeing Telecom providers focusing lot more on enterprise, renewing their focus on enterprise business. They are focusing on some of the newer avenues of growth like over the top services, mobile payments, connected devices and some of the newer avenues.

Manufacturing its traditionally soft quarter because there is lot of furloughs in the manufacturing industry. In addition we had the one-time impact of JCI in Quarter 2, so if you ignore the JCI impact, manufacturing would have been pretty much flat this quarter, the pipeline is decent in manufacturing and even if you break down into subsequent sub-verticals we are saying good traction in Auto. To some extent aerospace is challenged, we are seeing some softness there and we are also seeing some softness in the industrials particularly with exposure to Oil, Energy and Mining.

But Retail again, we expect some volatility in the Retail it has been a soft quarter. It was marginally down I think this quarter. The holiday season was good but it was driven primarily by more growth on the mobile side, on the digital side than on the in-store side. The strong dollar is actually putting a lot of pressure on global Retailers in particular, they continue to focus on mobile experience, they are continuing to focus on Omni-channel. CPG companies are focusing on simplification of their landscape and so on.

The bright star in the horizon is Financial Services which is a big thing for us and we see continued momentum there, the pipeline is pretty strong. We have seen growth both in new accounts as well as new wins in existing accounts, a lot of focus on Digital, lot of focus on Regulatory. There is tremendous focus on Analytics in terms of understanding client propensity to buying products, understanding client behavior, trying to personalize offering for individual clients and so on.

So net-net barring the softness we expect in Energy and Telecom to continue for some period, the pipeline is decent across the rest of the verticals with Financial Services leading from the front.

Ranganath D. Mavinakere

As we said earlier we have navigated the quarter well on seasonalities and other expected pieces. In addition, they were also unexpected events like Chennai and the impact of Chennai has been insignificant and thanks to the extraordinary work done by our delivery leadership team played by Ravi and infrastructure leadership team by Ramdas Kamath and all the employees in Infosys, Chennai.

Coming back to the margin question that you asked, we have consistently said that we will be in the band on 25 (+-/1%) and first nine months we are at 24.8%. As I said earlier, we have levers to look at the margins improvement but those levers some of them like utilization which is at 80.6% now, there is scope for improvement there, like subcontractor cost management, onsite role ratios, likewise the employee onsite effort mix which is at 29.5%. There are multiple levers that we have. We will continue to work on them.

On the pricing if you look sequentially we had a realization decline of 2.5% and if you look at also last quarter we had a one-time the $23 mn. If you look to apple-to-apple comparison the pricing decline is 1.5%. In the quarter-to-quarter these changes are there, the more relevant number is year-on-year. Year-on-year if you look at, the pricing decline has been 4.5% in reported basis and 1.1% on constant currency basis. The whole endeavor I'll say as Mr. Murthy used to say “market determines the price” and the company has to manage the cost and make itself more competitive through innovation, productivity that Vishal talked about, that we will certainly work towards. That is the broad picture. In the near term these pricing pressures would be there and we have to navigate. So the productivity measures that we have deployed in each of the services lines and the automation piece, we hope that to some extent we need to offset the price in coming quarters. Let us see how we do on that.

Interviewer

Vishal any closing comments?

Vishal Sikka

We are pleased with the results of the quarter, with whatever our team has managed to achieve despite the traditional seasonalities and the additional headwinds that we saw and that performance which is a combination of the grassroots innovation combined with the structural innovation that we have put in place both picking up momentum as the quarter went along has set us up for a good road ahead and so we are looking forward to that. Thank you.

Exhibit 99.5

Fact Sheet

Exhibit 99.6

Earnings Call 1

EARNINGS CALL-1

Q3 FY 2016 RESULTS

January 14, 2016

CORPORATE PARTICIPANTs

Vishal Sikka

Chief Executive Officer & Managing Director

Pravin Rao

Chief Operating Officer

Ranganath D. Mavinakere

Chief Financial Officer and Executive Vice President

Mohit Joshi

Executive Vice President, Head – Financial Services, Head – Infosys Brazil and Infosys Mexico

Sandeep Dadlani

Executive Vice President, Head – Retail, CPG, Logistics, Automotive, Aerospace, Core and Industrial Manufacturing; Head – Americas

ANALYSTS

Sandeep Muthangi

IIFL

Nitin Mohta

Macquarie

Anantha Narayan

Credit Suisse

Sandip Agarwal

Edelweiss

Ankur Rudra

CLSA

Viju George

JP Morgan

Moderator

Ladies and Gentlemen, Good Day and Welcome to the Infosys Earnings Conference Call. As a reminder, all participants’ lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing ‘*’ and then ‘0’ on your touchtone telephone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sandeep Mahindroo. Thank you and over to you sir.

Sandeep Mahindroo

Thanks, Inba. Hello! everyone and welcome to Infosys Earnings call to Discuss Q3FY16 Financial Year Results. This is Sandeep from the Investor Relations Team in Bangalore. Let me start by wishing everyone a very happy 2016. Joining us today on this Earnings Call is CEO and MD – Dr. Vishal Sikka; COO – Mr. Pravin Rao; CFO – Mr. M.D. Ranganath, along with other members of the senior management team. We will start the call with some remarks on the performance of the company by Dr. Sikka, followed by comments by the leadership team. Subsequently we will open up the call for questions. Before I pass it on to the management team, I would like to remind you that anything which we say which refers to our outlook for the future is a forward looking statement which must be read in conjunction with the risks that the company faces. A full statement and explanation of these risks is available in our filings with the SEC which can be found on www.sec.gov

I would now like to pass it on to Dr. Vishal Sikka.

Vishal Sikka

Thank you, Sandeep. Good Morning, Everyone. Thanks for joining our call. At the outset I want to recognize the spirit and the passion of all Infoscions, which in many ways define our performance in this third quarter. We entered the last quarter somewhat apprehensive about what was ahead. Q3 is known for its seasonality, the furloughs, the less number of working days, etc., and we were coming off an amazing Q2 performance and then we were faced with the devastating floods in Chennai last month, but despite all of this and because of the spirit and passion of our people, I am pleased with what we achieved and the momentum that this has created for us to end the fiscal year on a strong note.

We ended Q3 of FY16 with revenue of Rs.15,902 crores INR, or US dollar 2.407 bn. This translates to quarter-on-quarter growth of 1.7% in rupee terms, 0.6% in US dollar terms and 1.1% in constant currency terms. If we adjust for the one-time early termination fees paid to us by a client in the previous quarter, our quarter-on-quarter revenue growth came in better than expected at 2.1% in constant currency and 1.6% in reported terms. Volumes grew 3.1% indicating a healthy momentum in the underlying business. Utilization was 80.6% on a standalone basis; including trainees were 74.2%. Blended per capita revenue decreased by 2.5% as a result of lesser price realization. If I adjust for the one-time termination fee impact realized in Q2, pricing decreased by 1.5%. Our operating margin for the quarter was 24.9% compared to 25.5% in the previous quarter. We reported earnings per share of Rs.15.16 for the quarter, up 2%, and in US dollar terms earnings per share was 23 cents.

Margins were impacted due to seasonality of price realization that is typical of the third quarter and for some additional reasons that Ranga can talk about. Attrition for the quarter decreased further to 13.4% on an LTM basis and Infosys is now home to 193,000 employees. I mentioned our utilization earlier, our zero bench program aimed at rethinking the notion of the bench in our industry has seen great adoption. More than 8,000 projects have or are being worked on by more than 4,000 people while they wait for client projects. This is giving them valuable real life experience that they then take to our clients and in the process they are also creating software assets for our own use. Our outlook for the rest of this fiscal year is positive. Therefore, we are raising our revenue growth projection for the full year from 12.8% to 13.2% in year-on-year constant currency terms. This is ahead of our original guidance of 10% to 12% in constant currency. We expect this will put us in a good position as we head into fiscal ‘17 and on our way to industry leading growth. Ranga will touch upon some of the increased cost that we see on the horizon due to visa fees, etc. and where we think we will end up in March.

Now, let me talk about some of the key developments of this quarter in the execution of our strategy to reimagine services in which we bring all that is possible with human potential together with software and services. While we still have a long way to go, we see many promising milestones. We continue to focus on changing the nature of our conversations with clients to become much more strategic and we can see this reflected in the renewal of existing large contracts, opening of new types of engagements and net new accounts as well as in signing of large deals. The number of $50 mn plus clients grew to 51 and the number of $10 mn plus clients grew to 171. We added 34 net new clients during the quarter. Our momentum of large deal wins continued and we won four large deals in the quarter with nearly $360 mn in contracted value across Application Maintenance, Infrastructure Management and Enterprise Packages. In addition, we won a large renewal deal in Q3 of around $600 mn. The pipeline of large deals continues to be healthy and in fact in the early week of this quarter we have already signed new large deals worth more than $150 mn.

Our Financial Services segment under Mohit leadership continued its strong performance with a 2.6% quarter-on-quarter growth in constant currency. China and India geographies also grew well for us in Q3.

Now turning to the heart of our strategy – Innovation: We are driving innovation in two big ways. In our grass roots efforts to empower every Infoscion as an innovator through programs like Zero Distance and in our reimagining of next generation services with our AiKiDo service offerings. Our Zero Distance program which focuses on driving innovation in every project that we do for every single client has continued to grow. We now have more than 8,000 Zero Distance Projects. 90% of our delivery organization under Ravi’s leadership has already done something innovative in an existing project beyond the statement of work bringing value to our clients in every ongoing project. As recognized in many client service, the innovation quotient of the organization has improved as a result, and Zero Distance has been recognized in our employee surveys as the most impactful and engaging movement within the company. When we talk about innovation at Infosys we do not talk about a single department but rather all of us as innovators. I believe this is a unique part of our strategy to change the nature of the conversation that we have with our clients.

We have begun to see these ideas deliver value for our clients as well. For example, at TNT, where we manage more than 720 applications in a complex landscape, we proactively identified an opportunity to drive more value through non-invasive automation of monitoring their mainframe based messaging applications. This is enabling earlier detection in automatic resolution of incidents resulting in much higher business stability.

We are at the same time seeing strong adoption of our AiKiDo service offerings across all industries. Clients continue to respond well to this framework as they look to us for help in renewing their IT landscapes non-disruptively, leverage new platforms and technologies to open opportunities which is ‘Ai’ and to bring the power of Design Thinking to find the great problems to solve, which is ‘Do.’ During the quarter we leveraged ‘Ki’ to help clients modernize their legacy architectures, migrate existing application landscapes to the Cloud and leverage DevOps and Agile methodologies and modern architectures for more efficient Agile landscapes.

Commerzbank for example, chose us for a multi-year application management program to develop a post-trade utility for the bank, leveraging principles of Design Thinking and the AiKiDo framework to simplify their application architecture and standardize and improve processes and to drive cost efficiency. In ‘Ai’, our platforms and products, the Infosys Information Platform surpassed 200 engagements to-date with 30 already in production. I am particularly excited about our work with ATP, where we are helping to reimagine the Tennis experience. At the Barclays World Tour Finals, we analyzed huge amounts of data from the chair umpire and hawk-eye to deliver unprecedented foresights into each match, and in doing this help to transform the fan experience. Infosys is working with Hershey’s to build predictive analytics capability using IIP. We have set up a Data Lake of close to terabyte and 5.3 bn records on IIP for doing advanced analytical analysis to enable real-time decision making in the supply chain area.

Infosys Automation Platform surpassed 121 engagements with 47 already in production. Automation is making its way more fundamentally into our services. I have said this before several times, that automation and renewal are the answer to the downward spiral that our industry is in the midst of due to the commoditization of traditional services. In this quarter we released more than 1,100 engineers compared to roughly 800 in the previous quarter and this was across our service lines – Infrastructure Management, Testing, BPO, Packaged Systems, Engineering Services, BI and Digital Services. Automation impacts every single service that we deliver.

Panaya, Skava and our Edge products continue to see strong adoption. Our EdgeVerve unit had 24 wins and 25 Go Lives for the Finacle and Edge platform offerings. With Panaya we closed 13 new joint engagements including 1 at BNSF, the North American Rail Road company for risk-based testing on the SAP landscape. Skava’s Mobility Service offering for retailers had a record black friday weekend with traffic and mobile commerce sales up by 50%.

In ‘Do’, our Design Thinking, our methodology to discover and articulate the most complex problems of our clients, we have conducted 151 engagements with clients today, led by our consulting teams. For example, we helped EMEA create their new market entry strategy leveraging Design Thinking to evaluate the core needs of a market and consumers and open the minds of their theme to think of creative solutions rather than focusing on predetermined ideas. More than 69,000 of our employees have now been trained in Design Thinking and clearly we can see the application across the board, helping us build better relationships with our clients and engaging with them on their most strategic transformative projects.

We continue to look for investment in partnership opportunities that bring additional value to our clients and that position Infosys in a broader context. This quarter we completed the acquisition of Noah Consulting, a leading consulting services provider for the oil & gas industry. We also invested in WHOOP, an early stage company that offers sports performance optimization system through variable technology and we invested in Cloud Endure, a start-up company that provides Cloud Migration and Disaster Recovery Solutions for Cloud-based landscapes. We also announced our participation in Open AI, a non-profit organization dedicated to developing and advancing Artificial Intelligence and bringing the best of the AI talent in the world together in the interest of all of us. This initiative adds an important new dimension to our various ongoing efforts in Artificial Intelligence.

We were named the Corporate Citizen of the Year at the ET Award last week for CSR work that we do and. purpose behind philanthropy of our three foundations – The Infosys Foundation in India, the Infosys Foundation in the US and the Infosys Science Foundation. We launched a new solar power plant in our Pocharam Campus in Hyderabad, and now produce 7.2 MW of energy through solar which will meet 100% of our Pocharam center’s requirements.

Before I hand it over to my friend, Ranga, who had his first quarter as our CFO, I want to congratulate all Infoscions on being ranked the Second in the Business World overall list of Most Respected Companies, especially because the award cited our belief in ourselves as the reason for winning. This reflects my own belief in the unlimited potential in all of us. The future is something that we invent, that we make, as my friend and teacher, Allen, always said, people ask me all the time about all the external macroeconomic factors like what is happening with the economy, what is happening in China and so forth and how we compare ourselves to others on new areas. While all of these factors are important, the remain things that we respond to, that we react to, the more important part I believe is that we are only limited by our imagination and in this way I am very optimistic for the path that is ahead of us, that we are creating, that we are making for ourselves and for our clients

With that I will hand it over to Ranga.

Ranganath D. Mavinakere

Thank you, Vishal. Hello! Everyone and Wish You All a Very Happy 2016 Ahead. On the big picture, our revenues in Q3 were Rs.15,902 crores; this is a quarter-on-quarter growth of 1.7% sequentially in rupee terms; on a year-on-year basis, when compared to Q3’15, our Q3 revenues have grown 15.3% in rupee terms. In dollar terms, revenues grew sequentially by 0.6% on reported basis and 1.1% on constant currency basis.

If you recall, in Q2, we had one-time revenue of $23 mn due to a contract termination. After taking that into account, our quarter-on-quarter growth is 1.6% in dollar terms and 2.1% in constant currency terms. On a year-on-year basis, Q3 revenues have grown 8.5% in dollar terms and 12.5% in constant currency terms. Q3 is seasonally a soft quarter due to the impact of furloughs and lower working days. Growth in Q3 was better than our earlier expectations since the impact of some furloughs was lower than we anticipated. We were also able to overcome the client specific headwinds to some extent.

We also had to navigate through unexpected events such as Chennai Floods, however, our effective business continuity plans ensure that there was negligible impact of the same on our revenues. During the quarter, we acquired Noah which resulted in additional $3 mn revenues for Q3.

Volumes grew by 3.1% during the quarter, marginally lower than 3.7% in Q2. Realization of the quarter declined by 2.5% on reported basis and 2% on constant currency basis. If we normalize the impact of contract termination in Q2, decline in realization was 1.5% in reported terms and 1% in constant currency terms. Furloughs and lower working days in Q3 also impacted the realization to some extent. On a year-on-year basis, realization was lower by 4.5% in reported terms and 1.1% in constant currency terms.

Our utilization excluding trainees declined by 70 basis points to 80.6%. The utilization including trainees declined by 120 basis points to 74.2% due to addition of trainees during the quarter. Onsite mix increased marginally to 29.5% as a result of growth in Consulting and SI services which has a higher onsite component.

Our operating margin for the quarter was 24.9%, decline of 60 basis points during the quarter. Margins for the quarter were impacted by 110 bps due to realization decline and another 60 bps due to drop in utilization, increase in subcon cost and impact of Nova consolidation. This was offset by 110 basis points due to benefits of both rupee depreciation as well as reduction in variable pay, thereby limiting the margin drop to 60 basis points.

At the group level, we added 14,027 gross employees during the quarter with the net addition of 5,407 employees. Attrition continues to be on a declining trend. At the group level, annualized attrition was 18.1% as compared to 19.9% last quarter. The quarterly annualized attrition on a standalone basis for Infosys Limited has declined to 13.4% from 14.1% last quarter; this is at par with the lowest level of attrition in the last 15-quarters.

Operating cash flow generation was stable during the quarter. We generated operating cash flow of Rs.3,126 crores in Q3 as compared to Rs.3,130 crores last quarter. We paid out interim dividend and dividend distribution tax of Rs.2,753 crores and Rs.665 crores towards deferred consideration on purchase of Lodestone. Capital expenditure during the quarter was Rs.675 crores, hence our cash and cash equivalents as of 31^st December was at Rs.31,526 crores as compared to Rs.32,099 crores last quarter.

DSO for the quarter were 65 days. We had a $74 mn reduction in unbilled revenues in Q3 and they fell to the lowest level in the last two years.

We saw another quarter of US dollar strength against most currencies; rupee depreciated against dollar by 1.1% on an average basis and 0.9% on period end basis. US dollar appreciated 2.3% against euro and 2.2% against UK pound.

The effective tax rate for the quarter was 27.2%, this include tax reversals due to completion of tax assessment in certain jurisdictions. Excluding this, our effective tax rate for the quarter was 30% which is within 29 to 30% band that we had talked about earlier.

Our net margins during the quarter was at 21.8% as compared to 21.7% last quarter. Our EPS for the quarter was Rs.15.16 as compared to Rs.14.87 in Q2. EPS grew 2% on a sequential basis and 6.6% on a year-on-year basis in rupees.

Coming to Segment Performance Amongst Verticals: Financial Services and Insurance grew by 2.7%, Energy, Communication and Services grew by 4.2%, RCL and Manufacturing declined by 0.5% and 3.7% respectively. Amongst Geographies: Europe grew by 2.1%, North America declined by 0.6% while rest of the world was flat. Q3 growth in Americas and Manufacturing was negatively impacted since Q2 revenues included $23 mn from contract termination that we talked about earlier. India grew by 23.1% due to ramp up of a few projects. The growth in India should be seen in context with a small base of business which sees changes due to ramp ups and ramp downs in projects.

During the quarter we added 13 clients above $1 mn, 4 clients above $25 mn and 1 client above $50 mn. Our share of revenues from fixed price contract increased further during the quarter to 44.6%. Our revenues from top 5 clients declined marginally by 0.3% quarter-on-quarter and from top 10 clients declined marginally by 0.1% quarter-on-quarter. However, on a year-on-year basis our revenues from top 5 clients grew 13% and our top 10 clients grew 9.4% which is higher than the company’s average growth.

Coming to guidance for the quarter, our earlier guidance for FY16 was 10-12% in constant currency terms. Based on our performance in the last three quarters we are increasing our constant currency guidance to 12.8 to 13.2%. This translates to 8.9% to 9.3% growth in Dollar terms and 16.2% to 16.6% in Rupee terms for FY16. Operating margins, we expect the medium-term band to be 25% (+/-1%).

So with that we will open the floor for the questions.

Moderator

Thank you very much Sir. Ladies and gentlemen, we will now begin the question and answer session. We will take the first question from the line of Sandeep Muthangi of IIFL. Please go ahead.

Sandeep Muthangi

I had a question on the pricing situation. Dr. Sikka you have described the pricing situation in the legacy services to be quite bad, in fact you used the downward spiral to describe it and last year we have seen pricing drops and realization drops in a fairly significant way. What kind of an incremental headwind is this going to be? It will also be great if you can tell us about how much of your legacy portfolio has already witnessed realization reset?

Vishal Sikka

My sense is that the overall decline in the pricing environment is a systemic thing, it is a structural thing that is something that we have to become accustomed to and I have been saying this for the last 18 months. Within a course of a quarter there are variations sometimes the decline is more and sometimes less and it depends on other things as well on how the pricing is realized. But by and large there is a general underlying downward pressure and that is a result of many things; of the cost pressure that companies feel increasingly and it is a reflection of the massive shift that is happening where every industry and every business is basically finding it necessary to embrace digital technologies, embrace computing in its traditionally manual areas of business.

So in that sense I believe that this is something that we have to just get used to as a structural thing. The way around that, as I have said before, is a dual strategy of bringing automation to everything that we do and we have started to do that. Last quarter, the number of people that we were able to free as a result of bringing our automation platform into work has increased significantly and we expect to continue this and in fact we intend to accelerate the adoption of automation in everything that we do, accelerating it in every service as well as accelerating it in beyond the areas that we have applied it to so far which is in a more traditional manual kinds of tasks and bringing Artificial Intelligence techniques into the more higher-end kind of tasks.

And with automation that we free up the people’s productivity, our intention is to make them more innovative and helping work on clients more strategic next-generation kinds of projects where their ability to innovate, their ability to be creative can be brought to bear both in new strategic areas at higher price points and higher margins and so on. So the combination of automation and innovation which is, of course, underpinned by our ability to teach people these new skills is basically the heart of our strategy and that is directly in response to this big thing that is happening around pricing decline.

Beyond this strategic area, as I mentioned there are seasonal fluctuations and factors that impact our pricing and we have to address those and in particular several operational levers that Ranga and Pravin can talk about that we need to continue to optimize as just a part of our ongoing operational discipline and that we are continuing to focus on that and we expect to see results from those as well.

But the bigger structural change that needs to be brought here is to bring automation, bring AI techniques into all our existing services and then use the freed up capacity for the people, on one hand improve the margins and on the other hand to enable people to become more innovative.

Ranga, Pravin would you like to add anything to that?

Ranganath D. Mavinakere

Absolutely Vishal. I think the pricing decline if you look at on a sequential basis has been 2.5% and constant currency 2%, but after taking into account the one-time $23 mn last quarter, the pricing decline sequentially and reported is 1.5% and constant currency 1%. As Vishal said I think quarter to quarter there will be movements, however, the more probably the sectoral piece is really the year-on-year. If you look at the year-on-year, the price decline is 4.5% in reported and constant currency is 1.1%.

One way to really is to how our operational efficiencies and productivity improvements, to what extent we can offset that, is where our current focus is, for example, on the operational efficiencies if you look at the utilization this quarter was 80.6%. Consistently over the last four quarters we have kept it about 80%. We still feel that there is room for utilization improvement. For example, earlier years we used to be in late 70s, now we are consistently above 80% but still there is leg room for us to improve the utilization. Likewise the on-site effort mix is 29.5%. It has gone up marginally this quarter and our endeavor is to see at least in certain service lines especially infrastructure management, testing where the offshore component can be higher, how do we optimize that. And the third piece, of course, is the sub-contractor management cost and the onsite employee cost to better management of role ratios. So these are some of the levers certainly we have and more importantly the automation and productivity is the biggest lever that some of them are short-term levers that I talked about earlier, some are medium-term, so these are some of the things that we’ll continue to focus in the coming quarters to see to what extent these pricing decline we could address.

Sandeep Muthangi

One quick question on the infra services business. My question is not just related to this quarter but the infra business revenues are down compared to even 1Q; they are about 5% down. We have seen fits and starts in this business in the past also. So is there anything to read through about the slowdown in the infra business this year especially that the traction has improved and there were lot of deal wins last year?

Vishal Sikka

The decline that you see this quarter is because of the onetime effect that we had from a client that made an early termination penalty in the previous quarter, so that is singularly the reason for this. In fact, our infrastructure business is very strong and it is resonating extremely well with our clients. The dual power of automation in infrastructure as well as the work of bringing automation to infrastructure services as well as the work that we are doing with our partners like Amazon and Microsoft and EMC and others and the work that we are doing in start-ups and investments that we are making in next generation infrastructure management technologies like our investment in Cloud Endure and our investment in Vortex ventures and these kinds of leading infrastructure management innovators. As a result of that our infrastructure offering is in fact the strongest that it has ever been.

Moderator

Our next question is from the line of Nitin Mohta of Macquarie. Please go ahead.

Nitin Mohta

Dr. Sikka, I wanted to understand, given that the IT services industry growth has been slowing down, there is a concern about loss of market share for Infosys and peers to (a) IT vendors who have got more entrenched domain expertise and (b) towards smaller and nimbler players who are probably more close to disrupters like Salesforce and Workday. My question was, one, do you agree to this market share loss thesis? And secondly, do you think emergence of digital technologies would fragment the revenue share for large players like Infosys?

Vishal Sikka

No, I don't agree to that thesis. In fact, I believe that we stand uniquely positioned to serve the needs of the times that are in front of us. My view on this is somewhat contrarian. The idea of domain expertise is, I believe, somewhat flawed. The kind of domain expertise that people talk about is usually domain expertise from the past that is increasingly becoming irrelevant. And when you look at start-up companies it is true that lots of start-up companies have tremendous advantage in terms of the kind of technology and solutions and the unique abilities that they bring but they don't have scale and we have always seen the traditional vagaries of embracing scale. So we in fact think that the fact that start-ups are doing some amazing innovation in this area can actually be a great source of advantage for us if we can bring them in to our clients in a great way and we have started to do that. Many of the deals that we have signed recently as well as many of our large ongoing projects already see us bringing many start-ups, and our team is here we can share many examples of this, where we bring innovative new solutions to our clients, where we can help bridge that gap that a start-up traditionally has of being able to offer an assurance of a mature scalable vendor like us. So I actually not only don't subscribe to that notion I think that our opportunity in front of us to serve the times that are in front of us is as great as it has ever been.

Nitin Mohta

The second question I had on guidance, couple of moving parts there, so how should we read the guidance raise? It has got more to do with improved demand traction or you think the external volatility or concerns in Financial Services or client specific projects have abated and hence the raise?

Vishal Sikka

It is a combination of factors. Obviously as you saw our volume growth, we had 3.7% in Q2 and 3.1% in Q3 so on the basis of that we feel good. We have seen significant number of large deals that we have signed. Our win rates have increased significantly and so those give us some confidence and those are in turn being fueled by duality of grassroots innovation that we have been engaged in, where our clients continually see the benefits of Zero Distance like initiatives on ongoing projects and I mentioned several examples earlier, as well as the new things the AiKiDo areas, of automation, of AI, of design thinking that are starting to kick in. So a combination of all of this gives us confidence that we will get to 12.8% to 13.2% in constant currency growth within this financial year and that will also help set us up for Fiscal 2017. Obviously we will share our guidance for Fiscal 2017 in April but we feel good about getting to industry leading growth in Fiscal 2017 as we have always talked about.

Moderator

Our next question is from the line of Anantha Narayan of Credit Suisse. Please go ahead.

Anantha Narayan

Some of the comments made by the management towards the end of last calendar year seem to suggest a bit of near term weakness in margins. So I just wanted to see whether you all could put in context the December quarter margins in context with those comments. And also what your outlook for the March quarter would be?

Vishal Sikka

Maybe I can speak and Ranga and Pravin can add. Look, our strategy has always been consistent profitable growth. Mr. Murthy always talked about that and I deeply believe in that. We see many start-ups and unicorn and other mythical animals around us who don't believe in this idea but we deeply believe in this idea and so we are committed to that. I also don't believe that by throwing money at certain of these innovations and sacrificing margins in the short-term we can get to growth and so forth. We believe in consistently going after a profitable growth. It is true that because of a combination of factors, the ability to respond to the downward spiral in the price in the industry as well as the ability to renew our workforce, renew our services using automation, using next-generation technologies like Artificial Intelligence, we have to continually make those choices; continually make those trade-offs and investments. We deeply believe in it that. However, we don't believe that that will sacrifice our ambition to get to profitable growth in any meaningful way. So we are maintaining our 25% (+/-1%) margin outlook for the near term and the aspiration that we have of getting to 30% margin by 2020 continues to be there, this is still obviously quite far away but as time goes by our confidence in getting there increases.

Ranganath D. Mavinakere

When we entered the quarter as you said, yes, we knew that this was a seasonally soft quarter and at that point in time based on the visibility on furloughs as well as some client specific headwinds that we had mentioned about, that was the visibility we had at that point in time. However, growth in Q3 was better than our earlier expectations since the impact of some of furloughs was lower than we anticipated. We were also able to overcome certain client specific headwinds to some extent. On the margin part overall decline is 60 basis points quarter-to-quarter of which 1.1% is on account of the price realization which was offset by a combination of lower variable pay plus to some extent the Rupee depreciation so that overcome 1.1% drop. In addition, we had as you know the higher subcon expenses from $131.7 to $151 mn as well as the utilization dropping from 81.3% to 80.6%, so both of them put together had additional 60 basis points drop, so net net that was the overall drop of 60 basis points. Yes, certainly when we entered the quarter the headwinds as well as the furlough our expectation was higher than finally where we ended.

Anantha Narayan

Did the India business have any element of a single weak lumpy project or was it more broad based than that?

Vishal Sikka

No, it was not a single event. It was a combination of things, projects ending, projects starting, etc., that got to that. There was no one particular thing. And it is not GST if that’s what you were wondering.

Moderator

Our next question is from the line of Nitin Padmanabhan of Investec. Please go ahead.

Nitin Padmanabhan

Dr. Sikka, you had spoken about a target of improving the revenue per FTE and actually if you compare it on a year-on-year basis it’s actually down, very similar to what the pricing drop is and it has actually not benefited from the improved utilization. And you had spoken about automation and other initiative sort of gaining scale to the latter half and thereby sort of driving this. But when do you really see this sort of really starting to tick upwards going forward?

Vishal Sikka

When you look at the three aspirational objectives of $20 bn, 30% and $80,000 RPE, we continue to believe strongly in all three of those and as time goes by we feel increasingly confident in our ability to get there. But from a time perspective as well as from a difficulty of achieving perspective obviously the $20 bn, I believe, the revenue growth is something that will come first, the margin second and RPE improvement third. If you look at the adoption of automation or the adoption of innovation, so as a result of the automation work that we did in the last quarter we were able to save 1,100 FTE worth of effort. That is significantly higher than where it has been but it is still relatively small number. It is little bit more than 1% of our delivery organization. So these numbers are still small. Similarly, if you look at the engagement and the revenue impact as a result of the new areas whether it is the ‘Ai’ of AiKiDo which is Finacle and Edge or Panaya and Skava or our work with our two platforms in automation and information platform on Big Data Machine Learning platform, even though we have more than 200 engagements now with IIP and a 120 engagements with the automation platform with several dozen of these already in production, again the revenue impact and the services, the pull through impact of that is still quite small.

Similarly the 150 design engagements even though they have contributed heavily to ongoing growth in existing clients especially in the top clients as well as our ability to win large deals, by themselves the revenue impact still early and still small. In the meantime, the pricing decline has happened as Ranga mentioned earlier, over the year we have seen a 4.5% reported decline in pricing and 1.1% in constant currency decline so, that impact is more immediate. So this is the reason that you see the RPE decline that is happening. The mechanism to impact is obviously is there are the operational measures and Ranga has talked about those already but the structural measure is to bring automation into the mix as quickly as possible. So as we look ahead to Fiscal 2017 obviously this quarter I expect that we will achieve a significantly larger number of peoples freed because of automation and as we look to Fiscal ‘17 we expect to bring automation much more pervasively in our services both bringing them to all kinds of projects that we do as well as in expanding the nature of automation that we are able to deliver by more R&D in AI techniques. So that number will kick in. The revenue growth is something that we are constantly focused on at consistent profitable growth, so the revenue and then the margin and then the RPE this is the sequence and I expect this adoption to happen.

Nitin Padmanabhan

Sure. And just another thing in terms of in your conversations with clients and looking out, what are you hearing from them in terms of their thoughts on the budget’s and their thoughts on spending going to the next year considering what they are seeing around us today, anything that you have picked up and if you could share?

Pravin Rao

This is Pravin here. From the budget perspective in some sense there is still not much clarity. Our expectation is budget will in general be either flat to marginally down. There are some industries which are challenged like Energy probably will see downward revision in budget. Having said that, in some sense in today’s volatile world and what we have seen in the last few quarters, budget in the traditional sense does not have as much impact or meaning because clients continue to look at the budgets on every quarterly basis based on the macro and their own context. And overall, we continue to see a trend of focus on cutting cost particularly on ‘business as usual’ areas and then repurposing the spent to some of the transformational area. So that trend we expect to continue this year as well.

Vishal Sikka

And more broadly my sense is that the IT teams are constantly under a pressure to deliver both the innovation that the business is looking for as well as the renewal of their existing landscape to find the savings. So even though the budgets are under pressure as Pravin said, if we have the right mix of offerings then we believe that despite this pressure on the budgets whether it is in IT or in other non-IT areas, we can continue to grow our business.

Moderator

Thank you. We will take the next question from the line of Sandip Agarwal of Edelweiss. Please go ahead.

Sandip Agarwal

Congratulations on one more good quarter and Happy New Year to the whole Management Team. Vishal, I have one specific question on the Digital side. We are consistently hearing that all the business is actually moving towards Digital and our own sense is that after sometime it will just be a matter of definition how do you define Digital but otherwise every business will be more or less Digital in some or other form. So given our existing employee base and given the amount of training we are imparting, I understand that we are moving towards that requirement, but what is your sense that will we need to do a lot of small-small skill set acquisitions and will we prefer that mode versus a mode of brining in start-up on a collaboration basis to get some deals? So what will be a better approach and what approach you would like to take or will it be a combination of both?

Vishal Sikka

The word Digital is one of these words that evokes many reactions. I mean in a very basic level, everything that we do is Digital. Last I looked, we only write software for Digital computers and we stopped writing software for Analog Computers in the 1950s. So I think what people mean when they say Digital is the digitization of physical experience whether it was an experience of purchasing in a store or being able to access a service on a mobile device or something where you automate or digitize the process that was previously a physical one. And if you look at it from that point of view we see tremendous growth in this area obviously of rethinking experiences, rethinking the construction of things. the engineering, especially the creation of great consumer experiences in new channels and so forth. It is true that the nature of projects is such that the projects are of small sizes, small durations, agile, done using new technologies and there is an increasing fragmentation of technologies.

But therefore, the challenge that we see is a triple challenge and a triple opportunity where on the one hand we need to make sure that we are able to deliver those kind of services and we are doing that and our work in these areas has been growing significantly and we also need to ensure that our ability to train people in these areas is there. And therefore we are creating our foundational training for example, in Design Thinking which has now reached close to 70,000 people including nearly 5,000 project managers. Basically every project manager in the company has already been trained on Design Thinking and similarly, we are teaching people the new Agile, DevOps technologies in an extremely scalable manner. We have within the next three quarters every single project manager and delivery leadership of the company above project manager will all be trained on DevOps, Agile, Scrum Technology, so 100% coverage.

So both the training has to evolve but in addition need to start bringing a complement of start-up offerings into our overall solution and plug that in and deliver that to the clients as well as wherever possible make acquisitions. For example, we have acquired Skava which is an amazing platform and Skava’s volume of mobile commerce almost double during Black Friday. And we have seen a significant adoption of Skava in our clients in Retail basically and is also starting outside of Retail. So it is going to be a combination of working with start-ups, acquiring new technologies wherever it makes sense, and training our employees for this new reality that these new kinds of projects are small ones and agile ones. But I do not see that this fundamentally changes the nature of what we do or any of the outlook that we have on the road ahead.

Sandip Agarwal

Yes, thanks Vishal, extremely helpful for the detail. Just if I can squeeze a smaller one, what is your view on the disruption which 3D Printing can bring to the different industries, if you can throw some light on that as well. Thank you.

Vishal Sikka

If you look broadly at the adoption of technology as it happens, it is another great step in this ongoing commoditization of these kinds of technologies, ongoing postponement or late binding of these ideas of delaying the decisions until the last possible minutes and the ongoing digitization of previously physical artifacts. So more and more of the last mile kinds of things we see will be printed on-demand near the point of consumption or at the point of consumption. Obviously, for the foreseeable future I do not see that, we will all be printing our own computers and things like that. However, I believe that the technology has tremendous impact. One of the exciting projects that we have been working on one of these 151 design engagements is actually with a CPG company where we have been working on 3D Printing Chocolate with your own variation of sugar and butter content, your own shapes and sizes - you can print R2D2 things of this nature. So it is an exciting technology. It can have significant impact on the Manufacturing side but in the grand scheme of things it is a natural evolution of brining supply and demand closer and closer together towards the point of consumption.

Moderator

Thank you. We will take the next question from the line of Ankur Rudra of CLSA. Please go ahead.

Ankur Rudra

Firstly, do you see a shift towards greater Consulting-led discretionary spend over the cost of Commoditized Legacy Service in the marketplace that is part A? And part B, in this quarter we have seen the service mix for Infosys moved towards Consulting System Integration away from Application Maintenance and Infrastructure which historically has enjoyed better pricing than the Infrastructure and Application Maintenance piece. But, however, we have still seen a realization decline in constant currency terms, if you could just tie those two ends for me. Thanks.

Vishal Sikka

No, I think that those particular movements that you have seen are more seasonal and dependent on individual projects and so forth. I do not see any particular reason that Consulting is any more or less than any of the Projects and Application Maintenance and so on. Of course the base that we have on Application Development and Maintenance is a much larger base similarly in other services compared to the Consulting base. More broadly speaking, the nature of Consulting is changing where an implementation of particular package or brining in a previous best practice on some process is not so valued as the ability to do brain storming and Design Thinking on the strategic areas of the future for the clients and this is the thing that continues to be our focus. Almost all of our design engagements, the 151 design engagements that I mentioned have been led by Design Thinking and where we help get into uncharted areas, help our clients understand the more strategic problems that they face and then work proactively to build rapid new next-generation solution to those problems and I believe that increasingly that will be the future of Consulting.

Ranganath D. Mavinakere

The pricing point that you mentioned, I think indication is on the year-on-year basis because on the sequential basis there are multiple factors for example, this quarter the furlough pieces as well as the Q2 one-time that $23 mn piece can also alter the sequential pricing changes. On the year-on-year basis, reported currency 4.5% decline and in constant currency 1.1% decline, so that is the broad picture.

Ankur Rudra

Okay. And on Financial Services, clearly when we were going into the quarter you were a bit concerned about spending initiatives there. Can you help us understand what led to that and is your outlook is significantly more positive now for the rest of CY ‘16 not just this year?

Mohit Joshi

Yes, this is Mohit Joshi. So look I think momentum was strong in the quarter. We had new clients, we were on the winning side of consolidations and I think clients are excited about the energy they see in the company, they see our portfolio of offering. So we had two good quarters prior to this as well. So this is our third good quarter in a row.

Ankur Rudra

So this is more about you wining vendor consolidation exercises post to the market changing in its complexion?

Mohit Joshi

No, I think it is both. Look, I think we are winning new kinds of projects and we are also winning on consolidation deals. So I think, it is a mix of growing in existing clients and winning new clients. It is not one or the other.

Ankur Rudra

Okay, thanks. And just lastly, if you could clarify the demand outlook particularly in the Manufacturing and Retail verticals? Thank you very much.

Sandeep Dadlani

Hi, this is Sandeep. In the Retail vertical we are certainly seeing interesting trends. The holiday season was good prima facie but if you double click on it, online sales went up more than 20% while foot traffic in physical stores actually declined. That means that we will see increased trends in mobile and online sales. Even if you look at our acquisition Skava you will see a traffic and commerce – Mobile page view, mobile commerce surpassing desktop views and desktop commerce, So, within the online world we are seeing dramatic changes. So I continue to see increased smaller innovation projects in Retail, in the consumer goods area as well. I see a lot of M&A kind of work coming into the CPG area as large CPG companies consolidate, merge, or divest to take care of activist investors.

In the Manufacturing area, the Auto sector certainly has a great momentum going on. We are seeing projects in the areas of connected cars new Digital experiences in dealers, etc. The Aerospace industry will go through a little downturn in spending because a lot of design of new planes has already been completed and now it is just production and roll out which is going on there. So it is a mixed bag in Manufacturing.

Overall Retail and Manufacturing put together, I see moderate growth going into the next year but even then as far as we focus on Digital, on Cloud, on Innovation and in Analytics, you will see many referenceable clients emerge just like today we had mentions of TNT, BNSF, Hershey, etc., increasingly. Thank you.

Moderator

Thank you. We will take the next question from the line of Viju George of JP Morgan. Please go ahead.

Viju George

Congratulations to the management team on a good performance. Vishal, I had two questions, really one on Digital. When you are looking at having more offerings around propriety platforms like the IIP, IAP and more generally applications around new technologies, are you looking to change your profile of people both from delivery or development perspective as well as from sales and marketing perspective? Or is it going to be largely training of the workforce to the relevant Digital context, that is one? And secondly, automation is critical for your 2020 Vision. Do you envisage a scenario where a large part of the automation gains we would end up sort of surrendering to the client because I guess in the current environment the competitive scenario is forcing us to give a large part gains to our clients thus keeping extra margins for ourselves? Thank you.

Vishal Sikka

On the first one, the weightage is certainly towards training, there is no substitute for that. We have actually been investing in some completely new training technologies itself under the leadership of Binod where we teach in a much more sophisticated real-time manner using much better techniques and in fact we have seen some amazing results in how it improves the ability of people to learn just by using a better teaching platform. We are also patterning with many of innovators in start-ups and innovators in the education world. So training continues to be the focus. I think obviously when you look at core technologies like IIP and IAP this requires a very different kind of skill but this is a much-much smaller number of people. You are talking about I mean 10 people in a platform team can make a huge difference whereas on the other side we are talking about tens of thousands of people. So I do not believe in hiring massive numbers of people from the outside to build services expertise but instead to train them as much as possible. Obviously, hiring is an important part of what we do and sub-contracting is an important part of what we do especially as this last quarter indicated. But truly the main focus of the company is in hiring the niche skills in the important areas and in training the broad base of people in the technologies and capabilities that are relevant for the times ahead.

Your second question was about automation. The answer to that question is different depending on what time horizon you put on it. If we waited for one more year or some period of time, people tell me when I say one year that I am being too aggressive but I actually think that it is nine months to one year maybe it is two years but at some point in the future this automation will become de facto standard, it will become something that everybody expects to bring because it is a norm in the way that we work. Today it is still a novelty, so you can comparatively differentiate your offering and realize that value and the margin saving to yourself and that is the key. How early can you get on that cycle? That is why I have been harping on this point for the last 18 months and that is why we have been investing so heavily and now this is no longer something that is an early adoption or an experimentation but something that is massively adopted. In our infrastructure management, for example, this early automation that I talked about in Ravi’s team we have already seen 100% adoption of automation in the basic managed fixed-price projects and that number will continue to grow as we go into more of that the time and materials and other categories of projects and as we continue to expand the scope of automation that is applicable inside of the project. Today we see between 10% to 35% benefits because of automation, I believe as we take a bigger bite out of it or as we start to apply this towards L2 service offerings or even L3 service offerings where we need more Artificial Intelligence and things like that, we will have a bigger impact from automation. If we wait for these, then these will become more and more commoditized and will be assumed and then you will hand over the gains to the client. But if we get this done early on enough, then we will be able to realize at least some of if not all of the value that the automation brings.

Viju George

Sure, that was helpful. So as a consequence of that what you are saying is that in the projects today where you are realizing a satisfactory level of automation, you are able to keep a reasonable part of the gains for yourself?

Vishal Sikka

Yes, in the categories of projects that we have applied this to we are able to keep the gains that we see. If you look at the burden of saving 1,100 people from this project because of automation is that you need to ensure that the pipeline is there to consume those 1,100 people otherwise, you have just basically worsen your utilization. So that is the sort of the balance that we need to achieve. But all things being equal, this gain that we have achieved already produces an impact on the bottom-line.

Moderator

Thank you. Ladies and gentlemen that was our last question. I now hand the floor back to Mr. Sandeep Mahindroo for closing comments.

Sandeep Mahindroo

Thanks everyone for spending time with us on this call. We look forward to interacting with you again. Have a good day.

Exhibit 99.7

Earnings Call 2

EARNINGS CALL-2

Q3-2016 RESULTS

January 14, 2016

CORPORATE PARTICIPANTs

Vishal Sikka

Chief Executive Officer & Managing Director

M.D. Ranganath

Executive Vice President and Chief Financial Officer

Pravin Rao

Chief Operating Officer

ANALYSTS

Edward Caso

Wells Fargo

Moshe Katri

Sterne Agee

James Friedman

Susquehanna International Group

Keith Bachman

Bank of Montreal

Arvind Ramnani

Gordon Haskett

Joseph Foresi

Cantor Fitzgerald

Rishi Jhunjhunwala

Goldman Sachs

Moderator

Ladies and Gentlemen, Good Day and Welcome to Infosys Earnings Conference Call. As a reminder, all participants’ lines will be in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing ‘*’ and then ‘0’ on your touchtone telephone. Please note that this conference is being recorded.

I now hand the conference over to Sandeep Mahindroo. Thank you and over to you.

Sandeep Mahindroo

Thanks, Inba. Hello! Everyone and Welcome to Infosys Earnings Call to Discuss Q3FY16 Financial Results. I am Sandeep from the Investor Relations Team in Bangalore. Let me start by wishing everyone a Very Happy 2016. Joining us today on this call is CEO and MD – Vishal Sikka; COO – Pravin Rao; CFO – M.D. Ranganath along with other members of the senior management team. We will start the call with some remarks on the performance of the company by Dr. Sikka followed by comments by the leadership team, subsequently; we will open up the call for questions.

Before I pass it on to the management team, I would like to remind you that anything which we say which refers to our outlook for the future is a forward-looking statement which must be read in conjunction with the risks that the company faces. A full statement and explanation of these risks is available in our filings with the SEC which can be found on www.sec.gov. I would now like to pass it on to Dr. Vishal Sikka.

Vishal Sikka

Thank you, Sandeep. Good evening and Good morning and thanks for joining our call.

To start with I want to recognize the spirit and the passion of all Infoscions which in many ways define our performance in this third quarter. We entered this last quarter somewhat apprehensive about what was ahead. Q3 is known for its seasonalities, the furloughs, the less number of working days etc., and we were coming off an amazing Q2 performance. Then we were faced with the devastating floods in Chennai last month. But despite all of this because of the spirit and the passion of our people, I am pleased with what we achieved and the momentum that this has created for us to end the fiscal year on a strong note.

We ended Q3 of FY16 with revenue of $2.407 bn. This translates to a quarter-on-quarter growth of 1.7% in rupee terms, 0.6% in US dollar terms and 1.1% in Q2 constant currency. Year-on-year our revenue has grown 12.5% in constant currency. If we adjust for the one-time early termination fee paid to us by a client in the last quarter, our quarter-on-quarter revenue growth came in better than expected at 2.1% in constant currency and 1.6% in reported terms. Volumes grew by 3.1%, indicating a healthy momentum in the underlying business. Utilization including trainees was 74.2% and 80.6% excluding trainees. Blended per capita revenue decreased 2.5% as a result of lesser price realization. If we adjust for the one-time termination fee impact realized in Q2, pricing decreased by 1.5%. Our operating margin for the quarter was 24.9% compared to 25.5% in the previous quarter. We reported EPS of Rs.15.16 for the quarter, and in US dollar terms EPS was 23 cents. Margins were impacted due to the seasonality of price realization that is typical of the third quarter and for some other reasons that Ranga can talk about. Attrition for the quarter decreased further to 13.4% on an LTM basis and Infosys is now home to 193,000 employees. I mentioned our utilization earlier. Our ‘Zero Bench’ program which is aimed at rethinking the notion of the bench that prevails in our industry, has seen great adoption. More than 8000 projects have or are being worked upon by more than 4,000 people while they wait for client projects. This is giving them valuable real life experience that they then take to our clients and in the process they are creating software assets for our own use that are value to us.

