Form 6-K Infosys Ltd For: Jun 30

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 June 30, 2016.

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 July 15, 2016, we announced our results of operations for the quarter ended June 30, 2016. 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 July 15, 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 July 15, 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 June 30, 2016 and 2015 (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 July 15, 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 June 30, 2016, under Ind AS. A copy of these 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 Condensed Financial Statements in compliance with IFRS in Indian Rupees and the Auditors Report; Audited Ind AS Standalone Balance Sheet, Standalone Statement of Profit and Loss, Standalone Cash Flow Statement, Notes on Accounts and Auditors Report; Audited Ind AS Consolidated Balance Sheet, Consolidated Statement of Profit and Loss, Consolidated Cash Flow Statement, Consolidated Notes on Accounts and Auditors Report for the quarter ended June 30, 2016. We have attached these documents to this Form 6-K as Exhibits 99.9, 99.10 and 99.11 and 99.12 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: July 20, 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 July 15, 2016 press conference
99.4	Transcript of July 15, 2016 television interaction
99.5	Fact Sheet regarding Registrant's Profit and Loss Account Summary for the quarters ended June 30, 2016 and 2015 (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 July 15, 2016 11:30 a.m. IST Earnings Call
99.7	Transcript of July 15, 2016 6:00 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 Condensed Financial Statements in compliance with IFRS in Indian Rupees and the Auditors Report
99.11	Ind AS Standalone Balance Sheet, Standalone Statement of Profit and Loss, Standalone Cash Flow statement, Notes on Accounts and Auditors Report for the quarter ended June 30, 2016
99.12	Ind AS Consolidated Balance Sheet, Consolidated Statement of Profit and Loss, Consolidated Cash Flow Statement, Consolidated Notes to Accounts and Auditors Report for the quarter ended June 30, 2016.

Exhibit 99.1
IFRS USD Press Release

Infosys (NYSE: INFY) Announces Results for the Quarter ended June 30, 2016

Q1 Revenue growth at 2.2% qoq in USD terms; 1.7% in constant currency terms

Q1 Revenue growth at 10.9% yoy in USD terms; 12.1% in constant currency terms

Added 3 clients to $100 million + category taking total count to 17

FY 17 revenue guidance revised to 10.5%-12.0% in constant currency

Bangalore, India – July 15, 2016

Financial Highlights

Consolidated results under International Financial Reporting Standards (IFRS) for the quarter ended June 30, 2016

Quarter ended June 30, 2016

Revenues were $2,501 million for the quarter ended June 30, 2016
QoQ growth of 2.2% in reported terms; 1.7% in constant currency terms
YoY growth of 10.9% in reported terms; 12.1% in constant currency terms

Operating profit was $602 million for the quarter ended June 30, 2016
QoQ decline of 3.7%
YoY growth of 11.3%

Net profit was $511 million for the quarter ended June 30, 2016
QoQ decline of 4.1%
YoY growth of 7.4%

Earnings per share (EPS) was $0.22 for the quarter ended June 30, 2016
QoQ decline of 4.1%
YoY growth of 7.4%

Liquid assets including cash and cash equivalents and investments were $4,918 million as on June 30, 2016 as compared to $5,202 million as on March 31, 2016 and $4,750 million as on June 30, 2015. Dividend payout of $481 million was made during the quarter.

The Nomination and Remuneration Committee of the Board of Directors of Infosys Limited at its meeting held on July 14, 2016, approved the grant of 1,857,820 RSU's at par value which shall be made on August 1, 2016, to a total of 7,898 eligible and identified high performing employees upto mid-level managers of the Company and its subsidiaries under the 2015 Employee Stock Compensation Plan. The RSU's shall vest over a period of four years from the date of grant which shall be exercisable within the period as approved by the committee. Out of these RSU’s, a total of 1,515,135 equity shares will be issued out of the existing treasury shares held by the Infosys Employee Benefits Trust and the balance will be in the form of ADR’s and Phantom stock rights.

In accordance with the Postal ballot approved by the shareholders on March 31, 2016, Dr. Vishal Sikka, CEO and Managing Director has been granted RSU's amounting to $ 2 Million which shall be made on August 1, 2016. The RSU's are time based and will vest over a period of 4 years subject to continuous service. The exercise price for the grant is equal to the par value of one share per RSU.