Our outlook for the rest of this financial year is positive. Therefore, we are raising our revenue growth projection for the full year to 12.8% to 13.2% in constant currency terms. This is ahead of our original annual guidance of 10% to 12% in constant currency. We expect that this will put us in a good position as we head into FY17 and on our way to industry leading growth. Ranga will touch upon some of the increased cost that we see on the horizon due to visa fees, etc. and where we think we will end up in March.

Our momentum of large deal wins continued and we won four large deals in the quarter with nearly $360 mn in contracted value across Application Maintenance, Infrastructure Management and end package systems. In addition, we won a large renewal deal of around $600 mn. The pipeline of large deals continues to be healthy and in fact in the early weeks of this Q4, we have already signed new deals worth about $150 mn. Our Financial Services segment under Mohit’s leadership continued its strong performance with 2.6% quarter-on-quarter growth in constant currency. China and India geographies also grew well for us in Q3.

Now, turning to the heart of our strategy – Innovation: We are driving innovation in two key ways. In our grass roots efforts to empower every Infoscion as an innovator through programs like Zero Distance and in our reimagining of next-generation services with our AiKiDo service offerings. Our Zero Distance Program which focuses on driving innovation in every ongoing project that we do for every single client has continued to grow. We now have more than 8,000 Zero Distance Projects. More than 90% of our delivery organization under Ravi’s leadership has already done something innovative in an existing project beyond the statement of work bringing value to our clients in every project. As recognized in many client surveys, the ‘Innovation quotient’ of the organization has improved and Zero Distance has been recognized in employee surveys as the most impactful and engaging movement in the company. When we talk about Innovation at Infosys we do not talk about a single department but rather all of us as innovators. I believe this is a unique part of our strategy to change the nature of conversations that we have with our clients. We have begun to see these ideas deliver value for our clients as well. For example, at TNT Express where we manage more than 721 applications in a complex landscape, we proactively identified an opportunity through our Zero Distance Program to drive more value by using the Infosys Automation Platform to monitor their mainframe-based messaging applications. This is enabling earlier detection and automatic resolution of incidence and resulting in higher business stability.

We are at the same time seeing strong adoption of our new AiKiDo service offerings across all our industries. Clients continue to respond well to this framework as they look to us for help in renewing their IT landscapes non-disruptively. This is the ‘Ki’ of AiKiDo. Leveraging new platforms and technologies to open opportunities which is the ‘Ai’ of Aikido and bring the power of Design Thinking to find the great problems that they need to solve which is the ‘Do’ of AiKiDo. During the quarter, we leverage Ki to help clients modernize their legacy architectures, migrate existing application landscape to the Cloud and leverage DevOps and Agile methodologies and architectures for more Agile landscapes. Commerzbank in Germany, for example, chose us for a Multi-Year Application Management Program to develop a post trade utility for the bank leveraging principles of Design Thinking in the AiKiDo framework to simplify application architecture to standardize and improve processes and to drive cost efficiency.

The Infosys Information Platform surpassed 200 engagements to-date with 30 already in production. I am particularly excited about our work with (ATP) the Association for Tennis Professionals where we are helping to reimagine the tennis experience. At the Barclays World Tour Finals recently, we analyzed huge amounts of data from the chair umpire and from Hawkeye to deliver unprecedented foresights into each match and in doing this help to transform the fan experience. Infosys is working with Hershey to build a predictive analytics capability using IIP. We have set up Data Lake of close to a terabyte and 5.3 bn records on IIP for doing advanced analytical analysis to enable real-time decision making in the supply chain area.

The Infosys Automation Platform (IAP) surpassed 121 engagements with 47 already in production. Automation is making its way more fundamentally into our services. I have said this before several times that automation and renewal are the answer to the decline that our industry is in the midst of due to the commoditization of traditional services. In this quarter, we released more than 1,100 engineers compared to roughly 800 FTE in the last quarter and this was across our service lines – Infrastructure Management, testing as well as BPO, Enterprise Packages under Engineering Services BI and Digital. Automation impacts every single service that we deliver.

Panaya, Skava and Edge solutions continue to see strong adoption. Our EdgeVerve unit had 24 wins and 25 Go Lives for the Finacle and Edge Platform offerings. With Panaya, we closed 13 new joint engagements including one at BNSF, the North American Railroad Company for risk based testing on their SAP landscape. Skava’s Mobility Service offering for retailers had a record black Friday weekend with traffic and mCommerce sales up by 50%. In Do, our Design Thinking, our methodology to discover and articulate the most complex, the most strategic problems of our clients, we have conducted more than 151 engagements with clients to-date led by our consulting teams. For example, we help Aimia create their new market entry strategy by leveraging Design Thinking to evaluate the core needs of the markets, its consumers and open the minds of their teams to think of creative solutions rather than focusing on predetermined ideas. More than 69,000 of our employees have now been trained in Design Thinking and clearly we can see the application of this across the board in helping us build better relationships with our clients and engaging with them on their strategic transformative projects.

We continue to look for investment and partnership opportunities that bring additional value to our clients and that help position Infosys in a broader context. In this quarter, we completed the acquisition of Noah Consulting, a leading consulting services provider for the oil and gas industry. We also invested in WHOOP, an early stage company that offers sports performance optimization system using variable solutions. We invested in Cloud Endure, a startup that provides cloud migration and cloud based disaster recovery systems. We announced our participation in Open AI, a non-profit organization dedicated to developing and advancing Artificial Intelligence bringing the best of AI talent in the world together in the interest of all of us. This initiative adds an important new dimension to our several ongoing efforts in Artificial Intelligence.

We were named the Corporate Citizen of the year at the ET Award last week for our CSR Initiatives and purpose-driven philanthropy done by our three foundations -- the Infosys Foundation in India, the Infosys Foundation in the USA and the Infosys Science Foundation.

We launched a new Solar Power Plant in our campus in Hyderabad and now produce 7.2 MW of Power with Solar which helps meet all 100% of the delivery center requirements in Hyderabad.

Before I hand it over to my friend Ranga, who had his first quarter as our CFO, I want to congratulate all Infoscions on being ranked second in the Business World overall list of most respected companies, especially because the award cited our belief itself as the reason for our winning. This reflects my own belief in the unlimited potential that all of us have. The future is something that we invent, that we make, as my friend and teacher Alan Kay often reminded us. People ask me about all these other factors like what is happening in the broader economy, what is happening in China, how we compare ourselves with others on Digital Services and so on. While lot of these are important they all remain things that we react to, that we respond to. The more important part is we are only limited by our imaginations and in this way I am very optimistic for the path that we are making for ourselves as well as for our clients.

Thank you very much and I would now hand it over to Ranga.

M. D. Ranganath

Thank you, Vishal. Hello everyone and wish you all a very happy 2016 ahead.

On the big picture, our revenues in Q3 were $2407 mn. This is a quarter-on-quarter growth of 0.6% sequentially in dollar terms and 1.1% in constant currency terms. On a year-on-year basis Q3 revenues have grown 8.5% in dollar terms and 12.5% in constant currency terms. If you recall in Q2 we had a one-time revenue of 23 mn due to a contract termination. After taking into account the termination, our quarter-on-quarter growth is 1.6% in dollar terms and 2.1% in constant currency terms.

Q3 is a seasonally soft quarter due to the impact of furloughs and lower working days. Growth in Q3 was better than our earlier expectation since the impact of some furloughs was lower than what we anticipated. We were also able to overcome the client specific headwinds to some extent. We also had to navigate through unexpected events such as Chennai floods. However, our effective Business Continuity Plans ensure that there was negligible impact of the same on our revenues.

During the quarter, we acquired Noah, which resulted in additional $3 mn revenues for Q3. Volumes grew by 3.1% during the quarter, marginally lower than 3.7% in Q2. Realization for the quarter declined by 2.5% on reported basis and 2% on constant currency basis. If we normalize the impact of contract termination in Q2 decline in realization was 1.5% in reported terms and 1% in constant currency terms. Furloughs and lower working days in Q3 also impacted the realization to some extent. On a year-on-year basis realization was lower by 4.5% in reported terms and 1.1% in constant currency terms.

Our utilization excluding trainees declined by 70 basis points to 80.6% during the quarter; utilization including trainees declined by 120 basis points to 74.2% due to addition of trainees during the quarter. Onsite mix increased marginally to 29.5% as a result of growth in Consulting and SI services Projects, which has a higher onsite component.

Our operating margin for the quarter was 24.9% a decline of 60 basis points during the quarter. Margin for the quarter were impacted by 110 basis points due to realization decline and another 60 basis points due to drop in utilization, increase in subcon cost and impact of Noah consolidation. This was offset by 110 basis points due to benefits resulting from both rupee depreciation and reduction in variable pay, thereby limiting the margin drop to 60 basis points.

At the group level, we added 14,027 employees during the quarter with a net addition of 5,407 employees. Attrition continues to be on the declining trend. The group level annualized attrition was 18.1% as against 19.9% last quarter. The quarterly annualized attrition on a standalone basis for Infosys Limited has declined to 13.4% from 14.1% last quarter. This is at par with the lowest level of attrition in the last 15 quarters.

Operating Cash Flow generation was stable during the quarter. We generated Operating Cash Flow of $474 mn in Q3 as compared $480 mn in last quarter. We paid out interim dividend and Dividend Distribution Tax of $423 mn and $102 mn towards deferred consideration on purchase of Lodestone. CAPEX during the quarter was $103 mn. Hence our cash and cash equivalents as of December 31st was $4.765 bn as compared to $4.894 bn last quarter. DSO for the quarter was 65 days. In parallel, we had a reduction of $74 mn of unbilled revenues in Q3 and they fell to the lowest level in the last two years.

We saw another quarter of US dollar strength against most currencies. Rupee depreciated against dollar by 1.1% on an average basis and 0.9% on period end basis; US dollar appreciated 2.3% against the euro and 2.2% against the UK pound.

The Effective Tax Rate for the quarter was 27.2%. This included tax reversals due to completion of tax assessments in certain jurisdictions. Excluding this, our Effective Tax Rate for the quarter was 30% which is within that 29% to 30% band that we had indicated earlier.

Our net margins during the quarter were 21.8% compared to 21.7% last quarter. Our EPS for the quarter was 23 cents; EPS grew 0.9% on a sequential basis and 0.4% on year-on-year basis.

Coming to the segments performance amongst verticals, FSI which is Financial Services and Insurance grew by 2.7%, Energy, Communication and Services grew by 4.2% while Retail and Manufacturing declined by 0.5% and 3.7% respectively. Amongst the geographies, Europe grew by 2.1%, North America declined by 0.6% while the Rest of the World was flat. Q3 growth in Americas and Manufacturing was negatively impacted since Q2 revenues included $23 mn from contract termination that I mentioned earlier. India grew by 23.1% due to ramp up of a few projects. The growth in India should be seen in the context of the small base of business which sees changes due to ramp ups and ramp downs in projects.

During the quarter, we added 13 clients above 1 mn, 4 clients above 25 mn and 1 client above 50 mn. Our share of revenues from Fixed Price contracts increased further during the quarter to 44.6%. Our revenues from top five clients declined by 0.3% quarter-on-quarter and from top 10 clients declined by 0.1%. However, on a year-on-year basis our revenues from top five clients grew by 13% and from top 10-clients grew by 9.4% which is higher than the company average growth.

Coming to guidance, our earlier guidance for FY’16 was 10% to 12% in constant currency terms. Based on our performance in the last three quarters, we are increasing our constant currency guidance from 12.8% to 13.2%. This translates to 8.9% to 9.3% growth in dollar terms. On operating margins, we expect our medium term band to be 25% plus/minus 1%.

With that we will open the floor for Questions.

Moderator

Thank you very much, sir. Ladies and Gentlemen, we will now begin the Question-and-Answer Session.

Our first question is from the line of Edward Caso of Wells Fargo. Please go ahead.

Edward Caso

Good evening. Congratulations on a good quarter. I was curious of the impact you expect from the recent increase in the visa fee rates. And also another company we follow indicated that there is a new bonus rule that was just enacted on a retroactive basis and we are wondering if that was impacting you?

M. D. Ranganath

On the visa part, there are two components to it. One is what are the additional charges for the new applications that we put that has gone up by $2,000 per application; there is a second component wherever we extend the visas beyond a certain period, that component is up by about $4,000. There is some amount of clarity still required under second piece because we have heard different versions and different notifications. However, assuming that it is $2,000 for the first and $4,000 for the second, and if we assume for the next year we will have a similar additional visa applications and visa extensions, based on our current estimate it is about 30-35 basis points impacts on the margins for the next year. That is our current estimate. However, this is based on the current information that we have on the visa changes. The second part, yes, this particular thing primarily applies to our BPO employees, not on Infosys Limited employees. I think the aggregate impact is very negligible.

Edward Caso

My other question is on the Infrastructure business that seemed a bit soft this quarter and it had been particularly strong in a while. Is that anything in particular to call out?

Vishal Sikka

No, it was a result of the one-time early termination that was paid to us by a client in Q2 that was in the Infrastructure area that ended up skewing that number in the previous quarter. We are growing in Infrastructure very well. In fact, our Infrastructure offering has never been stronger. Infrastructure is the first beneficiary of automation. So the largest contributor to that 1,100 people that I mentioned was in Infrastructure and we have been pumping a lot of effort into bringing automation into all aspects of Infrastructure Management, but also working closely with our partners especially Amazon and Microsoft, but also others like EMC and others in helping to bring this Cloud Migration and some of the next-generation elastic Infrastructure offerings. On the Innovation side, we have been doing a ton of work with start-up companies; we have invested in Vertex Ventures which is an exclusively next-generation Infrastructure focused venture fund as well as we just did an investment in Cloud Endure in the Disaster Recovery Area in Infrastructure which is a key requirement for many of our clients. So, I believe that our Infrastructure offering has never been stronger and we are quite bullish on that.

Moderator

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

Moshe Katri

A question on realization which was down during the quarter. Can we get some maybe some more details on some of the drivers here – does it have to do with the new mix of business? And then how comfortable are we that given the new mix of businesses coming on board that we are going to be able to sustain the margins that we are targeting?

M. D. Ranganath

If you look at the realizations, on sequential basis it declined by 2.5% in reported terms and constant currency 2%. If you compare on an apple-to-apple basis with the previous quarter after taking to account that one-time termination then the sequential decline is 1.5% reported and 1% in constant currency. And likewise between quarter-to-quarter there will be a couple of items which will in the short-term change this decline. In our opinion, the year-on-year is probably a more broader trend. When we look at the year-on-year in reported terms, it was 4.5% decline and in constant currency terms 1.1% decline. That is the broad picture on the actual numbers.

Vishal Sikka

Beyond the specific numbers that Ranga talked about, if you look at on the yearly basis, pricing declined by 4.5% on reported terms and 1.1% on constant currency. So there is clearly a structural downward trend here that is at play and I have been talking about that obviously for the last several quarters. There are of course seasonal fluctuations in this and some quarters where it goes up and some it is not as bad, but generally there is no doubt that there is a declining pricing pressure. My sense is that there are a whole bunch of operational levers that we can press, we can to improve this around the utilization obviously but also the onsite mix, the role ratios and things of this nature. But clearly, the big thing to be done here is Automation. I mentioned I am encouraged that we have demonstrated the saving of about 1,100 engineers in the last quarter because of Automation. We need to bring this number up significantly and we are working on that as we look to the financial year ahead of us. This is one of our key priorities to vastly expand the scope of Automation both in terms of how we bring it to all our projects, so far we have been applying it to a subset of our projects, which are more fixed price in nature and so forth, but to also apply these to a much broader range of our projects. But also going beyond that to higher quality of Automation, meaning, going beyond the more mechanisable, repeatable tasks, the tasks requiring more of the troubleshooting diagnostics, the more complex understanding of text, natural language processing, machine learning kinds of activities, which helps us get into the higher level kinds of tasks that our people perform. Even in Application Development, which is a much more non-mechanisable kind of the task to improve the experience of the developers, to simplify the tooling, to find framework that can simplify the developers experience. So, Automation is the long-term counter to this structural downward pricing pressure that we see.

Moshe Katri

Just as a follow-up; the TCV number was significantly below of what we have seen a quarter before. You did indicate in your press conference that you had a couple of deals that were signed later after the quarter closed. Was there a deal slippage issue here? Maybe you can kind of get some more color on that.

Vishal Sikka

Yes, a couple of the deals slipped out of Q3 into Q4. I mentioned earlier, we have already signed $150 mn worth of those and we are on the verge in the next few days of signing another one. But I do not read anything into that. We are in a holiday season and so forth. These are long-term projects. So it does not matter. We see quite a healthy pipeline in large deals of getting close to $3 bn that we see right now. When we look at Q3 we did $362 mn worth of large deals already and then if you count one large Financial Services deal that we did which by our technical definition we do not count in this manner, but it was in the neighborhood of $600 mn. So the signed deals add up to close to a billion anyway and then we have done more now. So our win-ratio and deals has improved significantly compared to the past and we feel quite good about what is happening in the large deals area.

Moderator

Thank you. Our next question is from the line of James Friedman of Susquehanna International Group. Please go ahead.

James Friedman

Let me echo my congratulations and good start of the calendar year. I want to ask about strategy regarding mining the top clients. That has really served you well over the first six quarters of your tenure, Vishal. The top-10, 5 and 1 did decline just marginally as a percentage of revenue in the fiscal Q3. My question is, as you look to achieve your mid and longer-term objectives in 2017 and up to 2020, how important are the top clients in the initiatives to get you to your plans?

Vishal Sikka

They are very important James. The top-5, 10 and 25 clients are a very key focus area for us. I keep an eye on that myself and our entire leadership team does as well. The number that you saw in the last quarter were a result of the seasonalities that I talked about. In fact our relationship with our top clients has never been stronger, has never been more strategic than it is now. We are quite excited about the kind of engagements that we are starting to get into with our large clients in the new areas in Design Thinking and structural programs in large scale landscape renewals and mainframe modernizations, things of this nature. If you look at the revenue from the top-5 clients there was a 0.3% decline quarter-on-quarter and in top-10 it was 0.1% quarter-on-quarter, but on a year-on-year basis the revenue from the top-5 clients grew by 13% and for the top 10 clients grew by 9.4%, both are higher than the company average growth and our top most clients has grown by 21.5% on a year-on-year basis. So from a mining perspective, from a strategic relationship perspective, the top clients continue to be a huge area of strength for us, of growth for us. I can say unequivocally that our relationship with the top clients has never been stronger.

James Friedman

I think Pravin had mentioned that he anticipated the budgets would be flat to down for calendar 2016. You are saying you signed $150 mn already year-to-date. I guess my question is $150 mn a lot or a little. What reference point would we have for that as you start the calendar year at least?

Vishal Sikka

It is just the first working week of the year. I think we are excited about that obviously, but we do not read anything into it. It is just a way that the signing of these deals ended up happening. We have already been verbally awarded several $100 mn worth of deals already within this year. Like I said earlier we are feeling good about the large deal pipeline. In terms of the response that Pravin gave earlier and Pravin can add to this, we do see a downward pressure on the budgets especially in IT and the imperative that I see and late last night I was talking to one of our clients in Texas, there is this ongoing priority to find savings in the ongoing renewal of their landscapes and then using those savings to fund the growth initiatives and things like that. So even though the budgets are flat to declining, if we are able to be agile, to be able to redeploy projects and resources, and if we are able to transform both the help with the renewal of their existing landscapes to simplify these, move to the Cloud, find the savings, find the optimization and in parallel serve their needs, their burdens on the next-generation digital client-oriented strategic initiatives around creating new experiences for consumers and so forth. Then even though these budgets are under pressure, our growth can continue to be strong. That is something that I wanted to make sure that the declining pressure on clients budgets is not the same as our inability to take advantage of that.

Pravin Rao

Just to add, I do not think there is any disconnect between the two metrics because whenever the budgets are under pressure, clients will look at more outsourcing and will look at cost savings. Today when you look at the business and IT operation side of things there is tremendous pressure on cost, clients are typically looking at 15%, 20% savings for doing similar thing. That naturally will translate into large deals. So you will continue to see a healthy pipeline of large deals and particularly more so when there is a lot of pressure on the budgets.

Moderator

Thank you. Our next question is from the line of Keith Bachman of Bank of Montreal. Please go ahead.

Keith Bachman

I have two questions. You have mentioned that Infosys you believe can achieve industry-leading growth as you look out over the next 12 to 18-months I think starting after the conclusion of this March quarter. I want to try to revisit what do you think industry growth potential is if you look out over the course of the next 12-plus months?

Vishal Sikka

Right now, our visibility based on what we have said concretely on the near-term is that based on what we see from the point of view of our business execution within this quarter we will get to 12.8% to 13.2% in constant currency terms for this current financial year and we will share our guidance for the next year in the April timeframe. But looking at where the industry is at and where the atmosphere the clients is at, I feel quite confident that we will get to the industry-leading growth in the coming financial year.

Keith Bachman

You have mentioned that if we normalize for the payment that occurred in the previous quarter, you have given some constant currency realization, you have also indicated that year-over-year realization was down about 1%, which was due to pricing. Is that what we should expect going forward, do you think you said that pricing pressure will probably part of what you face, should we be thinking about realization trends down in the 1% range year-over-year as we look out over the next couple of quarters or over the course of calendar year ‘16?

M. D. Ranganath

Yes, as you have said we had a reported basis 4.5% and constant currency 1.1% drop in realization yoy. At least this is the trend that we see in the short-term, but it is difficult to predict over a long horizon or even in the medium-term horizon what could be the trend line be. But, at this point in time yes, this is a broad trend that we see, but it is difficult to kind of translate into medium-term trend line.

Moderator

Thank you. Our next question is from the line of Arvind Ramnani of Gordon Haskett. Please go ahead.

Arvind Ramnani

I had a couple of questions; from a pricing perspective, Infosys has been quite vocal about its willingness to be flexible in pricing and we are even seeing that in your overall pricing. Are your existing clients, particularly ones coming up for renewals asking for pricing breaks? The second thing is, you mentioned through Automation you had saved about like 1,100 engineers. Does that translate about like $50 mn or $60 mn or can you just give us some context of what does that translate into dollar terms?

Vishal Sikka

On the 1,100 people that we saved, it is too small a number right now, that is less than 1% of our delivery force. So it is difficult to start to put a tangible number on it. As we get closer to that point where these numbers become more substantive and we can start to assign dollars and percentages to them, we let you know, I expect that to happen over the next few quarters if not sooner.

Pravin Rao

To your other question, on the rate card perspective we are not seeing any clients coming back and asking for any price discounts by and large. It is only when the deal comes up for renewal whenever it is a competitive bid, there is aggressive pricing because of the competitive nature of the deal and clients clearly expect 30-35% savings. That is the trend we are seeing and that is where when we talk about pressure on pricing on the business and IT operation side of business, that is the reality we are seeing. But on the rate card, there is not too much of a pressure.

Arvind Ramnani

So, would it be fair to say these are mostly kind of new client signing ups?

Pravin Rao

It is a mix of both. There are some deals where we are the incumbent and when it comes up for renewal clients put it out for competitive bid, there are deals where we are not incumbent. It’s a combination of both. Over the last few quarters when we look at large deal wins that we have announced, it has been a mix of new wins and existing clients.

Arvind Ramnani

And just a separate question on; I realized at this point your clients are still finalizing budgets. However, do you have some sort of initial feedback on budgets and how you are feeling this year compared to last year when it comes to client budgets?

Pravin Rao

Overall the sense we get is budget in some industries maybe marginally up, but by and large flat or marginally down. Only industry where we can talk with confidence where we are seeing lot of pressure is on the Energy side where there is lot of pressure because of the oil prices, there is definitely pressure and budget cuts but in other cases budgets are typically flat. On a client-by-client basis it varies a little bit. It is similar to the trend we saw in the last year as well. In some sense the notion of annual budget and sacrosanct of the annual budget which we use to see in the past is no longer there given all the volatility many times, we are seeing budget resets on a quarterly basis. That is what we would expect given the continued volatile nature of the business. Overall, every client is looking at taking cost out and repurposing that savings into new transformation areas and so on. That pattern we expect to see in this year as well.

Arvind Ramnani

I am hearing from many firms that they are growing and expanding their captive operations in India. As they are expanding the captives, do you look at it as a positive, because you have a role in expansion or do you look it as a negative where some of the work that would have gone to Infosys is now going to a captive?

Vishal Sikka

It is not such a big shift that it makes any material difference to what we do. We have in fact been helping some of our clients with setting up of their operations. With a couple of large companies in the Financial Services industry and we have in fact been recruiting and training their employees as well as taking over more of their work, so creating a true symbiotic partnership where our employees and their employees work together seamlessly and of course we have exceptional expertise in infrastructure and facilities and the operating environment which helps out a lot. So we see both kinds of movements, in some cases our clients do set up captives, but in other cases they hand over their captives to us or even we provide them help and services in establishing their captives. There is also some of the work that we have been doing; we invested in this ANSR, which is a new kind of set up creation entity here and Ritika who heads our M&A and Corporate Venturing, she visited these folks in the last couple of days. That is an exciting new dimension. But, again, these things are all not of a large enough scale that it makes a difference right now.

Moderator

Thank you. Our next question is from the line of Joseph Foresi of Cantor Fitzgerald. Please go ahead.

Joseph Foresi

I wonder if I could ask pricing question a little bit different. Has your go-to-market where the pricing that you typically use in negotiating deals, are you now changing that philosophy and pricing more aggressively to take market share as we start to see some of the work get commoditized?

Pravin Rao

Absolutely not. In fact we believe that as we improve our engagement with clients and as we bring more and more sophistication and high value into our proposal process and into our engagements, we actually end up having much more differentiated conversations by doing that. So obviously there is a pricing pressure especially in areas where we already have existing relationships or even when we end up getting new opportunities. But the key is always to get ahead of that wave, that wave is there we know that it is coming and it is already here, but the key is to be ahead of that by virtue of a combination of Automation that helps improve our productivity faster than the decline in the curve and by virtue of Innovation that helps us move our people and our capabilities higher up in the value chain towards things like more innovative projects, more next generation, experience and intelligence system oriented projects or in particular, using things like Design Thinking and helping identify the most important problems and most game changing kind of opportunities for clients. I know that there are folks in the industry who talk about the fact that we are lowering prices and so forth. I want to categorically deny that and talk instead about the fact that we are relying heavily on our innovative offerings in AiKiDo and so forth that become more and more a part of the mix that we offer to the clients which makes our propositions more attractive.

Joseph Foresi

And then just on Digital, I know you stayed away from percentages of revenues from Digital, but maybe you could give us some idea of what that investment is costing you and any kind of color around the financial associated with how you are participating. So in another words, are you having to invest heavily there, is that coming in at a lower margin, and any goalpost secure to put around percentage of revenue of growth rates?

Vishal Sikka

I haven’t stayed away from percentages at all. In fact I have consistently said that 100% of our revenues is from Digital. What people mean by Digital is these areas where traditionally physical experiences and engagements are becoming digitized for the first time like experiences inside stores or creating new channels, which were not there before for engaging with clients and so on. On these kinds of projects we have tremendous expertise and tremendous growth happening. We do a lot of work in there, obviously, Skava, the technology that we acquired helps us to get a tremendous leap ahead. They had nearly doubled the volume on Mobile Commerce over Black Friday that just went by and so on. So we do not see any particular need to invest any more than we are already doing there. We will continue to do that as a part of our normal course of business, this is a service line for us and it is doing well. We have the right ability to teach people there and wherever necessary we hire and we obviously also acquire where necessary. It is true that the nature of those projects is different from the traditional large IT projects or outsourcing projects, these are smaller projects using a more fragmented collection of technologies and so forth, but that is a way that particular part of business is. One other dimension of that business is something that we are extremely excited about and we have done a lot of leading work on which is in the area of the Digitization of the physical world as manifested in the Manufacturing and Engineering areas, Internet of Things and creating Digital trends and things like that. That is an area where we have been growing significantly; our Engineering Services work, which is largely in that area had significant growth in the last quarter. We have announced the strategic partnership with GE, we have done a lot of work with companies like Mitsubishi in helping design airplanes using new techniques, airplane structures fuselage large structures and so forth, working with companies like Alstom and others. So overall this endeavor of the software eating the world or the physical infrastructure becoming Digital is a huge area of growth for us and I believe that we are well positioned in that area.

Joseph Foresi

We have talked about margins (+/-1%) and we have seen pricing obviously start to continue to decline, we got visa cost coming in there, and then there are some investments in kind of upgrading the skills for Digital. Are you still comfortable with that band going forward or how should we think about the margin profile that we want to?

Vishal Sikka

For now we are comfortable with that band of 25 (+/-1%) and our aspiration is to get to 30% by 2020 and the more time that goes by, the more comfortable we feel in seeing a path to get there. Obviously, we are not going to get there in the near-term, but we do feel comfortable that with the moves that we are making, we have a trajectory to get there. If that ever changes, we let you know, but for now I feel quite comfortable with that. Ranga, do you want to add anything to that?

M. D. Ranganath

Yes, Vishal, that is right. We continue to reiterate our medium-term goal of 25% (+/-). If you look at the first nine months of the current year, we have been at 24.8%. I think at the same time there are certain short-term levers and certain levers which by definition are more medium-term in nature. For example, the short-term lever is really in terms of utilization where our utilization as you notice is 80.6%. However, if you looked at about few years ago, we used to be in late 70s, now consistently in the last four quarters we have been just above 80%. We believe that there is scope for us to improve our utilization beyond what we have at the current level. Likewise, if you look at our onsite mix is at 29.5%, it has gone up by 1% year-on-year and we do have some levers there, but that is a more gradual lever than the utilization. Likewise, the subcontractor cost, onsite role ratios and employee cost as a percentage of revenue, these are some of the levers; something like utilization is more short-term. Productivity improvement that Vishal touched upon really is the lever through Automation that we hope to kind of counter some of these pressures, but that is more like medium-term.

Moderator

Thank you. Our next question is from the line of Rishi Jhunjhunwala of Goldman Sachs. Please go ahead.

Rishi Jhunjhunwala

Vishal, one question around the demand environment going into next year. So if you look at it there is clearly macro uncertainty around the world. We have seen kind of commoditization in the maintenance business and discretionary has not picked up that well. Clearly, there are some verticals, specific headwinds that the industry is facing. So with all that in the backdrop, do you see any areas which can potentially take demand higher next year versus this year or is it going to be more a function of wait and watch?

Vishal Sikka

We operate our business in this greater economic environment. There is obviously a lot of anxiety that is around what is happening in China and with oil and things of this nature. But by and large there are huge growth areas in the world around us, there are huge growth markets as well as in the big disruption that is happening. If you just look at the mainframe footprint in the world around us, there is a massive mainframe footprint and we are very uniquely positioned to help our businesses safely, reliably, non-disruptively move off of this old mainframe stuff towards modern, agile, dramatically cheaper Cloud Infrastructure and other opportunities, The conversation that we were having with Digital earlier in the previous question. “So could there be things that happen that affect us also badly that things goes out?” Of course, but looking at the way I see the near term future, I see that the when the times are bad there is need for innovation and when the times are good there is need for innovation.

Rishi Jhunjhunwala

The second thing is more on your target or basically aspiration over a five-year period on revenues and margins. So clearly, looking at the current trajectory we are kind of on track to achieve $20 bn and we have acquisitions and other things to achieve around that. But on the margin side with the medium term range that we are talking about, is it fair to assume that a large part of the margin improvement will be back ended and that too despite the potential acquisition revenues that we might have over the next 3-5 years. Just wanted to understand, basically how it can potentially play out and then result in improvement in our revenue per employee metrics?

Vishal Sikka

It is still early and this is still an aspiration goal -- $20 bn, 30% and $80,000 in revenue per employee -- but as time goes by, we get closer to it, it gets more in reach and we start to see paths to get there. My sense is that the curve that points to $20 bn will show up first, then the curve that points to the 30% margin and then the curve that points to the $80,000 revenue per employee. Right now if you look at the situation the revenue per employee is in fact going down because the pricing pressure is higher and the utilization and operational improvement have not kicked in yet and in particular the benefits of Automation have not kicked in yet enough to compensate for that, but I expect that will happen. Although again in terms of the slopes of those three curves, the first curve to flatten out will be the revenue growth curve, the second one will be the margin and the third one will be the revenue per employee. That is my sense right now.

Moderator

Thank you. Ladies and Gentlemen, that was the last question. I now hand the floor back to Sandeep Mahindroo for closing comments.

Sandeep Mahindroo

Thanks everyone for spending time with us on this call. We look forward to interacting with you again. Have a good day.

Moderator

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

Exhibit 99.8

Form of Releases to Stock Exchanges and Advertisement

Infosys Limited

Regd. office: Electronics City, Hosur Road, Bengaluru – 560 100, India

CIN : L85110KA1981PLC013115

Website: www.infosys.com

Email: [email protected]

T: 91 80 2852 0261, F: 91 80 2852 0362

Audited consolidated financial results of Infosys Limited and its subsidiaries for the quarter and nine months ended December 31, 2015 prepared in compliance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.

(in crore, except equity share and per equity share data)

Particulars	Quarter ended December 31,	Quarter ended September 30,	Quarter ended December 31,	Nine months ended December 31,		Year ended March 31,
	2015	2015	2014	2015	2014	2015
Revenues	15,902	15,635	13,796	45,891	39,908	53,319
Cost of sales⁽¹⁾	9,990	9,724	8,462	28,837	24,709	32,883
Gross profit	5,912	5,911	5,334	17,054	15,199	20,436
Selling and marketing expenses	859	843	770	2,522	2,205	2,941
Administrative expenses	1,094	1,075	875	3,132	2,611	3,663
Operating profit	3,959	3,993	3,689	11,400	10,383	13,832
Other income, net	802	793	840	2,353	2,546	3,427
Share in associate's profit /(loss)	–	(1)	–	(2)	–	(1)
Profit before income taxes	4,761	4,785	4,529	13,751	12,929	17,258
Income tax expense	1,296	1,387	1,279	3,857	3,697	4,929
Net profit	3,465	3,398	3,250	9,894	9,232	12,329
Paid-up equity share capital (par value 5/- each, fully paid)	1,144	1,144	572	1,144	572	572
Share premium, retained earnings and other components of equity	54,191	54,191	47,244	54,191	47,244	54,191
Earnings per share (par value 5/- each) ⁽²⁾
Basic	15.16	14.87	14.22	43.29	40.39	53.94
Diluted	15.16	14.87	14.22	43.29	40.39	53.94

⁽¹⁾	Includes Depreciation and amortization expense of 369 crore and 1,040 crore for the quarter ended and nine months ended December 31, 2015
⁽²⁾	adjusted for bonus issues wherever applicable

1.	The audited consolidated financial statements for the quarter and nine months ended December 31, 2015 have been taken on record by the Board of Directors at its meeting held on January 14, 2016. The statutory auditors have expressed an unqualified audit opinion. The information presented above is extracted from the audited consolidated financial statements. The consolidated financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.

2.	On November 6, 2015, the Securities and Exchange Board of India (SEBI) relaxed the requirements of Regulations 33(1) (c) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for the quarter ending December 31, 2015 and quarter and financial year ending March 31, 2016 for all such listed entities which had exercised the option of preparing consolidated financial statements under IFRS for the earlier quarters of FY 2015-16. The company had earlier availed the option of publishing consolidated financial results under IFRS as per the press release issued by SEBI on November 9, 2009 and continues to do so for the quarter ending December 31, 2015 pursuant to the relaxation provided by the aforesaid November 6, 2015 circular.

3.	Changes to the Board

i.	On January 14, 2016, the Board appointed Dr. Punita Kumar Sinha as an independent director with immediate effect.

ii.	Ms.Carol M. Browner resigned as member of the Board effective November 23, 2015. The Board placed on record its deep sense of appreciation for the services rendered by her during her tenure as a director.

iii.	The Board recommended the re-appointment of Prof. Jeffrey S. Lehman, Independent Director of the Company for a term of two years with effect from April 14, 2016 to hold office up to April 13, 2018, and not be liable to retire by rotation. Prof. Lehman’s current term of office as an Independent Director expires on April 13, 2016. The appointment is subject to the approval of the shareholders.

4. Investments

5. Information on dividends for the quarter and nine months ended December 31, 2015

An interim dividend of 10/- ( par value 5/- each) per equity share was declared on October 12, 2015 and paid on October 21, 2015. The interim dividend declared in the previous year was 30/- (not adjusted for bonus issues) per equity share.

(in )

Particulars	Quarter ended December 31,	Quarter ended September 30,	Quarter ended December 31,	Nine months ended December 31,		Year ended March 31,
	2015	2015	2014	2015	2014	2015
Dividend per share (par value 5/- each)
Interim dividend	–	10.00	–	10.00	30.00⁽¹⁾	30.00⁽¹⁾
Final dividend	–	–	–	–	–	29.50⁽²⁾

⁽¹⁾ not adjusted for bonus issues on December 3, 2014 and June 17, 2015

⁽²⁾ not adjusted for bonus issue on June 17, 2015

6. Other information

(in crore)

Particulars	Quarter ended December 31,	Quarter ended September 30,	Quarter ended December 31,	Nine months ended December 31,		Year ended March 31,
	2015	2015	2014	2015	2014	2015
Staff costs	8,772	8,558	7,546	25,383	22,423	29,742
Items exceeding 10% of aggregate expenditure	–	–	–	–	–	–

7. Audited financial results of Infosys Limited (Standalone Information)

(in crore)

Particulars	Quarter ended December 31,	Quarter ended September 30,	Quarter ended December 31,	Nine months ended December 31,		Year ended March 31,
	2015	2015	2014	2015	2014	2015
Revenues	13,562	13,525	12,192	39,825	35,374	47,300
Profit before exceptional item and tax	4,376	4,575	4,252	12,945	12,216	16,386
Profit on transfer of business*	–	3,036	–	3,036	412	412
Profit before tax	4,376	7,611	4,252	15,981	12,628	16,798
Profit for the period	3,183	6,306	3,055	12,387	9,140	12,164

*	Exceptional item pertains to profit on transfer of business to EdgeVerve Systems Limited, a wholly owned subsidiary.

Note:

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

8. Segment reporting (IFRS Consolidated - Audited)

(in crore)

Particulars	Quarter ended December 31,	Quarter ended September 30,	Quarter ended December 31,	Nine months ended December 31,		Year ended March 31,
	2015	2015	2014	2015	2014	2015
Revenue by business segment
Financial Services (FS)	4,377	4,241	3,694	12,500	10,765	14,394
Manufacturing (MFG)	3,506	3,622	3,137	10,460	9,040	12,140
Energy & utilities, Communication and Services (ECS)	2,912	2,814	2,609	8,353	7,618	10,057
Retail, Consumer packaged goods and Logistics (RCL)	2,577	2,582	2,233	7,502	6,649	8,869
Life Sciences, Healthcare and Insurance (HILIFE)	2,156	2,086	1,856	6,186	5,118	6,881
All other segments	374	290	267	890	718	978
Total	15,902	15,635	13,796	45,891	39,908	53,319
Less: Inter-segment revenue	–	–	–	–	–	–
Net revenue from operations	15,902	15,635	13,796	45,891	39,908	53,319
Segment profit before tax, depreciation and non-controlling interests:
Financial Services (FS)	1,250	1,258	1,114	3,582	3,165	4,262
Manufacturing (MFG)	895	891	781	2,573	2,273	3,025
Energy & utilities, Communication and Services (ECS)	824	834	789	2,441	2,350	3,049
Retail, Consumer packaged goods and Logistics (RCL)	699	726	684	2,069	2,011	2,679
Life Sciences, Healthcare and Insurance (HILIFE)	594	585	540	1,673	1,385	1,865
All other segments	71	60	46	111	(15)	21
Total	4,333	4,354	3,954	12,449	11,169	14,901
Less: Other unallocable expenditure	374	361	265	1,049	786	1,069
Add: Unallocable other income	802	793	840	2,353	2,546	3,427
Add: Share in Associate's profit / (loss)	–	(1)	–	(2)	–	(1)
Profit before tax and non-controlling interests	4,761	4,785	4,529	13,751	12,929	17,258

Notes on segment information

Business segments

Effective April 1, 2015, the Company reorganized its segments to support its objective of delivery innovation. This structure will help deliver services that will reflect the way technology is consumed in layers by the client’s enterprise. Consequent to the internal reorganization, Growth Markets (GMU) comprising enterprises in APAC (Asia Pacific) and Africa have been subsumed across the other verticals, Insurance is part of HILIFE and businesses in India, Japan and China (All other segments) are run as standalone regional business units. The previous period figures, extracted from the audited consolidated financial statements, have been presented after incorporating necessary reclassification adjustments pursuant to changes in the reportable segments.

Segmental capital employed

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

By order of the Board

for Infosys Limited

Bangalore, India

January 14, 2016

Dr. Vishal Sikka

Chief Executive Officer and Managing Director

The Board has also taken on record the unaudited condensed consolidated results of Infosys Limited and its subsidiaries for the quarter and nine months ended December 31, 2015, prepared as per International Financial Reporting Standards (IFRS) and reported in US Dollars. A summary of the financial statements is as follows:

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

Particulars	Quarter ended December 31,	Quarter ended September 30,	Quarter ended December 31,	Nine months ended December 31,		Year ended March 31,
	2015	2015	2014	2015	2014	2015
Revenues	2,407	2,392	2,218	7,055	6,552	8,711
Cost of sales	1,512	1,488	1,360	4,435	4,057	5,374
Gross profit	895	904	858	2,620	2,495	3,337
Net profit	524	519	522	1,519	1,515	2,013
Earnings per Equity Share ⁽¹⁾
Basic	0.23	0.23	0.23	0.66	0.66	0.88
Diluted	0.23	0.23	0.23	0.66	0.66	0.88
Total assets	10,771	10,810	10,028	10,771	10,028	10,615
Cash and cash equivalents including available-for-sale financial assets (current) and certificates of deposit	4,523	4,655	5,319	4,523	5,319	4,999

⁽¹⁾ adjusted for bonus issues wherever applicable

Certain statements in this release concerning our future growth prospects are forward-looking statements regarding our future business expectations intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, fluctuations in foreign exchange rates, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal or expiration of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2015. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company's filings with the Securities and Exchange Commission and our reports to shareholders. In addition, please note that the date of this release is January 14, 2016, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. The company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the company unless it is required by law.

Infosys Limited

Regd. office: Electronics City, Hosur Road, Bengaluru – 560 100, India

CIN : L85110KA1981PLC013115

Website: www.infosys.com

Email: [email protected]

T: 91 80 2852 0261, F: 91 80 2852 0362

Extract of audited consolidated financial results of Infosys Limited and its subsidiaries for the quarter and nine months ended December 31, 2015 prepared in compliance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.

( in crore)

Particulars	Quarter ending December 31, 2015	Nine months ending December 31, 2015	Quarter ending December 31, 2014
Revenues	15,902	45,891	13,796
Net profit	3,465	9,894	3,250
Paid-up equity share capital (par value 5/- each, fully paid)	1,144	1,144	572
Share premium, retained earnings and other components of equity	54,191	54,191	47,244
Earnings per share (par value 5/- each) ⁽¹⁾
Basic	15.16	43.29	14.22
Diluted	15.16	43.29	14.22

⁽¹⁾

adjusted for bonus issues wherever applicable

1. The audited consolidated financial statements for the quarter and nine months ended December 31, 2015 have been taken on record by the Board of Directors at its meeting held on January 14, 2016. The statutory auditors have expressed an unqualified audit opinion. The information presented above is extracted from the audited consolidated financial statements. The consolidated financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.

2. Changes to the Board

i. On January 14, 2016, the Board appointed Dr. Punita Kumar Sinha as an independent director with immediate effect.

ii. Ms. Carol M. Browner resigned as member of the Board effective November 23, 2015. The Board placed on record its deep sense of appreciation for the services rendered by her during her tenure as a director.

iii. The Board recommended the re-appointment of Prof. Jeffrey S. Lehman, Independent Director of the Company for a term of two years with effect from April 14, 2016 to hold office up to April 13, 2018, and not be liable to retire by rotation. Prof. Lehman’s current term of office as an independent director expires on April 13, 2016. The appointment is subject to the approval of the shareholders.

3. Investments

On November 16, 2015, Infosys acquired 100% membership interest in Noah Consulting, LLC (Noah), a leading provider of advanced information management consulting services for the oil and gas industry. The business acquisition was conducted by entering into a share purchase agreement for cash consideration of $33 million (approximately 216 crore), contingent consideration of up to $5 million (approximately 33 crore) and an additional payout of up to $32 million (approximately 212 crore).

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

(in crore)

Particulars	Quarter ending December 31, 2015	Nine months ending December 31, 2015	Quarter ending December 31, 2014
Revenues	13,562	39,825	12,192
Profit before exceptional item and tax	4,376	12,945	4,252
Profit on transfer of business ⁽¹⁾	–	3,036	–
Profit before tax	4,376	15,981	4,252
Profit for the period	3,183	12,387	3,055

⁽¹⁾

Exceptional item pertains to profit on transfer of business to EdgeVerve Systems Limited, a wholly owned subsidiary.

The above is an extract of the detailed format of Quarterly Financial Results filed with Stock Exchanges under Regulation 33 of the SEBI (Listing and Other Disclosure Requirements) Regulations, 2015. The full format of the Quarterly Financial Results is available on the stock exchange websites, www.nseindia.com and www.bseindia.com, and on the Company’s website, www.infosys.com.

Certain statements in this advertisement concerning our future growth prospects are forward-looking statements regarding our future business expectations intended to qualify for the ‘safe harbor’ under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, fluctuations in foreign exchange rates, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal or expiration of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2015. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company’s filings with the Securities and Exchange Commission and our reports to shareholders. In addition, please note that the date of this advertisement is January 14, 2016, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company unless it is required by law.

Infosys Limited

Regd. office: Electronics City, Hosur Road, Bengaluru – 560 100, India

CIN : L85110KA1981PLC013115

Website: www.infosys.com

Email: [email protected]

T: 91 80 2852 0261, F: 91 80 2852 0362

Audited financial results of Infosys Limited for the quarter and nine months ended December 31, 2015

(in crore, except equity share and per equity share data)

Particulars	Quarter ended December 31,	Quarter ended September 30,	Quarter ended December 31,	Nine months ended December 31,		Year ended March 31,
	2015	2015	2014	2015	2014	2015
Income from software services and products	13,562	13,525	12,192	39,825	35,374	47,300
Expenses:
Employee benefit expenses	7,103	6,985	6,358	20,905	18,932	25,115
Deferred consideration pertaining to acquisition	18	46	55	110	168	219
Cost of technical sub-contractors	1,226	1,035	777	3,225	2,073	2,909
Travel expenses	360	425	329	1,217	1,035	1,360
Cost of software packages and others	200	335	290	826	756	979
Communication expenses	73	80	116	232	294	384
Consultancy and professional charges	153	123	114	408	248	396
Depreciation and amortization expense	275	272	229	799	672	913
Other expenses	515	423	495	1,388	1,426	1,976
Total expenses	9,923	9,724	8,763	29,110	25,604	34,251
Profit from operations before other income	3,639	3,801	3,429	10,715	9,770	13,049
Other income	737	774	823	2,230	2,446	3,337
Profit before exceptional item and tax	4,376	4,575	4,252	12,945	12,216	16,386
Profit on transfer of business⁽¹⁾	–	3,036	–	3,036	412	412
Profit before tax	4,376	7,611	4,252	15,981	12,628	16,798
Tax expense	1,193	1,305	1,197	3,594	3,488	4,634
Net Profit for the period	3,183	6,306	3,055	12,387	9,140	12,164
Paid-up equity share capital (par value 5/- each fully paid) ⁽²⁾	1,148	1,148	572	1,148	572	574
Reserves and surplus	47,494	47,494	41,806	47,494	41,806	47,494
Earnings per share (par value 5/- each) ^#
Before exceptional item
Basic	13.86	14.24	13.37	40.71	38.19	51.17
Diluted	13.86	14.24	13.37	40.71	38.19	51.17
After exceptional item
Basic	13.86	27.45	13.37	53.93	39.99	52.96
Diluted	13.86	27.45	13.37	53.93	39.99	52.96

⁽¹⁾	Exceptional item pertains to profit on transfer of business to EdgeVerve, a wholly owned subsidiary.
⁽²⁾	net of treasury shares as at December 31, 2014
^#	adjusted for bonus issues wherever applicable

Notes:

The audited financial statements for the quarter and nine months ended December 31, 2015 have been taken on record by the Board of Directors at its meeting held on January 14, 2016. The statutory auditors have expressed an unqualified audit opinion. The information presented above is extracted from the audited standalone financial statements.

2. Changes to the Board

i.	On January 14, 2016, the Board appointed Dr. Punita Kumar Sinha as an independent director with immediate effect.
ii.	Ms. Carol M. Browner resigned as member of the Board effective November 23, 2015. The Board placed on record its deep sense of appreciation for the services rendered by her during her tenure as a director.
iii.	The Board recommended the re-appointment of Prof. Jeffrey S. Lehman, Independent Director of the Company for a term of two years with effect from April 14, 2016 to hold office up to April 13, 2018, and not be liable to retire by rotation. Prof. Lehman’s current term of office as an Independent Director expires on April 13, 2016. The appointment is subject to the approval of the shareholders.

3. Investments

4. Information on dividends for the quarter and nine month ended December 31, 2015

(in )

Particulars	Quarter ended December 31,	Quarter ended September 30,	Quarter ended December 31,	Nine months ended December 31,		Year ended March 31,
	2015	2015	2014	2015	2014	2015
Dividend per share (par value 5/- each)
Interim dividend	–	10.00	–	10.00	30.00⁽¹⁾	30.00⁽¹⁾
Final dividend	–	–	–	–	–	29.50⁽²⁾

⁽¹⁾ not adjusted for bonus issues on December 3, 2014 and June 17, 2015

⁽²⁾ not adjusted for bonus issue on June 17, 2015

5. Segment reporting (Standalone-Audited)

(in crore)

Particulars	Quarter ended December 31,	Quarter ended September 30,	Quarter ended December 31,	Nine months ended December 31,		Year ended March 31,
	2015	2015	2014	2015	2014	2015
Revenue by industry segment
Financial Services and Insurance (FSI)	4,468	4,418	4,161	13,239	12,049	16,175
Manufacturing (MFG)	2,990	3,123	2,620	8,961	7,596	10,230
Energy & utilities, Communication and Services (ECS)	2,803	2,663	2,556	7,967	7,379	9,756
Retail, Consumer Packaged Goods and Logistics (RCL)	2,379	2,399	2,113	6,975	6,272	8,369
Life Sciences and Healthcare (LSH)	922	922	742	2,683	2,078	2,770
Total	13,562	13,525	12,192	39,825	35,374	47,300
Less: Inter-segment revenue	–	–	–	–	–	–
Net revenue from operations	13,562	13,525	12,192	39,825	35,374	47,300
Segment profit before tax and depreciation
Financial Services and Insurance (FSI)	1,251	1,316	1,285	3,803	3,637	4,905
Manufacturing (MFG)	870	884	708	2,502	2,103	2,798
Energy & utilities, Communication and Services (ECS)	847	882	789	2,414	2,187	2,920
Retail, Consumer Packaged Goods and Logistics (RCL)	715	717	664	2,073	1,964	2,620
Life Sciences and Healthcare (LSH)	231	274	212	722	551	723
Total	3,914	4,073	3,658	11,514	10,442	13,966
Less: Other unallocable expenditure	275	272	229	799	672	917
Add: Unallocable other income	737	774	823	2,230	2,446	3,337
Profit before exceptional item and tax	4,376	4,575	4,252	12,945	12,216	16,386
Exceptional item⁽¹⁾	–	3,036	–	3,036	412	412
Profit before tax	4,376	7,611	4,252	15,981	12,628	16,798

⁽¹⁾

Exceptional item pertains to profit on transfer of business to EdgeVerve, a wholly owned subsidiary.

Notes on segment information:

Primary segments

The Company's operations predominantly relate to providing end-to-end business solutions to enable clients to enhance business performance. Revenues represented along industries served constitute the primary basis of the segmental information set out above. Effective April 1, 2015, the Company reorganized its segments to support its objective of delivery innovation. This structure will help deliver services that will reflect the way technology is consumed in layers by the client’s enterprise. However the reorganization did not have any impact in the reportable segments as per Accounting Standard 17 'Segment reporting'.

Segmental capital employed

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

By order of the Board

for Infosys Limited

Bangalore, India

January 14, 2016

Dr. Vishal Sikka

Chief Executive Officer and Managing Director

Exhibit 99.9

IFRS USD EARNING RELEASE

Infosys Limited and Subsidiaries

Unaudited Condensed Consolidated Interim Balance Sheets as on

(Dollars in millions except equity share)

	Note	December 31, 2015	March 31, 2015
ASSETS
Current assets
Cash and cash equivalents	2.1	4,455	4,859
Available-for-sale financial assets	2.2	68	140
Trade receivables		1,641	1,554
Unbilled revenue		450	455
Prepayments and other current assets	2.4	747	527
Derivative financial instruments	2.7	8	16
Total current assets		7,369	7,551
Non-current assets
Property, plant and equipment	2.5	1,517	1,460
Goodwill	2.6	560	495
Intangible assets		157	102
Investment in associate		16	15
Available-for-sale financial assets	2.2	255	215
Deferred income tax assets		78	85
Income tax assets		718	654
Other non-current assets	2.4	101	38
Total Non-current assets		3,402	3,064
Total assets		10,771	10,615
LIABILITIES AND EQUITY
Current liabilities
Trade payables		20	22
Derivative financial instruments	2.7	1	–
Current income tax liabilities		448	451
Client deposits		5	4
Unearned revenue		211	168
Employee benefit obligations		192	171
Provisions	2.8	73	77
Other current liabilities	2.9	980	927
Total current liabilities		1,930	1,820
Non-current liabilities
Deferred income tax liabilities		40	25
Other non-current liabilities	2.9	24	8
Total liabilities		1,994	1,853
Equity
Share capital - 5 ($0.16) par value 2,400,000,000 (1,200,000,000) equity shares authorized, issued and outstanding 2,285,619,380 (1,142,805,132) net of 11,325,284 (5,667,200) treasury shares, as of December 31, 2015 (March 31, 2015), respectively		199	109
Share premium		570	659
Retained earnings		10,550	10,090
Other reserves			–
Other components of equity		(2,542)	(2,096)
Total equity attributable to equity holders of the company		8,777	8,762
Non–controlling interests		–	–
Total equity		8,777	8,762
Total liabilities and equity		10,771	10,615

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

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

	R.Seshasayee	Dr. Vishal Sikka	Roopa Kudva
	Chairman	Chief Executive Officer and Managing Director	Director

	M. D. Ranganath	A.G.S Manikantha
Bangalore January 14, 2016	Chief Financial Officer and Executive Vice President	Company Secretary

Infosys Limited and Subsidiaries

Unaudited Condensed Consolidated Interim Statements of Comprehensive Income

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

	Note	Three months ended December 31,		Nine months ended December 31,
		2015	2014	2015	2014
Revenues		2,407	2,218	7,055	6,552
Cost of sales	2.15	1,512	1,360	4,435	4,057
Gross profit		895	858	2,620	2,495
Operating expenses:
Selling and marketing expenses	2.15	130	124	388	362
Administrative expenses	2.15	166	142	482	430
Total operating expenses		296	266	870	792
Operating profit		599	592	1,750	1,703
Other income, net		121	136	362	419
Share in associate's profit / (loss)		–	–	–	–
Profit before income taxes		720	728	2,112	2,122
Income tax expense	2.11	196	206	593	607
Net profit		524	522	1,519	1,515
Other comprehensive income
Items that will not be reclassified to profit or loss:
Re-measurements of the net defined benefit liability/asset		1	(2)	(1)	(6)
		1	(2)	(1)	(6)
Items that may be reclassified subsequently to profit or loss:
Fair value changes on available-for-sale financial assets	2.2 & 2.11	1	8	3	16
Exchange differences on translation of foreign operations		(69)	(169)	(448)	(428)
		(68)	(161)	(445)	(412)
Total other comprehensive income, net of tax		(67)	(163)	(446)	(418)
Total comprehensive income		457	359	1,073	1,097
Profit attributable to:
Owners of the company		524	522	1,519	1,515
Non-controlling interests		–	–	–	–
		524	522	1,519	1,515
Total comprehensive income attributable to:
Owners of the company		457	359	1,073	1,097
Non-controlling interests		–	–	–	–
		457	359	1,073	1,097
Earnings per equity share
Basic ($)		0.23	0.23	0.66	0.66
Diluted ($)		0.23	0.23	0.66	0.66
Weighted average equity shares used in computing earnings per equity share	2.12
Basic		2,285,619,380	2,285,610,264	2,285,614,573	2,285,610,264
Diluted		2,285,732,052	2,285,654,792	2,285,715,960	2,285,630,846

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

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

	R.Seshasayee	Dr. Vishal Sikka	Roopa Kudva
	Chairman	Chief Executive Officer and Managing Director	Director

	M. D. Ranganath	A.G.S Manikantha
Bangalore January 14, 2016	Chief Financial Officer and Executive Vice President	Company Secretary

Infosys Limited and Subsidiaries

Unaudited Condensed Consolidated Interim Statements of Changes in Equity

(Dollars in millions except equity share data)

	Shares ⁽²⁾	Share capital	Share premium	Retained earnings	Other reserves ⁽³⁾	Other components of equity	Total equity attributable to equity holders of the company
Balance as of April 1, 2014	571,402,566	64	704	8,892	–	(1,727)	7,933
Changes in equity for the nine months ended December 31, 2014
Increase in share capital on account of bonus issue⁽¹⁾	571,402,566	45	–	–	–	–	45
Amount utilized for bonus issue⁽¹⁾ (Refer Note 2.17)	–	–	(45)	–	–	–	(45)
Remeasurement of the net defined benefit liability/asset, net of tax effect	–	–	–	–	–	(6)	(6)
Dividends (including corporate dividend tax)	–	–	–	(815)	–	–	(815)
Fair value changes on available-for-sale financial assets, net of tax effect (Refer Note 2.2 and 2.11)	–	–	–	–	–	16	16
Net profit	–	–	–	1,515	–	–	1,515
Exchange differences on translation of foreign operations	–	–	–	–	–	(428)	(428)
Balance as of December 31, 2014	1,142,805,132	109	659	9,592	–	(2,145)	8,215
Balance as of April 1, 2015	1,142,805,132	109	659	10,090	–	(2,096)	8,762
Changes in equity for the nine months ended December 31, 2015
Shares issued on exercise of employee stock options	9,116	–	–	–	–	–	–
Increase in share capital on account of bonus issue⁽¹⁾ (Refer Note 2.17)	1,142,805,132	90	–	–	–	–	90
Amount utilized for bonus issue⁽¹⁾ (Refer Note 2.17)	–	–	(90)	–	–	–	(90)
Transfer to other reserves	–	–	–	(60)	60	–	–
Transfer from other reserves on utilization	–	–	–	60	(60)	–	–
Employee stock compensation expense (refer to note 2.15)	–	–	1	–			1
Remeasurement of the net defined benefit liability/asset, net of tax effect	–	–	–	–	–	(1)	(1)
Dividends (including corporate dividend tax)	–	–	–	(1,059)	–	–	(1,059)
Fair value changes on available-for-sale financial assets, net of tax effect (Refer Note 2.2 and 2.11)	–	–	–	–	–	3	3
Net profit	–	–	–	1,519	–	–	1,519
Exchange differences on translation of foreign operations	–	–	–	–	–	(448)	(448)
Balance as of December 31, 2015 ⁽⁴⁾	2,285,619,380	199	570	10,550	–	(2,542)	8,777

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

⁽¹⁾

net of treasury shares

⁽²⁾

excludes treasury shares of 11,325,284 as of December 31, 2015, 5,667,200 as of April 1, 2015 and December 31, 2014 and 2,833,600 as of April 1, 2014, held by consolidated trust.

⁽³⁾

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

⁽⁴⁾

Balance in cashflow hedging reserve as on December 31, 2015 is less than $1million

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

	R.Seshasayee	Dr. Vishal Sikka	Roopa Kudva
	Chairman	Chief Executive Officer and Managing Director	Director

	M. D. Ranganath	A.G.S Manikantha
Bangalore January 14, 2016	Chief Financial Officer and Executive Vice President	Company Secretary

Infosys Limited and Subsidiaries

Unaudited Condensed Consolidated Interim Statements of Cash Flows

(Dollars in millions)

	Nine months ended December 31,
	2015	2014
Operating activities:
Net Profit	1,519	1,515
Adjustments to reconcile net profit to net cash provided by operating activities :
Depreciation and amortisation	160	129
Income from available-for-sale financial assets and certificates of deposit	(21)	(40)
Income tax expense	593	607
Effect of exchange rate changes on assets and liabilities	9	8
Deferred purchase price	23	29
Provisions for doubtful trade receivable	(3)	22
Other adjustments	23	10
Changes in Working Capital
Trade receivables	(159)	(138)
Prepayments and other assets	(295)	–
Unbilled revenue	(19)	(20)
Trade payables	(2)	3
Client deposits	1	(3)
Unearned revenue	52	36
Other liabilities and provisions	93	164
Cash generated from operations	1,974	2,322
Income taxes paid	(674)	(542)
Net cash provided by operating activities	1,300	1,780
Investing activities:
Expenditure on property, plant and equipment, net of sale proceeds, including changes in retention money and capital creditors	(298)	(261)
Loans to employees	(7)	–
Deposits placed with corporation	(7)	(1)
Income from available-for-sale financial assets and certificates of deposit	23	47
Payment for acquisition of business, net of cash acquired	(117)	–
Investment in preference securities	(8)	–
Investment in other available-for-sale financial assets	(3)	–
Investment in quoted debt securities	(37)	–
Redemption of certificates of deposit	–	136
Investment in liquid mutual funds	(2,993)	(2,756)
Redemption of liquid mutual funds	3,055	2,870
Investment in fixed maturity plan securities	–	(5)
Redemption of fixed maturity plan securities	5	5
Net cash used in investing activities	(387)	35
Financing activities:
Payment of dividend (including corporate dividend tax)	(1,059)	(815)
Net cash used in financing activities	(1,059)	(815)
Effect of exchange rate changes on cash and cash equivalents	(258)	(251)
Net increase/(decrease) in cash and cash equivalents	(146)	1,000
Cash and cash equivalents at the beginning	4,859	4,331
Cash and cash equivalents at the end	4,455	5,080
Supplementary information:
Restricted cash balance	66	57

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

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

	R.Seshasayee	Dr. Vishal Sikka	Roopa Kudva
	Chairman	Chief Executive Officer and Managing Director	Director

	M. D. Ranganath	A.G.S Manikantha
Bangalore January 14, 2016	Chief Financial Officer and Executive Vice President	Company Secretary

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

1. Company Overview and Significant Accounting Policies

1.1

Company overview

Infosys is a global leader in consulting, technology, outsourcing and next-generation services. 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 including Finacle, our banking solution; and offerings in the areas of Analytics, Cloud, and Digital Transformation.

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

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

The Group's unaudited condensed consolidated interim financial statements are authorized for issue by the company's Board of Directors on January 14, 2016.

1.2

Basis of preparation of financial statements

These condensed consolidated interim financial statements have been prepared in compliance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS) and in accordance with IAS 34, Interim Financial Reporting, under the historical cost convention on the accrual basis except for certain financial instruments and prepaid gratuity benefits which have been measured at fair values. Accordingly, these condensed consolidated interim financial statements do not include all the information required for a complete set of financial statements. These condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements and related notes included in the company’s Annual Report on Form 20-F for the year ended March 31, 2015. Accounting policies have been applied consistently to all periods presented in these unaudited condensed consolidated interim financial statements.

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

1.3 Basis of consolidation

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

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

Associates are entities over which the group has significant influence but not control. Investments in associates are accounted for using the equity method. The investment is initially recognized at cost, and the carrying amount is increased or decreased to recognize the investor’s share of the profit or loss of the investee after the acquisition date. The group’s investment in associates includes goodwill identified on acquisition.

1.4 Use of estimates

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

1.5 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 U.S., though the company also files tax returns in other overseas jurisdictions. Significant judgments are involved in determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions (also refer to note 2.11).

c. Business combinations and intangible assets

Business combinations are accounted for using IFRS 3 (Revised), Business Combinations. IFRS 3 requires the identifiable intangible assets and contingent consideration to be fair valued in order to ascertain the net fair value of identifiable assets, liabilities and contingent liabilities of the acquiree. Significant estimates are required to be made in determining the value of contingent consideration and intangible assets. These valuations are conducted by independent valuation experts.

d. Property, plant and equipment

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

e. Impairment of Goodwill

Goodwill is tested for impairment on an annual basis and whenever there is an indication that the recoverable amount of a cash generating unit is less than its carrying amount based on a number of factors including operating results, business plans, future cash flows and economic conditions. The recoverable amount of cash generating units is determined based on higher of value-in-use and fair value less cost to sell. The goodwill impairment test is performed at the level of the cash-generating unit or groups of cash-generating units which are benefitting from the synergies of the acquisition and which represents the lowest level at which goodwill is monitored for internal management purposes.

Market related information and estimates are used to determine the recoverable amount. Key assumptions on which management has based its determination of recoverable amount include estimated long term growth rates, weighted average cost of capital and estimated operating margins. Cash flow projections take into account past experience and represent management’s best estimate about future developments.

1.6 Revenue recognition

The company derives revenues primarily from software related services and from the licensing of software products. Arrangements with customers for software related services are 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 revenue while billings in excess of costs and earnings are classified as unearned revenue. Deferred contract costs are amortized over the term of the contract. Maintenance revenue is recognised ratably 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 IAS 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 IAS 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 IAS 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 IAS 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 recognised ratably 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 ratable 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 value-added taxes in its statement of comprehensive income.

1.7 Property, plant and equipment

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

Building	22-25 years
Plant and machinery	5 years
Computer equipment	3-5 years
Furniture and fixtures	5 years
Vehicles	5 years

Depreciation methods, useful lives and residual values are reviewed periodically, including at each financial year end. (Refer note 2.5)

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

1.8 Business combinations

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

The cost of an acquisition is measured at the fair value of the assets transferred, equity instruments issued and liabilities incurred or assumed at the date of acquisition, which is the date on which control is transferred to the Group. The cost of acquisition also includes the fair value of any contingent consideration. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair value on the date of acquisition.

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

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

1.9 Employee benefits

1.9.1 Gratuity

The Group provides for gratuity, a defined benefit retirement plan ('the Gratuity Plan') covering eligible employees of Infosys and its Indian subsidiaries. The Gratuity Plan provides a lump-sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure of employment with the group

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). In case of Infosys BPO and EdgeVerve, contributions are made to the Infosys BPO's Employees' Gratuity Fund Trust and EdgeVerve Systems Limited Employees' Gratuity Fund Trust, respectively. Trustees administer contributions made to the Trusts and contributions are invested in a scheme with Life Insurance Corporation of India as permitted by law of India.

The Group recognizes the net obligation of a defined benefit plan in its balance sheet as an asset or liability. Gains and losses through re-measurements of the net defined benefit liability/asset are recognized in other comprehensive income. 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 profits in the statement of comprehensive income.

1.9.2 Superannuation

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

1.9.3 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.

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

1.9.4 Compensated absences

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

1.10 Share - based compensation

The Group recognizes compensation expense relating to share-based payments in net profit using fair-value in accordance with IFRS 2, Share-Based Payment. 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 premium.

1.11 Earnings per equity share

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 of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

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

1.12 Recent accounting pronouncements

1.12.1 Standards issued but not yet effective

IFRS 9 Financial instruments: In July 2014, the International Accounting Standards Board issued the final version of IFRS 9, Financial Instruments. The standard reduces the complexity of the current rules on financial instruments as mandated in IAS 39. IFRS 9 has fewer classification and measurement categories as compared to IAS 39 and has eliminated the categories of held to maturity, available for sale and loans and receivables. Further it eliminates the rule-based requirement of segregating embedded derivatives and tainting rules pertaining to held to maturity investments. For an investment in an equity instrument which is not held for trading, IFRS 9 permits an irrevocable election, on initial recognition, on an individual share-by-share basis, to present all fair value changes from the investment in other comprehensive income. No amount recognized in other comprehensive income would ever be reclassified to profit or loss. It requires the entity, which chooses to measure a liability at fair value, to present the portion of the fair value change attributable to the entity’s own credit risk in the other comprehensive income.

IFRS 9 replaces the ‘incurred loss model’ in IAS 39 with an ‘expected credit loss’ model. The measurement uses a dual measurement approach, under which the loss allowance is measured as either 12 month expected credit losses or lifetime expected credit losses. The standard also introduces new presentation and disclosure requirements.

The effective date for adoption of IFRS 9 is annual periods beginning on or after January 1, 2018, though early adoption is permitted. The Group is currently evaluating the requirements of IFRS 9 and the impact on the consolidated financial statements.

IFRS 15 Revenue from Contract with Customers: In May 2014, the International Accounting Standards Board (IASB) issued IFRS 15, Revenue from Contract with Customers. 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 the use of either the retrospective or cumulative effect transition method. The effective date for adoption of IFRS 15 is annual periods beginning on or after January 1, 2017, though early adoption is permitted.

In September 2015, the IASB issued an amendment to IFRS 15, deferring the adoption of the standard to periods beginning on or after January 1, 2018 instead of January 1, 2017. The Group has not yet selected a transition method and is evaluating the impact of IFRS 15 on the consolidated financial statements.

IFRS 16 Leases: On January 13, 2016, the International Accounting Standards Board issued the final version of IFRS 16, Leases. IFRS 16 will replace the existing leases Standard, IAS 17 Leases, and related Interpretations. The Standard sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract i.e., the lessee and the lessor. IFRS 16 introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. Currently, operating lease expenses are charged to the statement of comprehensive income. The Standard also contains enhanced disclosure requirements for lessees. IFRS 16 substantially carries forward the lessor accounting requirements in IAS 17.

The effective date for adoption of IFRS 16 is annual periods beginning on or after January 1, 2019, though early adoption is permitted for companies applying IFRS 15 Revenue from Contracts with Customers. The Group is yet to evaluate the requirements of IFRS 16 and the impact on the consolidated financial statements.

2. Notes to the Unaudited Condensed Consolidated Interim Financial Statements

2.1 Cash and cash equivalents

Cash and cash equivalents consist of the following:

(Dollars in millions)

	As of
	December 31, 2015	March 31, 2015
Cash and bank deposits	3,670	4,192
Deposits with corporations	785	667
	4,455	4,859

Cash and cash equivalents as of December 31, 2015 and March 31, 2015 include restricted cash and bank balances of $ 66 million and $58 million, respectively. The restrictions are primarily on account of cash and bank balances held by irrevocable trusts controlled by the company, bank balances held as margin money deposits against guarantees and balances held in unpaid dividend bank accounts.

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

The table below provides details of cash and cash equivalents:

(Dollars in millions)

	As of
	December 31, 2015	March 31, 2015
Current accounts
ANZ Bank, Taiwan	1	1
Banamex Bank, Mexico	2	2
Bank of America, Mexico	4	4
Bank of America, USA	125	115
Bank Zachodni WBK S.A, Poland	1	1
Barclays Bank, UK	1	2
Bank Leumi, Israel (US Dollar account)	1	1
Bank Leumi, Israel (Israeli Sheqel account)	1	2
China Merchants Bank, China	3	1
Citibank N.A, China	8	3
Citibank N.A., China (U.S. Dollar account)	14	4
Citibank N.A., Costa Rica	1	1
Citibank N.A., Czech Republic	2	1
Citibank N.A., Australia	11	4
Citibank N.A., Brazil	2	4
Citibank N.A., India	–	1
Citibank N.A., Japan	7	3
Citibank N.A., New Zealand	1	1
Citibank N.A., South Africa (ZAR Account)	1	1
Citibank N.A., USA	6	–
Commerzbank, Germany	7	3
Deutsche Bank, India	2	1
Deutsche Bank, Philippines	2	1
Deutsche Bank, Philippines (U.S. Dollar account)	–	1
Deutsche Bank, Poland	1	3
Deutsche Bank, EEFC (Euro account)	2	1
Deutsche Bank, EEFC (Swiss Franc account)	1	1
Deutsche Bank, EEFC (U.S. Dollar account)	4	1
Deutsche Bank, EEFC (United Kingdom Pound Sterling account)	–	1
Deutsche Bank, Belgium	–	2
Deutsche Bank, Czech Republic	3	1
Deutsche Bank, Czech Republic (U.S. Dollar account)	2	3
Deutsche Bank, France	1	–
Deutsche Bank, Germany	2	1
Deutsche Bank, Singapore	–	1
Deutsche Bank, United Kingdom	2	4
HSBC Bank, Brazil	1	1
HSBC Bank, Hong Kong	1	7
ICICI Bank, India	43	5
ICICI Bank, EEFC (U.S. Dollar account)	1	2
ING Bank, Belgium	1	–
Nordbanken, Sweden	3	1
Punjab National Bank, India	2	1
Raiffeisen Bank, Romania	1	–
Royal Bank of Scotland, China	–	7
Royal Bank of Scotland, China (U.S. Dollar account)	–	7
Royal Bank of Canada, Canada	7	3
Silicon Valley Bank, USA	–	11
Silicon Valley Bank, (Euro account)	12	3
Silicon Valley Bank, (United Kingdom Pound Sterling account)	2	1
Union Bank of Switzerland AG	2	2
Union Bank of Switzerland AG, (Euro Account)	5	1
Wells Fargo Bank N.A., USA	3	6
Westpac, Australia	–	1
	305	236
Deposit accounts
Allahabad Bank	30	32
Andhra Bank	134	27
Axis Bank	253	239
Bank of Baroda	362	383
Bank of India	280	431
Canara Bank	355	501
Central Bank of India	117	221
Citibank	14	–
Corporation Bank	191	204
Deutsche Bank, Poland	30	19
Development Bank of Singapore	–	6
HDFC Bank Ltd.	397	336
ICICI Bank	633	507
IDBI Bank	19	137
Indian Overseas Bank	6	104
Indusind Bank	38	12
ING Vysya Bank	–	16
Jammu & Kashmir Bank	4	–
Kotak Mahindra Bank Limited	74	1
National Australia Bank Limited	–	14
Oriental Bank of Commerce	15	253
Punjab National Bank	3	95
South Indian Bank	6	4
State Bank of India	9	9
Syndicate Bank	90	65
Union Bank of India	172	168
Vijaya Bank	12	75
Yes Bank	121	97
	3,365	3,956
Deposits with corporations
HDFC Limited, India	785	667
	785	667
Total	4,455	4,859

2.2 Available-for-sale financial assets

Primarily investments in mutual fund units, quoted debt securities, unquoted equity and preference securities are classified as available-for-sale financial assets.

Cost and fair value of these investments are as follows:

(Dollars in millions)

	As of
	December 31, 2015	March 31, 2015
Current
Mutual fund units:
Liquid mutual fund units
Cost and fair value	67	135
Quoted debt securities:
Cost	1	–
Gross unrealized holding gains/(losses)	–	–
Fair value	1	–
Fixed Maturity Plan Securities
Cost	–	5
Gross unrealized holding gains	–	–
Fair value	–	5
	68	140
Non-current
Quoted debt securities:
Cost	239	216
Gross unrealized holding gains/(losses)	3	(1)
Fair value	242	215
Unquoted equity and preference securities:
Cost	10	–
Gross unrealized holding gains	–	–
Fair value	10	–
Others:
Cost	3	–
Gross unrealized holding gains	–	–
Fair value	3	–
	255	215
Total available-for-sale financial assets	323	355

Mutual fund units:

Liquid mutual funds:

The fair value of liquid mutual funds as of December 31, 2015 and March 31, 2015 was $67 million and $135 million, respectively. The fair value is based on quoted prices.

Fixed maturity plan securities:

During the nine months ended December 31, 2015, the company redeemed fixed maturity plans securities of $5 million. On redemption, the unrealised gain of less than $1 million pertaining to these securities has been reclassified from other comprehensive income to profit or loss.

The fair value of fixed maturity plan securities as of March 31, 2015 is $5 million. The fair value is based on quotes reflected in actual transactions in similar instruments as available on March 31, 2015. The net unrealized gain of less than $1 million, net of taxes has been recognized in other comprehensive income for each of the three months and nine months ended December 31, 2014, respectively (Refer to note 2.11).

Quoted debt securities:

The fair value of quoted debt securities as on December 31, 2015 and March 31, 2015 was $243 million and $215 million, respectively. The net unrealized gain of $1 million, net of taxes of less than $1 million, has been recognized in other comprehensive income for the three months ended December 31, 2015. The net unrealized gain of $3 million, net of taxes of $1 million, has been recognized in other comprehensive income for the nine months ended December 31, 2015 The net unrealized gain of $8 million and $16 million, net of taxes $1 million and $3 million, respectively, has been recognized in other comprehensive income for the three months and nine months ended December 31, 2014 (Refer note 2.11). The fair value is based on the quoted prices and market observable inputs.

2.3 Business combination

Panaya

On March 5, 2015, Infosys acquired 100% of the voting interests in Panaya Inc. (Panaya), a Delaware Corporation in the United States. Panaya is a leading provider of automation technology for large scale enterprise and software management. The business acquisition was conducted by entering into a share purchase agreement for cash consideration of $225 million.

Panaya’s CloudQuality™ suite positions Infosys to bring automation to several of its service lines via an agile SaaS model, and helps mitigate risk, reduce costs and shorten time to market for clients. This will help free Infosys from many repetitive tasks allowing it to focus on important, strategic challenges faced by clients. Panaya’s proven technology would help to simplify the costs and complexities faced by businesses in managing their enterprise application landscapes. The excess of the purchase consideration paid over the fair value of net assets acquired has been attributed to goodwill.

The purchase price has been allocated based on Management’s estimates and independent appraisal of fair values as follows:

(Dollars in millions)

Component	Acquiree's carrying amount	Fair value adjustments	Purchase price allocated
Property, plant and equipment	2	–	2
Net current assets*	6	–	6
Intangible assets – technology	–	39	39
Intangible assets – trade name	–	3	3
Intangible assets – customer contracts and relationships	–	13	13
Intangible assets – non compete agreements	–	4	4
Deferred tax liabilities on intangible assets	–	(16)	(16)
	8	43	51
Goodwill			174
Total purchase price			225

* Includes cash and cash equivalents acquired of $19 million.

The goodwill is not tax deductible.

The gross amount of trade receivables acquired and its fair value is $9 million and the amounts have been largely collected.

The fair value of total cash consideration as at the acquisition date was $225 million.

The transaction costs of $4 million related to the acquisition have been included under administrative expenses in the statement of comprehensive income for year ended March 31, 2015.

Kallidus Inc. (d.b.a Skava)

On June 2, 2015, Infosys acquired 100% of the voting interests in Kallidus Inc., US (Kallidus), a leading provider of digital experience solutions, including mobile commerce and in-store shopping experiences to large retail clients and 100% of the voting interests of Skava Systems Private Limited, an affiliate of Kallidus. The business acquisition was conducted by entering into a share purchase agreement for cash consideration of $91 million and a contingent consideration of up to $20 million.

Infosys expects to help its clients bring new digital experiences to their customers through IP-led technology offerings, new automation tools and skill and expertise in these new emerging areas. The excess of the purchase consideration paid over the fair value of assets acquired has been attributed to goodwill.

The purchase price has been allocated based on management’s estimates and independent appraisal of fair values as follows:

(Dollars in millions)

Component	Acquiree's carrying amount	Fair value adjustments	Purchase price allocated
Net assets^(*)	6	–	6
Intangible assets – technology	–	21	21
Intangible assets – trade name	–	2	2
Intangible assets – customer contracts and relationships	–	27	27
Deferred tax liabilities on Intangible assets	–	(20)	(20)
	6	30	36
Goodwill			71
Total purchase price			107

*Includes cash and cash equivalents acquired of $4 million.

The goodwill is not tax deductible.

The gross amount of trade receivables acquired and its fair value is $9 million and the amounts have been largely collected.

The acquisition date fair value of each major class of consideration as of the acquisition date is as follows:

(Dollars in millions)

Component	Consideration settled
Cash paid	91
Fair value of contingent consideration	16
Total purchase price	107

The payment of contingent consideration to sellers of Kallidus is dependent upon the achievement of certain financial targets by Kallidus over a period of 3 years ending on December 31, 2017.

The fair value of contingent consideration is determined by discounting the estimated amount payable to the sellers of Kallidus on achievement of certain financial targets. At the acquisition date, the key inputs used in determination of the fair value of contingent consideration are the discount rate of 14% and the probabilities of achievement of the financial targets.

The transaction costs of $2 million related to the acquisition have been included under administrative expenses in the statement of comprehensive income for the nine months ended December 31, 2015

Noah Consulting LLC

On November 16, 2015, Infosys has acquired 100% membership interest in Noah Consulting, LLC (Noah), a leading provider of advanced information management consulting services for the oil and gas industry. The business acquisition was conducted by entering into a share purchase agreement for cash consideration of $33 million, contingent consideration of upto $5 million and an additional consideration of upto $32 million, referred to as retention bonus payable to the employees of Noah at each anniversary year following the acquisition date for the next three years, subject to their continuous employment with the group at each anniversary.

This acquisition combines Noah’s industry knowledge, information strategy planning, data governance and architecture capabilities with Infosys’ ability to provide technology and outsourcing services on a global scale to oil and gas clients. The excess of the purchase consideration paid over the fair value of assets acquired has been attributed to goodwill.

The purchase price has been allocated based on management’s estimates and independent appraisal of fair values as follows:

(Dollars in millions)

Component	Acquiree's carrying amount	Fair value adjustments	Purchase price allocated
Net assets^(*)	6	–	6
Intangible assets – technical knowhow	–	4	4
Intangible assets – trade name	–	4	4
Intangible assets – customer contracts and relationships	–	18	18
	6	26	32
Goodwill			5
Total purchase price			37

*Includes cash and cash equivalents acquired of $3 million.

Goodwill of $1 million is tax deductible. The remaining goodwill is tax deductible over the tax life on payment of contingent consideration.

The gross amount of trade receivables acquired and its fair value is $4 million and the amounts have been largely collected.

The acquisition date fair value of each major class of consideration as of the acquisition date is as follows:

(Dollars in millions)

Component	Consideration settled
Cash paid	33
Fair value of contingent consideration	4
Total purchase price	37

The payment of contingent consideration to sellers of Noah is dependent upon the achievement of certain financial targets by Noah for the year ending December 31, 2015 and December 31, 2016.

The fair value of contingent consideration is determined by discounting the estimated amount payable to the sellers of Noah on achievement of certain financial targets. At the acquisition date, the key inputs used in determination of the fair value of contingent consideration are the discount rate of 32% and the probabilities of achievement of the financial targets.

The retention bonus is treated as a post-acquisition employee remuneration expense as per IFRS 3R. For the period from the closing of the acquisition to December 31, 2015, a post-acquisition employee remuneration expense of $3 million has been recorded in the statement of comprehensive income.

The transaction costs of $2 million related to the acquisition have been included under administrative expenses in the statement of comprehensive income for the three months and nine months ended December 31, 2015.

EdgeVerve System Limited

EdgeVerve was created as a wholly owned subsidiary to focus on developing and selling products and platforms. On April 15, 2014, the Board of Directors of Infosys has authorized the Company to execute a Business Transfer Agreement and related documents with EdgeVerve, subject to securing the requisite approval from shareholders in the Annual General Meeting. Subsequently, at the AGM held on June 14, 2014, the shareholders authorised the Board to enter into a Business Transfer Agreement and related documents with EdgeVerve, with effect from July 1, 2014 or such other date as may be decided by the Board of Directors. The company had undertaken an enterprise valuation by an independent valuer and accordingly the business was transferred for a consideration of $70 million with effect from July 1, 2014 which was settled through the issue of fully paid up equity shares.

The transfer of assets and liabilities was accounted for at carrying values and did not have any impact on the consolidated financial statements.

Finacle and Edge Services

On April 24, 2015, the Board of Directors of Infosys has authorized the Company to execute a Business Transfer Agreement and related documents with EdgeVerve, a wholly owned subsidiary, to transfer the business of Finacle and Edge Services. Post the requisite approval from shareholders through postal ballot on June 4, 2015, a Business Transfer Agreement and other related documents were executed with EdgeVerve to transfer the business with effect from August 1, 2015. The company has undertaken an enterprise valuation by an independent valuer and accordingly the business were transferred for a consideration of 3,222 crore (approximately $491 million) and 177 crore (approximately $27 million) for Finacle and Edge Services, respectively.

The consideration was settled through issue of 85,00,00,000 equity shares amounting to 850 crore (approximately $129 million) and 25,49,00,000 non-convertible redeemable debentures amounting to 2,549 crore (approximately $389 million) in EdgeVerve, post the requisite approval from shareholders on December 11, 2015.

The transfer of assets and liabilities was accounted for at carrying values and did not have any impact on the consolidated financial statements.

2.4 Prepayments and other assets

Prepayments and other assets consist of the following:

(Dollars in millions)

	As of
	December 31, 2015	March 31, 2015
Current
Rental deposits	2	4
Security deposits	1	1
Loans and advances to employees	42	35
Prepaid expenses ⁽¹⁾	31	16
Interest accrued and not due	208	63
Withholding taxes ⁽¹⁾	253	218
Deposit with corporation	175	176
Deferred contract cost⁽¹⁾	5	–
Advance payments to vendors for supply of goods ⁽¹⁾	25	13
Other assets	5	1
	747	527
Non-Current
Loans and advances to employees	4	5
Security deposits	12	11
Deposit with corporation	7	9
Prepaid gratuity ⁽¹⁾	1	4
Prepaid expenses ⁽¹⁾	9	1
Deferred contract cost ⁽¹⁾	54	–
Rental Deposits	14	8
	101	38
	848	565
Financial assets in prepayments and other assets	470	313

⁽¹⁾

Nonfinancial assets

Withholding taxes primarily consist of input tax credits. Other assets primarily represent travel advances and other recoverables. Security deposits relate principally to leased telephone lines and electricity supplies.

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

2.5 Property, plant and equipment

Following are the changes in the carrying value of property, plant and equipment for the three months ended December 31, 2015:

(Dollars in millions)

	Land	Buildings	Plant and machinery	Computer equipment	Furniture and fixtures	Vehicles	Capital work-in-progress	Total
Gross carrying value as of October 1, 2015	242	917	349	549	192	5	278	2,532
Acquisitions through business combination (Refer Note 2.3)	–	–	–	–	–	–	–	–
Additions	3	35	29	42	11	1	–	121
Deletions	–	–	–	(2)	(1)	(1)	(18)	(22)
Translation difference	(2)	(9)	(4)	(5)	(2)	–	(1)	(23)
Gross carrying value as of December 31, 2015	243	943	374	584	200	5	259	2,608
Accumulated depreciation as of October 1, 2015	(2)	(319)	(219)	(374)	(138)	(3)	–	(1,055)
Accumulated Depreciation on acquired assets	–	–	–	–	–	–	–	–
Depreciation	(1)	(8)	(12)	(20)	(6)	(1)	–	(48)
Accumulated depreciation on deletions	–	–	–	1	1	1	–	3
Translation difference	–	3	1	4	1	–	–	9
Accumulated depreciation as of December 31, 2015	(3)	(324)	(230)	(389)	(142)	(3)	–	(1,091)
Carrying value as of October 1, 2015	240	598	130	175	54	2	278	1,477
Carrying value as of December 31, 2015	240	619	144	195	58	2	259	1,517

Following are the changes in the carrying value of property, plant and equipment for the three months ended December 31, 2014:

(Dollars in millions)

	Land	Buildings	Plant and machinery	Computer equipment	Furniture and fixtures	Vehicles	Capital work-in-progress	Total
Gross carrying value as of October 1, 2014	248	863	301	471	173	5	266	2,327
Additions	3	36	20	43	7	1	–	110
Deletions	–	–	–	(3)	(1)	–	(16)	(20)
Translation difference	(5)	(17)	(7)	(10)	(4)	(1)	(5)	(49)
Gross carrying value as of December 31, 2014	246	882	314	501	175	5	245	2,368
Accumulated depreciation as of October 1, 2014	(2)	(305)	(190)	(343)	(124)	(3)	–	(967)
Depreciation	–	(8)	(10)	(17)	(5)	(1)	–	(41)
Accumulated depreciation on deletions	–	–	–	3	1	1	–	5
Translation difference	–	7	4	7	2	–	–	20
Accumulated depreciation as of December 31, 2014	(2)	(306)	(196)	(350)	(126)	(3)	–	(983)
Carrying value as of October 1, 2014	246	558	111	128	49	2	266	1,360
Carrying value as of December 31, 2014	244	576	118	151	49	2	245	1,385

Following are the changes in the carrying value of property, plant and equipment for the nine months ended December 31, 2015:

(Dollars in millions)

	Land	Buildings	Plant and machinery	Computer equipment	Furniture and fixtures	Vehicles	Capital work-in-progress	Total
Gross carrying value as of April 1, 2015	250	940	337	535	189	6	230	2,487
Acquisitions through business combination (Refer Note 2.3)	–	–	–	–	–	–	–	–
Additions	7	55	58	119	23	1	60	323
Deletions	–	–	(1)	(41)	(1)	(1)	(18)	(62)
Translation difference	(14)	(52)	(20)	(29)	(11)	(1)	(13)	(140)
Gross carrying value as of December 31, 2015	243	943	374	584	200	5	259	2,608
Accumulated depreciation as of April 1, 2015	(3)	(317)	(207)	(365)	(132)	(3)	–	(1,027)
Accumulated Depreciation on acquired assets	–	–	–	–	–	–	–	–
Depreciation	(1)	(25)	(35)	(60)	(18)	(1)	–	(140)
Accumulated depreciation on deletions	–	–	1	17	1	1	–	20
Translation difference	1	18	11	19	7	–	–	56
Accumulated depreciation as of December 31, 2015	(3)	(324)	(230)	(389)	(142)	(3)	–	(1,091)
Carrying value as of April 1, 2015	247	623	130	170	57	3	230	1,460
Carrying value as of December 31, 2015	240	619	144	195	58	2	259	1,517

Following are the changes in the carrying value of property, plant and equipment for the nine months ended December 31, 2014:

(Dollars in millions)

	Land	Buildings	Plant and machinery	Computer equipment	Furniture and fixtures	Vehicles	Capital work-in-progress	Total
Gross carrying value as of April 1, 2014	190	839	284	444	170	6	305	2,238
Additions	67	87	48	89	18	1	14	324
Deletions	–	–	(2)	(8)	(3)	(1)	(61)	(75)
Translation difference	(11)	(44)	(16)	(24)	(10)	(1)	(13)	(119)
Gross carrying value as of December 31, 2014	246	882	314	501	175	5	245	2,368
Accumulated depreciation as of April 1, 2014	–	(300)	(175)	(328)	(117)	(2)	–	(922)
Depreciation	(2)	(23)	(32)	(45)	(18)	(1)	–	(121)
Accumulated depreciation on deletions	–	–	2	6	3	1	–	12
Translation difference	–	17	9	17	6	(1)	–	48
Accumulated depreciation as of December 31, 2014	(2)	(306)	(196)	(350)	(126)	(3)	–	(983)
Carrying value as of April 1, 2014	190	539	109	116	53	4	305	1,316
Carrying value as of December 31, 2014	244	576	118	151	49	2	245	1,385

Following are the changes in the carrying value of property, plant and equipment for the year ended March 31, 2015:

(Dollars in millions)

	Land	Buildings	Plant and machinery	Computer equipment	Furniture and fixtures	Vehicles	Capital work-in-progress	Total
Gross carrying value as of April 1, 2014	190	839	284	444	170	6	305	2,238
Acquisitions through business combination (Refer Note 2.3)	–	–	–	2	1	–	–	3
Additions	69	139	69	124	30	1	14	446
Deletions	–	–	(3)	(13)	(3)	(1)	(78)	(98)
Translation difference	(9)	(38)	(13)	(22)	(9)	–	(11)	(102)
Gross carrying value as of March 31, 2015	250	940	337	535	189	6	230	2,487
Accumulated depreciation as of April 1, 2014	–	(300)	(175)	(328)	(117)	(2)	–	(922)
Accumulated Depreciation on acquired assets	–	–	–	(1)	–	–	–	(1)
Depreciation	(3)	(31)	(42)	(63)	(24)	(1)	–	(164)
Accumulated depreciation on deletions	–	–	2	11	3	1	–	17
Translation difference	–	14	8	16	6	(1)	–	43
Accumulated depreciation as of March 31, 2015	(3)	(317)	(207)	(365)	(132)	(3)	–	(1,027)
Carrying value as of April 1, 2014	190	539	109	116	53	4	305	1,316
Carrying value as of March 31, 2015	247	623	130	170	57	3	230	1,460

During the three months ended June 30, 2014, the management based on internal and external technical evaluation had changed the useful life of certain assets primarily consisting of buildings and computers with effect from April 1, 2014. Accordingly, the useful lives of certain assets required a change from previous estimate.

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

Carrying value of land includes $95 million and $99 million as of December 31, 2015 and March 31, 2015, respectively, towards deposits 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 contractual commitments for capital expenditure were $233 million and $252 million as of December 31, 2015 and March 31, 2015, respectively.

2.6 Goodwill

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

(Dollars in millions)

	As of
	December 31, 2015	March 31, 2015
Carrying value at the beginning	495	360
Goodwill on Panaya acquisition (Refer note 2.3)	–	174
Goodwill on Kallidus d.b.a Skava acquisition (Refer note 2.3)	71	–
Goodwill on Noah acquisition (Refer note 2.3)	5	–
Translation differences	(11)	(39)
Carrying value at the end	560	495

For the purpose of impairment testing, goodwill acquired in a business combination is allocated to the cash generating units (CGU) or groups of CGU’s, which benefit from the synergies of the acquisition. The chief operating decision maker reviews the goodwill for any impairment at the operating segment level, which is represented through groups of CGU’s.

Effective April 1, 2015, the company reorganized its business to support its objective of delivery innovation. Consequent to the internal reorganization there were changes effected in the segments based on the “management approach” as defined in IFRS 8, Operating Segments. (Refer Note 2.14). Accordingly the goodwill has been allocated to the new operating segments as at December 31, 2015.

(Dollars in millions)

Segment	As of
	December 31, 2015
Financial services	124
Manufacturing	123
Retail, Consumer packaged goods and Logistics	86
Life Sciences, Healthcare and Insurance	98
Energy & utilities, Communication and Services	103
	534
Operating segments without significant goodwill	26
Total	560

The entire goodwill relating to Infosys BPO’s acquisition of McCamish has been allocated to the group of CGU’s which is represented by the Life Sciences, Healthcare and Insurance segment.

The goodwill relating to Infosys Lodestone, Portland, Panaya and Kallidus d.b.a Skava acquisitions has been allocated to the groups of CGU’s which are represented by the entity’s operating segment.

The entire goodwill relating to Noah acquisition has been allocated to the group of CGU's which is represented by the Energy & utilities, Communication and Services segment.

The following table gives the break-up of allocation of goodwill to operating segments as at March 31, 2015:

(Dollars in millions)

Segment	As of
	March 31, 2015
Financial services	106
Manufacturing	105
Energy, communication and services	51
Resources & utilities	23
Life sciences and Healthcare	31
Insurance	58
Retail, consumer packaged goods and logistics	76
Growth markets	45
Total	495

The recoverable amount of a CGU is the higher of its fair value less cost to sell and its value-in-use. The fair value of a CGU is determined based on the market capitalization. The value-in-use is determined based on specific calculations. These calculations use pre-tax cash flow projections over a period of five years, based on financial budgets approved by management and an average of the range of each assumption mentioned below. As of March 31, 2015, the estimated recoverable amount of the CGU exceeded its carrying amount. The recoverable amount was computed based on the fair value being higher than value-in-use and the carrying amount of the CGU was computed by allocating the net assets to operating segments for the purpose of impairment testing. The key assumptions used for the calculations are as follows:

	In %
Long term growth rate	8-10
Operating margins	17-20
Discount rate	13.9

The above discount rate is based on the Weighted Average Cost of Capital (WACC) of the Company. These estimates are likely to differ from future actual results of operations and cash flows.