“We had unanticipated headwinds in discretionary spending in consulting services and package implementations as well as slower project ramp-ups in large deals that we had won in earlier quarters, resulting in a lower than expected growth in Q1,” said Dr. Vishal Sikka, CEO. “Despite this, I am very encouraged by our progress in the execution of our strategy. We launched Infosys MANA, our AI based approach to helping clients continuously renovate their business processes and have already delivered on first client successes. We continued to see strong momentum in large deal wins in which we are bringing the best of our Renew-New strategy to every deal; and we continued to see growth in our delivery services due to their renewal on the basis of Zero Distance, Design Thinking and automation. Going forward, we will continue our strong focus on our long-term goals and vision of transforming Infosys where open, intelligent technology amplifies people and frees them to innovate in a culture of learning and collaboration, while bringing operational excellence and cost discipline to every aspect of our business.”

“Our client additions and top client growth was strong during the quarter. Automation continues to be a core lever in the renewal of our traditional service offerings.” said U B Pravin Rao, COO. “We are making impactful internal process changes through our simplification initiatives with a focus on better employee experience and improved productivity.”, he added.

“Our focus on optimizing cost efficiency levers helped us during the quarter and our cash generation was strong” said M.D. Ranganath, CFO. “We navigated a volatile currency environment effectively.”

Outlook*

The Company’s outlook (consolidated) for the fiscal year ending March 31, 2017, under IFRS is as follows:

Revenues are expected to grow 10.5%-12.0% in constant currency*.

The above constant currency guidance translates to 10.8%-12.3% in USD terms based on March 31^st rates and 10.0%-11.5% based on June 30^th rates

* FY 16 constant Currency rates - AUD/USD – 0.73; Euro/USD – 1.10; GBP/USD – 1.51

Currency rates as of March 31, 2016 - **AUD/USD – 0.77; Euro/USD – 1.14; GBP/USD – 1.44

Currency rates as of June 30, 2016 - ***AUD/USD – 0.75; Euro/USD – 1.11; GBP/USD – 1.35

Investments

This quarter we made an investment in Trifacta, a leading provider of data wrangling software that enables non-technical users to easily transform data for analysis. As part of this investment Trifacta will provide a data wrangling solution for the Infosys Information Platform (IIP) and Infosys’ other platforms and offerings.

Business Highlights

We continue to execute on our strategy of bringing automation and innovation to help our clients Renew their existing businesses and IT landscapes while enabling New kinds of opportunities through new user experiences, leveraging new open intelligent technology and platforms, and driving deeper problem-finding using Design Thinking. This quarter we launched Infosys Mana, a knowledge-based AI platform; we continued to grow our top accounts and increased our momentum in large deals; and we began to monetize key initiatives such as Zero Distance – our program to drive innovation in every client project.

Purposeful AI for the Enterprise

We launched Infosys Mana, a knowledge-based AI platform that brings machine learning together with the deep knowledge of an organization, to drive automation and innovation – enabling businesses to continuously reinvent their system landscapes. We are already working with a number of clients including JCI and Syngenta.

Syngenta AG is transforming their IT organization towards innovation and delivering more value to business. Towards this Syngenta has chosen Infosys Mana platform that will help accelerate this journey. Robert Weltevreden, Head of SBS at Syngenta, said, “We have chosen Infosys Mana, a Knowledge-based Artificial Intelligence Platform, to help us with insights, drive automation, innovation, efficiency and excellence across the organization. Mana will help us capture knowledge across systems and process, identify and execute opportunities to lower cost of change, and fundamentally help transform business processes on an ongoing basis.”

Syngenta AG, one of the world’s leading Agribusiness companies, has selected Infosys as their key strategic partner in IT Services across a multi-year managed service engagement. Syngenta and Infosys shall jointly accelerate innovation and bring in a paradigm shift through a Design Studio operating on Design Thinking principles. This partnership will bring in new capabilities, agility, and on-demand services to stay a step ahead on bringing new technology to service business needs proactively.

Jeff Augustin, Vice President and CIO at Johnson Controls, said, “Johnson Controls (JCI) is transforming the role IT plays in accelerating growth and delivering value to the business. Towards this objective, we have chosen Infosys Mana, a Knowledge-based Artificial Intelligence Platform, to help us drive automation, innovation, efficiency and excellence across the enterprise. We will be leveraging Mana to identify and execute on opportunities to lower the cost of maintenance, capture the know-how of our often fragmented and complex systems and enable our businesses to be more nimble and agile.”

IIP as the Data Storage and Machine Learning Foundation for Mana Continues to See Good Adoption

Hermes Parcelnet Ltd, a leading European consumer delivery specialist, has selected Infosys to implement a next-generation BI platform based on the Infosys Information Platform (IIP). Steve Bower, Head of Management Information at Hermes Parcelnet Ltd, said, “Infosys provided a comprehensive assessment of our Management Information (MI) capabilities. This included a strategic roadmap which helped us implement a set of tactical improvements on our current MI estate and provided stability as well as a smooth peak. In addition, Infosys is in the process of helping us deliver our Big Data platform which will improve our ability to make decisions on a real time basis and enhance our operational efficiencies. We are confident that our partnership with Infosys will help us deliver even more value for our business in the future.”