2.7 Financial instruments

Financial instruments by category

The carrying value and fair value of financial instruments by categories as of December 31, 2015 were as follows:

(Dollars in millions)

	Loans and receivables	Financial assets/liabilities at fair value through profit and loss	Available for sale	Trade and other payables	Total carrying value/fair value
Assets:
Cash and cash equivalents (Refer to Note 2.1)	4,455	–	–	–	4,455
Available-for-sale financial assets (Refer to Note 2.2)	–	–	323	–	323
Trade receivables	1,641	–	–	–	1,641
Unbilled revenue	450	–	–	–	450
Prepayments and other assets (Refer to Note 2.4)	470	–	–	–	470
Derivative financial instruments	–	8	–	–	8
Total	7,016	8	323	–	7,347
Liabilities:
Trade payables	–	–	–	20	20
Derivative financial instruments	–	1	–	–	1
Client deposits	–	–	–	5	5
Employee benefit obligation	–	–	–	192	192
Other liabilities including contingent consideration (Refer note 2.9)	–	21	–	769	790
Total	–	22	–	986	1,008

The carrying value and fair value of financial instruments by categories as of March 31, 2015 were as follows:

(Dollars in millions)

	Loans and receivables	Financial assets/liabilities at fair value through profit and loss	Available for sale	Trade and other payables	Total carrying value/fair value
Assets:
Cash and cash equivalents (Refer to Note 2.1)	4,859	–	–	–	4,859
Available-for-sale financial assets (Refer to Note 2.2)	–	–	355	–	355
Trade receivables	1,554	–	–	–	1,554
Unbilled revenue	455	–	–	–	455
Prepayments and other assets	313	–	–	–	313
Derivative financial instruments	–	16	–	–	16
Total	7,181	16	355	–	7,552
Liabilities:
Trade payables	–	–	–	22	22
Derivative financial instruments	–	–	–	–	–
Client deposits	–	–	–	4	4
Employee benefit obligation	–	–	–	171	171
Other liabilities (Refer note 2.9)	–	–	–	782	782
Total	–	–	–	979	979

Fair value hierarchy

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

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

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

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of December 31, 2015:

(Dollars in millions)

	As of December 31, 2015	Fair value measurement at end of the reporting period using
		Level 1	Level 2	Level 3
Assets
Available- for- sale financial asset- Investments in liquid mutual fund units (Refer to Note 2.2)	67	67	–	–
Available- for- sale financial asset- Investments in quoted debt securities (Refer to Note 2.2)	243	60	183	–
Available- for- sale financial asset- Investments in equity and preference securities (Refer to Note 2.2)	10	–	–	10
Available- for- sale financial asset- others (Refer Note 2.2)	3	–	–	3
Derivative financial instruments- gain on outstanding foreign exchange forward and option contracts	8	–	8	–
Liabilities				–
Derivative financial instruments- loss on outstanding foreign exchange forward and option contracts	1	–	1	–
Liability towards contingent consideration (Refer note 2.3)*	21	–	–	21

During the three months and nine months ended December 31, 2015, quoted debt securities of $8 million and $43 million, respectively were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs.

*Discounted $20 million at 14.3% and $5 million at 32%.

A one percentage point change in the unobservable inputs used in fair valuation of the contingent consideration does not have a significant impact in its value.

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of March 31, 2015:

(Dollars in millions)

	As of March 31, 2015	Fair value measurement at end of the reporting period using
		Level 1	Level 2	Level 3
Assets
Available- for- sale financial asset- Investments in liquid mutual fund units (Refer to Note 2.2)	135	135	–	–
Available- for- sale financial asset- Investments in fixed maturity plan securities (Refer to Note 2.2)	5	–	5	–
Available- for- sale financial asset- Investments in quoted debt securities (Refer to Note 2.2)	215	97	118	–
Derivative financial instruments- gain on outstanding foreign exchange forward and option contracts	16	–	16	–
Liabilities
Derivative financial instruments- loss on outstanding foreign exchange forward and option contracts	–	–	–	–

Income from financial assets or liabilities that are not at fair value through profit or loss is as follows:

(Dollars in millions)

	Three months ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Interest income on deposits and certificates of deposit	96	109	295	318
Income from available-for-sale financial assets	6	9	21	34
	102	118	316	352

Derivative financial instruments

The Group's holds derivative financial instruments such as foreign exchange forward and option contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank or a financial institution. 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 following table gives details in respect of outstanding foreign exchange forward and options contracts:

(In millions)

	As of
	December 31, 2015	March 31, 2015
Forward contracts
In U.S. dollars	505	716
In Euro	96	67
In United Kingdom Pound Sterling	65	73
In Australian dollars	65	98
In Canadian dollars	–	12
In Singapore dollars	10	25
In Swiss Franc	20	–
Options Contracts
In U.S. dollars	125	–
In Euro	50	–

The Group recognized a net gain on derivative financial instruments of $10 million and a net gain of $9 million for the three months ended December 31, 2015 and December 31, 2014, respectively, which is included under other income.

The Group recognized a net loss on derivative financial instruments of $5 million and a net gain on derivative financial instruments of $36 million for the nine months ended December 31, 2015 and December 31, 2014, respectively, which is included under other income.

The foreign exchange forward and option contracts mature within 12 months. The table below analyses the derivative financial instruments into relevant maturity groupings based on the remaining period as of the balance sheet date:

(Dollars in millions)

	As of
	December 31, 2015	March 31, 2015
Not later than one month	257	237
Later than one month and not later than three months	499	605
Later than three months and not later than one year	205	155
	961	997

Financial risk management

Financial risk factors

The Group's activities expose it to a variety of financial risks - market risk, credit risk and liquidity risk. The Group's primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk to the Group is foreign exchange risk. The Group uses derivative financial instruments to mitigate foreign exchange related risk exposures. The Group's exposure to credit risk is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customers. The demographics of the customer including the default risk of the industry and country in which the customer operates also has an influence on credit risk assessment.

Market risk

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

The following table gives details in respect of the outstanding foreign exchange forward and option contracts:

(Dollars in millions)

	As of
	December 31, 2015	March 31, 2015
Aggregate amount of outstanding forward and option contracts	961	997
Gain on outstanding forward and option contracts	8	16
Loss on outstanding forward and option contracts	1	–

The following table analyses foreign currency risk from financial instruments as of December 31, 2015:

(Dollars in millions)

	U.S. dollars	Euro	United Kingdom Pound Sterling	Australian dollars	Other currencies	Total
Cash and cash equivalents	175	18	4	22	83	302
Trade receivables	1,122	174	101	80	100	1,577
Unbilled revenue	277	56	25	20	38	416
Other assets	13	5	4	2	11	35
Trade payables	(2)	(3)	(3)	–	(9)	(17)
Client deposits	(3)	(1)	–	–	(1)	(5)
Accrued expenses	(128)	(23)	(19)	(4)	(35)	(209)
Employee benefit obligation	(84)	(8)	(6)	(24)	(20)	(142)
Other liabilities	(138)	(17)	(4)	(4)	(24)	(187)
Net assets / (liabilities)	1,232	201	102	92	143	1,770

The following table analyses foreign currency risk from financial instruments as of March 31, 2015:

(Dollars in millions)

	U.S. dollars	Euro	United Kingdom Pound Sterling	Australian dollars	Other currencies	Total
Cash and cash equivalents	159	9	7	19	66	260
Trade receivables	1,075	166	87	75	96	1,499
Unbilled revenue	274	53	20	16	40	403
Other assets	13	5	3	1	10	32
Trade payables	(9)	(2)	–	–	(10)	(21)
Client deposits	(3)	–	–	–	(1)	(4)
Accrued expenses	(120)	(23)	(13)	(4)	(26)	(186)
Employee benefit obligation	(70)	(9)	(6)	(21)	(17)	(123)
Other liabilities	(122)	(19)	(4)	(3)	(101)	(249)
Net assets / (liabilities)	1,197	180	94	83	57	1,611

For the three months ended December 31, 2015 and December 31, 2014, every percentage point depreciation / appreciation in the exchange rate between the Indian rupee and the U.S. dollar has affected the company's incremental operating margins by approximately 0.49% and 0.52%, respectively.

For the nine months ended December 31, 2015 and December 31, 2014, every percentage point depreciation / appreciation in the exchange rate between the Indian rupee and the U.S. dollar has affected the company's incremental operating margins by approximately 0.50% and 0.53%, respectively.

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.

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 $1,641 million and $1,554 million as of December 31, 2015 and March 31, 2015, respectively and unbilled revenue amounting to $450 million and $455 million as of December 31, 2015 and March 31, 2015, respectively. Trade receivables and unbilled revenue are typically unsecured and are derived from revenue earned from customers primarily located in the United States. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Group grants credit terms in the normal course of business.

The following table gives details in respect of percentage of revenues generated from top customer and top five customers:

(In %)

	Three months ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Revenue from top customer	3.5	3.2	3.6	3.3
Revenue from top five customers	13.9	13.3	14.0	13.5

Financial assets that are neither past due nor impaired

Cash and cash equivalents and available-for-sale financial assets and investments in certificates of deposit are neither past due nor impaired. Cash and cash equivalents include deposits with banks and corporations with high credit-ratings assigned by international and domestic credit-rating agencies. Available-for-sale financial assets include primarily investment in liquid mutual fund units, quoted debt securities and unquoted equity and preference securities. Certificates of deposit represent funds deposited at a bank or other eligible financial institution for a specified time period. Investment in quoted debt securities represents the investments made in debt securities issued by government and quasi government organizations. Of the total trade receivables, $1,190 million and $1,174 million as of December 31, 2015 and March 31, 2015, were neither past due nor impaired.

There is no other class of financial assets that is not past due but impaired except for trade receivables of $5 million and $4 million as of December 31, 2015 and March 31, 2015, respectively.

Financial assets that are past due but not impaired

The Group's credit period generally ranges from 30-60 days. The age analysis of the trade receivables have been considered from the due date. The age wise break up of trade receivables, net of allowances of $39 million and $55 million as of December 31, 2015 and March 31, 2015, respectively, that are past due, is given below:

(Dollars in millions)

Period (in days)	As of
	December 31, 2015	March 31, 2015
Less than 30	280	263
31 – 60	92	55
61 – 90	35	14
More than 90	44	48
	451	380

The reversal of provision for doubtful trade receivables for the three months and nine months ended December 31, 2015 is $5 million and $3 million, respectively.

The reversal of provision for doubtful trade receivables for the three months ended December 31, 2014 was $6 million. The provision for doubtful trade receivables for the nine months ended December 31, 2014 was $22 million.

The movement in the provisions for doubtful trade receivable is as follows:

(Dollars in millions)

	Three months ended December 31,		Nine months ended December 31,		Year ended March 31,
	2015	2014	2015	2014	2015
Balance at the beginning	58	62	59	36	36
Translation differences	(1)	(2)	(4)	(3)	(4)
Provisions for doubtful trade receivable	(5)	(6)	(3)	22	29
Trade receivables written off	(3)	–	(3)	(1)	(2)
Balance at the end	49	54	49	54	59

Liquidity risk

As of December 31, 2015, the Group had a working capital of $5,439 million including cash and cash equivalents of $4,455 million and current available-for-sale financial assets of $68 million. As of March 31, 2015, the Group had a working capital of $5,731 million including cash and cash equivalents of $4,859 million and current available-for-sale financial assets of $140 million.

As of December 31, 2015 and March 31, 2015, the outstanding employee benefit obligations were $192 million and $171 million, respectively, which have been substantially funded. Further, as of December 31, 2015 and March 31, 2015, the Group had no outstanding bank borrowings. Accordingly, no liquidity risk is perceived.

The table below provides details regarding the contractual maturities of significant financial liabilities as of December 31, 2015:

(Dollars in millions)

Particulars	Less than 1 year	1-2 years	2-4 years	4-7 years	Total
Trade payables	20	–	–	–	20
Client deposits	5	–	–	–	5
Other liabilities (excluding liability towards acquisition - Refer Note 2.9)	766	1	2	–	769
Liability towards acquisitions on an undiscounted basis (including contingent consideration) -Refer Note 2.9	7	11	7	–	25

The table below provides details regarding the contractual maturities of significant financial liabilities as of March 31, 2015:

(Dollars in millions)

Particulars	Less than 1 year	1-2 years	2-4 years	4-7 years	Total
Trade payables	22	–	–	–	22
Client deposits	4	–	–	–	4
Other liabilities (excluding liabilities towards acquisition and incentive accruals - Refer Note 2.9)	704	–	–	–	704
Liability towards acquisitions on an undiscounted basis (Refer Note 2.9)	84	–	–	–	84

As of December 31, 2015 and March 31, 2015, the Group had outstanding financial guarantees of $8 million and $7 million, respectively towards leased premises. These financial guarantees can be invoked upon breach of any term of the lease agreement. To the Group’s knowledge there has been no breach of any term of the lease agreement as of December 31, 2015 and March 31, 2015.

Offsetting of financial assets and financial liabilities:

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

The following table provides quantitative information about offsetting of derivative financial assets and derivative financial liabilities:

(Dollars in millions)

	As of		As of
	December 31, 2015		March 31, 2015
	Derivative financial asset	Derivative financial liability	Derivative financial asset	Derivative financial liability
Gross amount of recognised financial asset/liability	10	(3)	17	(1)
Amount set off	(2)	2	(1)	1
Net amount presented in balance sheet	8	(1)	16	–

2.8 Provisions

Provisions comprise the following:

(Dollars in millions)

	As of
	December 31, 2015	March 31, 2015
Provision for post sales client support and other provisions	73	77
	73	77

Provision for post sales client support and other provisions represents costs associated with providing sales support services which are accrued at the time of recognition of revenues and are expected to be utilized over a period of 6 months to 1 year. The movement in the provision for post sales client support and other provisions is as follows:

(Dollars in millions)

	Three months ended December 31, 2015	Nine months ended December 31, 2015
Balance at the beginning	66	77
Translation differences	1	1
Provision recognized/(reversed)	8	11
Provision utilized	(2)	(16)
Balance at the end	73	73

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

As of December 31, 2015 and March 31, 2015, claims against the company, not acknowledged as debts, net of amounts paid (excluding demands from Indian income tax authorities- Refer to Note 2.11) amounted to $42 million (280 crore) and $42 million (261 crore), respectively.

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.

2.9 Other liabilities

Other liabilities comprise the following:

(Dollars in millions)

	As of
	December 31, 2015	March 31, 2015
Current
Accrued compensation to employees	318	337
Accrued expenses	401	318
Withholding taxes payable ⁽¹⁾	207	145
Retainage	9	8
Liabilities of controlled trusts	26	28
Accrued gratuity	–	1
Liability towards acquisition of business	–	78
Liability towards contingent consideration (Refer note 2.3)	7	–
Others	12	12
	980	927
Non-Current
Liability towards contingent consideration (Refer note 2.3)	14	–
Accrued compensation to employees	3	–
Deferred income - government grant on land use rights⁽¹⁾	7	8
	24	8
	1,004	935
Financial liabilities included in other liabilities	790	782
Financial liability towards acquisitions on an undiscounted basis (including contingent consideration)- Refer note 2.3	25	84

⁽¹⁾ Non financial liabilities

Accrued expenses primarily relate to cost of technical sub-contractors, telecommunication charges, legal and professional charges, brand building expenses, overseas travel expenses and office maintenance. Others include unpaid dividend balances and capital creditors.

2.10 Employees' Stock Option Plans (ESOP)

2011 RSU Plan (the 2011 Plan): The Company has a 2011 RSU Plan which provides for the grant of restricted stock units (RSUs) to eligible employees of the Company. The Board of Directors recommended establishment of the 2011 Plan to the shareholders on August 30, 2011 and the shareholders approved the recommendation of the Board of Directors on October 17, 2011 through a postal ballot. The maximum aggregate number of shares that may be awarded under the Plan is 11,334,400 shares (held by the Infosys Limited Employees' Welfare Trust and adjusted for bonus shares issued) and the plan shall continue in effect for a term of 10 years from the date of initial grant under the plan. The RSUs will be issued at par value of the equity share. As on December 31, 2015, 11,102,071 shares are available for issue under the 2011 plan. The 2011 Plan is administered by the Management Development and Compensation Committee (the Committee) now known as the Nomination and Remuneration Committee (the Committee) and through the Infosys Limited Employees' Welfare Trust (the trust). The Committee is comprised of independent members of the Board of Directors.

During the year ended March 31, 2015, the company made a grant of 108,268 restricted stock units ( adjusted for bonus issues) to Dr. Vishal Sikka , Chief Executive Office and Managing Director. The Board in its meeting held on June 22, 2015, on recommendation of Nomination and Remuneration Committee, granted 124,061 RSUs to Dr. Vishal Sikka. The RSUs will vest over a period of four years from the date of the grant in the proportions specified in the award agreement. The RSUs will vest subject to achievement of certain key performance indicators as set forth in the award agreement for each applicable year of the vesting tranche and continued employment through each vesting date.

The activity in the 2011 Plan during the three months and nine months ended December 31, 2015 is set out below:

Particulars	Three months ended December 31, 2015		Nine months ended December 31, 2015
	Shares arising out of options	Weighted average exercise price ($)	Shares arising out of options	Weighted average exercise price ($)
2011 Plan:
Outstanding at the beginning*	223,213	0.08	108,268	0.08
Granted	–	–	124,061	0.08
Forfeited and expired	–	–	–	–
Exercised	–	–	9,116	0.08
Outstanding at the end	2,23,213	0.08	2,23,213	0.08
Exercisable at the end	–	–	–	–

adjusted for bonus issues (Refer note 2.17)

The weighted average share price of options exercised under the 2011 Plan on the date of exercise was $16.

The activity in the 2011 Plan during the three months and nine months ended December 31, 2014 is set out below:

Particulars	Three months ended December 31, 2014		Nine months ended December 31, 2014
	Shares arising out of options	Weighted average exercise price ($)	Shares arising out of options	Weighted average exercise price ($)
2011 Plan:
Outstanding at the beginning	108,268	0.08	–	–
Granted*	–	–	108,268	0.08
Forfeited and expired	–	–	–	–
Exercised	–	–	–	–
Outstanding at the end	1,08,268	0.08	1,08,268	0.08
Exercisable at the end	–	–	–	–

Adjusted for bonus issues. (Refer note 2.17)

The weighted average remaining contractual life of RSUs outstanding as of December 31, 2015 and March 31, 2015 under the 2011 Plan was 2.21 years and 2.39 years, respectively.

The expected term of the RSU is estimated based on the vesting term and contractual term of the RSU, as well as expected exercise behaviour of the employee who receives the RSU. Expected volatility during the expected term of the RSU 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.

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

Options granted during	Fiscal 2016	Fiscal 2015
Grant date	22-Jun-15	21-Aug-14
Weighted average share price ($) *	16	58
Exercise price ($)	0.08	0.08
Expected volatility (%)	28 - 36	30-37
Expected life of the option (years)	1 - 4	1 - 4
Expected dividends (%)	2.43	1.84
Risk-free interest rate (%)	7- 8	8 - 9
Weighted average fair value as on grant date ($) *	15	55

Data for Fiscal 2015 is not adjusted for bonus issues

During each of the three months ended December 31, 2015 and December 31, 2014, the company recorded an employee stock compensation expense of less than $1 million in the statement of comprehensive income.

During the nine months ended December 31, 2015 and December 31, 2014, the company recorded an employee stock compensation expense of $1 million and less than $1 million in the statement of comprehensive income.

2.11 Income taxes

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

(Dollars in millions)

	Three months ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Current taxes
Domestic taxes	167	159	482	478
Foreign taxes	32	42	116	132
	199	201	598	610
Deferred taxes
Domestic taxes	(2)	5	4	3
Foreign taxes	(1)	–	(9)	(6)
	(3)	5	(5)	(3)
Income tax expense	196	206	593	607

Income tax expense for the three months ended December 31, 2015 and December 31, 2014 includes reversals (net of provisions) of $19 million and $10 million, respectively, pertaining to earlier periods.

Income tax expense for the nine months ended December 31, 2015 and December 31, 2014 includes reversals (net of provisions) of $37 million and $18 millions, respectively pertaining to earlier periods.

Entire deferred income tax for the three months and nine months ended December 31, 2015 and December 31, 2014 relates to origination and reversal of temporary differences.

For the three months ended December 31, 2015, a deferred tax liability of less than $1 million, relating to available-for-sale financial assets has been recognized in other comprehensive income. For the nine months ended December 31, 2015, a deferred tax liability of $1 million, relating to available-for-sale financial assets has been recognized in other comprehensive income.

A deferred tax liability of $1 million relating to available-for-sale financial assets has been recognized in other comprehensive income for the three months ended December 31, 2014. For the nine months ended December 31, 2014, a deferred tax liability of $1 million and a reversal of deferred tax asset of $2 million, respectively, relating to available-for-sale financial assets has been recognized in other comprehensive income.

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

(Dollars in millions)

	Three months ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Profit before income taxes	720	728	2,112	2,122
Enacted tax rates in India	34.61%	33.99%	34.61%	33.99%
Computed expected tax expense	249	247	731	721
Tax effect due to non-taxable income for Indian tax purposes	(58)	(69)	(194)	(203)
Overseas taxes	26	38	78	102
Tax reversals, overseas and domestic	(19)	(10)	(37)	(18)
Effect of differential overseas tax rates	(1)	(3)	–	(5)
Effect of exempt non operating income	(3)	(3)	(8)	(12)
Effect of unrecognized deferred tax assets	1	1	3	4
Effect of non-deductible expenses	5	6	27	24
Additional deduction on research and development expense	(4)	(2)	(8)	(7)
Others	–	1	1	1
Income tax expense	196	206	593	607

The applicable Indian statutory tax rate for fiscal 2016 is 34.61% and fiscal 2015 is 33.99%, respectively. The change in the tax rate is consequent to the changes made in Finance Act 2015.

During the nine months ended December 31, 2015 and December 31, 2014, the group has claimed weighted tax deduction on eligible research and development expenditures based on the approval received from Department of Scientific and Industrial Research (DSIR) on November 23, 2011 which has been renewed effective April 2014. The weighted tax deduction is equal to 200% of such expenditures incurred.

The foreign tax expense is due to income taxes payable overseas, principally in the United States. In India, the company has benefited from certain tax incentives that the Government of India had provided to the export of software from the specifically designated units registered under the Software Technology Parks Scheme (STP) in India and the company continues to benefit from certain tax incentives for the units registered under the Special Economic Zones Act, 2005 (SEZ). However, the income tax incentives provided by the Government of India for STP units have expired, and all the STP units are now taxable. SEZ units which began providing services on or after April 1, 2005 are eligible for a deduction of 100 percent 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 percent of such profits or gains for a further five years. Certain tax benefits are also available for a further period of five years subject to the unit meeting defined conditions.

As of December 31, 2015, claims against the group not acknowledged as debts from the Indian Income tax authorities net of amount paid to statutory authorities of $521 million (3,450 crore) amounted to $2 million (11 crore).

As of March 31, 2015, claims against the group not acknowledged as debts from the Indian Income tax authorities net of amount paid to statutory authorities of $571 million (3,568 crore) amounted to less than $1 million (3 crore).

Payment of $521 million (3,450 crore) includes demands from the Indian Income tax authorities of $487 million (3,221 crore), including interest of $144 million (951 crore) upon completion of their tax assessment for fiscal 2007, fiscal 2008, fiscal 2009 and fiscal 2010.

These income tax demands are mainly on account of disallowance of portion of the deduction claimed by the company under Section 10A of the Income Tax Act as determined by the ratio of export turnover to total turnover. The disallowance arose from certain expenses incurred in foreign currency being reduced from export turnover but not reduced from total turnover, disallowance of portion of profit earned outside India from the STP units and disallowance of profits earned from SEZ units under section 10AA of the Income Tax Act. The matter for fiscal 2007, fiscal 2008 and fiscal 2009 are pending before the Commissioner of Income tax (Appeals) Bangalore. The matter for fiscal 2010 is pending before Hon’ble Income Tax Appellate Tribunal (ITAT) Bangalore. The company is contesting the demand and the management including its tax advisors believes that its position will likely be upheld in the appellate process. The management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company's financial position and results of operations.

2.12 Earnings per equity share

The following is a reconciliation of the equity shares used in the computation of basic and diluted earnings per equity share:

	Three months ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Basic earnings per equity share - weighted average number of equity shares outstanding ⁽¹⁾⁽²⁾	2,285,619,380	2,285,610,264	2,285,614,573	2,285,610,264
Effect of dilutive common equivalent shares	112,672	44,528	101,387	20,582
Diluted earnings per equity share - weighted average number of equity shares and common equivalent shares outstanding	2,285,732,052	2,285,654,792	2,285,715,960	2,285,630,846

⁽¹⁾

Excludes treasury shares

⁽²⁾

adjusted for bonus issues. Refer Note 2.17

For the three months and nine months ended December 31, 2015 and December 31, 2014, there were no outstanding options to purchase equity shares which had an anti-dilutive effect.

2.13 Related party transactions

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

Transactions with key management personnel

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

(Dollars in millions)

	Three months ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Salaries and other employee benefits to whole-time directors and executive officers⁽¹⁾⁽²⁾	5	1	10	4
Commission and other benefits to non-executive/ independent directors	–	1	1	1
Total	5	2	11	5

⁽¹⁾

Includes employee stock compensation expense of less than $1 million each and $1 million and less than $1 million for the three months and nine months ended December 31, 2015 and December 31, 2014, respectively to CEO in line with the compensation plan approved by the shareholders

⁽²⁾

Includes payables to CFO who stepped down w.e.f October 12, 2015

2.14 Segment Reporting

IFRS 8 establishes standards for the way that public business enterprises report information about operating segments and related disclosures about products and services, geographic areas, and major customers. The Company's operations predominantly relate to providing end-to-end business solutions to enable clients to enhance business performance. Effective April 1, 2015, the Company reorganized its segments to support its objective of delivery innovation. This structure will help deliver services that will reflect the way technology is consumed in layers by the client’s enterprise. Consequent to the internal reorganization, Growth Markets (GMU) comprising enterprises in APAC (Asia Pacific) and Africa have been subsumed across the other verticals and businesses in India, Japan and China are run as standalone regional business units.

Consequent to the internal reorganization, there were changes effected in the reportable business segments based on the "management approach" as defined in IFRS 8, Operating Segments. The Chief Operating Decision Maker evaluates the Company's performance and allocates resources based on an analysis of various performance indicators by business segments and geographic segments. Accordingly, information has been presented both along business segments and geographic segments. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments, and are as set out in the significant accounting policies.

Business segments of the Company are primarily enterprises in Financial Services (FS), enterprises in Manufacturing (MFG), enterprises in the Energy & utilities, Communication and Services (ECS), enterprises in Retail, Consumer packaged goods and Logistics (RCL), enterprises in Life Sciences, Healthcare and Insurance (HILIFE) and all other segments. The FS reportable segments has been aggregated to include the Financial Services operating segment and the Finacle operating segment. All other segments represents the operating segments of businesses in India, Japan and China. Geographic segmentation is based on business sourced from that geographic region and delivered from both on-site and off-shore locations. North America comprises the United States of America, Canada and Mexico, Europe includes continental Europe (both the east and the west), Ireland and the United Kingdom, and the Rest of the World comprising all other places except those mentioned above and India. Consequent to the above changes in the composition of reportable business segments, the prior period comparatives have been restated.

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

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

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

2.14.1 Business Segments

Three months ended December 31, 2015 and December 31, 2014

(Dollars in millions)

	FS	MFG	ECS	RCL	HILIFE	All other segments	Total
Revenues	663	531	441	390	326	56	2,407
	*594*	*504*	*420*	*359*	*298*	43	*2,218*
Identifiable operating expenses	319	266	208	189	157	32	1,171
	277	255	190	161	139	25	1,047
Allocated expenses	155	130	108	95	79	13	580
	138	123	103	88	73	11	536
Segment profit	189	135	125	106	90	11	656
	179	126	127	110	86	7	*635*
Unallocable expenses							57
							43
Operating profit							599
							592
Other income, net							121
							136
Share in associate's profit / (loss)							–
							–
Profit before Income taxes							720
							728
Income tax expense							196
							206
Net profit							524
							*522*
Depreciation and amortisation							56
							43
Non-cash expenses other than depreciation and amortisation							1
							–

Nine months ended December 31, 2015 and December 31, 2014

(Dollars in millions)

	FS	MFG	ECS	RCL	HILIFE	All other segments	Total
Revenues	1,921	1,608	1,285	1,153	951	137	7,055
	*1,768*	*1,484*	*1,251*	*1,092*	*839*	*118*	*6,552*
Identifiable operating expenses	921	820	595	553	462	86	3,437
	845	754	564	499	411	92	3,165
Allocated expenses	450	394	314	282	233	34	1,707
	404	356	301	263	202	29	1,555
Segment profit	550	394	376	318	256	17	1,911
	519	374	386	330	226	(3)	*1,832*
Unallocable expenses							161
							129
Operating profit							1,750
							1,703
Other income, net							362
							419
Share in associate's profit / (loss)							–
							–
Profit before Income taxes							2,112
							2,122
Income tax expense							593
							607
Net profit							1,519
							*1,515*
Depreciation and amortisation							160
							129
Non-cash expenses other than depreciation and amortisation							1
							–

2.15.2 Geographic Segments

Three months ended December 31, 2015 and December 31, 2014

(Dollars in millions)

	North America	Europe	India	Rest of the World	Total
Revenues	1,505	559	67	276	2,407
	1,366	532	56	264	*2,218*
Identifiable operating expenses	748	268	27	128	1,171
	645	255	25	122	1,047
Allocated expenses	367	136	14	63	580
	335	130	11	60	536
Segment profit	390	155	26	85	656
	*386*	*147*	20	82	*635*
Unallocable expenses					57
					43
Operating profit					599
					*592*
Other income, net					121
					136
Share in associate's profit / (loss)					–
					–
Profit before Income taxes					720
					728
Income Tax expense					196
					206
Net profit					524
					*522*
Depreciation and amortisation					56
					43
Non-cash expenses other than depreciation and amortisation					1
					–

Nine months ended December 31, 2015 and December 31, 2014

(Dollars in millions)

	North America	Europe	India	Rest of the World	Total
Revenues	4,444	1,613	173	825	7,055
	*4,001*	*1,597*	*156*	*798*	*6,552*
Identifiable operating expenses	2,204	788	78	367	3,437
	1,922	779	92	372	3,165
Allocated expenses	1,087	393	36	191	1,707
	962	382	32	179	1,555
Segment profit	1,153	432	59	267	1,911
	*1,117*	*436*	32	*247*	*1,832*
Unallocable expenses					161
					129
Operating profit					1,750
					*1,703*
Other income, net					362
					419
Share in associate's profit / (loss)					–
					–
Profit before Income taxes					2,112
					*2,122*
Income Tax expense					593
					607
Net profit					1,519
					*1,515*
Depreciation and amortisation					160
					129
Non-cash expenses other than depreciation and amortisation					1
					–

2.14.3 Significant clients

No client individually accounted for more than 10% of the revenues for the three months and nine months ended December 31, 2015 and December 31, 2014.

2.15 Break-up of expenses

Cost of sales

(Dollars in millions)

	Three months ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Employee benefit costs	1,174	1,072	3,452	3,255
Deferred purchase price pertaining to acquisition	4	10	23	29
Depreciation and amortisation	56	43	160	129
Travelling costs	57	54	187	170
Cost of technical sub-contractors	151	94	400	253
Cost of software packages for own use	25	44	82	111
Third party items bought for service delivery to clients	17	6	61	21
Operating lease payments	10	9	27	27
Communication costs	6	12	20	25
Repairs and maintenance	6	8	20	18
Provision for post-sales client support	5	3	(2)	7
Other expenses	1	5	5	12
Total	1,512	1,360	4,435	4,057

Sales and marketing expenses

(Dollars in millions)

	Three months ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Employee benefit costs	99	100	300	296
Travelling costs	13	11	40	32
Branding and marketing	12	7	33	19
Operating lease payments	2	2	5	5
Consultancy and professional charges	2	1	6	2
Communication costs	1	1	2	3
Other expenses	1	2	2	5
Total	130	124	388	362

Administrative expenses

(Dollars in millions)

	Three months ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Employee benefit costs	55	42	151	132
Consultancy and professional charges	29	18	78	39
Repairs and maintenance	35	27	94	68
Power and fuel	8	9	25	28
Communication costs	9	12	29	34
Travelling costs	10	10	30	26
Rates and taxes	3	7	12	16
Operating lease payments	3	2	8	7
Insurance charges	2	3	7	7
Provisions for doubtful trade receivable	(5)	(6)	(3)	22
Commission to non-whole time directors	–	–	1	–
Contributions towards Corporate Social Responsibility	10	10	26	31
Other expenses	7	8	24	20
Total	166	142	482	430

2.16 Dividends

The Board has increased dividend pay-out ratio from up to 40% to upto 50% of post-tax consolidated profits effective fiscal 2015.

The amount of per share dividend recognized as distributions to equity shareholders for the nine months ended December 31, 2015 includes final divided of 29.50/- per equity share ($0.47 per equity share) (not adjusted for June 17, 2015 bonus issue) and an interim dividend of 10/- per equity share ($0.15 per equity share). The amount of per share dividend recognized as distributions to equity shareholders for the nine months ended December 31, 2014 was 73.00/- per equity share ($1.21 per equity share) (not adjusted for bonus issues).

The Board of Directors, in their meeting on October 12, 2015, declared an interim dividend of 10/- per equity share ($0.15 per equity share), which resulted in a net cash outflow of $423 million, (excluding dividend paid on treasury shares) inclusive of corporate dividend tax.

2.17 Share capital and share premium

The Company has only one class of shares referred to as equity shares having a par value of 5/-. The Company has allotted 1,148,472,332 fully paid up equity shares of face value 5/- each during the three months ended June 30, 2015 pursuant to a bonus issue approved by the shareholders through postal ballot. Book closure date fixed by the Board was June 17, 2015. Bonus share of one equity share for every equity share held, and a stock dividend of one American Depositary Share (ADS) for every ADS held, respectively, has been allotted. Consequently, the ratio of equity shares underlying the ADSs held by an American Depositary Receipt holder remains unchanged. Options granted under the restricted stock unit plan have been adjusted for bonus shares. 11,325,284 and 56,67,200 shares were held by controlled trust, as of December 31, 2015 and March 31, 2015, respectively.

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

Exhibit 99.10

IFRS INR Earnings Release

Independent Auditors’ Report

To the Board of Directors of Infosys Limited

We have audited the accompanying consolidated interim financial statements of Infosys Limited (“the Company”) and its subsidiaries (collectively referred to as ‘the Group’), which comprise the consolidated balance sheet as at December 31, 2015, the consolidated statement of comprehensive income for the three months and nine months then ended, consolidated statements of changes in equity and cash flows for the nine months then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Consolidated Interim Financial Statements

Management is responsible for the preparation and presentation of these consolidated interim financial statements that give a true and fair view of the consolidated financial position, consolidated financial performance and consolidated cash flows of the Group in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting as issued by International Accounting Standards Board (“IFRS”). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the consolidated interim financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these consolidated interim financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated interim financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated interim financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated interim financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Group’s preparation and presentation of the consolidated interim financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Group has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Management, as well as evaluating the overall presentation of the consolidated interim financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the consolidated interim financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the consolidated interim financial statements give a true and fair view in conformity with IFRS:

(a)	in the case of the consolidated balance sheet, of the consolidated interim financial position of the Group as at December 31, 2015;

(b)	in the case of the consolidated statement of comprehensive income, of the consolidated interim financial performance for the three months and nine months ended on that date;

(c)	in the case of the consolidated statement of changes in equity, of the consolidated changes in equity for the nine months ended on that date; and

(d)	in the case of the consolidated statement of cash flows, of the consolidated cash flows for the nine months ended on that date.

for B S R & Co. LLP

Chartered Accountants

Firm’s Registration Number: 101248W/W-100022

Supreet Sachdev

Partner

Membership Number: 205385

Bangalore

January 14, 2016

Infosys Limited and subsidiaries

(In crore except equity share data)

Consolidated Balance Sheets as of	Note	December 31, 2015	March 31, 2015
ASSETS
Current assets
Cash and cash equivalents	2.1	29,476	30,367
Available-for-sale financial assets	2.2	451	874
Trade receivables		10,857	9,713
Unbilled revenue		2,976	2,845
Prepayments and other current assets	2.4	4,939	3,296
Derivative financial instruments	2.7	54	101
Total current assets		48,753	47,196
Non-current assets
Property, plant and equipment	2.5	10,039	9,125
Goodwill	2.6	3,705	3,091
Intangible assets	2.6	1,040	638
Investment in associate	2.18	104	93
Available-for-sale financial assets	2.2	1,683	1,345
Deferred income tax assets	2.16	519	537
Income tax assets	2.16	4,750	4,089
Other non-current assets	2.4	671	238
Total non-current assets		22,511	19,156
Total assets		71,264	66,352
LIABILITIES AND EQUITY
Current liabilities
Trade payables		131	140
Derivative financial instruments	2.7	8	3
Current income tax liabilities	2.16	2,967	2,818
Client deposits		36	27
Unearned revenue		1,393	1,052
Employee benefit obligations		1,268	1,069
Provisions	2.8	482	478
Other current liabilities	2.9	6,486	5,796
Total current liabilities		12,771	11,383
Non-current liabilities
Deferred income tax liabilities	2.16	268	160
Other non-current liabilities	2.9	157	46
Total liabilities		13,196	11,589
Equity
Share capital- 5 par value 240,00,00,000 (120,00,00,000) equity shares authorized, issued and outstanding 228,56,19,380 (114,28,05,132) net of 1,13,25,284 (56,67,200) treasury shares as of December 31, 2015 (March 31, 2015), respectively		1,144	572
Share premium		2,239	2,806
Retained earnings		54,058	50,978
Cash flow hedge reserve		1	–
Other components of equity		626	407
Total equity attributable to equity holders of the Company		58,068	54,763
Non-controlling interests		–	–
Total equity		58,068	54,763
Total liabilities and equity		71,264	66,352

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

As per our report of even date attached

for B S R & Co. LLP

Chartered Accountants

Firm’s Registration No : 101248W/W-100022

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

Supreet Sachdev Partner	R. Seshasayee Chairman	Dr. Vishal Sikka Chief Executive Officer and Managing Director	Roopa Kudva Director

Membership No. 205385

Bangalore January 14, 2016	M. D. Ranganath Chief Financial Officer and Executive Vice President	A.G.S Manikantha Company Secretary

Infosys Limited and subsidiaries

(In crore except equity share and per equity share data)

Consolidated Statements of Comprehensive Income	Note	Three months ended December 31,		Nine months ended December 31,
		2015	2014	2015	2014
Revenues		15,902	13,796	45,891	39,908
Cost of sales	2.10	9,990	8,462	28,837	24,709
Gross profit		5,912	5,334	17,054	15,199
Operating expenses:
Selling and marketing expenses	2.10	859	770	2,522	2,205
Administrative expenses	2.10	1,094	875	3,132	2,611
Total operating expenses		1,953	1,645	5,654	4,816
Operating profit		3,959	3,689	11,400	10,383
Other income, net	2.13	802	840	2,353	2,546
Share in associate's profit / (loss)		–	–	(2)	–
Profit before income taxes		4,761	4,529	13,751	12,929
Income tax expense	2.16	1,296	1,279	3,857	3,697
Net profit		3,465	3,250	9,894	9,232
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurement of the net defined benefit liability/asset	2.11 & 2.16	5	(12)	(9)	(35)
		5	(12)	(9)	(35)
Items that may be reclassified subsequently to profit or loss
Fair value changes on available-for-sale financial asset	2.2 & 2.16	3	56	21	101
Exchange differences on translation of foreign operations		1	(30)	207	(106)
Fair value changes on cash flow hedges		1	–	1	–
		5	26	229	(5)
Total other comprehensive income, net of tax		10	14	220	(40)
Total comprehensive income		3,475	3,264	10,114	9,192
Profit attributable to:
Owners of the company		3,465	3,250	9,894	9,232
Non-controlling interests		–	–	–	–
		3,465	3,250	9,894	9,232
Total comprehensive income attributable to:
Owners of the company		3,475	3,264	10,114	9,192
Non-controlling interests		–	–	–	–
		3,475	3,264	10,114	9,192
Earnings per equity share
Basic ()		15.16	14.22	43.29	40.39
Diluted ()		15.16	14.22	43.29	40.39
Weighted average equity shares used in computing earnings per equity share	2.17
Basic		228,56,19,380	228,56,10,264	228,56,14,573	228,56,10,264
Diluted		228,57,32,052	228,56,54,792	228,57,15,960	228,56,30,846

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

As per our report of even date attached

for B S R & Co. LLP

Chartered Accountants

Firm’s Registration No : 101248W/W-100022

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

Supreet Sachdev Partner	R. Seshasayee Chairman	Dr. Vishal Sikka Chief Executive Officer and Managing Director	Roopa Kudva Director

Membership No. 205385

Bangalore January 14, 2016	M. D. Ranganath Chief Financial Officer and Executive Vice President	A.G.S Manikantha Company Secretary

Infosys Limited and subsidiaries

Consolidated Statements of Changes in Equity

(In crore except equity share data)

	*Shares^()**	Share capital	Share premium	Retained earnings	Other reserves	Other components of equity	Cash Flow Hedge Reserve	Total equity attributable to equity holders of the Company
Balance as of April 1, 2014	57,14,02,566	286	3,090	43,584	–	570	–	47,530
Changes in equity for the nine months ended December 31, 2014
Increase in share capital on account of bonus issue^# (refer to note 2.12)	57,14,02,566	286	–	–	–	–	–	286
Amounts utilized for bonus issue (refer note 2.12)^#	–	–	(286)	–	–	–	–	(286)
Employee stock compensation expense (refer to note 2.15)	–	–	1	–	–	–	–	1
Remeasurement of the net defined benefit liability/asset, net of tax effect ( refer note 2.11 and 2.16)	–	–	–	–	–	(35)	–	(35)
Dividends (including corporate dividend tax)	–	–	–	(4,935)	–	–	–	(4,935)
Fair value changes on available-for-sale financial assets, net of tax effect (refer note 2.2 and 2.16)	–	–	–	–	–	101	–	101
Net profit	–	–	–	9,232	–	–	–	9,232
Exchange differences on translation of foreign operations	–	–	–	–	–	(106)	–	(106)
Balance as of December 31, 2014	114,28,05,132	572	2,805	47,881	–	530	–	51,788
Balance as of April 1, 2015	114,28,05,132	572	2,806	50,978	–	407	–	54,763
Changes in equity for the nine months ended December 31, 2015
Increase in share capital on account of bonus issue^#(refer to note 2.12)	114,28,05,132	572	–	–	–	–	–	572
Amounts utilized for bonus issue (refer note 2.12)^#	–	–	(572)	–	–	–	–	(572)
Shares issued on exercise of employee stock options (Refer note 2.15)	9,116	–	–	–	–	–	–	–
Transferred to other reserves (refer note 2.12)	–	–	–	(397)	397	–	–	–
Transferred from other reserves (refer note 2.12)	–	–	–	397	(397)	–	–	–
Employee stock compensation expense (refer to note 2.15)	–	–	5	–	–	–	–	5
Remeasurement of the net defined benefit liability/asset, net of tax effect (refer note 2.11 and 2.16)	–	–	–	–	–	(9)	–	(9)
Dividends (including corporate dividend tax)	–	–	–	(6,814)	–	–	–	(6,814)
Fair value changes on available-for-sale financial assets, net of tax effect (refer note 2.2 and 2.16)	–	–	–	–	–	21	–	21
Fair value changes on derivatives designated as cash flow hedge	–	–	–	–	–	–	1	1
Net profit	–	–	–	9,894	–	–	–	9,894
Exchange differences on translation of foreign operations	–	–	–	–	–	207	–	207
Balance as of December 31, 2015	228,56,19,380	1,144	2,239	54,058	–	626	1	58,068

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

^#	net of treasury shares

*	excludes treasury shares of 1,13,25,284 as of December 31, 2015, 56,67,200 each as of April 1, 2015 and December 31, 2014 and 28,33,600 as of April 1, 2014, held by consolidated trust.

As per our report of even date attached

for B S R & Co. LLP

Chartered Accountants

Firm’s Registration No : 101248W/W-100022

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

Supreet Sachdev Partner	R. Seshasayee Chairman	Dr. Vishal Sikka Chief Executive Officer and Managing Director	Roopa Kudva Director

Membership No. 205385

Bangalore January 14, 2016	M. D. Ranganath Chief Financial Officer and Executive Vice President	A.G.S Manikantha Company Secretary

Infosys Limited and subsidiaries

(In crore)

Consolidated Statements of Cash Flows	Note	Nine months ended December 31,
		2015	2014
Operating activities:
Net profit		9,894	9,232
Adjustments to reconcile net profit to net cash provided by operating activities:
Depreciation and amortization	2.5 and 2.6	1,040	786
Income tax expense	2.16	3,857	3,697
Income on available-for-sale financial assets and certificates of deposits		(136)	(241)
Effect of exchange rate changes on assets and liabilities		57	48
Deferred purchase price		149	179
Provision for doubtful account receivables		(25)	127
Other adjustments		151	58
Changes in working capital
Trade receivables		(1,034)	(837)
Prepayments and other assets		(1,925)	(2)
Unbilled revenue		(122)	(118)
Trade payables		(13)	20
Client deposits		9	(18)
Unearned revenue		341	216
Other liabilities and provisions		605	1,000
Cash generated from operations		12,848	14,147
Income taxes paid	2.16	(4,390)	(3,305)
Net cash provided by operating activities		8,458	10,842
Investing activities:
Expenditure on property, plant and equipment net of sale proceeds, including changes in retention money and capital creditors	2.5 and 2.9	(1,943)	(1,592)
Loans to employees		(47)	3
Deposits placed with corporation		(46)	(9)
Income on available-for-sale financial assets and certificates of deposit		146	284
Payment for acquisition of business, net of cash acquired	2.3	(747)	–
Investment in preference securities		(55)	–
Investment in other available-for-sale financial assets		(18)	–
Investment in quoted debt securities		(243)	(1)
Redemption of certificates of deposit		–	830
Investment in liquid mutual fund units		(19,493)	(16,791)
Redemption of liquid mutual fund units		19,891	17,489
Investment in fixed maturity plan securities		–	(30)
Redemption of fixed maturity plan securities		33	30
Net cash used in investing activities		(2,522)	213
Financing activities:
Payment of dividends (including corporate dividend tax)		(6,814)	(4,935)
Net cash used in financing activities		(6,814)	(4,935)
Effect of exchange rate changes on cash and cash equivalents		(13)	(47)
Net decrease in cash and cash equivalents		(878)	6,120
Cash and cash equivalents at the beginning	2.1	30,367	25,950
Cash and cash equivalents at the end	2.1	29,476	32,023
Supplementary information:
Restricted cash balance	2.1	438	361

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

As per our report of even date attached

for B S R & Co. LLP

Chartered Accountants

Firm’s Registration No : 101248W/W-100022

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

Supreet Sachdev Partner	R. Seshasayee Chairman	Dr. Vishal Sikka Chief Executive Officer and Managing Director	Roopa Kudva Director

Membership No. 205385

Bangalore January 14, 2016	M. D. Ranganath Chief Financial Officer and Executive Vice President	A.G.S Manikantha Company Secretary

Notes to the Consolidated Interim Financial Statements

1. Company Overview and Significant Accounting Policies

1.1 Company overview

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

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

The Group's consolidated financial statements are authorized for issue by the company's Board of Directors on January 14, 2016.

1.2 Basis of preparation of financial statements

These consolidated financial statements have been prepared in compliance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS), under the historical cost convention on the accrual basis except for certain financial instruments and prepaid gratuity benefits which have been measured at fair values. Accounting policies have been applied consistently to all periods presented in these consolidated financial statements.

1.3 Basis of consolidation

Infosys consolidates entities which it owns or controls. The consolidated financial statements comprise the financial statements of the company, its controlled trusts and its subsidiaries as disclosed in Note 2.18. Control exists when the parent has power over the entity, is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns by using its power over the entity. Power is demonstrated through existing rights that give the ability to direct relevant activities, those which significantly affect the entity's returns. Subsidiaries are consolidated from the date control commences until the date control ceases.

Associates are entities over which the group has significant influence but not control. Investments in associates are accounted for using the equity method of accounting. The investment is initially recognized at cost, and the carrying amount is increased or decreased to recognize the investor’s share of the profit or loss of the investee after the acquisition date. The group’s investment in associates includes goodwill identified on acquisition.

1.4 Use of estimates

1.5 Critical accounting estimates

a. Revenue recognition

The group uses the percentage-of-completion method in accounting for its fixed-price contracts. Use of the percentage-of-completion method requires the group 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

c. Business combinations and intangible assets

d. Property, plant and equipment

e. Impairment of Goodwill

1.6 Revenue recognition

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 revenue while billings in excess of costs and earnings are classified as unearned revenue. Deferred contract costs are amortized over the term of the contract. Maintenance revenue is recognized ratably over the term of the underlying maintenance arrangement.

License fee revenues are recognized when the general revenue recognition criteria given in IAS 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 IAS 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 ratably 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 presents revenues net of value-added taxes in its statement of comprehensive income.

1.7 Property, plant and equipment

Building	22-25 years
Plant and machinery	5 years
Computer equipment	3-5 years
Furniture and fixtures	5 years
Vehicles	5 years

Depreciation methods, useful lives and residual values are reviewed periodically, including at each financial year end. (Refer note 2.5)

1.8 Business combinations

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

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

1.9 Goodwill

Goodwill represents the cost of business acquisition in excess of the Group's interest in the net fair value of identifiable assets, liabilities and contingent liabilities of the acquiree. When the net fair value of the identifiable assets, liabilities and contingent liabilities acquired exceeds the cost of business acquisition, a gain is recognized immediately in net profit in the statement of comprehensive income. Goodwill is measured at cost less accumulated impairment losses.

1.10 Intangible assets

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

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

1.11 Financial instruments

Financial instruments of the Group are classified in the following categories: non-derivative financial instruments comprising of loans and receivables, available-for-sale financial assets and trade and other payables; derivative financial instruments, share capital and treasury shares. The classification of financial instruments depends on the purpose for which those were acquired. Management determines the classification of its financial instruments at initial recognition. Regular way purchase and sale of financial assets are accounted for at trade date.

a. Non-derivative financial instruments

(i) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are presented as current assets, except for those maturing later than 12 months after the balance sheet date which are presented as non-current assets. Loans and receivables are measured initially at fair value plus transaction costs and subsequently carried at amortized cost using the effective interest method, less any impairment loss or provisions for doubtful accounts. Loans and receivables are represented by trade receivables, net of allowances for impairment, unbilled revenue, cash and cash equivalents, prepayments, certificates of deposit, and other assets. Cash and cash equivalents comprise cash and bank deposits and deposits with corporations. The company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents. Certificates of deposit is a negotiable money market instrument for funds deposited at a bank or other eligible financial institution for a specified time period. For these financial instruments, the carrying amounts approximate fair value due to the short maturity of these instruments. Loans and receivables are reclassified to available-for-sale financial assets when the financial asset becomes quoted in an active market.

(ii) Available-for-sale financial assets

Available-for-sale financial assets are non-derivatives that are either designated in this category or are not classified in any of the other categories. Available-for-sale financial assets are recognized initially at fair value plus transactions costs. Subsequent to initial recognition these are measured at fair value and changes therein, other than impairment losses and foreign exchange gains and losses on available-for-sale monetary items are recognized directly in other comprehensive income. When an investment is derecognized, the cumulative gain or loss in other comprehensive income is transferred to net profit in the statement of comprehensive income. These are presented as current assets unless management intends to dispose off the assets after 12 months from the balance sheet date.

(iii) Trade and other payables

Trade and other payables are initially recognized at fair value, and subsequently carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

b. Derivative financial instruments

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

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

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

Although the group believes that these derivatives constitute hedges from an economic perspective, they may not qualify for hedge accounting under IAS 39, Financial Instruments: Recognition and Measurement. Any derivative that is either not designated a hedge, or is so designated but is ineffective as per IAS 39, is categorized as a financial asset or financial liability, at fair value through profit or loss.

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

(ii) Cash flow hedge

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

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

c. Share capital and treasury shares

Ordinary Shares

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

Treasury Shares

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

1.12 Impairment

a. Financial assets

The Group assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of financial assets is impaired. A financial asset is considered impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset. Individually significant financial assets are tested for impairment on an individual basis. The remaining financial assets are assessed collectively in groups that share similar credit risk characteristics.

(i) Loans and receivables

Impairment loss in respect of loans and receivables measured at amortized cost are calculated as the difference between their carrying amount, and the present value of the estimated future cash flows discounted at the original effective interest rate. Such impairment loss is recognized in net profit in the statement of comprehensive income.

(ii) Available-for-sale financial assets

Significant or prolonged decline in the fair value of the security below its cost and the disappearance of an active trading market for the security are objective evidence that the security is impaired. An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its fair value and is recognized in net profit in the statement of comprehensive income. The cumulative loss that was recognized in other comprehensive income is transferred to net profit in the statement of comprehensive income upon impairment.

b. Non-financial assets

(i) Goodwill

Goodwill is tested for impairment on an annual basis and whenever there is an indication that goodwill may be impaired, relying on a number of factors including operating results, business plans and future cash flows. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to the Group's cash generating units (CGU) or groups of CGU’s expected to benefit from the synergies arising from the business combination. A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or group of assets. Impairment occurs when the carrying amount of a CGU including the goodwill, exceeds the estimated recoverable amount of the CGU. The recoverable amount of a CGU is the higher of its fair value less cost to sell and its value-in-use. Value-in-use is the present value of future cash flows expected to be derived from the CGU.

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

(ii) Intangible assets and property, plant and equipment

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

If such assets are considered to be impaired, the impairment to be recognized in net profit in the statement of comprehensive income is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset.

c. Reversal of impairment loss

An impairment loss for financial assets is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognized. An impairment loss in respect of goodwill is not reversed. In respect of other assets, an impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of an asset other than goodwill is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years. A reversal of impairment loss for an asset other than goodwill and available- for-sale financial assets that are equity securities is recognized in net profit in the statement of comprehensive income. For available-for-sale financial assets that are equity securities, the reversal is recognized in other comprehensive income.

1.13 Fair value of financial instruments

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

For all other financial instruments the carrying amounts approximate fair value due to the short maturity of those instruments. The fair value of securities, which do not have an active market and where it is not practicable to determine the fair values with sufficient reliability, are carried at cost less impairment.

1.14 Provisions

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

a. Post sales client support

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

b. Onerous contracts

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

1.15 Foreign currency

Functional currency

The functional currency of Infosys, Infosys BPO, controlled trusts, EdgeVerve and Skava is the Indian rupee. The functional currencies for Infosys Australia, Infosys China, Infosys Mexico, Infosys Sweden, Infosys Brasil, Infosys Public Services, Infosys Shanghai, Infosys Lodestone, Infosys Americas, Infosys Nova, Panaya, Kallidus and Noah are the respective local currencies. These financial statements are presented in Indian rupees (rounded off to crore; one crore equals ten million).

Transactions and translations

Foreign-currency denominated monetary assets and liabilities are translated into the relevant functional currency at exchange rates in effect at the balance sheet date. The gains or losses resulting from such translations are included in net profit in the statement of comprehensive income. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction.

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

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

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

1.16 Earnings per equity share

1.17 Income taxes

Income tax expense comprises current and deferred income tax. Income tax expense is recognized in net profit in the statement of comprehensive income 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 except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

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

1.18 Employee benefits

1.18.1 Gratuity

The Group recognizes the net obligation of a defined benefit plan in its balance sheet as an asset or liability. Gains and losses through re-measurements of the net defined benefit liability/(asset) are recognized in other comprehensive income. 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 profits in the statement of comprehensive income.

1.18.2 Superannuation

1.18.3 Provident fund

1.18.4 Compensated absences

1.19 Share-based compensation

1.20 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.

1.21 Operating profit

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

1.22 Other income

Other income is comprised primarily of interest income, dividend income 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.

1.23 Leases

Leases under which the group 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 comprehensive income over the lease term.

1.24 Government grants

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

1.25 Recent accounting pronouncements

1.25.1 Standards issued but not yet effective

IFRS 16 Leases : On January 13, 2016, the International Accounting Standards Board issued the final version of IFRS 16, Leases. IFRS 16 will replace the existing leases Standard, IAS 17 Leases, and related Interpretations. The Standard sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract i.e., the lessee and the lessor. IFRS 16 introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. Currently, operating lease expenses are charged to the statement of comprehensive income. The Standard also contains enhanced disclosure requirements for lessees. IFRS 16 substantially carries forward the lessor accounting requirements in IAS 17.

2. Notes to the consolidated interim financial statements

2.1 Cash and cash equivalents

Cash and cash equivalents consist of the following:

(In crore)

	As of
	December 31, 2015	March 31, 2015
Cash and bank deposits	24,281	26,195
Deposits with corporation	5,195	4,172
	29,476	30,367

Cash and cash equivalents as of December 31, 2015 and March 31, 2015 include restricted cash and bank balances of 438 crore and 364 crore, respectively. The restrictions are primarily on account of cash and bank balances held by irrevocable trusts controlled by the Company, bank balances held as margin money deposits against guarantees and balances held in unpaid dividend bank accounts.

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

The table below provides details of cash and cash equivalents:

(In crore)

	As of
	December 31, 2015	March 31, 2015
Current Accounts
ANZ Bank, Taiwan	9	4
Axis Bank account, India	1	–
Banamex Bank, Mexico	11	10
Banamex Bank, Mexico (U.S. Dollar account)	2	1
Bank of America, Mexico	26	26
Bank of America, USA	828	716
Bank of the Philippine Islands	1	–
Bank Zachodni WBK S.A, Poland	3	4
Bank of Tokyo-Mitsubishi UFJ, Ltd., Japan	–	1
Barclays Bank, UK	8	10
Bank Leumi, Israel (US Dollar account)	5	7
Bank Leumi, Israel (Israeli Sheqel account)	9	15
Bank Leumi, Israel (Euro account)	2	3
Bank Leumi, Israel (Yen account)	3	–
BNP Paribas Bank, Norway	1	–
China Merchants Bank, China	17	4
Citibank N.A, China	50	20
Citibank N.A., China (U.S. Dollar account)	93	24
Citibank N.A., Costa Rica	3	5
Citibank N.A., Czech Republic	11	6
Citibank N.A., Australia	71	25
Citibank N.A., Brazil	12	27
Citibank N.A., Dubai	1	1
Citibank N.A., India	2	7
Citibank N.A., Japan	45	20
Citibank N.A., New Zealand	4	6
Citibank N.A., Portugal	1	–
Citibank N.A., Singapore	2	2
Citibank N.A., South Africa (ZAR Account)	4	3
Citibank N.A., South Africa (Euro Account)	1	–
Citibank N.A., Philippines, (U.S. Dollar account)	1	1
Citibank N.A., USA	37	–
Citibank N.A., EEFC (U.S. Dollar account)	–	2
Commerzbank, Germany	45	19
Crédit Industriel et Commercial Bank, France	–	1
Deutsche Bank, India	11	5
Deutsche Bank, Philippines	12	3
Deutsche Bank, Philippines (U.S. Dollar account)	–	3
Deutsche Bank, Poland	4	19
Deutsche Bank, Poland (Euro Account)	–	1
Deutsche Bank, EEFC (Australian Dollar account)	1	–
Deutsche Bank, EEFC (Euro account)	12	3
Deutsche Bank, EEFC (Swiss Franc account)	8	5
Deutsche Bank, EEFC (U.S. Dollar account)	28	8
Deutsche Bank, EEFC (United Kingdom Pound Sterling account)	3	5
Deutsche Bank, Belgium	–	13
Deutsche Bank, Czech Republic	19	6
Deutsche Bank, Czech Republic (Euro account)	1	2
Deutsche Bank, Czech Republic (U.S. Dollar account)	15	20
Deutsche Bank, France	6	2
Deutsche Bank, Germany	10	8
Deutsche Bank, Netherlands	2	2
Deutsche Bank, Russia	1	–
Deutsche Bank, Russia(U.S. dollar account)	1	–
Deutsche Bank, Singapore	3	5
Deutsche Bank, Spain	1	1
Deutsche Bank, Switzerland	2	–
Deutsche Bank, United Kingdom	11	25
HDFC Bank-Unpaid dividend account	1	1
HSBC Bank, Brazil	5	3
HSBC Bank, Hong Kong	6	44
ICICI Bank, India	282	30
ICICI Bank, EEFC (U.S. Dollar account)	8	14
ICICI Bank-Unpaid dividend account	2	2
ING Bank, Belgium	6	–
Nordbanken, Sweden	18	3
Punjab National Bank, India	11	7
Raiffeisen Bank, Czech Republic	2	–
Raiffeisen Bank, Romania	4	–
Royal Bank of Scotland, China	–	45
Royal Bank of Scotland, China (U.S. Dollar account)	–	47
Royal Bank of Canada, Canada	45	16
Santander Bank, Argentina	–	2
Santander Bank, Spain	–	1
State Bank of India, India	2	2
Silicon Valley Bank, USA	1	66
Silicon Valley Bank, (Euro account)	83	16
Silicon Valley Bank, (United Kingdom Pound Sterling account)	13	5
Shanghai Pudong Development Bank	2	–
Union Bank of Switzerland AG	11	12
Union Bank of Switzerland AG, (U.S. Dollar Account)	1	2
Union Bank of Switzerland AG, (United Kingdom Pound Sterling account)	–	1
Union Bank of Switzerland AG, (Euro Account)	32	4
Wells Fargo Bank N.A., USA	23	38
Westpac, Australia	–	6
	2,018	1,473
Deposit Accounts
Allahabad Bank	200	200
Andhra Bank	888	171
Axis Bank	1,675	1,495
Bank of Baroda	2,394	2,394
Bank of India	1,849	2,691
Canara Bank	2,350	3,134
Central Bank of India	777	1,383
Citibank	92	–
Corporation Bank	1,265	1,277
Deutsche Bank, Poland	201	121
Development Bank of Singapore	–	35
HDFC Bank Ltd.	2,627	2,097
ICICI Bank	4,188	3,166
IDBI Bank	127	856
Indian Overseas Bank	40	651
Indusind Bank	250	75
ING Vysya Bank	–	100
Jammu & Kashmir Bank	25	–
Kotak Mahindra Bank Limited	492	5
National Australia Bank Limited	1	87
Oriental Bank of Commerce	100	1,580
Punjab National Bank	18	592
South Indian Bank	37	27
State Bank of India	56	57
Syndicate Bank	596	407
Union Bank of India	1,135	1,051
Vijaya Bank	80	466
Yes Bank	800	604
	22,263	24,722
Deposits with corporation
HDFC Limited	5,195	4,172
	5,195	4,172
Total	29,476	30,367

2.2 Available-for-sale financial assets

Primarily investments in mutual fund units, quoted debt securities, unquoted equity and preference securities are classified as available-for-sale financial assets.

Cost and fair value of the above investments are as follows:

(In crore)

	As of
	December 31, 2015	March 31, 2015
Current
Mutual fund units:
Liquid mutual funds
Cost and fair value	446	842
Fixed maturity plan securities
Cost	–	30
Gross unrealized holding gain / (loss)	–	2
Fair value	–	32
Quoted debt securities:
Cost	5	–
Gross unrealized holding gain/ (loss)	–	–
Fair value	5	–
	451	874
Non-current
Quoted debt securities:
Cost	1,581	1,352
Gross unrealized holding gain/ (loss)	18	(8)
Fair value	1,599	1,344
Unquoted equity and preference securities:
Cost	66	1
Gross unrealized holding gain/ (loss)	–	–
Fair value	66	1
Others:
Cost	18	–
Gross unrealized holding gains	–	–
Fair value	18	–
	1,683	1,345
Total available-for-sale financial assets	2,134	2,219

Mutual fund units:

Liquid mutual funds

The fair value of liquid mutual funds as of December 31, 2015 and March 31, 2015 is 446 crore and 842 crore, respectively. The fair value is based on quoted price.

Fixed maturity plan securities:

During the nine months ended December 31, 2015, the company redeemed fixed maturity plans securities of 30 crore. On redemption, the net unrealized gain of 1 crore, net of taxes of 1 crore, pertaining to these securities has been reclassified from other comprehensive income to profit or loss.

The fair value of fixed maturity plan securities as of March 31, 2015 is 32 crore. The fair value is based on quotes reflected in actual transactions in similar instruments as available on March 31, 2015. The net unrealized gain of 2 crore, net of taxes 2 crore has been recognized in other comprehensive income for the three months ended December 31, 2014. The net unrealized gain of 4 crore, net of taxes 4 crore has been recognized in other comprehensive income for the nine months ended December 31, 2014. (Refer to note 2.16).

Quoted debt securities:

The fair value of quoted debt securities as of December 31, 2015 and March 31, 2015 is 1,604 crore and 1,344 crore, respectively. The net unrealized gain of 3 crore, net of taxes of 1 crore, has been recognized in the other comprehensive income for the three months ended December 31, 2015. The net unrealized gain of 22 crore, net of taxes of 4 crore, has been recognized in the other comprehensive income for the nine months ended December 31, 2015. The net unrealized gain of 52 crore and 96 crore, net of taxes less than 1 crore and 12 crore, has been recognized in other comprehensive income for the three months and nine months ended December 31, 2014, respectively (Refer to note 2.16). The fair value is based on quoted prices and market observable inputs.

2.3 Business combinations

Infosys Consulting Holding AG (formerly Lodestone Holding AG)

On October 22, 2012, Infosys acquired 100% of the voting interests in Lodestone Holding AG, a global management consultancy firm headquartered in Zurich. The business acquisition was conducted by entering into a share purchase agreement for a cash consideration of 1,187 crore and an additional consideration of upto 608 crore, which the company refers to as deferred purchase price, estimated on the date of acquisition, payable to the selling shareholders of Lodestone Holding AG who are continuously employed or otherwise engaged by the Group during the three year period following the date of the acquisition.

This transaction is treated as post acquisition employee remuneration expense as per IFRS 3R. For the three months and nine months ended December 31, 2015 and December 31, 2014, a post-acquisition employee remuneration expense of 25 crore and 63 crore, 149 crore and 179 crore respectively, is recorded in cost of sales in the statement of comprehensive income. During the three months ended December 31, 2015, the liability towards post-acquisition employee remuneration expense was settled.

Panaya

The purchase price has been allocated based on Management’s estimates and independent appraisal of fair values as follows:

(In crore)

Component	Acquiree's carrying amount	Fair value adjustments	Purchase price allocated
Property, plant and equipment	9	–	9
Net current assets *	38	–	38
Intangible assets – technology	–	243	243
Intangible assets – trade name	–	21	21
Intangible assets - customer contracts and relationships	–	82	82
Intangible assets - non compete agreements	–	26	26
Deferred tax liabilities on intangible assets	–	(99)	(99)
	47	273	320
Goodwill			1,078
Total purchase price			1,398

Includes cash and cash equivalents acquired of 116 crore.

The goodwill is not tax deductible.

The gross amount of trade receivables acquired and its fair value is 58 crore and the amounts have been largely collected.

The fair value of total cash consideration as at the acquisition date was 1,398 crore.

The transaction costs of 22 crore related to the acquisition have been included under administrative expenses in the statement of comprehensive income for the year ended March 31, 2015.

Kallidus Inc. (d.b.a Skava)

On June 2, 2015, Infosys acquired 100% of the voting interests in Kallidus Inc., US (Kallidus), a leading provider of digital experience solutions, including mobile commerce and in-store shopping experiences to large retail clients and 100% of the voting interests of Skava Systems Private Limited, India, an affiliate of Kallidus. The business acquisition was conducted by entering into a share purchase agreement for cash consideration of $91 million (approximately 578 crore) and a contingent consideration of up to $20 million (approximately 128 crore on acquisition date).

The purchase price has been allocated based on management’s estimates and independent appraisal of fair values as follows:

(in crore)

Component	Acquiree's carrying amount	Fair value adjustments	Purchase price allocated
Net assets^(*)	35	–	35
Intangible assets - technology	–	130	130
Intangible assets - trade name	–	14	14
Intangible assets - customer contracts and relationships	–	175	175
Deferred tax liabilities on intangible assets	–	(128)	(128)
	35	191	226
Goodwill			452
Total purchase price			678

* Includes cash and cash equivalents acquired of 29 crore

The goodwill is not tax deductible.

The gross amount of trade receivables acquired and its fair value is 57 crore and the amounts have been largely collected.

The acquisition date fair value of each major class of consideration as of the acquisition date is as follows:

(in crore)

Component	Consideration settled
Cash paid	578
Fair value of contingent consideration	100
Total purchase price	678

The undiscounted value of contingent consideration as of December 31, 2015 is 132 crore. The payment of contingent consideration to sellers of Kallidus is dependent upon the achievement of certain financial targets by Kallidus over a period of 3 years ending on December 31, 2017.

The fair value of contingent consideration is determined by discounting the estimated amount payable to the sellers of Kallidus on achievement of certain financial targets. At acquisition date, the key inputs used in determination of the fair value of contingent consideration are the discount rate of 14% and the probabilities of achievement of the financial targets.

The transaction costs of 12 crore related to the acquisition have been included under administrative expenses in the statement of comprehensive income for the nine months ended December 31, 2015.

Noah Consulting LLC

On November 16, 2015, Infosys has acquired 100% membership interest in Noah Consulting, LLC (Noah), a leading provider of advanced information management consulting services for the oil and gas industry. The business acquisition was conducted by entering into a share purchase agreement for cash consideration of $33 million (approximately 216 crore), contingent consideration of upto $5 million (approximately 33 crore on acquisition date) and an additional consideration of upto $32 million (approximately 212 crore on acquisition date), referred to as retention bonus, payable to the employees of Noah at each anniversary year following the acquisition date for the next three years, subject to their continuous employment with the group at each anniversary.

The purchase price has been allocated based on management’s estimates and independent appraisal of fair values as follows:

(in crore)

Component	Acquiree's carrying amount	Fair value adjustments	Purchase price allocated
Net assets^(*)	39	–	39
Intangible assets – technical know-how	–	27	27
Intangible assets – trade name	–	27	27
Intangible assets - customer contracts and relationships	–	119	119
	39	173	212
Goodwill			30
Total purchase price			242

* Includes cash and cash equivalents acquired of 18 crore

Goodwill of 4 crore is tax deductible. The remaining goodwill is tax deductible over the tax life on payment of contingent consideration.

The gross amount of trade receivables acquired and its fair value is 29 crore and the amounts have been largely collected.

The acquisition date fair value of each major class of consideration as of the acquisition date is as follows:

(in crore)

Component	Consideration settled
Cash paid	216
Fair value of contingent consideration	26
Total purchase price	242

The undiscounted value of contingent consideration as of December 31, 2015 was 33 crore. The payment of contingent consideration to sellers of Noah is dependent upon the achievement of certain financial targets by Noah for the year ending December 31, 2015 and December 31, 2016.

The fair value of contingent consideration is determined by discounting the estimated amount payable to the sellers of Noah on achievement of certain financial targets. At acquisition date, the key inputs used in determination of the fair value of contingent consideration are the discount rate of 32% and the probabilities of achievement of the financial targets.

The retention bonus is treated as a post-acquisition employee remuneration expense as per IFRS 3R. For the period from the closing of the acquisition to December 31, 2015, a post-acquisition employee remuneration expense of 21 crore has been recorded in the statement of comprehensive income.

The transaction costs of 11 crore related to the acquisition have been included under administrative expenses in the statement of comprehensive income for the three months and nine months ended December 31, 2015.

EdgeVerve Systems Limited

EdgeVerve was created as a wholly owned subsidiary to focus on developing and selling products and platforms. On April 15, 2014, the Board of Directors of Infosys authorized the Company to execute a Business Transfer Agreement and related documents with EdgeVerve, subject to securing the requisite approval from shareholders in the Annual General Meeting. Subsequently, at the AGM held on June 14, 2014, the shareholders authorized the Board to enter into a Business Transfer Agreement and related documents with EdgeVerve, with effect from July 1, 2014 or such other date as may be decided by the Board of Directors. The company had undertaken an enterprise valuation by an independent valuer and accordingly the business was transferred for a consideration of 421 crore with effect from July 1, 2014 which was settled through the issue of fully paid up equity shares.

The transfer of assets and liabilities was accounted for at carrying values and did not have any impact on the consolidated financial statements.

Finacle and Edge Services

On April 24, 2015, the Board of Directors of Infosys has authorized the Company to execute a Business Transfer Agreement and related documents with EdgeVerve, a wholly owned subsidiary, to transfer the business of Finacle and Edge Services. Post the requisite approval from shareholders through postal ballot on June 4, 2015, a Business Transfer Agreement and other related documents were executed with EdgeVerve to transfer the business with effect from August 1, 2015. The company has undertaken an enterprise valuation by an independent valuer and accordingly the business were transferred for a consideration of 3,222 crore and 177 crore for Finacle and Edge Services, respectively.

The consideration was settled through issue of 85,00,00,000 equity shares amounting to 850 crore and 25,49,00,000 non-convertible redeemable debentures amounting to 2,549 crore in EdgeVerve, post the requisite approval from shareholders on December 11, 2015.

The transfer of assets and liabilities was accounted for at carrying values and did not have any impact on the consolidated financial statements.

2.4 Prepayments and other assets

Prepayments and other assets consist of the following:

(In crore)

	As of
	December 31, 2015	March 31, 2015
Current
Rental deposits	13	24
Security deposits	8	4
Loans and advances to employees	275	222
Prepaid expenses⁽¹⁾	206	98
Interest accrued and not due	1,379	396
Withholding taxes⁽¹⁾	1,671	1,364
Advance payments to vendors for supply of goods⁽¹⁾	164	79
Deposit with corporations	1,155	1,100
Deferred contract cost⁽¹⁾	35	–
Other assets	33	9
	4,939	3,296
Non-current
Loans and advances to employees	25	31
Deposit with corporations	49	58
Rental deposits	97	47
Security deposits	77	68
Deferred contract cost⁽¹⁾	355	–
Prepaid expenses⁽¹⁾	61	7
Prepaid gratuity⁽¹⁾	7	27
	671	238
	5,610	3,534
Financial assets in prepayments and other assets	3,111	1,959

⁽¹⁾Non financial assets

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

2.5 Property, plant and equipment

Following are the changes in the carrying value of property, plant and equipment for the three months ended December 31, 2015:

(In crore)

	Land	Buildings	Plant and machinery	Computer equipment	Furniture and fixtures	Vehicles	Capital work-in-progress	Total
Gross carrying value as of October 1, 2015	1,589	6,011	2,287	3,600	1,261	36	1,825	16,609
Acquisition through Business Combination (Refer note 2.3)	–	–	–	–	–	–	–	–
Additions	18	230	192	281	69	1	–	791
Deletions	–	–	(1)	(15)	(4)	(3)	(114)	(137)
Translation difference	–	–	(1)	(1)	(2)	(1)	–	(5)
Gross carrying value as of December 31, 2015	1,607	6,241	2,477	3,865	1,324	33	1,711	17,258
Accumulated depreciation as of October 1, 2015	(19)	(2,089)	(1,439)	(2,453)	(902)	(21)	–	(6,923)
Accumulated Depreciation on acquired assets (Refer note 2.3)	–	–	–	–	–	–	–	–
Depreciation	(1)	(55)	(84)	(136)	(39)	(1)	–	(316)
Accumulated depreciation on deletions	–	–	1	11	3	3	–	18
Translation difference	–	–	2	1	(1)	–	–	2
Accumulated depreciation as of December 31, 2015	(20)	(2,144)	(1,520)	(2,577)	(939)	(19)	–	(7,219)
Carrying value as of October 1, 2015	1,570	3,922	848	1,147	359	15	1,825	9,686
Carrying value as of December 31, 2015	1,587	4,097	957	1,288	385	14	1,711	10,039

Following are the changes in the carrying value of property, plant and equipment for the three months ended December 31, 2014:

(In crore)

	Land	Buildings	Plant and machinery	Computer equipment	Furniture and fixtures	Vehicles	Capital work-in-progress	Total
Gross carrying value as of October 1, 2014	1,528	5,331	1,859	2,905	1,069	33	1,643	14,368
Additions	22	225	123	268	43	4	–	685
Deletions	–	–	(3)	(15)	(7)	(2)	(98)	(125)
Translation difference	–	–	–	1	(1)	(1)	–	(1)
Gross carrying value as of December 31, 2014	1,550	5,556	1,979	3,159	1,104	34	1,545	14,927
Accumulated depreciation as of October 1, 2014	(15)	(1,884)	(1,172)	(2,117)	(764)	(18)	–	(5,970)
Depreciation	(1)	(48)	(64)	(101)	(32)	(1)	–	(247)
Accumulated depreciation on deletions	–	–	3	14	5	2	–	24
Translation difference	–	–	–	(1)	(1)	–	–	(2)
Accumulated depreciation as of December 31, 2014	(16)	(1,932)	(1,233)	(2,205)	(792)	(17)	–	(6,195)
Carrying value as of October 1, 2014	1,513	3,447	687	788	305	15	1,643	8,398
Carrying value as of December 31, 2014	1,534	3,624	746	954	312	17	1,545	8,732

Following are the changes in the carrying value of property, plant and equipment for the nine months ended December 31, 2015:

(In crore)

	Land	Buildings	Plant and machinery	Computer equipment	Furniture and fixtures	Vehicles	Capital work-in-progress	Total
Gross carrying value as of April 1, 2015	1,562	5,881	2,104	3,347	1,179	34	1,440	15,547
Acquisitions through business combination (Refer note 2.3)	–	–	1	2	1	–	–	4
Additions	45	360	378	775	148	4	385	2,095
Deletions	–	–	(6)	(269)	(7)	(5)	(114)	(401)
Translation difference	–	–	–	10	3	–	–	13
Gross carrying value as of December 31, 2015	1,607	6,241	2,477	3,865	1,324	33	1,711	17,258
Accumulated depreciation as of April 1, 2015	(16)	(1,982)	(1,293)	(2,287)	(825)	(19)	–	(6,422)
Accumulated Depreciation on acquired assets (Refer note 2.3)	–	–	(1)	(1)	–	–	–	(2)
Depreciation	(4)	(162)	(232)	(392)	(116)	(4)	–	(910)
Accumulated depreciation on deletions	–	–	5	111	4	4	–	124
Translation difference	–	–	1	(8)	(2)	–	–	(9)
Accumulated depreciation as of December 31, 2015	(20)	(2,144)	(1,520)	(2,577)	(939)	(19)	–	(7,219)
Carrying value as of April 1, 2015	1,546	3,899	811	1,060	354	15	1,440	9,125
Carrying value as of December 31, 2015	1,587	4,097	957	1,288	385	14	1,711	10,039

Following are the changes in the carrying value of property, plant and equipment for the nine months ended December 31, 2014:

(In crore)

	Land	Buildings	Plant and machinery	Computer equipment	Furniture and fixtures	Vehicles	Capital work-in-progress	Total
Gross carrying value as of April 1, 2014	1,140	5,026	1,702	2,659	1,017	36	1,832	13,412
Additions	410	530	290	543	107	5	85	1,970
Deletions	–	–	(14)	(46)	(19)	(5)	(372)	(456)
Translation difference	–	–	1	3	(1)	(2)	–	1
Gross carrying value as of December 31, 2014	1,550	5,556	1,979	3,159	1,104	34	1,545	14,927
Accumulated depreciation as of April 1, 2014	–	(1,794)	(1,048)	(1,965)	(700)	(18)	–	(5,525)
Depreciation	(16)	(138)	(197)	(271)	(108)	(4)	–	(734)
Accumulated depreciation on deletions	–	–	12	35	17	4	–	68
Translation difference	–	–	–	(4)	(1)	1	–	(4)
Accumulated depreciation as of December 31, 2014	(16)	(1,932)	(1,233)	(2,205)	(792)	(17)	–	(6,195)
Carrying value as of April 1, 2014	1,140	3,232	654	694	317	18	1,832	7,887
Carrying value as of December 31, 2014	1,534	3,624	746	954	312	17	1,545	8,732

Following are the changes in the carrying value of property, plant and equipment for the year ended March 31, 2015:

(In crore)

	Land	Buildings	Plant and machinery	Computer equipment	Furniture and fixtures	Vehicles	Capital work-in-progress	Total
Gross carrying value as of April 1, 2014	1,140	5,026	1,702	2,659	1,017	36	1,832	13,412
Acquisitions through business combination (Refer note 2.3)	–	–	–	13	9	–	–	22
Additions	422	855	421	765	182	6	85	2,736
Deletions	–	–	(17)	(82)	(20)	(6)	(477)	(602)
Translation difference	–	–	(2)	(8)	(9)	(2)	–	(21)
Gross carrying value as of March 31, 2015	1,562	5,881	2,104	3,347	1,179	34	1,440	15,547
Accumulated depreciation as of April 1, 2014	–	(1,794)	(1,048)	(1,965)	(700)	(18)	–	(5,525)
Accumulated Depreciation on acquired assets (Refer note 2.3)	–	–	–	(9)	(4)	–	–	(13)
Depreciation	(16)	(188)	(262)	(387)	(144)	(6)	–	(1,003)
Accumulated depreciation on deletions	–	–	15	70	18	4	–	107
Translation difference	–	–	2	4	5	1	–	12
Accumulated depreciation as of March 31, 2015	(16)	(1,982)	(1,293)	(2,287)	(825)	(19)	–	(6,422)
Carrying value as of April 1, 2014	1,140	3,232	654	694	317	18	1,832	7,887
Carrying value as of March 31, 2015	1,546	3,899	811	1,060	354	15	1,440	9,125

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

Carrying value of land includes 629 crore and 617 crore as of December 31, 2015 and March 31, 2015, respectively, towards deposits 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 contractual commitments for capital expenditure were 1,541 crore and 1,574 crore, as of December 31, 2015 and March 31, 2015, respectively.

2.6 Goodwill and intangible assets

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

(In crore)

	As of
	December 31, 2015	March 31, 2015
Carrying value at the beginning	3,091	2,157
Goodwill on Panaya acquisition	–	1,078
Goodwill on Kallidus d.b.a Skava acquisition (Refer note 2.3)	452	–
Goodwill on Noah acquisition (Refer note 2.3)	30	–
Translation differences	132	(144)
Carrying value at the end	3,705	3,091

For the purpose of impairment testing, goodwill acquired in a business combination is allocated to the cash generate units (CGU) or groups of CGU’s, which benefit from the synergies of the acquisition. The chief operating decision maker reviews the goodwill for any impairment at the operating segment level, which is represented through groups of CGU’s.

Effective April 1, 2015, the company reorganized its business to support its objective of delivery innovation. Consequent to the internal reorganization there were changes effected in the segments based on the “management approach” as defined in IFRS 8, Operating Segments. (Refer Note 2.19). Accordingly the goodwill has been allocated to the new operating segments as at December 31, 2015.

(In crore)

Segment	As of
	December 31, 2015
Financial services	823
Manufacturing	814
Retail, Consumer packaged goods and Logistics	573
Life Sciences, Healthcare and Insurance	647
Energy & Utilities, Communication and Services	679
	3,536
Operating segments without significant goodwill	169
Total	3,705

The entire goodwill relating to Infosys BPO’s acquisition of McCamish has been allocated to the groups of CGU’s which are represented by the Life Sciences, Healthcare and Insurance segment.

The goodwill relating to Infosys Lodestone, Portland, Panaya and Kallidus d.b.a Skava has been allocated to the groups of CGU’s which are represented by the entity’s operating segment.

The entire goodwill relating to Noah acquisitions has been allocated to the group of CGU's which is represented by the Energy & Utilities, Communication and Services segment.

The following table gives the break-up of allocation of goodwill to operating segments as at March 31, 2015:

(In crore)

Segment	As of
	March 31, 2015
Financial services	663
Insurance	367
Manufacturing	656
Energy, Communication and services	318
Resources & utilities	141
Retail, Consumer packaged goods and logistics	473
Life Sciences and Healthcare	193
Growth Markets	280
Total	3,091

(in %)

	March 31, 2015
Long term growth rate	8-10
Operating margins	17-20
Discount rate	13.9

The above discount rate is based on the Weighted Average Cost of Capital (WACC) of the Company. These estimates are likely to differ from future actual results of operations and cash flows.

Following are the changes in the carrying value of acquired intangible assets for the three months ended December 31, 2015:

(In crore)

	Customer related	Software related	Sub-contracting rights related	Intellectual property rights related	Land use- rights related	Marketing Related	Others	Total
Gross carrying value as of October 1, 2015	644	408	21	1	73	65	36	1,248
Addition through business combination (Refer note 2.3)	119	–	–	–	–	27	27	173
Additions	–	–	–	–	–	–	–	–
Deletion	–	–	–	–	–	–	–	–
Translation differences	1	3	–	–	(1)	–	–	3
Gross carrying value as of December 31, 2015	764	411	21	1	72	92	63	1,424
Accumulated amortization as of October 1, 2015	(217)	(40)	(21)	(1)	(6)	(31)	(15)	(331)
Amortization expense	(35)	(11)	–	–	–	(4)	(3)	(53)
Deletion	–	–	–	–	–	–	–	–
Translation differences	(1)	1	–	–	–	1	(1)	–
Accumulated amortization as of December 31, 2015	(253)	(50)	(21)	(1)	(6)	(34)	(19)	(384)
Carrying value as of October 1, 2015	427	368	–	–	67	34	21	917
Carrying value as of December 31, 2015	511	361	–	–	66	58	44	1,040

Following are the changes in the carrying value of acquired intangible assets for the three months ended December 31, 2014:

(In crore)

	Customer related	Software related	Sub-contracting rights related	Intellectual property rights related	Land use- rights related	Marketing related	Others	Total
Gross carrying value as of October 1, 2014	370	36	21	11	70	27	9	544
Additions	–	–	–	–	–	–	–	–
Deletions	–	(17)	–	–	–	–	–	(17)
Translation differences	(2)	–	–	–	2	–	–	–
Gross carrying value as of December 31, 2014	368	19	21	11	72	27	9	527
Accumulated amortization as of October 1, 2014	(144)	(28)	(21)	(11)	(4)	(26)	(9)	(243)
Amortization expense	(10)	(7)	–	–	–	(1)	–	(18)
Deletions	–	17	–	–	–	–	–	17
Translation differences	1	(1)	–	–	(1)	–	–	(1)
Accumulated amortization as of December 31, 2014	(153)	(19)	(21)	(11)	(5)	(27)	(9)	(245)
Carrying value as of October 1, 2014	226	8	–	–	66	1	–	301
Carrying value as of December 31, 2014	215	–	–	–	67	–	–	282

Following are the changes in the carrying value of acquired intangible assets for the nine months ended December 31, 2015:

(In crore)

	Customer related	Software related	Sub-contracting rights related	Intellectual property rights related	Land use- rights related	Marketing Related	Others	Total
Gross carrying value as of April 1, 2015	448	261	21	11	71	49	34	895
Additions through business combination (Refer note 2.3)	294	130	–	–	–	41	27	492
Deletion	–	–	–	(10)	–	–	–	(10)
Translation differences	22	20	–	–	1	2	2	47
Gross carrying value as of December 31, 2015	764	411	21	1	72	92	63	1,424
Accumulated amortization as of April 1, 2015	(162)	(21)	(21)	(11)	(5)	(28)	(9)	(257)
Amortization expense	(85)	(29)	–	–	(1)	(6)	(9)	(130)
Deletion	–	–	–	10	–	–	–	10
Translation differences	(6)	–	–	–	–	–	(1)	(7)
Accumulated amortization as of December 31, 2015	(253)	(50)	(21)	(1)	(6)	(34)	(19)	(384)
Carrying value as of April 1, 2015	286	240	–	–	66	21	25	638
Carrying value as of December 31, 2015	511	361	–	–	66	58	44	1,040

Following are the changes in the carrying value of acquired intangible assets for the nine months ended December 31, 2014:

(In crore)

	Customer related	Software related	Sub-contracting rights related	Intellectual property rights related	Land use- rights related	Marketing related	Others	Total
Gross carrying value as of April 1, 2014	381	35	21	11	68	28	9	553
Additions	–	–	–	–	–	–	–	–
Deletion	–	(17)	–	–	–	–	–	(17)
Translation differences	(13)	1	–	–	4	(1)	–	(9)
Gross carrying value as of December 31, 2014	368	19	21	11	72	27	9	527
Accumulated amortization as of April 1, 2014	(125)	(26)	(19)	(11)	(3)	(20)	(7)	(211)
Amortization expense	(30)	(9)	(2)	–	(1)	(8)	(2)	(52)
Deletion	–	17	–	–	–	–	–	17
Translation differences	2	(1)	–	–	(1)	1	–	1
Accumulated amortization as of December 31, 2014	(153)	(19)	(21)	(11)	(5)	(27)	(9)	(245)
Carrying value as of April 1, 2014	256	9	2	–	65	8	2	342
Carrying value as of December 31, 2014	215	–	–	–	67	–	–	282

Following are the changes in the carrying value of acquired intangible assets for the year ended March 31, 2015:

(In crore)

	Customer related	Software related	Sub-contracting rights related	Intellectual property rights related	Land use- rights related	Marketing Related	Others	Total
Gross carrying value as of April 1, 2014	381	35	21	11	68	28	9	553
Additions through business combination (Refer note 2.3)	82	243	–	–	–	22	26	373
Deletion	–	(17)	–	–	–	–	–	(17)
Translation differences	(15)	–	–	–	3	(1)	(1)	(14)
Gross carrying value as of March 31, 2015	448	261	21	11	71	49	34	895
Accumulated amortization as of April 1, 2014	(125)	(26)	(19)	(11)	(3)	(20)	(7)	(211)
Additions through business combination (Refer note 2.3)	–	–	–	–	–	(1)	–	(1)
Amortization expense	(41)	(12)	(2)	–	(1)	(8)	(2)	(66)
Deletion	–	17	–	–	–	–	–	17
Translation differences	4	–	–	–	(1)	1	–	4
Accumulated amortization as of March 31, 2015	(162)	(21)	(21)	(11)	(5)	(28)	(9)	(257)
Carrying value as of April 1, 2014	256	9	2	–	65	8	2	342
Carrying value as of March 31, 2015	286	240	–	–	66	21	25	638

The estimated useful lives and remaining useful life of intangible assets as of December 31, 2015 are as follows:

(in years unless otherwise stated)

Intangible asset	Asset acquisition/ Business combination	Useful life	Remaining Useful life
Land use rights	Asset acquisition	50	46
Customer contracts and relationships	McCamish	9	3
Customer contracts and relationships	Portland	10	6
Customer contracts and relationships	Seabury and Smith	5	2
Customer relationships	Lodestone	10	7
Technology	Panaya	10	9
Trade name	Panaya	10	9
Customer contracts and relationships	Panaya	3	2
Non-compete agreements	Panaya	3	2
Technology	Kallidus d.b.a Skava	8	8
Customer contracts	Kallidus d.b.a Skava	7 months	–
Customer relationships	Kallidus d.b.a Skava	8	8
Trade name	Kallidus d.b.a Skava	2.6	2
Technical Know-how	Noah	5	5
Trade name	Noah	5	5
Customer Contracts	Noah	2 months	–
Customer Relationships	Noah	7	7

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

Research and development expense recognized in net profit in the consolidated statement of comprehensive income, for the three months and nine months ended December 31, 2015 and December 31, 2014 was 177 crore and 182 crore and 510 crore and 509 crore, respectively.

2.7 Financial instruments

Financial instruments by category

The carrying value and fair value of financial instruments by categories as of December 31, 2015 were as follows:

(In crore)

	Loans and receivables	Financial assets/ liabilities at fair value through profit and loss	Derivatives- Hedging instruments	Available for sale	Trade and other payables	Total carrying value/fair value
Assets:
Cash and cash equivalents (Refer Note 2.1)	29,476	–	–	–	–	29,476
Available-for-sale financial assets (Refer Note 2.2)	–	–	–	2,134	–	2,134
Trade receivables	10,857	–	–	–	–	10,857
Unbilled revenue	2,976	–	–	–	–	2,976
Prepayments and other assets (Refer Note 2.4)	3,111	–	–	–	–	3,111
Derivative financial instruments	–	53	1	–	–	54
Total	46,420	53	1	2,134	–	48,608
Liabilities:
Trade payables	–	–	–	–	131	131
Derivative financial instruments	–	8	–	–	–	8
Client deposits	–	–	–	–	36	36
Employee benefit obligations	–	–	–	–	1,268	1,268
Other liabilities including contingent consideration (Refer Note 2.9)	–	139	–	–	5,089	5,228
Total	–	147	–	–	6,524	6,671

The carrying value and fair value of financial instruments by categories as of March 31, 2015 were as follows:

(In crore)

	Loans and receivables	Financial assets/ liabilities at fair value through profit and loss	Available for sale	Trade and other payables	Total carrying value/fair value
Assets:
Cash and cash equivalents (Refer Note 2.1)	30,367	–	–	–	30,367
Available-for-sale financial assets (Refer Note 2.2)	–	–	2,219	–	2,219
Trade receivables	9,713	–	–	–	9,713
Unbilled revenue	2,845	–	–	–	2,845
Prepayments and other assets (Refer Note 2.4)	1,959	–	–	–	1,959
Derivative financial instruments	–	101	–	–	101
Total	44,884	101	2,219	–	47,204
Liabilities:
Trade payables	–	–	–	140	140
Derivative financial instruments	–	3	–	–	3
Client deposits	–	–	–	27	27
Employee benefit obligations	–	–	–	1,069	1,069
Other liabilities (Refer Note 2.9)	–	–	–	4,891	4,891
Total	–	3	–	6,127	6,130

Fair value hierarchy

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

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

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

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of December 31, 2015:

(In crore)

	As of December 31, 2015	Fair value measurement at end of the reporting period/year using
		Level 1	Level 2	Level 3
Assets
Available- for- sale financial asset- Investments in liquid mutual fund units (Refer Note 2.2)	446	446	–	–
Available- for- sale financial asset- Investments in quoted debt securities (Refer Note 2.2)	1,604	394	1,210	–
Available- for- sale financial asset- Investments in equity and preference securities (Refer Note 2.2)	66	–	–	66
Available- for- sale financial asset- others (Refer Note 2.2)	18	–	–	18
Derivative financial instruments - gain on outstanding foreign exchange forward and option contracts	54	–	54	–
Liabilities
Derivative financial instruments - loss on outstanding foreign exchange forward and option contracts	8	–	8	–
Liability towards contingent consideration (Refer note 2.9)*	139	–	–	139

During the three months and nine months ended December 31, 2015, quoted debt securities of 50 crore and 270 crore, respectively were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs.

* Discounted $20 million (approximately 132 crore) at 14.3% and $5 million (approximately 33 crore) at 32%.

A one percentage point change in the unobservable inputs used in fair valuation of the contingent consideration does not have a significant impact in its value.

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of March 31, 2015:

(In crore)

	As of March 31, 2015	Fair value measurement at end of the reporting period/year using
		Level 1	Level 2	Level 3
Assets
Available- for- sale financial asset- Investments in liquid mutual fund units (Refer Note 2.2)	842	842	–	–
Available- for- sale financial asset- Investments in fixed maturity plan securities (Refer Note 2.2)	32	–	32	–
Available- for- sale financial asset- Investments in quoted debt securities (Refer Note 2.2)	1,344	608	736	–
Available- for- sale financial asset- Investments in equity securities (Refer Note 2.2)	1	–	–	1
Derivative financial instruments- gain on outstanding foreign exchange forward and option contracts	101	–	101	–
Liabilities
Derivative financial instruments- loss on outstanding foreign exchange forward and option contracts	3	–	3	–

Income from financial assets or liabilities that are not at fair value through profit or loss is as follows:

(In crore)

	Three months ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Interest income on deposits and certificates of deposit (Refer Note 2.13)	634	677	1,914	1,935
Income from available-for-sale financial assets (Refer Note 2.13)	40	61	136	210
	674	738	2,050	2,145

Derivative financial instruments

The Group holds derivative financial instruments such as foreign exchange forward and option contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank or a financial institution. 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 following table gives details in respect of outstanding foreign exchange forward and option contracts:

	As of		As of
	December 31, 2015		March 31, 2015
	In million	In crore	In million	In crore
Forward contracts
In U.S. dollars	505	3,341	716	4,475
In Euro	96	692	67	447
In United Kingdom Pound Sterling	65	640	73	671
In Australian dollars	65	315	98	466
In Canadian dollars	–	–	12	59
In Singapore dollars	10	47	25	114
In Swiss Franc	20	135	–	–
			–	–
Option Contracts
In U.S. dollars	125	827	–	–
In Euro	50	361
Total forwards		6,358		6,232

The Group recognized a net gain of 62 crore and net loss of 30 crore on derivative financial instruments during the three months and nine months ended December 31, 2015 as against a net gain on derivative financial instruments of 51 crore and 211 crore during the three months and nine months ended December 31, 2014, which are included in other income.

The foreign exchange forward and option contracts mature within twelve months. The table below analyzes the derivative financial instruments into relevant maturity groupings based on the remaining period as of the balance sheet date:

(In crore)

	As of
	December 31, 2015	March 31, 2015
Not later than one month	1,699	1,484
Later than one month and not later than three months	3,305	3,781
Later than three months and not later than one year	1,354	967
	6,358	6,232

Financial risk management

Financial risk factors

The Group's activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Group's primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk to the Group is foreign exchange risk. The Group uses derivative financial instruments to mitigate foreign exchange related risk exposures. The Group's exposure to credit risk is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customers. The demographics of the customer including the default risk of the industry and country in which the customer operates also has an influence on credit risk assessment.

Market risk

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

The following table gives details in respect of the outstanding foreign exchange forward and option contracts:

(In crore)

	As of
	December 31, 2015	March 31, 2015
Aggregate amount of outstanding forward and option contracts	6,358	6,232
Gain on outstanding forward and option contracts	54	101
Loss on outstanding forward and option contracts	8	3

The following table analyzes foreign currency risk from financial instruments as of December 31, 2015:

(In crore)

	U.S. dollars	Euro	United Kingdom Pound Sterling	Australian dollars	Other currencies	Total
Cash and cash equivalents	1,156	118	26	147	553	2,000
Trade receivables	7,424	1,153	667	531	659	10,434
Unbilled revenue	1,833	370	165	135	253	2,756
Other assets	87	33	23	10	79	232
Trade payables	(16)	(20)	(20)	(2)	(57)	(115)
Client deposits	(22)	(3)	(2)	–	(9)	(36)
Accrued expenses	(843)	(154)	(123)	(29)	(231)	(1,380)
Employee benefit obligations	(554)	(56)	(42)	(156)	(131)	(939)
Other liabilities	(913)	(109)	(30)	(25)	(160)	(1,237)
Net assets / (liabilities)	8,152	1,332	664	611	956	11,715

The following table analyzes foreign currency risk from financial instruments as of March 31, 2015:

(In crore)

	U.S. dollars	Euro	United Kingdom Pound Sterling	Australian dollars	Other currencies	Total
Cash and cash equivalents	994	59	41	119	413	1,626
Trade receivables	6,719	1,040	540	469	600	9,368
Unbilled revenue	1,714	330	126	100	250	2,520
Other assets	81	28	19	9	61	198
Trade payables	(59)	(14)	–	(2)	(56)	(131)
Client deposits	(20)	–	(1)	–	(6)	(27)
Accrued expenses	(749)	(143)	(78)	(25)	(165)	(1,160)
Employee benefit obligations	(436)	(59)	(37)	(130)	(105)	(767)
Other liabilities	(761)	(116)	(23)	(22)	(637)	(1,559)
Net assets / (liabilities)	7,483	1,125	587	518	355	10,068

For the three months ended December 31, 2015 and December 31, 2014, every percentage point depreciation / appreciation in the exchange rate between the Indian rupee and U.S. dollar, has affected the Company's incremental operating margins by approximately 0.49% and 0.52%, respectively.

For the nine months ended December 31, 2015 and December 31, 2014, every percentage point depreciation / appreciation in the exchange rate between the Indian rupee and U.S. dollar, has affected the Company's incremental operating margins by approximately 0.50% and 0.53%, respectively.

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 10,857 crore and 9,713 crore as of December 31, 2015 and March 31, 2015, respectively and unbilled revenue amounting to 2,976 crore and 2,845 crore as of December 31, 2015 and March 31, 2015, respectively. Trade receivables and unbilled revenue are typically unsecured and are derived from revenue earned from customers primarily located in the United States. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Group grants credit terms in the normal course of business.

The following table gives details in respect of percentage of revenues generated from top customer and top five customers:

(In %)

	Three months ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Revenue from top customer	3.5	3.2	3.6	3.3
Revenue from top five customers	13.9	13.3	14.0	13.5

Financial assets that are neither past due nor impaired

Cash and cash equivalents, available-for-sale financial assets and investment in certificates of deposit are neither past due nor impaired. Cash and cash equivalents include deposits with banks and corporations with high credit-ratings assigned by international and domestic credit-rating agencies. Available-for-sale financial assets include primarily investment in liquid mutual fund units, quoted debt securities and unquoted equity and preference securities. Certificates of deposit represent funds deposited at a bank or other eligible financial institution for a specified time period. Investment in quoted debt securities represents the investments made in debt securities issued by government and quasi government organizations. Of the total trade receivables 7,873 crore and 7,336 crore as of December 31, 2015 and March 31, 2015, respectively, were neither past due nor impaired.

There is no other class of financial assets that is not past due but impaired except for trade receivables of 36 crore and 23 crore as of December 31, 2015 and March 31, 2015, respectively.

Financial assets that are past due but not impaired

The Group’s credit period generally ranges from 30-60 days. The age analysis of the trade receivables have been considered from the due date. The age wise break up of trade receivables, net of allowances of 260 crore and 343 crore as of December 31, 2015 and March 31, 2015, respectively, that are past due, is given below:

(In crore)

Period (in days)	As of
	December 31, 2015	March 31, 2015
Less than 30	1,856	1,641
31 – 60	607	345
61 – 90	229	89
More than 90	292	302
	2,984	2,377

The reversal of provision for doubtful trade receivable for the three months and nine months ended December 31, 2015 was 32 crore and 25 crore, respectively. The reversal of provision for doubtful trade receivable for the three months ended December 31, 2014 was 42 crore. The provision for doubtful trade receivable for the nine months ended December 31, 2014 was 127 crore.

(In crore)

	Three months ended December 31,		Nine months ended December 31,		Year ended March 31,
	2015	2014	2015	2014	2015
Balance at the beginning	380	381	366	214	214
Translation differences	(3)	–	5	2	(7)
Provisions for doubtful accounts receivable (refer note 2.10)	(32)	(42)	(25)	127	171
Trade receivables written off	(19)	(1)	(20)	(5)	(12)
Balance at the end	326	338	326	338	366

Liquidity risk

As of December 31, 2015, the Group had a working capital of 35,982 crore including cash and cash equivalents of 29,476 crore and current available-for-sale financial assets of 451 crore. As of March 31, 2015, the Group had a working capital of 35,813 crore including cash and cash equivalents of 30,367 crore and current available-for-sale financial assets of 874 crore.

As of December 31, 2015 and March 31, 2015, the outstanding employee benefit obligations were 1,268 crore and 1,069 crore, respectively, which have been substantially funded. Further, as of December 31, 2015 and March 31, 2015, the Group had no outstanding bank borrowings. Accordingly, no liquidity risk is perceived.

The table below provides details regarding the contractual maturities of significant financial liabilities as of December 31, 2015:

(In crore)

Particulars	Less than 1 year	1-2 years	2-4 years	4-7 years	Total
Trade payables	131	–	–	–	131
Client deposits	36	–	–	–	36
Other liabilities (excluding liability towards acquisition) (Refer Note 2.9)	5,073	6	11	–	5,090
Liability towards acquisitions on an undiscounted basis (including contingent consideration) -Refer Note 2.9	46	73	46	–	165

The table below provides details regarding the contractual maturities of significant financial liabilities as of March 31, 2015:

(In crore)

Particulars	Less than 1 year	1-2 years	2-4 years	4-7 years	Total
Trade payables	140	–	–	–	140
Client deposits	27	–	–	–	27
Other liabilities ( excluding liabilities towards acquisition ) (Refer Note 2.9)	4,891	–	–	–	4,891
Liability towards acquisitions on an undiscounted basis (Refer Note 2.9)	525	–	–	–	525

As of December 31, 2015 and March 31, 2015, the group had outstanding financial guarantees of 55 crore and 43 crore, respectively, towards leased premises. These financial guarantees can be invoked upon breach of any term of the lease agreement. To the group’s knowledge there has been no breach of any term of the lease agreement as of December 31, 2015 and March 31, 2015.

Offsetting of financial assets and financial liabilities:

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

The following table provides quantitative information about offsetting of derivative financial assets and derivative financial liabilities:

(In crore)

	As of		As of
	December 31, 2015		March 31, 2015
	Derivative financial asset	Derivative financial liability	Derivative financial asset	Derivative financial liability
Gross amount of recognized financial asset/liability	63	(17)	105	(7)
Amount set off	(9)	9	(4)	4
Net amount presented in balance sheet	54	(8)	101	(3)

2.8 Provisions

Provisions comprise the following:

(In crore)

	As of
	December 31, 2015	March 31, 2015
Provision for post sales client support and other provisions	482	478
	482	478

Provision for post sales client support and other provisions represents cost associated with providing post sales support services which are accrued at the time of recognition of revenues and are expected to be utilized over a period of 6 months to 1 year. The movement in the provision for post sales client support and other provisions is as follows:

(In crore)

	Three months ended December 31, 2015	Nine months ended December 31, 2015
Balance at the beginning	435	478
Provision recognized/ (reversed)	55	73
Provision utilized	(11)	(98)
Translation difference	3	29
Balance at the end	482	482

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

As of December 31, 2015 and March 31, 2015, claims against the company, not acknowledged as debts, net of amounts paid (excluding demands from Indian Income tax authorities- Refer note 2.16) amounted to 280 crore and 261 crore, respectively.

2.9 Other liabilities

Other liabilities comprise the following :

(In crore)

	As of
	December 31, 2015	March 31, 2015
Current
Accrued compensation to employees	2,106	2,106
Accrued expenses	2,650	1,984
Withholding taxes payable⁽¹⁾	1,367	904
Retainage	59	53
Liabilities of controlled trusts	172	177
Deferred income - government grant on land use rights⁽¹⁾ (Refer Note 2.6)	1	1
Accrued gratuity	1	7
Liability towards contingent consideration (Refer note 2.3)	45	–
Liability towards acquisition of business (Refer note 2.3)	–	487
Others	85	77
	6,486	5,796
Non-current
Liability towards contingent consideration (Refer note 2.3)	94	–
Accrued compensation to employees	16	–
Deferred income - government grant on land use rights⁽¹⁾ (Refer Note 2.6)	47	46
	157	46
	6,643	5,842
Financial liabilities included in other liabilities	5,228	4,891
Financial liability towards acquisitions on an undiscounted basis (including contingent consideration) - Refer note 2.3	165	525

⁽¹⁾

Non financial liabilities

Accrued expenses primarily relates to cost of technical sub-contractors, telecommunication charges, legal and professional charges, brand building expenses, overseas travel expenses and office maintenance. Others include unpaid dividend balances and capital creditors.

2.10 Expenses by nature

(In crore)

	Three months ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Employee benefit costs (Refer Note 2.11.4)	8,772	7,546	25,383	22,423
Deferred purchase price pertaining to acquisition (Refer Note 2.3)	25	63	149	179
Depreciation and amortization charges (Refer Note 2.5 and 2.6)	369	265	1,040	786
Travelling costs	530	465	1,667	1,387
Consultancy and professional charges	213	117	566	254
Cost of Software packages for own use	165	272	545	677
Third party items bought for service delivery to clients	113	37	400	127
Communication costs	109	153	331	376
Cost of technical sub-contractors	998	585	2,606	1,541
Power and fuel	53	57	165	172
Repairs and maintenance	274	218	743	525
Rates and taxes	18	43	80	100
Insurance charges	15	15	43	40
Commission to non-whole time directors	2	2	7	6
Branding and marketing expenses	76	44	213	116
Provision for post-sales client support	30	20	(14)	44
Provision for doubtful account receivables (Refer Note 2.7)	(32)	(42)	(25)	127
Contribution towards Corporate Social Responsibility	67	63	171	188
Operating lease payments (Refer Note 2.14)	93	77	262	236
Others	53	107	159	221
Total cost of sales, selling and marketing expenses and administrative expenses	11,943	10,107	34,491	29,525

2.10.1 Break-up of expenses

Cost of sales

(In crore)

	Three months ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Employee benefit costs	7,757	6,664	22,445	19,816
Deferred purchase price pertaining to acquisition (Refer Note 2.3)	25	63	149	179
Depreciation and amortization	369	265	1,040	786
Travelling costs	377	337	1,212	1,036
Cost of Software packages for own use	165	271	532	677
Third party items bought for service delivery to clients	113	37	400	127
Cost of technical sub-contractors	998	585	2,605	1,541
Operating lease payments	64	54	177	163
Communication costs	42	77	132	153
Repairs and maintenance	42	49	129	109
Provision for post-sales client support	30	20	(14)	44
Others	8	40	30	78
Total	9,990	8,462	28,837	24,709

Selling and marketing expenses

(In crore)

	Three months ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Employee benefit costs	656	622	1,951	1,803
Travelling costs	87	71	256	195
Branding and marketing	76	45	211	116
Operating lease payments	11	9	32	29
Communication costs	5	4	13	17
Consultancy and professional charges	13	6	40	15
Others	11	13	19	30
Total	859	770	2,522	2,205

Administrative expenses

(In crore)

	Three months ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Employee benefit costs	359	260	987	804
Consultancy and professional charges	194	111	508	239
Repairs and maintenance	231	169	611	416
Power and fuel	53	57	164	172
Communication costs	62	72	186	206
Travelling costs	66	57	199	156
Provision for doubtful accounts receivable	(32)	(42)	(25)	127
Rates and taxes	18	43	80	100
Insurance charges	15	15	43	40
Operating lease payments	18	14	53	44
Commission to non-whole time directors	2	2	7	6
Contribution towards Corporate Social Responsibility	67	63	171	188
Others	41	54	148	113
Total	1,094	875	3,132	2,611

2.11 Employee benefits

2.11.1 Gratuity

The following tables set out the funded status of the gratuity plans and the amounts recognized in the Group's financial statements as of December 31, 2015 and March 31, 2015:

(In crore)

	As of
	December 31, 2015	March 31, 2015
Change in benefit obligations
Benefit obligations at the beginning	816	707
Service cost	89	95
Interest expense	46	60
Addition through business combination	1	–
Remeasurements - Actuarial (gains)/ losses	17	70
Benefits paid	(57)	(116)
Benefit obligations at the end	912	816
Change in plan assets
Fair value of plan assets at the beginning	836	717
Interest income	50	67
Remeasurements- Return on plan assets excluding amounts included in interest income	6	6
Contributions	83	162
Benefits paid	(57)	(116)
Fair value of plan assets at the end	918	836
Funded status	6	20
Prepaid gratuity benefit	7	27
Accrued gratuity	(1)	(7)

Amount for the three months and nine months ended December 31, 2015 and December 31, 2014 recognized in net profit in the statement of comprehensive income:

(In crore)

	Three months ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Service cost	30	24	89	72
Net interest on the net defined benefit liability/asset	(2)	(3)	(4)	(5)
Net gratuity cost	28	21	85	67

Amount for the three months and nine months ended December 31, 2015 and December 31, 2014 recognized in statement of other comprehensive income:

(In crore)

	Three months ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Remeasurements of the net defined benefit liability/ (asset)
Actuarial (gains) / losses	(6)	14	17	48
(Return) / loss on plan assets excluding amounts included in the net interest on the net defined benefit liability/(asset)	(2)	1	(6)	(2)
	(8)	15	11	46

(In crore)

	Three months ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
(Gain)/loss from change in demographic assumptions	–	–	–	–
(Gain)/loss from change in financial assumptions	5	23	(5)	41
	5	23	(5)	41

Amounts recognized in statement of comprehensive income has been apportioned between cost of sales, selling and marketing expenses and administrative expenses on the basis of direct employee cost as follows:

(In crore)

	Three months ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Cost of sales	25	19	75	60
Selling and marketing expenses	2	1	7	5
Administrative expenses	1	1	3	2
	28	21	85	67

The weighted-average assumptions used to determine benefit obligations as of December 31, 2015 and March 31, 2015 are set out below:

	As of
	December 31, 2015	March 31, 2015
Discount rate	7.9%	7.8%
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 three months and nine months ended December 31, 2015 and December 31, 2014 are set out below:

	Three months ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Discount rate	7.8%	8.1%	7.8%	8.1%
Weighted average rate of increase in compensation levels	8.0%	8.0%	8.0%	8.0%
Weighted average duration of defined benefit obligation	6.5 years	6.4 years	6.5 years	6.4 years

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. In case of Infosys BPO and EdgeVerve, contributions are made to the Infosys BPO Employees' Gratuity Fund Trust and EdgeVerve Systems Limited Employees Gratuity Fund Trust, respectively. Trustees administer contributions made to the trust. As of December 31, 2015 and March 31, 2015, the plan assets have been primarily invested in insurer managed funds.

Actual return on assets for the three months and nine months ended December 31, 2015 and December 31, 2014 were 19 crore and 16 crore and 56 crore and 52 crore, respectively.

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.

As of December 31, 2015, every percentage point increase / decrease in discount rate will affect our gratuity benefit obligation by approximately 44 crore.

As of December 31, 2015, every percentage point increase / decrease in weighted average rate of increase in compensation levels will affect our gratuity benefit obligation by approximately 37 crore.

The Group expects to contribute 41 crore to the gratuity trusts during the remainder of fiscal 2016.

Maturity profile of defined benefit obligation:

(in crore)

Within 1 year	140
1-2 year	145
2-3 year	152
3-4 year	161
4-5 year	174
5-10 years	891

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.

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

2.11.2 Superannuation

The Company contributed 59 crore and 55 crore and 174 crore and 161 crore to the superannuation plan during the three months and nine months ended December 31, 2015 and December 31, 2014, respectively.

Superannuation contributions have been apportioned between cost of sales, selling and marketing expenses and administrative expenses on the basis of direct employee cost as follows:

(In crore)

	Three months ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Cost of sales	53	48	154	142
Selling and marketing expenses	4	5	13	13
Administrative expenses	2	2	7	6
	59	55	174	161

2.11.3 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 December 31, 2015 and March 31, 2015, respectively.

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

(In crore)

	As of
	December 31, 2015	March 31, 2015
Plan assets at period end, at fair value	3,411	2,912
Present value of benefit obligation at period end	3,411	2,912
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:

	As of
	December 31, 2015	March 31, 2015
Government of India (GOI) bond yield	7.90%	7.80%
Remaining term to maturity of portfolio	7 years	7 years
Expected guaranteed interest rate- First year:	8.75%	8.75%
- Thereafter:	8.60%	8.60%

The Group contributed 105 crore and 90 crore and 309 crore and 250 crore to the provident fund during the three months and nine months ended December 31, 2015 and December 31, 2014, respectively.

Provident fund contributions have been apportioned between cost of sales, selling and marketing expenses and administrative expenses on the basis of direct employee cost as follows:

(In crore)

	Three months ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Cost of sales	93	79	273	221
Selling and marketing expenses	8	7	24	20
Administrative expenses	4	4	12	9
	105	90	309	250

2.11.4 Employee benefit costs include:

(In crore)

	Three months ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Salaries and bonus*	8,579	7,380	24,814	21,944
Defined contribution plans	77	69	225	197
Defined benefit plans	116	97	344	282
	8,772	7,546	25,383	22,423

^*	Includes stock compensation expense of 2 crore and 1 crore, and 5crore and 1 crore for the three months and nine months ended December 31, 2015 and December 31, 2014, respectively.

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

The employee benefit cost is recognized in the following line items in the statement of comprehensive income:

(In crore)

	Three months ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Cost of sales	7,757	6,664	22,445	19,816
Selling and marketing expenses	656	622	1,951	1,803
Administrative expenses	359	260	987	804
	8,772	7,546	25,383	22,423

2.12 Equity

Share capital and share premium

The Company has allotted 114,84,72,332 fully paid-up shares of face value 5/- each during the quarter ended June 30, 2015, pursuant to bonus issue approved by the shareholders through postal ballot. The book closure date fixed by the Board was June 17, 2015. Bonus share of one equity share for every equity share held, and a stock dividend of one American Depositary Share (ADS) for every ADS held, respectively, has been allotted. Consequently, the ratio of equity shares underlying the ADSs held by an American Depositary Receipt holder remains unchanged. Options granted under the restricted stock unit plan have been adjusted for bonus shares. 11,325,284 and 56,67,200 shares were held by controlled trust as of December 31, 2015 and March 31, 2015, respectively .

Retained earnings

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

Other Reserves

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

Other components of equity

Other components of equity consist of currency translation, fair value changes on available-for-sale financial assets, remeasurement of net defined benefit liability/asset and and changes in fair value of derivatives designated as cash flow hedges.

The Company’s objective when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value. In order to maintain or achieve an optimal capital structure, the Company may adjust the amount of dividend payment, return capital to shareholders, issue new shares or buy back issued shares. As of December 31, 2015, 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 rights of equity shareholders are set out below.

2.12.1 Voting

Each holder of equity shares is entitled to one vote per share. The equity shares represented by American Depositary Shares (ADS) carry similar rights to voting and dividends as the other equity shares. Each ADS represents one underlying equity share.

2.12.2 Dividends

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.

The Board increased dividend pay-out ratio from up to 40% to up to 50% of post-tax consolidated profits effective fiscal 2015.

The amount of per share dividend recognized as distributions to equity shareholders for the nine months ended December 31, 2015 includes final divided of 29.50/- per equity share (not adjusted for June 17, 2015 bonus issue) and an interim dividend of 10/- per equity share. The amount of per share dividend recognized as distribution to equity shareholders for the nine months ended December 31, 2014 was 73.00/- per equity share (not adjusted for bonus issues).

The Board of Directors, in their meeting on October 12, 2015, declared an interim dividend of 10/- per equity share, which resulted in a net cash outflow of 2,753 crore, (excluding dividend paid on treasury shares) inclusive of corporate dividend tax.

2.12.3 Liquidation

In the event of liquidation of the Company, the holders of shares shall be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently, other than the amounts held by irrevocable controlled trusts. The amount distributed will be in proportion to the number of equity shares held by the shareholders. For irrevocable controlled trusts, the corpus would be settled in favour of the beneficiaries.

2.12.4 Share options

There are no voting, dividend or liquidation rights to the holders of options issued under the Company's share option plans.

2.13 Other income

Other income consists of the following:

(In crore)

	Three month ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Interest income on deposits and certificates of deposit	634	677	1,914	1,935
Exchange gains/ (losses) on forward and options contracts	62	51	(30)	211
Exchange gains/ (losses) on translation of other assets and liabilities	4	32	124	149
Income from available-for-sale financial assets	40	61	136	210
Others	62	19	209	41
	802	840	2,353	2,546

2.14 Operating leases

The Group has various operating leases, mainly for office buildings, that are renewable on a periodic basis. Rental expense for operating leases for the three months and nine months ended December 31, 2015 and December 31, 2014 was 93 crore and 77 crore and 262 crore and 236 crore, respectively.

The schedule of future minimum rental payments in respect of non-cancellable operating leases is set out below:

(In crore)

	As of
	December 31, 2015	March 31, 2015
Within one year of the balance sheet date	330	168
Due in a period between one year and five years	808	395
Due after five years	394	168

A majority of the Group’s operating lease arrangements extend up to a maximum of ten years from their respective dates of inception, and relates to rented overseas premises. Some of these lease agreements have a price escalation clause.

2.15 Employees' Stock Option Plans (ESOP)

2011 RSU Plan (the 2011 Plan): The Company has a 2011 RSU Plan which provides for the grant of restricted stock units (RSUs) to eligible employees of the Company. The Board of Directors recommended establishment of the 2011 Plan to the shareholders on August 30, 2011 and the shareholders approved the recommendation of the Board of Directors on October 17, 2011 through a postal ballot. The maximum aggregate number of shares that may be awarded under the Plan is 11,334,400 shares (held by the Infosys Limited Employees' Welfare Trust and adjusted for bonus shares issued) and the plan shall continue in effect for a term of 10 years from the date of initial grant under the plan. The RSUs will be issued at par value of the equity share. As on December 31, 2015, 1,11,02,071 shares are available for issue under the 2011 plan. The 2011 Plan is administered by the Management Development and Compensation Committee now known as the Nomination and Remuneration Committee (the Committee) and through the trust. The Committee is comprised of independent members of the Board of Directors.

During the year ended March 31, 2015, the company made a grant of 108,268 restricted stock units (adjusted for bonus issues) to Dr. Vishal Sikka, Chief Executive Office and Managing Director. The Board in its meeting held on June 22, 2015, on recommendation of Nomination and Remuneration Committee, granted 1,24,061 RSUs to Dr. Vishal Sikka. The RSUs will vest over a period of four years from the date of the grant in the proportions specified in the award agreement. The RSUs will vest subject to achievement of certain key performance indicators as set forth in the award agreement for each applicable year of the vesting tranche and continued employment through each vesting date.

The activity in the 2011 Plan during the three months and nine months ended December 31, 2015:

Particulars	Three months ended December 31, 2015		Nine months ended December 31, 2015
	Shares arising out of options	Weighted average exercise price	Shares arising out of options	Weighted average exercise price
2011 Plan:
Outstanding at the beginning*	223,213	5	108,268	5
Granted	–	–	124,061	5
Forfeited and expired	–	–	–	–
Exercised*	–	–	9,116	5
Outstanding at the end	223,213	5	223,213	5
Exercisable at the end	–	–	–	–

*Adjusted for bonus issues. (Refer note 2.12)

The weighted average share price of options exercised under the 2011 Plan on the date of exercise was 1,092/-.

The activity in the 2011 Plan during the three months and nine months ended December 31, 2014 is set out below:

Particulars	Three months ended December 31, 2014		Nine months ended December 31, 2014
	Shares arising out of options	Weighted average exercise price	Shares arising out of options	Weighted average exercise price
2011 Plan:
Outstanding at the beginning	108,268	5	–	–
Granted*	–	–	108,268	5
Forfeited and expired	–	–	–	–
Exercised	–	–	–	–
Outstanding at the end	108,268	5	108,268	5
Exercisable at the end	–	–	–	–

*Adjusted for bonus issues (Refer note 2.12)

The weighted average remaining contractual life of RSUs outstanding as of December 31, 2015 and March 31, 2015 under the 2011 Plan was 2.21 years and 2.39 years, respectively.

The expected term of an RSU is estimated based on the vesting term and contractual term of the RSU, as well as expected exercise behaviour of the employee who receives the RSU. Expected volatility during the expected term of the RSU 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.

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

Option granted during	Fiscal 2016	Fiscal 2015
Grant date	22-Jun-15	21-Aug-14
Weighted average share price ()*	1,024	3,549
Exercise price ()	5	5
Expected volatility (%)	28-36	30 - 37
Expected life of the option (years)	1 - 4	1 - 4
Expected dividends (%)	2.43	1.84
Risk-free interest rate (%)	7- 8	8 - 9
Weighted average fair value as on grant date ()*	948	3,355

* Data for Fiscal 2015 is not adjusted for bonus issues

During the three months and nine months ended December 31, 2015 and December 31, 2014, the company recorded an employee stock compensation expense of 2 crore and less than 1 crore, and 5 crore and 1 crore, respectively in the statement of comprehensive income.

2.16 Income taxes

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

(In crore)

	Three month ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Current taxes
Domestic taxes	1,108	989	3,132	2,909
Overseas taxes	211	262	760	806
	1,319	1,251	3,892	3,715
Deferred taxes
Domestic taxes	(14)	27	27	16
Overseas taxes	(9)	1	(62)	(34)
	(23)	28	(35)	(18)
Income tax expense	1,296	1,279	3,857	3,697

Income tax expense for the three months ended December 31, 2015 and December 31, 2014 includes reversals (net of provisions) of 127 crore and 66 crore, respectively, pertaining to earlier periods. Income tax expense for the nine months ended December 31, 2015 and December 31, 2014 includes reversal (net of provisions) of 240 crore and 111 crore, respectively, pertaining to earlier periods.

Entire deferred income tax for the three months and nine months ended December 31, 2015 and December 31, 2014 relates to origination and reversal of temporary differences.

A deferred tax liability of 1 crore relating to available-for-sale financial assets has been recognized in other comprehensive income for the three months ended December 31, 2015. A deferred tax liability of 3 crore relating to available-for-sale financial assets has been recognized in other comprehensive income for the nine months ended December 31, 2015. A deferred tax liability of 2 crore relating to available-for-sale financial assets has been recognized in other comprehensive income for the three months ended December 31, 2014. A deferred tax liability of 4 crore and a reversal of deferred tax asset of 12 crore has been recognized in other comprehensive income for the nine months ended December 31, 2014.

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

(In crore)

	Three months ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Profit before income taxes	4,761	4,529	13,751	12,929
Enacted tax rates in India	34.61%	33.99%	34.61%	33.99%
Computed expected tax expense	1,648	1,540	4,759	4,395
Tax effect due to non-taxable income for Indian tax purposes	(385)	(424)	(1,262)	(1,234)
Overseas taxes	178	234	510	618
Tax reversals, overseas and domestic	(127)	(66)	(240)	(111)
Effect of exempt non-operating income	(17)	(21)	(51)	(74)
Effect of unrecognized deferred tax assets	7	4	20	24
Effect of differential overseas tax rates	(6)	(16)	2	(29)
Effect of non-deductible expenses	36	37	176	146
Additional deduction on research and development expense	(27)	(13)	(53)	(42)
Others	(11)	4	(4)	4
Income tax expense	1,296	1,279	3,857	3,697

The applicable Indian statutory tax rates for fiscal 2016 and fiscal 2015 is 34.61% and 33.99%, respectively. The change in the tax rate is consequent to the changes made in Finance Act 2015.

Infosys is subject to a 15% Branch Profit Tax (BPT) in the U.S. to the extent its U.S. branch's net profit during the year is greater than the increase in the net assets of the U.S. branch during the year, computed in accordance with the Internal Revenue Code. As of March 31, 2015, Infosys' U.S. branch net assets amounted to approximately 4,068 crore. As of December 31, 2015, the Company has provided for branch profit tax of 334 crore for its U.S branch, as the Company estimates that these branch profits are expected to be distributed in the foreseeable future. The change in provision for branch profit tax includes 18 crore movement on account of exchange rate during the nine months ended December 31, 2015.

Deferred income tax liabilities have not been recognized on temporary differences amounting to 3,920 crore and 3,291 crore as of December 31, 2015 and March 31, 2015, respectively, associated with investments in subsidiaries and branches as it is probable that the temporary differences will not reverse in the foreseeable future.

The following table provides the details of income tax assets and income tax liabilities as of December 31, 2015 and March 31, 2015:

(In crore)

	As at
	December 31, 2015	March 31, 2015
Income tax assets	4,750	4,089
Current income tax liabilities	2,967	2,818
Net current income tax asset/ (liability) at the end	1,783	1,271

The gross movement in the current income tax asset/ (liability) for the three months and nine months ended December 31, 2015 and December 31, 2014 is as follows:

(In crore)

	Three months ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Net current income tax asset/ (liability) at the beginning	1,575	(1,149)	1,271	(665)
Translation differences	2	2	12	7
Income tax paid	1,528	1,338	4,390	3,305
Current income tax expense (Refer Note 2.16)	(1,319)	(1,251)	(3,892)	(3,715)
Income tax on other comprehensive income	(3)	3	2	11
Net current income tax asset/ (liability) at the end	1,783	(1,057)	1,783	(1,057)

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

(In crore)

	As of
	December 31, 2015	March 31, 2015
Deferred income tax assets
Property, plant and equipment	192	241
Computer software	49	51
Accrued compensation to employees	36	48
Trade receivables	104	111
Compensated absences	370	299
Available-for-sale financial asset	–	1
Post sales client support	71	74
Intangibles	2	–
Others	46	31
Total deferred income tax assets	870	856
Deferred income tax liabilities
Intangible asset	(266)	(159)
Temporary difference related to branch profits	(334)	(316)
Property, plant and equipment	(1)	–
Available-for-sale financial asset	(2)	(1)
Others	(16)	(3)
Total deferred income tax liabilities	(619)	(479)
Deferred income tax assets after set off	519	537
Deferred income tax liabilities after set off	(268)	(160)

Deferred tax assets and deferred tax liabilities have been offset wherever the Group 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.

The deferred income tax assets and deferred income tax liabilities recoverable within and after 12 months are as follows:

(In crore)

	As of
	December 31, 2015	March 31, 2015
Deferred income tax assets to be recovered after 12 months	382	354
Deferred income tax assets to be recovered within 12 months	488	502
Total deferred income tax assets	870	856
Deferred income tax liabilities to be settled after 12 months	(391)	(374)
Deferred income tax liabilities to be settled within 12 months	(228)	(105)
Total deferred income tax liabilities	(619)	(479)

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

The gross movement in the deferred income tax account for the three months and nine months ended December 31, 2015 and December 31, 2014, is as follows:

(In crore)

	Three months ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Net deferred income tax asset at the beginning	234	610	377	592
Addition through business combination (Refer note 2.3)	–	–	(128)	–
Translation differences	(5)	(8)	(30)	(22)
Credits / (charge) relating to temporary differences (Refer Note 2.16)	23	(28)	35	18
Temporary difference on available-for-sale financial asset	(1)	(2)	(3)	(16)
Net deferred income tax asset at the end	251	572	251	572

The credits relating to temporary differences during the nine months ended December 31, 2015 are primarily on account of compensated absences partially offset by reversal of credits pertaining to trade receivables and property plant and equipment.The credits relating to temporary differences during the nine months ended December 31, 2014 are primarily on account compensated absences, trade receivables, accrued compensation and post sales client support.

As of December 31, 2015 and March 31, 2015, claims against the group not acknowledged as debts from the Indian Income tax authorities (net of amount paid to statutory authorities of 3,450 crore and 3,568 crore) amounted to 7 crore and 3 crore, respectively.

Payment of 3,450 crore includes demands from the Indian Income tax authorities of 3,221 crore (3,337 crore), including interest of 951 crore (964 crore) upon completion of their tax review for fiscal 2007, fiscal 2008, fiscal 2009 and fiscal 2010.

2.17 Earnings per equity share

The following is a reconciliation of the equity shares used in the computation of basic and diluted earnings per equity share:

	Three months ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Basic earnings per equity share - weighted average number of equity shares outstanding⁽¹⁾⁽²⁾	228,56,19,380	228,56,10,264	228,56,14,573	228,56,10,264
Effect of dilutive common equivalent shares - share options outstanding	112,672	44,528	101,387	20,582
Diluted earnings per equity share - weighted average number of equity shares and common equivalent shares outstanding	228,57,32,052	228,56,54,792	228,57,15,960	228,56,30,846

⁽¹⁾

Excludes treasury shares

⁽²⁾

adjusted for bonus issues. Refer Note 2.12

For the three months and nine months ended December 31, 2015 and December 31, 2014, respectively, there were no outstanding options to purchase equity shares which had an anti-dilutive effect.

2.18 Related party transactions

List of subsidiaries:

Particulars	Country	Holding as of
		December 31, 2015	March 31, 2015
Infosys BPO Limited (Infosys BPO)	India	99.98%	99.98%
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 Public Services, Inc. USA (Infosys Public Services)	U.S.	100%	100%
Infosys Americas Inc., (Infosys Americas)	U.S.	100%	100%
Infosys (Czech Republic) Limited s.r.o.(formerly Infosys BPO s. r. o) ⁽¹⁾	Czech Republic	99.98%	99.98%
Infosys BPO (Poland) Sp Z.o.o ⁽¹⁾	Poland	99.98%	99.98%
Infosys BPO S.DE R.L. DE.C.V ⁽¹⁾⁽²⁾	Mexico	–	–
Infosys McCamish Systems LLC ⁽¹⁾	U.S.	99.98%	99.98%
Portland Group Pty Ltd⁽¹⁾	Australia	99.98%	99.98%
Portland Procurement Services Pty Ltd⁽⁵⁾	Australia	–	–
Infosys BPO Americas LLC.^(1)(16)	U.S.	–	–
Infosys Technologies (Australia) Pty. Limited ('Infosys Australia') ⁽²⁾	Australia	100%	100%
EdgeVerve Systems Limited (EdgeVerve) ⁽⁷⁾	India	100%	100%
Infosys Consulting Holding AG (Infosys Lodestone) (formerly Lodestone Holding AG)	Switzerland	100%	100%
Lodestone Management Consultants Inc. ⁽³⁾	U.S.	100%	100%
Lodestone Management Consultants Pty Limited ⁽³⁾	Australia	100%	100%
Infosys Consulting AG (formerly Lodestone Management Consultants AG) ⁽³⁾	Switzerland	100%	100%
Lodestone Augmentis AG ⁽²⁾⁽⁶⁾	Switzerland	100%	100%
Hafner Bauer & Ödman GmbH ⁽²⁾⁽³⁾	Switzerland	100%	100%
Lodestone Management Consultants (Belgium) S.A. ⁽⁴⁾	Belgium	99.90%	99.90%
Infosys Consulting GmbH (formerly Lodestone Management Consultants GmbH) ⁽³⁾	Germany	100%	100%
Infosys Consulting Pte Ltd. (formerly Lodestone Management Consultants Pte Ltd) ⁽³⁾	Singapore	100%	100%
Infosys Consulting SAS (formerly Lodestone Management Consultants SAS) ⁽³⁾	France	100%	100%
Infosys Consulting s.r.o.(formerly Lodestone Management Consultants s.r.o.) ⁽³⁾	Czech Republic	100%	100%
Lodestone Management Consultants GmbH ⁽³⁾	Austria	100%	100%
Lodestone Management Consultants Co., Ltd. ⁽³⁾	China	100%	100%
Infosys Consulting Ltd. (formerly Lodestone Management Consultants Ltd.) ⁽³⁾	UK	100%	100%
Lodestone Management Consultants B.V. ⁽³⁾	Netherlands	100%	100%
Lodestone Management Consultants Ltda. ⁽⁴⁾	Brazil	99.99%	99.99%
Lodestone Management Consultants Sp. z.o.o. ⁽³⁾	Poland	100%	100%
Lodestone Management Consultants Portugal, Unipessoal, Lda. ⁽³⁾	Portugal	100%	100%
S.C. Infosys Consulting S.R.L.(formerly S.C. Lodestone Management Consultants S.R.L.) ⁽³⁾	Romania	100%	100%
Infosys Consulting S.R.L. (formerly Lodestone Management Consultants S.R.L.) ⁽³⁾	Argentina	100%	100%
Infosys Canada Public Services Ltd.⁽⁸⁾	Canada	–	–
Infosys Nova Holdings LLC. (Infosys Nova) ⁽⁹⁾	U.S.	100%	100%
Panaya Inc. (Panaya)⁽¹⁰⁾	U.S.	100%	100%
Panaya Ltd.⁽¹¹⁾	Israel	100%	100%
Panaya Gmbh⁽¹¹⁾	Germany	100%	100%
Panaya Pty Ltd.⁽¹¹⁾	Australia	–	–
Panaya Japan Co. Ltd.⁽¹¹⁾	Japan	100%	100%
Skava Systems Pvt Ltd (Skava Systems)⁽¹²⁾	India	100%	–
Kallidus Inc.(Kallidus)⁽¹³⁾	US	100%	–
Noah Consulting LLC (Noah)⁽¹⁴⁾	US	100%	–
Noah Information Management Consulting Inc ( Noah Canada)⁽¹⁵⁾	Canada	100%	–

⁽¹⁾	Wholly owned subsidiary of Infosys BPO.
⁽²⁾	Under liquidation
⁽³⁾	Wholly owned subsidiaries of Infosys Consulting Holding AG (formerly Lodestone Holding AG)
⁽⁴⁾	Majority owned and controlled subsidiaries of Infosys Consulting Holding AG (formerly Lodestone Holding AG)
⁽⁵⁾	Wholly owned subsidiary of Portland Group Pty Ltd. Liquidated effective May 14, 2014
⁽⁶⁾	Wholly owned subsidiary of Infosys Consulting AG (formerly Lodestone Management Consultants AG)
⁽⁷⁾	Incorporated effective February 14, 2014. (Refer note 2.3)
⁽⁸⁾	Wholly owned subsidiary of Infosys Public Services, Inc. Incorporated effective December 19, 2014
⁽⁹⁾	Incorporated effective January 23, 2015
⁽¹⁰⁾	On March 5, 2015, Infosys acquired 100% of the voting interest in Panaya Inc. (Refer note 2.3)
⁽¹¹⁾	Wholly owned subsidiary of Panaya Inc.
⁽¹²⁾	On June 2, 2015, Infosys acquired 100% of the voting interest in Skava Systems (Refer note 2.3)
⁽¹³⁾	On June 2, 2015, Infosys acquired 100% of the voting interest in Kallidus Inc. (Refer note 2.3)
⁽¹⁴⁾	On November 16, 2015, Infosys acquired 100% of the membership interest in Noah (Refer note 2.3)
⁽¹⁵⁾	Wholly owned subsidiary of Noah (Refer note 2.3)
⁽¹⁶⁾	Incorporated effective November 20, 2015

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

List of Associates:

Name of Associates	Country	Holding as at
		December 31, 2015	March 31, 2015
DWA Nova LLC⁽¹⁾	U.S.	16%	20%

⁽¹⁾

Associate of Infosys Nova Holdings LLC. During the year ended March 31, 2015, the group acquired 20% of the equity interests in DWA Nova LLC for a cash consideration of 94 crore. The Company has made this investment to form a new company along with Dream Works Animation (DWA). The new company ,DWA Nova LLC, will develop and commercialize image generation technology in order to provide end-to-end digital manufacturing capabilities for companies involved in the design, manufacturing, marketing or distribution of physical consumer products.

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 BPO Limited Employees’ Superannuation Fund Trust	India	Post-employment benefit plan of Infosys BPO
Infosys BPO Limited Employees’ Gratuity Fund Trust	India	Post-employment benefit plan of Infosys BPO
EdgeVerve Systems Limited Employees' Gratuity Fund Trust	India	Post-employment benefit plan of EdgeVerve
EdgeVerve Systems Limited Employees' Superannuation Fund Trust	India	Post-employment benefit plan of EdgeVerve
Infosys Limited Employees’ Welfare Trust	India	Controlled trust
Infosys Employee Welfare Trust	India	Controlled trust
Infosys Science Foundation	India	Controlled trust

Refer Note 2.11 for information on transactions with post-employment benefit plans mentioned above.

Transactions with key management personnel

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

(In crore)

	Three months ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Salaries and other employee benefits to whole-time directors and executive officers⁽¹⁾⁽²⁾	32	7	60	21
Commission and other benefits to non-executive/independent directors	2	2	7	7
Total	34	9	67	28

⁽¹⁾	Includes stock compensation expense of 2 crore and 1 crore, and 5 crore and 1 crore for the three months and nine months ended December 31, 2015 and December 31, 2014, respectively to CEO in line with the compensation plan approved by the shareholders
⁽²⁾	Includes payables to CFO who stepped down w.e.f October 12, 2015

2.19 Segment reporting

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

2.19.1 Business segments

Three months ended December 31, 2015 and December 31, 2014

(In crore)

Particulars	FS	MFG	ECS	RCL	HILIFE	All other segments	Total
Revenues	4,377	3,506	2,912	2,577	2,156	374	15,902
	*3,694*	*3,137*	*2,609*	*2,233*	*1,856*	*267*	*13,796*
Identifiable operating expenses	2,106	1,754	1,376	1,249	1,035	212	7,732
	1,722	1,585	1,180	1,001	861	155	6,504
Allocated expenses	1,021	857	712	629	527	91	3,837
	858	771	640	548	455	66	3,338
Segment profit	1,250	895	824	699	594	71	4,333
	*1,114*	*781*	*789*	*684*	*540*	46	*3,954*
Unallocable expenses							374
							265
Operating profit							3,959
							*3,689*
Other income, net							802
							840
Share in Associate's profit / (loss)							–
							–
Profit before income taxes							4,761
							*4,529*
Income tax expense							1,296
							1,279
Net profit							3,465
							*3,250*
Depreciation and amortization							369
							265
Non-cash expenses other than depreciation and amortization							5
							–

Nine months ended December 31, 2015 and December 31, 2014

(In crore)

Particulars	FS	MFG	ECS	RCL	HILIFE	All other segments	Total
Revenues	12,500	10,460	8,353	7,502	6,186	890	45,891
	*10,765*	*9,040*	*7,618*	*6,649*	*5,118*	*718*	*39,908*
Identifiable operating expenses	5,991	5,327	3,868	3,596	2,999	561	22,342
	5,139	4,591	3,435	3,039	2,501	560	19,265
Allocated expenses	2,927	2,560	2,044	1,837	1,514	218	11,100
	2,461	2,176	1,833	1,599	1,232	173	9,474
Segment profit	3,582	2,573	2,441	2,069	1,673	111	12,449
	*3,165*	*2,273*	*2,350*	*2,011*	*1,385*	*(15)*	*11,169*
Unallocable expenses							1,049
							786
Operating profit							11,400
							*10,383*
Other income, net							2,353
							2,546
Share in Associate's profit / (loss)							(2)
							–
Profit before income taxes							13,751
							*12,929*
Income tax expense							3,857
							3,697
Net profit							9,894
							*9,232*
Depreciation and amortization							1,040
							786
Non-cash expenses other than depreciation and amortization							9
							–

2.19.2 Geographic segments

Three months ended December 31, 2015 and December 31, 2014

(In crore)

Particulars	North America	Europe	India	Rest of the World	Total
Revenues	9,939	3,696	446	1,821	15,902
	*8,494*	*3,309*	*347*	*1,646*	*13,796*
Identifiable operating expenses	4,937	1,770	180	845	7,732
	4,012	1,580	152	760	6,504
Allocated expenses	2,427	899	93	418	3,837
	2,083	809	73	373	3,338
Segment profit	2,575	1,027	173	558	4,333
	*2,399*	*920*	*122*	*513*	*3,954*
Unallocable expenses					374
					265
Operating profit					3,959
					*3,689*
Other income, net					802
					840
Share in Associate's profit / (loss)					–
					–
Profit before income taxes					4,761
					*4,529*
Income tax expense					1,296
					1,279
Net profit					3,465
					*3,250*
Depreciation and amortization					369
					265
Non-cash expenses other than depreciation and amortization					5
					–

2.19.2 Geographic segments

Nine months ended December 31, 2015 and December 31, 2014

(In crore)

Particulars	North America	Europe	India	Rest of the World	Total
Revenues	28,904	10,495	1,125	5,367	45,891
	24,368	9,725	952	4,863	*39,908*
Identifiable operating expenses	14,329	5,121	504	2,388	22,342
	11,704	4,739	558	2,264	19,265
Allocated expenses	7,070	2,558	235	1,237	11,100
	5,858	2,329	197	1,090	9,474
Segment profit	7,505	2,816	386	1,742	12,449
	*6,806*	*2,657*	*197*	*1,509*	*11,169*
Unallocable expenses					1,049
					786
Operating profit					11,400
					*10,383*
Other income, net					2,353
					2,546
Share in Associate's profit / (loss)					(2)
					–
Profit before income taxes					13,751
					*12,929*
Income tax expense					3,857
					3,697
Net profit					9,894
					*9,232*
Depreciation and amortization					1,040
					786
Non-cash expenses other than depreciation and amortization					9
					–

2.19.3 Significant clients

No client individually accounted for more than 10% of the revenues in the three months and nine months ended December 31, 2015 and December 31, 2014.

As per our report of even date attached

for B S R & Co. LLP

Chartered Accountants

Firm’s Registration No : 101248W/W-100022

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

Supreet Sachdev Partner	R. Seshasayee Chairman	Dr. Vishal Sikka Chief Executive Officer and Managing Director	Roopa Kudva Director

Membership No. 205385

Bangalore January 14, 2016	M. D. Ranganath Chief Financial Officer and Executive Vice President	A.G.S Manikantha Company Secretary

Auditor’s Report on Quarterly Consolidated Financial Results and Year to Date Results of Infosys Limited Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

The Board of Directors of Infosys Limited

We have audited the quarterly consolidated financial results of Infosys Limited (‘the Company’) and its subsidiaries (collectively referred to as ‘the Group’) for the quarter ended December 31, 2015 and the consolidated year to date financial results for the period from April 1, 2015 to December 31, 2015, attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. These quarterly consolidated financial results and year to date consolidated financial results have been prepared from consolidated interim financial statements, which are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial results based on our audit of such consolidated interim financial statements, which have been prepared in accordance with the recognition and measurement principles laid down in the International Accounting Standard (IAS) 34, Interim Financial Reporting, as issued by International Accounting Standards Board.

We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial results are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts disclosed as financial results. An audit also includes assessing the accounting principles used and significant estimates made by management. We believe that our audit provides a reasonable basis for our opinion.

In our opinion and to the best of our information and according to the explanations given to us, these quarterly and year to date consolidated financial results:

(i)	include the quarterly and year to date financial results of the following entities:
	(a)	Infosys Limited;
	(b)	Infosys BPO Limited;
	(c)	Infosys BPO s.r.o;
	(d)	Infosys Technologia Do Brasil LTDA;
	(e)	Infosys Technologies (Australia) Pty Limited;
	(f)	Infosys Technologies (China) Co. Limited;
	(g)	Infosys McCamish Systems, LLC;
	(h)	Infosys Public Services, Inc.;
	(i)	Infosys Technologies S. de R.L.de C.V;
	(j)	Infosys Technologies (Sweden) AB;
	(k)	Infosys BPO Poland Sp z.o.o.;
	(l)	Infosys Technologies (Shanghai) Company Limited;
	(m)	Infosys Americas Inc.;
	(n)	Portland Group Pty Ltd;
	(o)	Edgeverve Systems Limited;
	(p)	Infosys Consulting Holding AG (formerly Lodestone Holding AG);
	(q)	Lodestone Management Consultants Inc.;
	(r)	Lodestone Management Consultants Pty Limited;
	(s)	Infosys Consulting AG (formerly Lodestone Management Consultants AG);
	(t)	Lodestone Augmentis AG;
	(u)	Hafner Bauer & Ödman GmbH;
	(v)	Lodestone Management Consultants (Belgium) S.A.;
	(w)	Infosys Consulting GmbH (formerly Lodestone Management Consultants GmbH (Germany));
	(x)	Lodestone Management Consultants Ltd.;
	(y)	Lodestone Management Consultants B.V.;
	(z)	Lodestone Management Consultants Ltda.;
	(aa)	Lodestone Management Consultants Sp. z.o.o.;
	(ab)	Lodestone Management Consultants Portugal, Unipessoal, Lda.;
	(ac)	S.C. Infosys Consulting S.R.L. (formerly S.C. Lodestone Management Consultants S.R.L.);
	(ad)	Infosys Consulting Pte Ltd. (formerly Lodestone Management Consultants Pte Ltd.);
	(ae)	Infosys Consulting SAS (formerly Lodestone Management Consultants SAS);
	(af)	Infosys Consulting s.r.o.(formerly Lodestone Management Consultants s.r.o.);
	(ag)	Lodestone Management Consultants Co., Ltd. (China);
	(ah)	Lodestone Management Consultants GmbH (Austria);
	(ai)	Infosys Consulting S.R.L.( formerly Lodestone Management Consultants S. R. L.);
	(aj)	Infosys BPO, S de R.L. de C.V.;
	(ak)	Infosys Technologies Limited Employees’ Welfare Trust;
	(al)	Infosys Science Foundation;
	(am)	Infosys Canada Public Services Ltd.
	(an)	Panaya Inc.;
	(ao)	Panaya Ltd.;
	(ap)	Panaya Gmbh;
	(aq)	Panaya Pty Ltd.
	(ar)	Panaya Japan Co. Ltd.;
	(as)	Infosys Nova Holdings LLC.;
	(at)	DWA Nova LLC.;
	(au)	Kallidus Inc.;
	(av)	Skava Systems Private Limited;
	(aw)	Noah Consulting, LLC;
	(ax)	Noah Information Management Consulting, Inc.; and
	(ay)	Infosys Employee Welfare Trust

(ii)	have been presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 in this regard; and

(iii)	give a true and fair view of the consolidated net profit and other financial information for the quarter ended December 31, 2015 as well as the consolidated year to date results for the period from April 1, 2015 to December 31, 2015.

for B S R & Co. LLP
Chartered Accountants
Firm’s registration number: 101248W/ W-100022

Supreet Sachdev
Partner
Membership number: 205385

Bangalore
January 14, 2016

Exhibit 99.11

Indian GAAP Standalone

Independent Auditor’s Report

To the Board of Directors of Infosys Limited

Report on the Interim Financial Statements

We have audited the accompanying interim financial statements of Infosys Limited (“the Company”), which comprise the balance sheet as at 31 December 2015, the statement of profit and loss for the quarter and nine months then ended and the cash flow statement for the nine months then ended and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Interim Financial Statements

The Company’s Board of Directors is responsible for the preparation and presentation of these interim financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with Accounting Standards (AS) 25, Interim Financial Reporting as specified under section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the interim financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these interim financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the interim financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the interim financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation of the interim financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Management, as well as evaluating the overall presentation of the interim financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the interim financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the interim financial statements give a true and fair view in conformity with AS 25, Interim Financial Reporting:

(i)	in the case of the balance sheet, of the state of affairs of the Company as at 31 December 2015;

(ii)	in the case of the statement of profit and loss, of the profit for the quarter and nine months ended on that date; and

(iii)

in the case of the cash flow statement, of the cash flows for the nine months ended on that date.

for B S R & Co. LLP
Chartered Accountants
Firm’s Registration Number: 101248W/W-100022

Supreet Sachdev
Partner
Membership Number: 205385

Bangalore
14 January 2016

INFOSYS LIMITED

In crore

Balance Sheet as at	Note	December 31, 2015	March 31, 2015
EQUITY AND LIABILITIES
SHAREHOLDERS' FUNDS
Share capital	2.1	1,148	574
Reserves and surplus	2.2	56,548	47,494
		57,696	48,068
NON-CURRENT LIABILITIES
Deferred tax liabilities (net)	2.3	–	–
Other long-term liabilities	2.4	147	30
		147	30
CURRENT LIABILITIES
Trade payables	2.5	384	124
Other current liabilities	2.6	6,592	5,546
Short-term provisions	2.7	4,365	8,045
		11,341	13,715
		69,184	61,813
ASSETS
NON-CURRENT ASSETS
Fixed assets
Tangible assets	2.8	7,955	7,347
Capital work-in-progress		827	769
		8,782	8,116
Non-current investments	2.10	11,027	6,108
Deferred tax assets (net)	2.3	411	433
Long-term loans and advances	2.11	5,495	4,378
Other non-current assets	2.12	5	26
		25,720	19,061
CURRENT ASSETS
Current investments	2.10	368	749
Trade receivables	2.13	9,498	8,627
Cash and cash equivalents	2.14	26,238	27,722
Short-term loans and advances	2.15	7,360	5,654
		43,464	42,752

		69,184	61,813
SIGNIFICANT ACCOUNTING POLICIES	1

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

As per our report of even date attached

for B S R & Co. LLP

Chartered Accountants

Firm’s Registration No : 101248W/W-100022

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

Supreet Sachdev Partner	R. Seshasayee Chairman	Dr. Vishal Sikka Chief Executive Officer and Managing Director	Roopa Kudva Director

Membership No. 205385

Bangalore January 14, 2016	M. D. Ranganath Chief Financial Officer and Executive Vice President	A.G.S Manikantha Company Secretary

INFOSYS LIMITED

In crore, except equity share and per equity share data

Statement of Profit and Loss for the	Note	Quarter ended December 31,		Nine months ended December 31,
		2015	2014	2015	2014
Income from software services and products	2.16	13,562	12,192	39,825	35,374
Other income	2.17	737	823	2,230	2,446
Total revenue		14,299	13,015	42,055	37,820
Expenses
Employee benefit expenses	2.18	7,103	6,358	20,905	18,932
Deferred consideration pertaining to acquisition	2.10.1	18	55	110	168
Cost of technical sub-contractors	2.18	1,226	777	3,225	2,073
Travel expenses	2.18	360	329	1,217	1,035
Cost of software packages and others	2.18	200	290	826	756
Communication expenses	2.18	73	116	232	294
Consultancy and professional charges		153	114	408	248
Depreciation and amortization expense	2.8	275	229	799	672
Other expenses	2.18	515	495	1,388	1,426
Total expenses		9,923	8,763	29,110	25,604
PROFIT BEFORE EXCEPTIONAL ITEM AND TAX		4,376	4,252	12,945	12,216
Profit on transfer of business	2.10.2	–	–	3,036	412
PROFIT BEFORE TAX		4,376	4,252	15,981	12,628
Tax expense:
Current tax	2.19	1,207	1,172	3,590	3,491
Deferred tax	2.19	(14)	25	4	(3)
PROFIT FOR THE PERIOD		3,183	3,055	12,387	9,140
EARNINGS PER EQUITY SHARE
Equity shares of par value 5/- each
Before Exceptional item
Basic		13.86	13.37	40.71	38.19
Diluted		13.86	13.37	40.71	38.19
After Exceptional item
Basic		13.86	13.37	53.93	39.99
Diluted		13.86	13.37	53.93	39.99
Number of shares used in computing earnings per share	2.32
Basic		229,69,44,664	228,56,10,264	229,69,44,664	228,56,10,264
Diluted		229,69,44,664	228,56,51,100	229,69,44,664	228,56,29,016
SIGNIFICANT ACCOUNTING POLICIES	1

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

As per our report of even date attached

for B S R & Co. LLP

Chartered Accountants

Firm’s Registration No : 101248W/W-100022

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

Supreet Sachdev Partner	R. Seshasayee Chairman	Dr. Vishal Sikka Chief Executive Officer and Managing Director	Roopa Kudva Director

Membership No. 205385

Bangalore January 14, 2016	M. D. Ranganath Chief Financial Officer and Executive Vice President	A.G.S Manikantha Company Secretary

INFOSYS LIMITED

In crore

Cash Flow Statement for the	Note	Nine months ended December 31,
		2015	2014
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax		15,981	12,628
Adjustments to reconcile profit before tax to cash generated by operating activities
Depreciation and amortization expense		799	672
Provision for bad and doubtful debts		(22)	116
Deferred purchase price		110	168
Interest and dividend income		(1,912)	(2,033)
Profit on transfer of business (Refer to Note 2.10.2)		(3,036)	(412)
Stock compensation expense		6	1
Other adjustments		125	46
Effect of exchange differences on translation of assets and liabilities		29	38
Changes in assets and liabilities
Trade receivables		(849)	(776)
Loans and advances and other assets		(1,273)	(105)
Liabilities and provisions		1,278	1,445
		11,236	11,788
Income taxes paid		(4,046)	(3,116)
NET CASH GENERATED BY OPERATING ACTIVITIES		7,190	8,672
CASH FLOWS FROM INVESTING ACTIVITIES
Payment towards capital expenditure		(1,613)	(1,408)
Proceeds on sale of fixed assets		2	2
Investment in subsidiaries		(254)	(132)
Payment towards acquisition (refer note 2.10.5 & 2.10.6)		(794)	–
Payment arising out of business transfer		(286)	–
Investment in preferred stock		(55)	–
Investment in liquid mutual fund units		(18,698)	(16,304)
Disposal of liquid mutual fund units		19,079	16,886
Investment in tax free bond		(242)	–
Redemption of certificates of deposit		–	783
Interest and dividend received		1,037	1,981
NET CASH USED IN INVESTING ACTIVITIES		(1,824)	1,808
CASH FLOWS FROM FINANCING ACTIVITIES
Loan given to subsidiaries		(125)	(55)
Loan repaid by subsidiaries		126	–
Dividends paid (including corporate dividend tax)		(6,843)	(4,935)
NET CASH USED IN FINANCING ACTIVITIES		(6,842)	(4,990)
Effect of exchange differences on translation of foreign currency cash and cash equivalents		(8)	(24)
NET (DECREASE)/ INCREASE IN CASH AND CASH EQUIVALENTS		(1,484)	5,466
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	2.14	27,722	24,100
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD		26,238	29,566
SIGNIFICANT ACCOUNTING POLICIES	1

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

As per our report of even date attached

for B S R & Co. LLP

Chartered Accountants

Firm’s Registration No : 101248W/W-100022

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

Supreet Sachdev Partner	R. Seshasayee Chairman	Dr. Vishal Sikka Chief Executive Officer and Managing Director	Roopa Kudva Director

Membership No. 205385

Bangalore January 14, 2016	M. D. Ranganath Chief Financial Officer and Executive Vice President	A.G.S Manikantha Company Secretary

Significant accounting policies

Company overview

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

1 Significant accounting policies

1.1 Basis of preparation of financial statements

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 (‘Act’) read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

1.2 Use of estimates

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Examples of such estimates include computation of percentage of completion which requires the Company to estimate the efforts or costs expended to date as a proportion of the total efforts or costs to be expended, provisions for doubtful debts, future obligations under employee retirement benefit plans, income taxes, post-sales customer support and the useful lives of fixed tangible assets and intangible assets.

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.

1.3 Revenue recognition

Revenue is primarily derived from software development and related services and from the licensing of software products. Arrangements with customers for software development and related services are 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 and fixed-timeframe contracts, where there is no uncertainty as to measurement or collectability of consideration, is recognized based upon the percentage of completion method. When there is uncertainty as to measurement or ultimate collectability revenue recognition is postponed until such uncertainty is resolved. Cost and earnings in excess of billings are classified as unbilled revenue while billings in excess of cost and earnings is classified as unearned revenue. Deferred contract costs are amortized over the term of the contract. Provision for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the current estimates.

Annual Technical Services revenue and revenue from fixed-price maintenance contracts are recognized ratably over the period in which services are rendered. Revenue from the sale of user licenses for software applications is recognized on transfer of the title in the user license, except in case of multiple element contracts, which require significant implementation services, where revenue for the entire arrangement is recognized over the implementation period based upon the percentage-of-completion method. Revenue from client training, support and other services arising due to the sale of software products is recognized as the related services are performed.

The Company accounts for volume discounts and pricing incentives to customers as a reduction of revenue based on the ratable allocation of the discount / incentive amount to each of the underlying revenue transactions that result 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 using a cumulative catchup approach. 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.

Profit on sale of investments is recorded on transfer of title from the Company and is determined as the difference between the sale price and carrying value of the investment. Lease rentals are recognized ratably on a straight line basis over the lease term. Interest is recognized using the time-proportion method, based on rates implicit in the transaction. Dividend income is recognized when the Company's right to receive dividend is established.

1.4 Provisions and contingent liabilities

A provision is recognized if, as a result of a past event, the Company has a present legal 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 the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

1.5 Post-sales client support and warranties

The Company provides its clients with a fixed-period warranty for corrections of errors and support on all its fixed-price, fixed-timeframe contracts. Costs associated with such support services are accrued at the time when related revenues are recorded and included in statement of profit and loss. The Company estimates such costs based on historical experience and the estimates are reviewed annually for any material changes in assumptions.

1.6 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 lower of the expected cost of terminating the contract and the expected net cost of fulfilling the contract.

1.7 Tangible assets and capital work-in-progress

Tangible assets are stated at cost, less accumulated depreciation and impairment, if any. Direct costs are capitalized until such assets are ready for use. Capital work-in-progress comprises of the cost of fixed assets that are not yet ready for their intended use at the reporting date.

1.8 Intangible assets

Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment.

1.9 Depreciation and amortization

Depreciation on tangible assets is provided on the straight-line method over the useful lives of assets estimated by the Management. Depreciation for assets purchased / sold during a period is proportionately charged. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, commencing from the date the asset is available to the Company for its use. The Management estimates the useful lives for the other fixed assets as follows:

Buildings ⁽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

⁽¹⁾

For these class of assets, based on internal assessment and independent technical evaluation carried out by external valuers the management believes that the useful lives as given above best represent the period over which management expects to use these assets. Hence the useful lives for these assets is different from the useful lives as prescribed under Part C of Schedule II of the Companies Act 2013.

Depreciation and amortization methods, useful lives and residual values are reviewed periodically, including at each financial year end. (Refer note 2.8)

1.10 Impairment

The Management periodically assesses using, external and internal sources, whether there is an indication that an asset may be impaired. An impairment loss is recognized wherever the carrying value of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset's net selling price and value in use, which means the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. An impairment loss for an asset is reversed if, and only if, the reversal can be related objectively to an event occurring after the impairment loss was recognized. The carrying amount of an asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

1.11 Retirement benefits to employees

a 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 Life Insurance Corporation of India as permitted by law of India. The Company recognizes the net obligation of the gratuity plan in the Balance Sheet as an asset or liability, respectively in accordance with Accounting Standard (AS) 15, 'Employee Benefits'. The Company's overall expected long-term rate-of-return on assets has been determined based on consideration of available market information, current provisions of Indian law specifying the instruments in which investments can be made, and historical returns. The discount rate is based on the Government securities yield. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the statement of profit and loss in the period in which they arise.

b Superannuation

Certain employees are also participants in the superannuation plan ('the Plan') which is a defined contribution plan. The Company has no 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.

c Provident fund

Eligible employees 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.

d Compensated absences

The employees of the Company are entitled to compensated absences which are both accumulating and non-accumulating in nature. The expected cost of accumulating compensated absences is determined by actuarial valuation 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.

1.12 Share-based payments

The company accounts for equity settled stock options as per the accounting treatment prescribed by Securities and Exchange Board of India ( share based employee benefits) Regulations, 2014 and the Guidance Note on Employee Share-based Payments issued by the Institute of Chartered Accountants of India using the intrinsic value method.

1.13 Foreign currency transactions

Foreign-currency denominated monetary assets and liabilities are translated at exchange rates in effect at the Balance Sheet date. The gains or losses resulting from such translations are included 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 transaction.

Revenue, expense and cash-flow items denominated in foreign currencies are translated using the exchange rate in effect on 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.

1.14 Forward and options contracts in foreign currencies

The Company uses foreign exchange forward and options contracts to hedge its exposure to movements in foreign exchange rates. The use of these foreign exchange forward and options contracts reduce the risk or cost to the Company and the Company does not use those for trading or speculation purposes.

Effective April 1, 2008, the Company adopted AS 30, 'Financial Instruments: Recognition and Measurement', to the extent that the adoption did not conflict with existing accounting standards and other authoritative pronouncements of the Company Law and other regulatory requirements.

Forward and options contracts are fair valued at each reporting date. The resultant gain or loss from these transactions are recognized in the statement of profit and loss. The Company records the gain or loss on effective hedges, if any, in the foreign currency fluctuation reserve until the transactions are complete. On completion, the gain or loss is transferred to the statement of profit and loss of that period. To designate a forward or options contract as an effective hedge, the Management objectively evaluates and evidences with appropriate supporting documents at the inception of each contract and subsequently whether the contract is effective in achieving offsetting cash flows attributable to the hedged risk. In the absence of a designation as effective hedge, a gain or loss is recognized in the statement of profit and loss. Currently hedges undertaken by the Company are all ineffective in nature and the resultant gain or loss consequent to fair valuation is recognized in the statement of profit and loss at each reporting date.

1.15 Income taxes

Income taxes are accrued in the same period that the related revenue and expenses arise. A provision is made for income tax, based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable. Minimum alternate tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of tax credit against future income tax liability, is recognized as an asset in the Balance Sheet if there is convincing evidence that the Company will pay normal tax after the tax holiday period and the resultant asset can be measured reliably. The Company offsets, on a year on year basis, the current tax assets and liabilities, where it has a legally enforceable right and where it intends to settle such assets and liabilities on a net basis.

The differences that result between the profit considered for income taxes and the profit as per the financial statements are identified, and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount of timing difference. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on enacted or substantively enacted regulations. Deferred tax assets in situation where unabsorbed depreciation and carry forward business loss exists, are recognized only if there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax asset can be realized. Deferred tax assets, other than in situation of unabsorbed depreciation and carry forward business loss, are recognized only if there is reasonable certainty that they will be realized. Deferred tax assets are reviewed for the appropriateness of their respective carrying values at each reporting date. 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. The income tax provision for the interim period is made based on the best estimate of the annual average tax rate expected to be applicable for the full financial year. Tax benefits of deductions earned on exercise of employee share options in excess of compensation charged to statement of profit and loss are credited to the securities premium reserve.

1.16 Earnings per share

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

The number of 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.

1.17 Investments

Trade investments are the investments made to enhance the Company’s business interests. Investments are either classified as current or long-term based on Management’s intention. Current investments are carried at the lower of cost and fair value of each investment individually. Cost for overseas investments comprises the Indian Rupee value of the consideration paid for the investment translated at the exchange rate prevalent at the date of investment. Long term investments are carried at cost less provisions recorded to recognize any decline, other than temporary, in the carrying value of each investment.

1.18 Cash and cash equivalents

Cash and cash equivalents comprise cash and cash on deposit with banks and corporations. The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.

1.19 Cash flow statement

Cash flows are reported using the indirect method, whereby profit before tax 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.

1.20 Leases

Lease under which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Such assets acquired are capitalized at fair value of the asset 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 the statement of profit and loss over the lease term.

2 NOTES TO ACCOUNTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2015

Amounts in the financial statements are presented in crore, except for per equity share data and as otherwise stated. All exact amounts are stated with the suffix “/-”. One crore equals 10 million.

The previous period figures have been regrouped/reclassified, wherever necessary to conform to the current period presentation.

2.1 SHARE CAPITAL

in crore, except as otherwise stated

Particulars	As at
	December 31, 2015	March 31, 2015
Authorized
Equity shares, 5/- par value
240,00,00,000 (120,00,00,000) equity shares	1,200	600
Issued, Subscribed and Paid-Up
Equity shares, 5/- par value ⁽¹⁾	1,148	574
229,69,44,664 (114,84,72,332) equity shares fully paid-up
	1,148	574

Forfeited shares amounted to 1,500/- (1,500/-)

⁽¹⁾

Refer note 2.32 for details of basic and diluted shares

Effective January 1, 2015, Infosys Limited Employees' Welfare Trust ('The Trust') has been deconsolidated consequent to SEBI (Share Based Employee Benefits) Regulations, 2014 issued on October 28, 2014.

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 Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the period of five years immediately preceding December 31, 2015:

The Company has allotted 57,42,36,166 fully paid up equity shares of face value 5/- each during the quarter ended December 31, 2014 pursuant to a bonus issue approved by the shareholders through a postal ballot. The record date fixed by the Board of Directors was December 3, 2014.

For both the bonus issues, bonus share of one equity share for every equity share held, and a stock dividend of one American Depositary Share (ADS) for every ADS held, respectively, has been allotted. Consequently, the ratio of equity shares underlying the ADSs held by an American Depositary Receipt holder remains unchanged. Options granted under the restricted stock unit plan have been adjusted for bonus shares.

The Board has increased dividend pay-out ratio from up to 40% to up to 50% of post-tax consolidated profits effective fiscal 2015.

During the year ended March 31, 2015, the amount of dividend per share recognised as distribution to equity shareholder includes 29.50/- per share of final dividend (not adjusted for bonus shares on June 17, 2015) and 30/- per share of interim dividend (not adjusted for bonus shares of June 17, 2015 and December 3, 2014). The total dividend appropriation for the year ended March 31, 2015 amounted to 6,145 crore including corporate dividend tax of 1,034 crore.

The Board of Directors, in their meeting on October 12, 2015, declared an interim dividend of 10/- per equity share. The total dividend appropriation for the nine months ended December 31, 2015 amounted to 2,765 crore including corporate dividend tax of 468 crore.

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.

The details of shareholder holding more than 5% shares as at December 31, 2015 and March 31, 2015 are set out below :

Name of the shareholder	As at December 31, 2015		As at March 31, 2015
	No. of shares	% held	No. of shares	% held
Deutsche Bank Trust Company Americas (Depository of ADR's - legal ownership)	38,53,17,937	16.78	18,60,73,981	16.20
Life Insurance Corporation of India	12,85,06,087	5.59	5,52,74,758	4.81

The reconciliation of the number of shares outstanding and the amount of share capital as at December 31, 2015 and March 31, 2015 is set out below:

Particulars	As at December 31, 2015		As at March 31, 2015
	Number of shares	Amount ( crore)	Number of shares	Amount ( crore)
Number of shares at the beginning of the period	114,84,72,332	574	57,14,02,566	286
Add: Bonus shares issued (Including bonus on treasury shares)	114,84,72,332	574	57,42,36,166	287
Add: Treasury shares on account of deconsolidation of trust	–	–	28,33,600	1
Number of shares at the end of the period	229,69,44,664	1,148	114,84,72,332	574

Stock Option Plan:

2011 RSU Plan (the 2011 Plan): The Company has a 2011 RSU Plan which provides for the grant of restricted stock units (RSUs) to eligible employees of the Company. The Board of Directors recommended establishment of the 2011 Plan to the shareholders on August 30, 2011 and the shareholders approved the recommendation of the Board of Directors on October 17, 2011 through a postal ballot. The maximum aggregate number of shares that may be awarded under the Plan is 11,334,400 shares (currently held by the Infosys Limited Employees' Welfare Trust and adjusted for bonus shares issued) and the plan shall continue in effect for a term of 10 years from the date of initial grant under the plan. The RSUs will be issued at par value of the equity share. As on December 31, 2015, 1,11,02,071 shares are available for issue under the 2011 plan. The 2011 Plan is administered by the Management Development and Compensation Committee now known as the Nomination and Remuneration Committee (the Committee) and through the trust. The Committee is comprised of independent members of the Board of Directors.

During the year ended March 31, 2015, the company made a grant of 108,268 restricted stock units (adjusted for bonus issues) to Dr. Vishal Sikka, Chief Executive Office and Managing Director. The Board in its meeting held on June 22, 2015, on recommendation of Nomination and Remuneration Committee, granted 1,24,061 RSUs to Dr. Vishal Sikka. The RSUs will vest over a period of four years from the date of the grant in the proportions specified in the award agreement. The RSUs will vest subject to achievement of certain key performance indicators as set forth in the award agreement for each applicable year of the vesting tranche and continued employment through each vesting date.

In accordance with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014, the excess of the closing market price on the grant date of the RSUs over the exercise price is amortized on a straight-line basis over the vesting period.

The activity in the 2011 Plan during the quarter and nine months ended December 31, 2015 is set out below:

Particulars	Quarter ended December 31, 2015		Nine months ended December 31, 2015
	Shares arising out of options	Weighted average exercise price ()	Shares arising out of options	Weighted average exercise price ()
2011 Plan:
Outstanding at the beginning*	2,23,213	5	1,08,268	5
Granted	–	–	1,24,061	5
Forfeited and expired	–	–	–	–
Exercised*	–	–	9,116	5
Outstanding at the end	2,23,213	5	2,23,213	5
Exercisable at the end	–	–	–	–

*	adjusted for bonus issues

The weighted average share price of options exercised under the 2011 Plan on the date of exercise was 1,092/-

The activity in the 2011 Plan during quarter and nine months ended December 31, 2014 is set out below:

Particulars	Quarter ended December 31, 2014		Nine months ended December 31, 2014
	Shares arising out of options	Weighted average exercise price ()	Shares arising out of options	Weighted average exercise price ()
2011 Plan:
Outstanding at the beginning	1,08,268	5	–	–
Granted*	–	–	1,08,268	5
Forfeited and expired	–	–	–	–
Exercised	–	–	–	–
Outstanding at the end	1,08,268	5	1,08,268	5
Exercisable at the end	–	–	–	–

*	Adjusted for bonus issue

The weighted average remaining contractual life of RSUs outstanding as of December 31, 2015 and March 31, 2015 under the 2011 Plan was 2.21 years and 2.39 years.

The differential on stock compensation expense if the ‘fair value’ of the RSU's on the date of the grant were considered instead of the ‘intrinsic value’ is less than 1 crore for each of the quarter and nine months ended December 31, 2015 and December 31, 2014. Consequently, there is no impact on earnings per share.

The fair value for the above impact analysis is estimated on the date of grant using the Black-Scholes-Merton model with the following assumptions:

Options granted during	Fiscal 2016	Fiscal 2015
Grant date	22-Jun-15	21-Aug-14
Weighted average share price ()*	1,024	3,549
Exercise price ()*	5	5
Expected volatility (%)	28-36	30 - 37
Expected life of the option (years)	1 - 4	1 - 4
Expected dividends (%)	2.43	1.84
Risk-free interest rate (%)	7- 8	8 - 9
Weighted average fair value as on grant date ()*	948	3,355

*	Data for Fiscal 2015 is not adjusted for bonus issues

The expected term of an RSU is estimated based on the vesting term and contractual term of the RSU, as well as expected exercise behaviour of the employee who receives the RSU. Expected volatility during the expected term of the RSU 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.

During the quarter and nine months ended December 31, 2015, the Company recorded an employee compensation expense of 2 crore and 6 crore respectively in the statement of profit and loss (less than 1 crore and 1 crore during the quarter and nine months ended December 31, 2014)

2.2 RESERVES AND SURPLUS

in crore

Particulars	As at
	December 31, 2015	March 31, 2015
Capital reserve - Opening balance	54	54
Add: Transferred from Surplus	–	–
	54	54
Securities premium reserve - Opening balance	2,778	3,069
Less: Deconsolidation of trust (Refer note 2.1)	–	4
Less: Amount utilized for issuance of bonus shares (Refer note 2.1)	574	287
Add: Exercise of stock options	1	–
	2,205	2,778
Stock Options Outstanding- Opening balance (Refer note 2.1)	2	–
Additions during the period	6	2
Less: Exercise of stock options	1	–
	7	2
General reserve - Opening balance	9,508	8,291
Add: Transferred from Surplus	–	1,217
	9,508	9,508
Special Economic Zone Re-investment Reserve- Opening balance ⁽¹⁾	–	–
Add: Transferred from Surplus	397	–
Less: Transferred to Surplus on utilization	397	–
Special Economic Zone Re-investment Reserve- Closing balance	–	–
Surplus - Opening balance	35,152	30,392
Add: Net profit after tax transferred from Statement of Profit and Loss	12,387	12,164
Less: Deconsolidation of trust, net (Refer note 2.1)	–	42
Add: Transfer from Special Economic Zone Re-investment Reserve on utilization	397	–
Amount available for appropriation	47,936	42,514
Appropriations:
Interim dividend	2,297	1,723
Final dividend	–	3,388
Total dividend	2,297	5,111
Dividend tax	468	1,034
Amount transferred to general reserve	–	1,217
Amount transferred to Special Economic Zone Re-investment Reserve	397	–
Surplus- Closing Balance	44,774	35,152
	56,548	47,494

⁽¹⁾

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

2.3 DEFERRED TAXES

in crore

Particulars	As at
	December 31, 2015	March 31, 2015
Deferred tax assets
Fixed assets	160	210
Trade receivables	95	100
Compensated absences	341	280
Computer software	49	51
Accrued compensation to employees	25	29
Post sales client support	69	72
Others	21	7
	760	749
Deferred tax liabilities
Branch profit tax	334	316
Others	15	–
	349	316
Deferred tax assets after set-off	411	433
Deferred tax liabilities after set-off	–	–

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.

As at December 31, 2015 and March 31, 2015, the Company has provided for branch profit tax of 334 crore and 316 crore, respectively, for its overseas branches, as the Company estimates that these branch profits would be distributed in the foreseeable future. The change in provision for branch profit tax includes 18 crore movement on account of exchange rate during the nine months ended December 31, 2015.

2.4 OTHER LONG-TERM LIABILITIES

in crore

Particulars	As at
	December 31, 2015	March 31, 2015
Others
Gratuity obligation - unamortized amount relating to plan amendment (refer note 2.29)	1	3
Payable for acquisition of business (refer note 2.10.5 & 2.10.6)	119	–
Rental deposits received from subsidiary (refer note 2.26)	27	27
	147	30

2.5 TRADE PAYABLES

in crore

Particulars	As at
	December 31, 2015	March 31, 2015
Trade payables*	384	124
	384	124
*Includes dues to subsidiaries (refer note 2.26)	366	102

2.6 OTHER CURRENT LIABILITIES

in crore

Particulars	As at
	December 31, 2015	March 31, 2015
Accrued salaries and benefits
Salaries and benefits	1,091	1,144
Bonus and incentives	571	575
Unearned revenue	1,117	831
Unpaid dividends	3	3
Other liabilities
Provision for expenses⁽¹⁾	2,110	1,582
Retention monies	59	50
Withholding and other taxes payable	1,144	733
Gratuity obligation - unamortized amount relating to plan amendment, current (refer note 2.29)	4	4
Other payables⁽²⁾	428	79
Advances received from clients	12	20
Mark-to-market forward and options contracts	7	–
Payable for acquisition of business (refer note 2.10.5 and 2.10.6)	46	525
	6,592	5,546
⁽¹⁾ Includes dues to subsidiaries (refer note 2.26)	–	36
⁽²⁾ Includes dues to subsidiaries (refer note 2.26)	104	33

2.7 SHORT-TERM PROVISIONS

in crore

Particulars	As at
	December 31, 2015	March 31, 2015
Provision for employee benefits
Compensated absences	1,069	907
Other Provisions
Proposed dividend	–	3,388
Tax on dividend	–	690
Income taxes (net of advance tax and Tax Deducted at Source)	2,885	2,678
Post-sales client support and warranties and others	411	382
	4,365	8,045

Provision for post-sales client support and warranties and other provisions

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

in crore

Particulars	Quarter ended		Nine months ended		Year ended
	December 31, 2015	December 31, 2014	December 31, 2015	December 31, 2014	March 31, 2015
Balance at the beginning	351	345	382	325	325
Provision recognized/(reversed)	59	38	57	90	134
Provision utilised	(1)	(13)	(48)	(46)	(78)
Exchange difference during the period	2	4	20	5	1
Balance at the end	411	374	411	374	382

Provision for post-sales client support and other provisions are expected to be utilized over a period of 6 months to 1 year.

2.8 FIXED ASSETS

Following are the changes in the carrying value of fixed assets for the nine months ended December 31, 2015:

in crore, except as otherwise stated

Tangible assets

Intangible assets

Total

Particulars

Land-Freehold

Land-Leasehold

Buildings ⁽¹⁾⁽²⁾

Plant and machinery ⁽²⁾

Office equipment ⁽²⁾

Computer equipment ⁽²⁾⁽³⁾

Furniture and fixtures ⁽²⁾

Vehicles

Total

Intellectual property rights

Total

Original cost

As at April 1, 2015

929

621

5,733

1,361

525

2,812

832

12,827

12,869

Additions/
Adjustments during the period

357

253

105

658

133

1,555

–

1,555

Deductions/ Retirement during the period

–

(1)

–

(244)

(3)

–

(248)

(13)

(13)

(261)

As at December 31, 2015

958

638

6,090

1,613

630

3,226

962

14,134

14,163

Depreciation and amortization

As at April 1, 2015

–

1,937

838

280

1,852

549

5,480

5,522

For the period

–

158

149

332

799

–

799

Deductions/
Adjustments during the period

–

(1)

–

(96)

(3)

–

(100)

(13)

(13)

(113)

As at December 31, 2015

–

2,095

986

345

2,088

635

6,179

6,208

Net book value

As at December 31, 2015

958

618

3,995

627

285

1,138

327

7,955

–

7,955

Notes:	⁽¹⁾	Buildings include 250/- being the value of 5 shares of 50/- each in Mittal Towers Premises Co-operative Society Limited.
	⁽²⁾	Includes certain assets provided on cancellable operating lease to subsidiaries
	⁽³⁾	During the nine months ended December 31, 2015, computer equipment having net book value of 20 crore was transferred to EdgeVerve (Refer note 2.10.2)

Following are the changes in the carrying value of fixed assets for the nine months ended December 31, 2014:

	Tangible assets									Intangible assets		Total
Particulars	Land-Freehold	Land-Leasehold	Buildings ⁽¹⁾⁽²⁾	Plant and machinery ⁽²⁾	Office equipment ⁽²⁾	Computer equipment ⁽²⁾⁽³⁾	Furniture and fixtures ⁽²⁾	Vehicles	Total	Intellectual property rights	Total
Original cost
As at April 1, 2014	781	349	4,878	1,090	393	2,178	679	13	10,361	59	59	10,420
Additions/ Adjustments during the period	141	268	531	183	99	490	92	2	1,806	–	–	1,806
Deductions/ Retirement during the period	–	–	–	(3)	(1)	(38)	(7)	(2)	(51)	(17)	(17)	(68)
As at December 31, 2014	922	617	5,409	1,270	491	2,630	764	13	12,116	42	42	12,158
Depreciation and amortization
As at April 1, 2014	–	–	1,754	671	215	1,554	441	7	4,642	46	46	4,688
For the period	–	15	135	127	48	247	85	2	659	13	13	672
Deductions/ Adjustments during the period	–	–	–	(2)	(1)	(30)	(5)	(1)	(39)	(17)	(17)	(56)
As at December 31, 2014	–	15	1,889	796	262	1,771	521	8	5,262	42	42	5,304
Net book value
As at December 31, 2014	922	602	3,520	474	229	859	243	5	6,854	–	–	6,854

Notes:	⁽¹⁾	Buildings include 250/- being the value of 5 shares of 50/- each in Mittal Towers Premises Co-operative Society Limited.
	⁽²⁾	Includes certain assets provided on cancellable operating lease to Infosys BPO, subsidiary
	⁽³⁾	During the nine months ended December 31, 2014, computer equipment having book value of 8 crore was transferred to EdgeVerve (Refer 2.10.2)

Following are the changes in the carrying value of fixed assets for the year ended March 31, 2015:

	Tangible assets									Intangible assets		Total
Particulars	Land-Freehold	Land-Leasehold	Buildings ⁽¹⁾⁽²⁾	Plant and machinery ⁽²⁾	Office equipment ⁽²⁾	Computer equipment ⁽²⁾⁽³⁾	Furniture and fixtures ⁽²⁾	Vehicles	Total	Intellectual property rights	Total
Original cost
As at April 1, 2014	781	349	4,878	1,090	393	2,178	679	13	10,361	59	59	10,420
Additions/ Adjustments during the year	148	272	855	274	134	694	160	3	2,540	–	–	2,540
Deductions/ Retirement during the year	–	–	–	(3)	(2)	(60)	(7)	(2)	(74)	(17)	(17)	(91)
As at March 31, 2015	929	621	5,733	1,361	525	2,812	832	14	12,827	42	42	12,869
Depreciation and amortization
As at April 1, 2014	–	–	1,754	671	215	1,554	441	7	4,642	46	46	4,688
For the period	–	16	183	169	67	350	113	2	900	13	13	913
Deductions/ Adjustments during the year	–	–	–	(2)	(2)	(52)	(5)	(1)	(62)	(17)	(17)	(79)
As at March 31, 2015	–	16	1,937	838	280	1,852	549	8	5,480	42	42	5,522
Net book value
As at March 31, 2015	929	605	3,796	523	245	960	283	6	7,347	–	–	7,347

Notes:	⁽¹⁾	Buildings include 250/- being the value of 5 shares of 50/- each in Mittal Towers Premises Co-operative Society Limited.
	⁽²⁾	Includes certain assets provided on cancellable operating lease to subsidiaries
	⁽³⁾	During the year ended March 31, 2015, computer equipment having net book value of 8 crore was transferred to EdgeVerve (Refer note 2.10.2)

During the quarter ended June 30, 2014, the management based on internal and external technical evaluation had changed the useful life of certain assets primarily consisting of buildings and computers with effect from April 1, 2014. Accordingly, the useful lives of certain assets required a change from previous estimate.

The Company has entered into lease-cum-sale agreements to acquire certain properties. In accordance with the terms of some of these agreements, the Company has the option to purchase or renew the properties on expiry of the lease period.

Tangible assets provided on operating lease to subsidiaries as at December 31, 2015 and March 31, 2015 are as follows:

in crore

Particulars	Cost	Accumulated depreciation	Net book value
Buildings	82	41	41
	98	35	63
Plant and equipment	197	57	140
	12	3	9
Furniture and fixtures	33	6	27
	11	2	9
Computer Equipment	19	8	11
	–	–	–
Office equipment	25	9	16
	6	1	5

The aggregate depreciation charged on the above assets during the quarter and nine months ended December 31, 2015 amounted to 13 crore and 18 crore ( 3 crore and 4 crore for the quarter and nine months ended December 31, 2014).

The rental income from subsidiaries for the quarter and nine months ended December 31, 2015 amounted to 15 crore and 35 crore respectively (11 crore and 29 crore for the quarter and nine months ended December 31, 2014 respectively).

2.9 LEASES

Obligations on long-term, non-cancellable operating leases

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

in crore

Particulars	Quarter ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Lease rentals recognized during the period	44	41	128	123

in crore

	As at
Lease obligations payable	December 31, 2015	March 31, 2015
Within one year of the balance sheet date	142	101
Due in a period between one year and five years	385	284
Due after five years	302	158

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

2.10 INVESTMENTS

in crore, except as otherwise stated

Particulars	As at
	December 31, 2015	March 31, 2015
Non-current investments
Long term investments - at cost
Trade (unquoted)
Investments in equity instruments of subsidiaries
Infosys BPO Limited
3,38,22,319 (3,38,22,319) equity shares of 10/- each, fully paid	659	659
Infosys Technologies (China) Co. Limited	169	169
Infosys Technologies (Australia) Pty Limited
1,01,08,869 (1,01,08,869) equity shares of AUD 0.11 par value, fully paid	66	66
Infosys Technologies, S. de R.L. de C.V., Mexico
17,49,99,990 (17,49,99,990) equity shares of MXN 1 par value, fully paid up	65	65
Infosys Technologies (Sweden) AB
1,000 (1,000) equity shares of SEK 100 par value, fully paid	–	–
Infosys Technologia do Brasil Ltda
5,91,24,348 (5,91,24,348) shares of BRL 1.00 par value, fully paid	149	149
Infosys Technologies (Shanghai) Company Limited	646	388
Infosys Public Services, Inc.
3,50,00,000 (3,50,00,000) shares of USD 0.50 par value, fully paid	99	99
Infosys Consulting Holding AG (formerly Lodestone Holding AG) (refer note 2.10.1)
23,350 (23,350) - Class A shares of CHF 1,000 each and 29,400	1,323	1,323
(29,400) - Class B Shares of CHF 100 each, fully paid up
Infosys Americas Inc.
10,000 (10,000) shares of USD 10 per share, fully paid up	1	1
EdgeVerve Systems Limited (refer note 2.10.2)
131,18,40,000 (46,18,39,994) equity shares of 10/- each, fully paid	1,312	462
Panaya Inc. (refer note 2.10.3)
2 (2) shares of USD 0.01 per share, fully paid up	1,398	1,398
Infosys Nova Holdings LLC (refer note 2.10.4)	94	94
Kallidus Inc. (refer note 2.10.5)
10,21,35,416 (Nil) shares	647	–
Skava Systems Private Limited (refer note 2.10.5)
25,000 (Nil) shares of 10 per share, fully paid up	59	–
Noah Consulting LLC ( refer note 2.10.6)	249	–
	6,936	4,873
Investment in debentures
EdgeVerve Systems Limited (refer note 2.10.2)	2,549	–
25,49,00,000 (Nil) Unsecured redeemable, non-convertible debentures of 100 each fully paid up
	9,485	4,873
Others (unquoted) (refer note 2.10.7)
Investments in preferred stock	65	–
Investments in equity instruments	7	7
Less: Provision for investments	6	6
	66	1
Others (quoted)
Investments in tax free bonds (refer note 2.10.8)	1,476	1,234
	1,476	1,234
Total non-current investments	11,027	6,108
Current investments – at the lower of cost and fair value
Other current investments
Unquoted
Liquid mutual fund units (refer note 2.10.9)	368	749
	368	749
Quoted
Investments in government bonds (refer note 2.10.8)	–	–
	–	–
Total current investments	368	749
Total investments	11,395	6,857
Aggregate amount of quoted investments excluding interest accrued but not due of 38 crore as at December 31, 2015 (46 crore as at March 31, 2015) included under Note 2.15 Short term Loans and advances.	1,476	1,234
Market value of quoted investments	1,530	1,269
Aggregate amount of unquoted investments	9,925	5,629
Aggregate amount of provision made for non-current unquoted investments	6	6

Profit on sale of Investment is less than 1 crore for quarter and nine months ended December 31, 2015 ( Less than 1 crore each for quarter and nine months ended December 31, 2014).

2.10.1 Investment in Infosys Consulting Holding AG (Formerly Lodestone Holding AG)

On October 22, 2012, Infosys acquired 100% of the outstanding share capital of Infosys Consulting Holding AG, a global management consultancy firm headquartered in Zurich, Switzerland. The acquisition was executed through a share purchase agreement for an upfront cash consideration of 1,187 crore and a deferred consideration of upto 608 crore.

The deferred consideration is payable to the selling shareholders of Lodestone on the third anniversary of the acquisition date and is contingent upon their continued employment for a period of three years. The investment in Lodestone has been recorded at the acquisition cost and the deferred consideration is being recognised on a proportionate basis over a period of three years from the date of acquisition. An amount of 18 crore and 55 crore, representing the proportionate charge of the deferred consideration has been recognised as an expense during the quarter ended December 31, 2015 and December 31, 2014 respectively and 110 and 168 crore during nine months ended December 31, 2015 and December 31, 2014 respectively. During the quarter ended December 31, 2015, the liability towards deferred consideration was settled

2.10.2 Investment in EdgeVerve Systems Limited

On February 14, 2014, a wholly owned subsidiary EdgeVerve Systems Limited (EdgeVerve) was incorporated. EdgeVerve was created to focus on developing and selling products and platforms. The Company has undertaken an enterprise valuation by an independent valuer and accordingly the business has been transferred for a consideration of 421 crore with effect from July 1, 2014. Net assets amounting to 9 crore have also been transferred and accordingly a gain of 412 crore has been recorded as an exceptional item. The consideration has been settled through the issue of fully paid up equity shares in EdgeVerve.

On April 24, 2015, the Board of Directors of Infosys has authorized the Company to execute a Business Transfer Agreement and related documents with EdgeVerve, to transfer the business of Finacle and Edge Services. Post the requisite approval from shareholders through postal ballot on June 4, 2015, a Business Transfer Agreement and other related documents were executed with EdgeVerve to transfer the business with effect from August 1, 2015. The Company has undertaken an enterprise valuation by an independent valuer and accordingly the business were transferred for a consideration of 3,222 crore and 177 crore for Finacle and Edge Services, respectively. Net assets amounting to 363 crore, (including working capital amounting to 337 crore) have been transferred and accordingly a gain of 3,036 crore has been recorded as an exceptional item. The consideration was settled through issue of 85,00,00,000 equity shares amounting to 850 crore and 25,49,00,000 non-convertible redeemable debentures amounting to 2,549 crore in EdgeVerve, post the requisite approval from shareholders on December 11, 2015.

2.10.3 Investment in Panaya Inc.

2.10.4 Investment in DWA Nova LLC

During the year ended March 31, 2015, Infosys Nova Holdings LLC acquired 20% of the equity interests in DWA Nova LLC for a cash consideration of 94 crore. The Company has made this investment to form a new company along with Dream Works Animation (DWA). The new company, DWA Nova LLC, will develop and commercialize image generation technology in order to provide end-to-end digital manufacturing capabilities for companies involved in the design, manufacturing, marketing or distribution of physical consumer products.

As of December 31, 2015, Infosys Nova Holdings holds 16% of the equity interest in DWA Nova LLC.

2.10.5 Investment in Kallidus Inc. & Skava Systems Pvt. Ltd.

On June 2, 2015, Infosys acquired 100% of the voting interests in Kallidus Inc., (d.b.a Skava) (Kallidus), a leading provider of digital experience solutions, including mobile commerce and in-store shopping experiences to large retail clients and 100% of the voting interests of Skava Systems Private Limited, India, an affiliate of Kallidus. The business acquisition was conducted by entering into a share purchase agreement for cash consideration of 578 crore and a contingent consideration of upto $20 million (approximately 128 crore on acquisition date), the payment of which is dependent upon the achievement of certain financial targets by Kallidus over a period of 3 years ending on December 31, 2017.

2.10.6 Investment in Noah Consulting LLC

On November 16, 2015, Infosys has acquired 100% membership interest in Noah Consulting , LLC , a leading provider of advanced information management consulting services for the oil and gas industry. The business acquisition was conducted by entering into a share purchase agreement for cash consideration of $33 million ( approximately 216 crore), contingent consideration up to $5 million (approximately 33 crore on acquisition date) and retention bonus up to $32 million (approximately 212 crore on acquisition date).

2.10.7 Details of Investments

The details of non-current other investments in preferred stock and equity instruments as at December 31, 2015 and March 31, 2015 are as follows:

in crore

Particulars	As at
	December 31, 2015	March 31, 2015
Preferred Stock
Airviz Inc.
2,82,279 (Nil) Series A Preferred Stock, fully paid up, par value USD 0.001 each	13	–
ANSR Consulting
52,631 (Nil) Series A Preferred Stock, fully paid up, par value USD 0.001 each	9	–
Whoop Inc
16,48,352 (Nil) Series B Preferred Stock, fully paid up, par value USD 0.0001 each	20	–
CloudEndure Ltd.
12,79,645 (Nil) Preferred Series B Shares, fully paid up, par value ILS 0.01 each	13	–
Nivetti Systems Private Limited
2,28,501 (Nil) Preferred Stock, fully paid up, par value 1 each	10	–
Equity Instrument
OnMobile Systems Inc., USA
21,54,100 (21,54,100) common stock, fully paid up, par value USD 0.001 each	4	4
Merasport Technologies Private Limited
2,420 (2,420) equity shares , fully paid up, par value 10/- each	2	2
Global Innovation and Technology Alliance
15,000 (10,000) equity shares , fully paid up, par value 1,000/- each	1	1
	72	7
Less: Provision for investment	6	6
	66	1

2.10.8 Details of Investments in tax free bonds

The balances held in tax free bonds as at December 31, 2015 and March 31, 2015 is as follows:

in crore

Particulars	Face Value	As at December 31, 2015		As at March 31, 2015
		Units	Amount	Units	Amount
7.18% Indian Railway Finance Corporation Limited Bonds 19FEB2023	1,000/-	20,00,000	201	20,00,000	201
7.34% Indian Railway Finance Corporation Limited Bonds 19FEB2028	1,000/-	21,00,000	211	21,00,000	211
7.93% Rural Electrification Corporation Limited Bonds 27MAR2022	1,000/-	2,00,000	21	2,00,000	21
8.26% India Infrastructure Finance Company Limited Bonds 23AUG28	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
7.28% National Highways Authority of India Bonds 18SEP30	10,00,000/-	2,000	200	–	–
8.10% Indian Railway Finance Corporation Limited Bonds 23FEB2027	1,000/-	5,00,000	53	5,00,000	53
7.28% Indian Railway Finance Corporation Limited 21DEC30	4,22,800	1,000	42	–	–
		58,09,450	1,476	58,06,450	1,234

The balances held in government bonds as at December 31, 2015 and March 31, 2015 is as follows:

in crore

Particulars	Face Value	As at December 31, 2015		As at March 31, 2015
		Units	Amount	Units	Amount
Fixed Rate Treasury Notes 7.00 PCT PIBD0716A488 MAT Date 27 Jan 2016	140	10,000	–	10,000	–
		10,000	–	10,000	–

2.10.9 Details of Investments in liquid mutual fund units

The balances held in liquid mutual fund units as at December 31, 2015 is as follows:

in crore

Particulars	Units	Amount
IDFC Cash Fund –Daily Divided Direct Plan	16,75,743	168
Reliance Liquid Fund- Treasury Plan - Direct Daily Dividend Option Reinvestment	6,54,428	100
Birla Sun life Cash Plus – Daily Dividend Direct Plan Reinvestment	1,00,10,320	100
	12,340,491	368

The balances held in liquid mutual fund units as at March 31, 2015 is as follows:

in crore

Particulars	Units	Amount
IDFC Cash Fund - Direct Plan Daily Dividend	29,30,197	293
Reliance Liquid Fund - Treasury Plan - Direct Plan Daily Dividend Option	9,81,551	150
SBI Premier Liquid Fund - Direct Plan Daily Dividend	9,97,094	100
ICICI Liquid Plan - Direct Plan Daily Dividend	2,05,44,807	206
	2,54,53,649	749

2.11 LONG-TERM LOANS AND ADVANCES

in crore

Particulars	As at
	December 31, 2015	March 31, 2015
Unsecured, considered good
Capital advances	317	316
Security deposits	73	65
Rental deposits ⁽¹⁾	77	45
Interest accrued on debentures of subsidiary (Refer note 2.10 and note 2.26)	4	–
Other loans and advances
Advance income taxes (net of provisions)	4,604	3,941
Prepaid expenses	61	7
Deferred Contract Cost	355	–
Loans and advances to employees	4	4
	5,495	4,378
Unsecured, considered doubtful
Loans and advances to employees	12	10
	5,507	4,388
Less: Provision for doubtful loans and advances to employees	12	10
	5,495	4,378
⁽¹⁾ Includes deposits with subsidiaries (refer note 2.26)	21	21

2.12 OTHER NON-CURRENT ASSETS

in crore

Particulars	As at
	December 31, 2015	March 31, 2015
Others
Advance to gratuity trust (refer note 2.29)	5	26
	5	26

2.13 TRADE RECEIVABLES ⁽¹⁾

in crore

Particulars	As at
	December 31, 2015	March 31, 2015
Debts outstanding for a period exceeding six months
Unsecured
Considered doubtful	204	162
Less: Provision for doubtful debts	204	162
	–	–
Other debts
Unsecured
Considered good⁽²⁾	9,498	8,627
Considered doubtful	81	160
	9,579	8,787
Less: Provision for doubtful debts	81	160
	9,498	8,627
	9,498	8,627
⁽¹⁾Includes dues from companies where directors are interested	22	6
⁽²⁾ Includes dues from subsidiaries (refer note 2.26)	290	309

2.14 CASH AND CASH EQUIVALENTS

in crore

Particulars	As at
	December 31, 2015	March 31, 2015
Cash on hand	–	–
Balances with banks
In current and deposit accounts	21,338	23,722
Others
Deposits with financial institution	4,900	4,000
	26,238	27,722
Balances with banks in unpaid dividend accounts	3	3
Deposit accounts with more than 12 months maturity	253	182
Balances with banks held as margin money deposits against guarantees	266	185

Cash and cash equivalents as of December 31, 2015 and March 31, 2015 include restricted cash and bank balances of 269 crore and 188 crore, respectively. The restrictions are primarily on account of cash and bank balances held as margin money deposits against guarantees and unpaid dividends.

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

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

in crore

Particulars	As at
	December 31, 2015	March 31, 2015
In current accounts
ANZ Bank, Taiwan	9	4
Bank of America, USA	696	498
BNP Paribas Bank, Norway	1	–
Citibank N.A., Australia	22	10
Citibank N.A., India	2	6
Citibank N.A., Dubai	1	1
Citibank N.A., EEFC (U.S. Dollar account)	–	2
Citibank N.A., Japan	45	20
Citibank N.A., New Zealand	–	3
Citibank N.A., South Africa	3	2
Deutsche Bank, Philippines	10	2
Deutsche Bank, India	9	4
Deutsche Bank, EEFC (Euro account)	5	2
Deutsche Bank, EEFC (GBP account)	2	5
Deutsche Bank, EEFC (AUD account)	1	–
Deutsche Bank, EEFC (U.S. Dollar account)	26	7
Deutsche Bank, EEFC (CHF account)	–	4
Deutsche Bank, Belgium	–	13
Deutsche Bank, France	6	2
Deutsche Bank, Germany	10	8
Deutsche Bank, Netherlands	2	1
Deutsche Bank, Russia (U.S. Dollar account)	1	–
Deutsche Bank, Russia (Russian Ruble account)	1	–
Deutsche Bank, Singapore	3	5
Deutsche Bank, Spain	1	1
Deutsche Bank, Switzerland	2	–
Deutsche Bank, UK	10	24
HSBC, Hong Kong	6	44
ICICI Bank, India	249	18
ICICI Bank, EEFC (U.S. Dollar account)	7	9
Nordbanken, Sweden	15	1
Punjab National Bank, India	11	7
Royal Bank of Canada, Canada	11	11
State Bank of India	1	1
	1,168	715
In deposit accounts
Allahabad Bank	200	200
Andhra Bank	808	97
Axis Bank	1,438	1,415
Bank of Baroda	2,314	2,314
Bank of India	1,772	2,691
Canara Bank	2,074	2,841
Central Bank of India	702	1,303
Corporation Bank	1,185	1,197
Development Bank of Singapore	–	35
HDFC Bank	2,500	2,017
ICICI Bank	3,863	3,059
IDBI Bank	–	706
Indusind Bank	250	75
ING Vysya Bank	–	100
Indian Overseas Bank	–	573
Jammu & Kashmir Bank	25	–
Kotak Mahindra Bank Limited	492	–
Oriental Bank of Commerce	100	1,500
Punjab National Bank	–	512
Syndicate Bank	500	327
Union Bank of India	978	971
Vijaya Bank	–	386
Yes Bank	700	500
	19,901	22,819
In unpaid dividend accounts
HDFC Bank - Unpaid dividend account	1	1
ICICI bank - Unpaid dividend account	2	2
	3	3
In margin money deposits against guarantees
Canara Bank	141	128
ICICI Bank	69	–
State Bank of India	56	57
	266	15
Deposits with financial institution
HDFC Limited	4,900	4,000
	4,900	4,000
Total cash and cash equivalents as per Balance Sheet	26,238	27,722

2.15 SHORT-TERM LOANS AND ADVANCES

in crore

Particulars	As at
	December 31, 2015	March 31, 2015
Unsecured, considered good
Loans to subsidiaries (refer note 2.26)	23	24
Others
Advances
Prepaid expenses⁽³⁾	218	71
Deferred Contract Cost	35	–
For supply of goods and rendering of services	111	60
Withholding and other taxes receivable	1,520	1,253
Others⁽¹⁾	201	49
	2,108	1,457
Restricted deposits (refer note 2.33)	1,078	1,039
Unbilled revenues⁽²⁾	2,583	2,423
Interest accrued but not due	1,305	433
Loans and advances to employees
Housing and other loans	52	53
Salary advances	182	148
Security deposits	1	1
Mark-to-market forward and options contracts	49	94
Rental deposits	2	6
	7,360	5,654
⁽¹⁾ Includes dues from subsidiaries (refer note 2.26)	174	43
⁽²⁾ Includes dues from subsidiaries (refer note 2.26)	–	6
⁽³⁾ Includes dues from subsidiaries (refer note 2.26)	43	–

2.16 INCOME FROM SOFTWARE SERVICES AND PRODUCTS

in crore

Particulars	Quarter ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Income from software services	13,556	11,787	39,182	34,186
Income from software products	6	405	643	1,188
	13,562	12,192	39,825	35,374

2.17 OTHER INCOME

in crore

Particulars	Quarter ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Interest received on deposits with banks and others	617	668	1,862	1,912
Dividend received on investment in mutual fund units	9	32	50	121
Miscellaneous income, net	48	25	209	49
Gains / (losses) on foreign currency, net	63	98	109	364
	737	823	2,230	2,446

2.18 EXPENSES

in crore

Particulars	Quarter ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Employee benefit expenses
Salaries and bonus including overseas staff expenses	6,950	6,192	20,423	18,489
Contribution to provident and other funds	125	132	407	379
Employee stock compensation expense (Refer note 2.1)	2	–	6	1
Staff welfare	26	34	69	63
	7,103	6,358	20,905	18,932
Cost of technical sub-contractors
Technical sub-contractors - subsidiaries	489	344	1,252	1,002
Technical sub-contractors - others	737	433	1,973	1,071
	1,226	777	3,225	2,073
Travel expenses
Overseas travel expenses	326	296	1,110	945
Travelling and conveyance	34	33	107	90
	360	329	1,217	1,035
Cost of software packages and others
For own use	145	253	492	632
Third party items bought for service delivery to clients	55	37	334	124
	200	290	826	756
Communication expenses
Telephone charges	51	64	159	191
Communication expenses	22	52	73	103
	73	116	232	294

in crore

Particulars	Quarter ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Other expenses
Office maintenance	133	94	357	263
Power and fuel	43	48	138	145
Brand building	42	26	136	70
Rent	44	41	128	123
Rates and taxes, excluding taxes on income	25	38	75	86
Repairs to building	47	34	118	59
Repairs to plant and machinery	19	25	56	47
Computer maintenance	28	19	78	69
Consumables	7	9	22	22
Insurance charges	11	11	33	32
Provision for post-sales client support and warranties	32	12	–	28
Commission to non-whole time directors	2	2	6	6
Provision for bad and doubtful debts and advances	(9)	(42)	(22)	116
Auditor's remuneration
Statutory audit fees	–	–	1	1
Other services	–	–	–	–
Reimbursement of expenses	–	–	–	–
Bank charges and commission	2	3	3	4
Contributions towards Corporate Social Responsibility	61	59	162	179
Others	28	116	97	176
	515	495	1,388	1,426

2.19 TAX EXPENSE

in crore

	Quarter ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Current tax
Income tax	1,207	1,172	3,590	3,491
Deferred tax	(14)	25	4	(3)
	1,193	1,197	3,594	3,488

During the quarter ended December 31, 2015 and December 31, 2014, the Company had reversal (net of provisions) of 148 crore and 64 crore, respectively, pertaining to tax relating to prior years.

During the nine month ended December 31, 2015 and December 31, 2014, the Company had reversal (net of provisions) of 264 crore and 113 crore, respectively, pertaining to tax relating to prior years.

Income taxes

The provision for taxation includes tax liabilities in India on the Company’s global income as reduced by exempt incomes and any tax liabilities arising overseas on income sourced from those countries as per Indian Income Tax Act, 1961. Infosys' operations are conducted through Software Technology Parks('STPs') and Special Economic Zones ('SEZs'). Income from STPs were tax exempt for the first 10 years from the fiscal year in which the unit commences software development, or March 31, 2011 which ever is earlier. Income from SEZs Unit is fully tax exempt for the first 5 years, 50% exempt for the next 5 years and 50% exempt for another 5 years subject to fulfilling certain conditions.

2.20 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

in crore

Particulars	As at
	December 31, 2015	March 31, 2015
Contingent liabilities :
Outstanding guarantees and counter guarantees to various banks, in respect of the guarantees given by those banks in favour of various government authorities and others	29	22
Claims against the Company, not acknowledged as debts⁽¹⁾	190	167
[Net of amount paid to statutory authorities 3,454 crore (3,572 crore)]
Commitments :
Estimated amount of unexecuted capital contracts	1,319	1,272
(net of advances and deposits)

⁽¹⁾

Claims against the Company not acknowledged as debts include demand from the Indian Income tax authorities for payment of additional tax of 3,221 crore (3,337 crore), including interest of 951 crore (964 crore) upon completion of their tax review for fiscal 2007, fiscal 2008, fiscal 2009 and fiscal 2010.

2.21 DERIVATIVE INSTRUMENTS

The following table gives details in respect of outstanding foreign exchange forward and option contracts:

	As at
	December 31, 2015		March 31, 2015
	in million	in crore	in million	in crore
Forward contracts outstanding
In USD	462	3,057	664	4,150
In Euro	84	606	59	396
In GBP	60	588	68	632
In AUD	60	290	95	452
In CAD	–	–	12	59
In SGD	10	47	25	114
In CHF	20	134	–	–
Options Outstanding
In USD	125	827	–	–
In Euro	50	361	–	–
		5,910		5,803

As of December 31, 2015 and March 31, 2015, there were no net foreign currency exposures that are not hedged by a derivative instrument or otherwise.

The foreign exchange forward & option contracts mature within 12 months. The table below analyzes the derivative financial instruments into relevant maturity groupings based on the remaining period as of the balance sheet date:

in crore

Particulars	As at
	December 31, 2015	March 31, 2015
Not later than one month	1,556	1,382
Later than one month and not later than three months	3,130	3,608
Later than three months and not later than one year	1,224	813
	5,910	5,803

The Company recognized a gain of 57 crore and 53 crore on derivative instruments during the quarter ended December 31, 2015 and December 31, 2014, respectively, which is included in other income.

The Company recognized a loss of 28 crore and gain of 210 crore on derivative instruments during the nine months ended December 31, 2015 and December 31, 2014, respectively, which is included in other income.

2.22 QUANTITATIVE DETAILS

The Company is primarily engaged in the development and maintenance of computer software. The production and sale of such software cannot be expressed in any generic unit. Hence, it is not possible to give the quantitative details of sales and certain information as required under paragraphs 5 (viii)(c) of general instructions for preparation of the statement of profit and loss as per Schedule III to the Companies Act, 2013.

2.23 IMPORTS (VALUED ON THE COST, INSURANCE AND FREIGHT BASIS)

in crore

Particulars	Quarter ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Capital goods	77	123	254	302
	77	123	254	302

2.24 ACTIVITY IN FOREIGN CURRENCY

in crore

Particulars	Quarter ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Earnings in foreign currency
Income from software services and products	13,290	11,880	39,024	34,529
Interest received from banks and others	3	2	4	4
	13,293	11,882	39,028	34,533
Expenditure in foreign currency
Overseas travel expenses (including visa charges)	291	238	963	765
Professional charges	123	61	319	132
Technical sub-contractors - subsidiaries	402	290	1,051	849
Overseas salaries and incentives	4,866	4,067	13,932	11,877
Other expenditure incurred overseas for software development	981	937	3,420	2,304
	6,663	5,593	19,685	15,927
Net earnings in foreign currency	6,630	6,289	19,343	18,606

2.25 DIVIDENDS REMITTED IN FOREIGN CURRENCIES

The Company remits the equivalent of the dividends payable to equity shareholders and holders of ADS. For ADS holders the dividend is remitted in Indian rupees to the depository bank, which is the registered shareholder on record for all owners of the Company’s ADSs. The depositary bank purchases the foreign currencies and remits dividends to the ADS holders.

The particulars of dividends remitted are as follows:

in crore

Particulars	Number of Non-resident share holders	Number of shares to which the dividends relate	Nine months ended December 31,
			2015	2014
Interim dividend for fiscal 2016	2	38,53,33,537	385	–
Final dividend for fiscal 2015	2	19,22,58,436	567	–
Interim dividend for fiscal 2015	2	8,23,17,281	–	247
Final dividend for fiscal 2014	2	9,30,32,691	–	400

2.26 RELATED PARTY TRANSACTIONS

List of related parties:

Name of subsidiaries	Country	Holding as at
		December 31, 2015	March 31, 2015
Infosys BPO Limited (Infosys BPO)	India	99.98%	99.98%
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 Public Services, Inc. USA (Infosys Public Services)	U.S.	100%	100%
Infosys Americas Inc., (Infosys Americas)	U.S.	100%	100%
Infosys (Czech Republic) Limited s.r.o. (formerly Infosys BPO s. r. o) ⁽¹⁾	Czech Republic	99.98%	99.98%
Infosys BPO (Poland) Sp Z.o.o ⁽¹⁾	Poland	99.98%	99.98%
Infosys BPO S.DE R.L. DE.C.V ⁽¹⁾⁽²⁾	Mexico	–	–
Infosys McCamish Systems LLC ⁽¹⁾	U.S.	99.98%	99.98%
Portland Group Pty Ltd⁽¹⁾	Australia	99.98%	99.98%
Portland Procurement Services Pty Ltd⁽⁵⁾	Australia	–	–
Infosys BPO Americas LLC.^(1)(16)	U.S.	–	–
Infosys Technologies (Australia) Pty. Limited (Infosys Australia) ⁽²⁾	Australia	100%	100%
EdgeVerve Systems Limited (EdgeVerve) ⁽⁷⁾	India	100%	100%
Infosys Consulting Holding AG (Infosys Lodestone) (formerly Lodestone Holding AG)	Switzerland	100%	100%
Lodestone Management Consultants Inc. ⁽³⁾	U.S.	100%	100%
Lodestone Management Consultants Pty Limited⁽³⁾	Australia	100%	100%
Infosys Consulting AG (formerly Lodestone Management Consultants AG) ⁽³⁾	Switzerland	100%	100%
Lodestone Augmentis AG ⁽²⁾⁽⁶⁾	Switzerland	100%	100%
Hafner Bauer & Ödman GmbH ⁽²⁾⁽³⁾	Switzerland	100%	100%
Lodestone Management Consultants (Belgium) S.A. ⁽⁴⁾	Belgium	99.90%	99.90%
Infosys Consulting GmbH (formerly Lodestone Management Consultants GmbH) ⁽³⁾	Germany	100%	100%
Infosys Consulting Pte Ltd. (formerly Lodestone Management Consultants Pte Ltd) ⁽³⁾	Singapore	100%	100%
Infosys Consulting SAS (formerly Lodestone Management Consultants SAS) ⁽³⁾	France	100%	100%
Infosys Consulting s.r.o.(formerly Lodestone Management Consultants s.r.o.) ⁽³⁾	Czech Republic	100%	100%
Lodestone Management Consultants GmbH ⁽³⁾	Austria	100%	100%
Lodestone Management Consultants Co., Ltd. ⁽³⁾	China	100%	100%
Infosys Consulting Ltd. (formerly Lodestone Management Consultants Ltd.) ⁽³⁾	UK	100%	100%
Lodestone Management Consultants B.V. ⁽³⁾	Netherlands	100%	100%
Lodestone Management Consultants Ltda. ⁽⁴⁾	Brazil	99.99%	99.99%
Lodestone Management Consultants Sp. z o.o. ⁽³⁾	Poland	100%	100%
Lodestone Management Consultants Portugal, Unipessoal, Lda. ⁽³⁾	Portugal	100%	100%
S.C. Infosys Consulting S.R.L.(formerly S.C. Lodestone Management Consultants S.R.L.) ⁽³⁾	Romania	100%	100%
Infosys Consulting S.R.L. (formerly Lodestone Management Consultants S.R.L.) ⁽³⁾	Argentina	100%	100%
Infosys Canada Public Services Ltd.⁽⁸⁾	Canada	–	–
Infosys Nova Holdings LLC. (Infosys Nova)⁽⁹⁾	U.S.	100%	100%
Panaya Inc. (Panaya) ⁽¹⁰⁾	U.S.	100%	100%
Panaya Ltd.⁽¹¹⁾	Israel	100%	100%
Panaya Gmbh⁽¹¹⁾	Germany	100%	100%
Panaya Pty Ltd.⁽¹¹⁾	Australia	–	–
Panaya Japan Co. Ltd.⁽¹¹⁾	Japan	100%	100%
Skava Systems Pvt. Ltd. (Skava Systems)⁽¹²⁾	India	100%	–
Kallidus Inc. (Kallidus)⁽¹³⁾	U.S.	100%	–
Noah Consulting LLC (Noah) ⁽¹⁴⁾	U.S.	100%	–
Noah Information Management Consulting Inc (Noah Canada) ⁽¹⁵⁾	Canada	100%	–

⁽¹⁾	Wholly owned subsidiaries of Infosys BPO.
⁽²⁾	Under liquidation
⁽³⁾	Wholly owned subsidiaries of Infosys Consulting Holding AG (formerly Lodestone Holding AG)
⁽⁴⁾	Majority owned and controlled subsidiaries of Infosys Consulting Holding AG (formerly Lodestone Holding AG)
⁽⁵⁾	Wholly owned subsidiary of Portland Group Pty Ltd. Liquidated effective May 14, 2014.
⁽⁶⁾	Wholly owned subsidiary of Infosys Consulting AG (formerly Lodestone Management Consultants AG)
⁽⁷⁾	Incorporated effective February 14, 2014 (Refer note 2.10.2)
⁽⁸⁾	Wholly owned subsidiary of Infosys Public Services, Inc. Incorporated effective December 19, 2014
⁽⁹⁾	Incorporated effective January 23, 2015
⁽¹⁰⁾	On March 5, 2015, Infosys acquired 100% of the voting interest in Panaya Inc. (Refer note 2.10.3)
⁽¹¹⁾	Wholly owned subsidiary of Panaya Inc^.
⁽¹²⁾	On June 2, 2015, Infosys acquired 100% of the voting interest in Skava Systems (Refer note 2.10.5)
⁽¹³⁾	On June 2, 2015, Infosys acquired 100% of the voting interest in Kallidus Inc. (Refer note 2.10.5)
⁽¹⁴⁾	On November 16, 2015, Infosys acquired 100% of the membership interests in Noah (Refer Note 2.10.6)
⁽¹⁵⁾	Wholly owned subsidiary of Noah
⁽¹⁶⁾	Incorporated effective November 20, 2015

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

Name of Associates

Country

Holding as at

December 31, 2015

March 31, 2015

DWA Nova LLC⁽¹⁾

U.S.

16%

20%

⁽¹⁾

Associate of Infosys Nova Holdings LLC.

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 Science Foundation	India	Controlled trust
Infosys Limited Employees' Welfare Trust	India	Controlled trust
Infosys Employee Welfare Trust	India	Controlled trust

Refer Notes 2.29 and 2.30 for information on transactions with post-employment benefit plans mentioned above.

List of key management personnel

Whole time directors

S. D. Shibulal (resigned effective July 31, 2014)

Srinath Batni (resigned effective July 31, 2014)

B. G. Srinivas (resigned effective June 10, 2014)

U B Pravin Rao

Dr. Vishal Sikka (appointed effective June 14, 2014)

Non-whole-time directors

N. R. Narayana Murthy (resigned effective October 10, 2014)

S. Gopalakrishnan (resigned effective October 10, 2014)

K.V.Kamath ( resigned effective June 5, 2015)

Dr. Omkar Goswami (retired effective December 31, 2014)

Prof. Jeffrey S. Lehman

R. Seshasayee

Ann M. Fudge (retired effective June 14, 2014)

Ravi Venkatesan

Kiran Mazumdar Shaw

Carol M. Browner (resigned effective November 23, 2015)

Prof. John W. Etchemendy (appointed effective December 4, 2014)

Roopa Kudva (appointed effective February 4, 2015)

Executive Officers

Rajiv Bansal, Chief Financial Officer ( till October 12, 2015)

M. D. Ranganath, Chief Financial Officer and Executive Vice President (effective October 12, 2015)

Srikantan Moorthy, Group Head of Human Resource Development (till March 31, 2015)

Parvatheesam K, Company Secretary (resigned effective January 10, 2015)

David D. Kennedy, Executive Vice President, General Counsel and Chief Compliance Officer (effective November 1, 2014)

Company Secretary

A.G.S. Manikantha, (appointed effective June 22, 2015)

The details of amounts due to or due from related parties as at December 31, 2015 and March 31, 2015 are as follows:

in crore

Particulars	As at
	December 31, 2015	March 31, 2015
Investment in Debentures
EdgeVerve	2,549	–
Trade Receivables
Infosys China	26	16
Infosys Mexico	14	1
Infosys Brasil	1	5
Infosys BPO	6	1
Infosys Consulting Ltd.	30	26
EdgeVerve	5	14
Infosys Public Services	181	246
Infosys Sweden	22	–
Panaya Ltd	5	–
	290	309
Loans
Infosys Consulting Ltd.	–	6
Infosys Sweden	23	–
EdgeVerve	–	18
	23	24
Other receivables
Infosys BPO	4	1
Infosys Public Services	–	4
EdgeVerve	147	14
Panaya	43	–
Infosys Consulting SAS	5	3
Infosys Consulting GmbH	1	1
Infosys Consulting Ltd.	21	20
	221	43
Unbilled revenues
Infosys Consulting SAS	–	1
McCamish Systems LLC	–	5
	–	6
Trade payables
Infosys China	11	10
Infosys BPO	4	–
Infosys BPO s.r.o	2	–
Portland Group Pty Ltd	–	1
Infosys Mexico	1	1
Infosys Sweden	7	5
Lodestone Management Consultants Pty Limited	18	10
Infosys Consulting Pte Ltd.	13	8
Infosys Consulting Ltd.	126	65
Infosys Brasil	2	2
EdgeVerve	180	–
Infosys Public Services	2	–
	366	102
Other payables
Infosys BPO	27	16
McCamish Systems LLC	–	2
Infosys Consulting AG	1	1
Infosys Consulting Ltd.	1	1
EdgeVerve	56	9
Panaya Ltd.	11	–
Infosys Public Services	–	4
Infosys Sweden	6	–
Infosys Mexico	2	–
	104	33
Provision for expenses
Infosys BPO	–	(1)
EdgeVerve	–	37
	–	36
Rental Deposit given for shared services
Infosys BPO	21	21
Rental Deposit taken for shared services
Infosys BPO	27	27

The details of the related parties transactions entered into by the Company, in addition to the lease commitments described in note 2.9, for the quarter and nine months ended December 31, 2015 and December 31, 2014 are as follows:

in crore

Particulars	Quarter ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Capital transactions:
Financing transactions
Debetures
EdgeVerve	2,549	–	2,549	461
Equity
EdgeVerve	850	–	850	–
Infosys Shanghai	67	92	258	92
	3,466	92	3,657	553
Loans (net of repayment)
Infosys Consulting Holding AG ⁽¹⁾	–	55	–	55
Infosys Consulting Ltd.	–	–	(6)	–
Infosys Sweden	10	–	23	–
Kallidus	(10)	–	–	–
EdgeVerve ⁽²⁾	–	–	(18)	–
	–	55	(1)	55

Revenue transactions:
Purchase of services
Infosys China	31	34	95	108
Lodestone Management Consultants Pty Limited	38	34	92	94
Infosys Consulting Ltd.	264	143	627	485
Infosys Consulting Pte Ltd.	26	11	85	28
Portland Group Pty Ltd	–	0	2	2
Infosys (Czech Republic) Limited s.r.o.	–	2	–	7
Infosys BPO s.r.o	5	–	11	–
Infosys BPO Ltd.	90	54	248	153
Infosys Sweden	21	10	57	32
Infosys Mexico	2	3	8	8
EdgeVerve	–	51	–	80
Infosys Public Services	3	–	8	–
Panaya Ltd.	6	–	11	–
Infosys Brasil	3	2	8	5
	489	344	1,252	1,002
Purchase of shared services including facilities and personnel
Infosys BPO	2	22	7	59
	2	22	7	59
Interest income
EdgeVerve	5	–	7	–
Infosys Sweden	–	–	1	–
Infosys Consulting Ltd.	–	1	–	1
Infosys Brasil	–	1	–	2
	5	2	8	3
Sale of services
Infosys China	3	3	8	7
Infosys Mexico	11	3	28	8
Infosys Consulting Ltd.	8	7	19	18
Infosys Brasil	1	3	5	6
Infosys BPO	17	20	52	63
McCamish Systems LLC	1	2	2	4
Infosys Sweden	7	–	21	–
EdgeVerve	–	15	–	31
Infosys Public Services	232	191	666	554
	280	244	801	691
Sale of shared services including facilities and personnel
EdgeVerve	21	7	40	16
Panaya Ltd.	3	–	5	–
Infosys BPO	5	10	15	29
	29	17	60	45
Profit on transfer of business
EdgeVerve	–	–	3,036	412
	–	–	3,036	412
Cash paid under business transfer
EdgeVerve	36	–	286	–
	36	–	286	–

⁽¹⁾

During quarter ended December 31, 2014, loan of

10 crore was given and repaid.

⁽²⁾

During nine months ended December 31, 2014, loan of

12 crore was given and repaid.

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

in crore

Particulars	Quarter ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Salaries and other employee benefits to whole-time directors and executive officers ⁽¹⁾⁽²⁾	32	7	60	21
Commission and other benefits to non-executive/independent directors	2	3	7	7
Total	34	10	67	28

(1)

Includes stock compensation expense of 2 crore and 1 crore, and 6 crore and 1 crore for the three months and nine months ended December 31, 2015 and December 31, 2014, respectively to CEO in line with the compensation plan approved by the shareholders

(2)

Includes payables to CFO who stepped down w.e.f October 12, 2015

2.27 RESEARCH AND DEVELOPMENT EXPENDITURE

in crore

Particulars	Quarter ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Expenditure at Department of Scientific and Industrial Research (DSIR) approved R&D centers (eligible for weighted deduction)⁽¹⁾
Capital Expenditure	–	–	–	–
Revenue Expenditure	–	39	54	124
Other R&D Expenditure
Capital Expenditure	15	13	16	13
Revenue Expenditure	70	121	239	329
Total R&D Expenditure
Capital Expenditure	15	13	16	13
Revenue Expenditure	70	160	293	453

⁽¹⁾

During nine months ended December 31, 2015 the Company has claimed weighted tax deduction on eligible research and development till 31st July 2015 based on the approval received from Department of Scientific and Industrial Research (DSIR) on November 23, 2011 which has been renewed effective April 2014. With effect from 1st August 2015 the business of Finacle, including the R&D activities, is transferred to its wholly owned subsidiary Edgeverve Systems Limited, hence with effect from that date, Edgeverve Systems Limited will be claiming the weighted tax deduction on eligible research and development expenditures u/s 35(2AB) of the Income Tax Act 1961. The weighted tax deduction is equal to 200% of such expenditure incurred.

The eligible R&D revenue and capital expenditure are Nil for the quarter ended December 31, 2015 and 39 crore and Nil for the quarter ended December 31, 2014. The eligible R&D revenue and capital expenditure are 54 crore and Nil for the nine months ended December 31, 2015 and 124 crore and Nil towards revenue and capital expenditure for the nine months ended December 31, 2014

2.28 SEGMENT REPORTING

The Company's operations predominantly relate to providing end-to-end business solutions to enable clients to enhance business performance. Effective April 1, 2015, the Company reorganized its segments to support its objective of delivery innovation. This structure will help deliver services that will reflect the way technology is consumed in layers by the client’s enterprise. However the reorganization did not have any impact in the reportable segments as per AS 17 'Segment reporting'. Segment information has been presented both along industry classes and geographic segmentation of customers, industry being the primary segment. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments, and are as set out in the significant accounting policies.

Industry segments for the Company are primarily enterprises in Financial Services and Insurance (FSI) , enterprises in Manufacturing (MFG), enterprises in the Energy & utilities, Communication and Services (ECS),enterprises in Retail, Consumer packaged goods and Logistics (RCL) and enterprises in Life Sciences and Healthcare (LSH). Geographic segmentation is based on business sourced from that geographic region and delivered from both on-site and off-shore locations. North America comprises the United States of America, Canada and Mexico; Europe includes continental Europe (both the east and the west), Ireland and the United Kingdom; and the Rest of the World comprising all other places except those mentioned above and India.

Revenue and identifiable operating expenses in relation to segments are categorized based on items that are individually identifiable to that segment. Allocated expenses of segments include expenses incurred for rendering services from the company's offshore software development centers and on-site expenses, which are categorized in relation to the associated turnover of the segment. Certain expenses such as depreciation, which form a significant component of total expenses, are not specifically allocable to specific segments as the underlying assets are used interchangeably. Management believes that it is not practical to provide segment disclosures relating to those costs and expenses, and accordingly these expenses are separately disclosed as "unallocated" and adjusted against the total income of the Company.

Fixed assets used in the Company’s business or liabilities contracted have not been identified to any of the reportable segments, as the fixed assets and services are used interchangeably between segments. Accordingly, no disclosure relating to total segment assets and liabilities are made. Geographical information on revenue and industry revenue information is collated based on individual customers invoiced or in relation to which the revenue is otherwise recognized.

Industry Segments

Quarter ended December 31, 2015 and December 31, 2014:

in crore

Particulars	FSI	MFG	ECS	RCL	LSH	Total
Income from software services and products	4,468	2,990	2,803	2,379	922	13,562
	4,161	2,620	2,556	2,113	742	12,192
Identifiable operating expenses	2,299	1,505	1,380	1,175	501	6,860
	1,989	1,330	1,199	979	364	5,861
Allocated expenses	918	615	576	489	190	2,788
	887	582	568	470	166	2,673
Segmental operating income	1,251	870	847	715	231	3,914
	1,285	708	789	664	212	3,658
Unallocable expenses						275
						229
Other income, net						737
						823
Profit before exceptional item and tax						4,376
						4,252
Exceptional item						–
						–
Profit before tax						4,376
						4,252
Tax expense						1,193
						1,197
Profit after taxes and exceptional item						3,183
						3,055

Nine months ended December 31, 2015 and December 31, 2014:

in crore

Particulars	FSI	MFG	ECS	RCL	LSH	Total
Income from software services and products	13,239	8,961	7,967	6,975	2,683	39,825
	12,049	7,596	7,379	6,272	2,078	35,374
Identifiable operating expenses	6,696	4,576	3,880	3,436	1,397	19,985
	5,905	3,853	3,601	2,954	1,078	17,391
Allocated expenses	2,740	1,883	1,673	1,466	564	8,326
	2,507	1,640	1,591	1,354	449	7,541
Segmental operating income	3,803	2,502	2,414	2,073	722	11,514
	3,637	2,103	2,187	1,964	551	10,442
Unallocable expenses						799
						672
Other income, net						2,230
						2,446
Profit before exceptional item and tax						12,945
						12,216
Exceptional item						3,036
						412
Profit before tax						15,981
						12,628
Tax expense						3,594
						3,488
Profit after taxes and exceptional item						12,387
						9,140

Geographic Segments

Quarter ended December 31, 2015 and December 31, 2014:

in crore

Particulars	North America	Europe	India	Rest of the World	Total
Income from software services and products	9,013	3,015	306	1,228	13,562
	7,829	2,625	358	1,380	12,192
Identifiable operating expenses	4,616	1,499	131	614	6,860
	3,793	1,277	143	648	5,861
Allocated expenses	1,853	620	63	252	2,788
	1,740	580	69	284	2,673
Segmental operating income	2,544	896	112	362	3,914
	2,296	768	146	448	3,658
Unallocable expenses					275
					229
Other income, net					737
					823
Profit before exceptional items and tax					4,376
					4,252
Exceptional item					–
					–
Profit before tax					4,376
					4,252
Tax expense					1,193
					1,197
Profit after taxes and exceptional items					3,183
					3,055

Nine months ended December 31, 2015 and December 31, 2014:

in crore

Particulars	North America	Europe	India	Rest of the World	Total
Income from software services and products	26,380	8,559	914	3,972	39,825
	22,540	7,774	966	4,094	35,374
Identifiable operating expenses	13,433	4,269	445	1,838	19,985
	11,057	3,875	538	1,921	17,391
Allocated expenses	5,541	1,794	180	811	8,326
	4,863	1,669	184	825	7,541
Segmental operating income	7,406	2,496	289	1,323	11,514
	6,620	2,230	244	1,348	10,442
Unallocable expenses					799
					672
Other income, net					2,230
					2,446
Profit before exceptional items and tax					12,945
					12,216
Exceptional item					3,036
					412
Profit before tax					15,981
					12,628
Tax expense					3,594
					3,488
Profit after taxes and exceptional items					12,387
					9,140

2.29 GRATUITY PLAN

The following table set out the status of the Gratuity Plan as required under AS 15.

Reconciliation of opening and closing balances of the present value of the defined benefit obligation and plan assets :

in crore

Particulars	As at
	December 31, 2015	March 31, 2015
Obligations at year/ period beginning	755	668
Service cost	80	89
Interest cost	41	56
Transfer of obligation*	(31)	(5)
Actuarial (gain)/loss	4	58
Benefits paid	(51)	(111)
Obligations at year/ period end	798	755
Defined benefit obligation liability as at the balance sheet date is fully funded by the Company.
Change in plan assets
Plan assets at year/ period beginning, at fair value	781	677
Expected return on plan assets	54	65
Transfer of assets*	(41)	–
Actuarial gain/(loss)	(5)	5
Contributions	65	145
Benefits paid	(51)	(111)
Plan assets at year/ period end, at fair value	803	781
Reconciliation of present value of the obligation and the fair value of the plan assets:
Fair value of plan assets at the end of the year/ period	803	781
Present value of the defined benefit obligations at the end of the year/ period	798	755
Re-imbursement (obligation)/asset*	–	(6)
Asset recognized in the balance sheet	5	20
Assumptions
Interest rate	7.90%	7.80%
Estimated rate of return on plan assets	9.50%	9.50%
Weighted expected rate of salary increase	8.00%	8.00%

*	from/to between group companies

in crore

Particulars	As at
	December 31, 2015	March 31, 2015	March 31, 2014	March 31, 2013	March 31, 2012
Obligations at year/ period end	798	755	668	612	569
Plan assets at year/ period end, at fair value	803	781	677	643	582
Funded Status	5	26	9	31	13
Experience adjustments:
(Gain)/loss:
Experience adjustments on plan liabilities	8	4	14	(49)	13
Experience adjustments on plan assets	5	(5)	3	–	–

Net gratuity cost for the quarter and nine months ended December 31, 2015 and December 31, 2014 comprises of the following components:

in crore

Particulars	Quarter ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Gratuity cost for the period
Service cost	26	22	80	67
Interest cost	13	14	41	43
Expected return on plan assets	(18)	(16)	(54)	(48)
Actuarial (gain)/loss	(7)	12	9	36
Plan amendment amortization	(1)	(1)	(3)	(3)
Net gratuity cost	13	31	73	95
Actual return on plan assets	17	15	49	49

As at December 31, 2015 and March 31, 2015, the plan assets have been primarily invested in insurer managed funds. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market. The Company expects to contribute 35 crore to the gratuity trust during the remainder of fiscal 2016.

Effective July 1, 2007, the Company revised the employee death benefits provided under the gratuity plan, and included all eligible employees under a consolidated term insurance cover. Accordingly, the obligations under the gratuity plan reduced by 37 crore, which is being amortized on a straight line basis to the statement of profit and loss over 10 years representing the average future service period of the employees. The unamortized liability as at December 31, 2015 and March 31, 2015 amounts to 5 crore and 7 crore, respectively and disclosed under 'Other long-term liabilities' and 'other current liabilities'.

2.30 PROVIDENT FUND

The Company contributed 87 crore and 258 crore during the quarter and nine months ended December 31, 2015 ( 75 crore and 214 crore during the quarter and nine months ended December 31, 2014).

The Guidance on Implementing AS 15, Employee Benefits (revised 2005) issued by Accounting Standards Board (ASB) states that benefits involving employer established provident funds, which require interest shortfalls to be recompensed are to be considered as defined benefit plans. The actuary has provided a valuation for provident fund liabilities on the basis of guidance issued by Actuarial Society of India during the quarter ended December 31, 2011 and based on the below provided assumptions there is no shortfall as at December 31, 2015, March 31, 2015, 2014, 2013 and 2012, respectively.

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

in crore

Particulars	As at
	December 31, 2015	March 31, 2015	March 31, 2014	March 31, 2013	March 31, 2012
Plan assets at period end, at fair value	3,411	2,912	2,817	2,399	1,816
Present value of benefit obligation at period end	3,411	2,912	2,817	2,399	1,816
Asset recognized in balance sheet	–	–	–	–	–

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

Particulars	As at
	December 31, 2015	March 31, 2015
Government of India (GOI) bond yield	7.90%	7.80%
Remaining term of maturity of portfolio	7 years	7 years
Expected guaranteed interest rate - First year	8.75%	8.75%
- Thereafter	8.60%	8.60%

2.31 SUPERANNUATION

The Company contributed 57 crore and 169 crore to the Superannuation trust during the quarter and nine months ended December 31, 2015 (55 crore and 160 crore during the quarter and nine months ended December 31, 2014).

2.32RECONCILIATION OF BASIC AND DILUTED SHARES USED IN COMPUTING EARNINGS PER SHARE

Particulars	Quarter ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Number of shares considered as basic weighted average shares outstanding*^#	229,69,44,664	228,56,10,264	229,69,44,664	228,56,10,264
Effect of dilutive common equivalent shares	–	40,836	–	18,752
Number of shares considered as weighted average shares and potential shares outstanding	229,69,44,664	228,56,51,100	229,69,44,664	228,56,29,016

*	adjusted for bonus issue.(refer Note 2.1)

^#	balance during the quarter and nine months ended December 31, 2014 was net of treasury shares

2.33 RESTRICTED DEPOSITS

Restricted deposits as at December 31, 2015 comprises 1,078 crore (1,039 crore as at March 31, 2015) deposited with financial institutions to settle employee-related obligations as and when they arise during the normal course of business.

2.34 FUNCTION WISE CLASSIFICATION OF STATEMENT OF PROFIT AND LOSS

In crore

Particulars	Quarter ended December 31,		Nine months ended December 31,
	2015	2014	2015	2014
Income from software services and products	13,562	12,192	39,825	35,374
Software development expenses	8,157	7,149	23,901	20,895
GROSS PROFIT	5,405	5,043	15,924	14,479
Selling and marketing expenses	659	674	2,006	1,916
General and administration expenses	832	711	2,404	2,121
	1,491	1,385	4,410	4,037
OPERATING PROFIT BEFORE DEPRECIATION	3,914	3,658	11,514	10,442
Depreciation and amortization	275	229	799	672
OPERATING PROFIT	3,639	3,429	10,715	9,770
Other income	737	823	2,230	2,446
PROFIT BEFORE EXCEPTIONAL ITEM AND TAX	4,376	4,252	12,945	12,216
Profit on transfer on business (refer to note 2.10.2)	–	–	3,036	412
PROFIT BEFORE TAX	4,376	4,252	15,981	12,628
Tax expense:
Current tax	1,207	1,172	3,590	3,491
Deferred tax	(14)	25	4	(3)
PROFIT FOR THE PERIOD	3,183	3,055	12,387	9,140

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

As per our report of even date attached

for B S R & Co. LLP

Chartered Accountants

Firm’s Registration No : 101248W/W-100022

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

Supreet Sachdev Partner	R. Seshasayee Chairman	Dr. Vishal Sikka Chief Executive Officer and Managing Director	Roopa Kudva Director

Membership No. 205385

Bangalore January 14, 2016	M. D. Ranganath Chief Financial Officer and Executive Vice President	A.G.S Manikantha Company Secretary

Auditor’s Report on Quarterly Financial Results and Year to Date Results of Infosys Limited Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

The Board of Directors of Infosys Limited

We have audited the quarterly financial results of Infosys Limited (‘the Company’) for the quarter ended December 31, 2015 and the year to date financial results for the period from April 1, 2015 to December 31, 2015, attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. These quarterly financial results as well as year to date financial results have been prepared on the basis of the interim financial statements, which are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial results based on our audit of such interim financial statements, which have been prepared in accordance with the recognition and measurement principles laid down in Accounting Standard for Interim Financial Reporting (AS) 25, prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India.

We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial results are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts disclosed as financial results. An audit also includes assessing the accounting principles used and significant estimates made by the management. We believe that our audit provides a reasonable basis for our opinion.

In our opinion and to the best of our information and according to the explanations given to us, these quarterly and year to date financial results:

(i)	have been presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 in this regard; and

(ii)	give a true and fair view of the net profit and other financial information for the quarter ended December 31, 2015 as well as the year to date results for the period from April 1, 2015 to December 31, 2015.

for B S R & Co. LLP
Chartered Accountants
Firm’s registration number: 101248W/ W-100022

Supreet Sachdev
Partner
Membership number: 205385

Bangalore
January 14, 2016

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