Strategy and Design Consulting: Finding and Solving the Most Significant Challenges of Our Clients

Over the last quarter, we made significant progress in leveraging design thinking to proactively drive new business transformation programs for our clients.

Carlos E Amesquita, Chief Information Officer, The Hershey Company, said, “Infosys is partnering with us in our key transformational initiatives spanning SAP implementation, sales, digital and being an insights driven organization. In all of these, Infosys’ approach of Design Thinking is helping us drive a cultural transformation, while enabling key organizational processes and capabilities with speed.”

JIM WARREN, Business Unit Director, Jabil, said, “Jabil and our medical division, Nypro, has deep expertise in hardware design and manufacturing of healthcare wearables. We have partnered with Infosys for their Design Thinking, Big-Data analytics and Cloud Service capabilities to create the next generation of connected healthcare services that are both agile and medical device agnostic. We are very excited about this partnership and the immense value Infosys has brought to the table thus far.”

Panaya, Skava & EdgeVerve

We continue to see traction with Panaya and Skava. Infosys and Kohl’s are working together, using Design Thinking and leveraging the Skava digital platform to enhance customers, associates, and the overall Kohls experience.

The EdgeVerve business continued its strong market momentum with 16 wins and 21 go-lives for both the Finacle and Edge suite of solutions across markets.

EdgeVerve Systems launched its Blockchain Framework designed to further the adoption of blockchain technology by the global financial services sector. This permissioned ledger will allow banks to rapidly deploy blockchain-based services, providing them an opportunity to leverage a technology that has fundamentally challenged the operating principles underlying banking transactions and book keeping.

The Finacle Core Banking solution was selected to power Paytm’s new payments bank business. Paytm will leverage Finacle’s proven platform for its deposit products and payments platform, enabling it to rapidly roll out innovative offerings.

Shinjini Kumar, CEO, Paytm Payments Bank, said, “After considering multiple core banking solutions, Paytm is happy to announce that we have chosen Infosys Finacle as the core banking solution for our payments bank. With its large deployment base in India including some of the largest banks, Finacle has proven to be a scalable solution and we are confident that it will be able to support our aspiration to be a large and robust platform for small value, high volume transactions for millions of Indians.”

Speaking on their selection of AssistEdge, Pranav Chandra, Digital Strategist, Stora Enso said, “Stora Enso has embarked on a journey to automate its business processes. Towards this, I am pleased to confirm that we have now chosen Infosys as our preferred partner for the Robotic Process Automation Proof of Concept project. After initial discussions internally with our Group Finance Delivery and Group Sourcing, we believe Infosys will be able to provide the adequate mix of technical and business process expertise and competence within Robotic Process Automation, driven by Infosys AssistEdge.”

“Infosys’ suite of services increased our agility, helped us operate as a standalone company, and subsequently merge smoothly with the COFCO Group with minimal business risk. After the success of the integration, CofcoAgri has selected Infosys as the preferred partner for our global program to transform global operations across applications, infrastructure and end user computing powered by Infosys EdgeVerve,” said Dean Zia Dar, Group CIO, CofcoAgri.

Strengthening client relationships and adding new clients

National Australia Bank has chosen Infosys to build and run the technology solution that will enable it to participate in the New Payments Platform (NPP), an industry-led program in Australia that is aimed at delivering faster, flexible and data-rich payments.

“NAB has selected Infosys as our partner to build and run the technology solution for our payments platform, using D+H’s Global PayPlus payments software. We look forward to working with Infosys to deliver new and exciting capabilities for our customers,” said Michael Starkey, NAB Executive General Manager of Deposits and Transaction Services.

Carl Zeiss Group AG, the world’s most respected company for precision optics and optoelectronics manufacturing, has selected us as its key strategic partner for consulting and application services. As strategic partner, we will support the Zeiss Group as it consolidates and transforms its SAP landscape over the next five years, as well as helping in the transition towards HANA and cloud-based services such as MS Azure. Infosys’ support for Zeiss is enabled by a strong backbone of AI-based automation, design thinking framework and leveraging the power of open source and cloud.

Prem Chander, Chief Executive Officer, London Energy Trading, said, “As part of our global expansion plans there is an inherent need for us to transform and automate our trading, risk management and logistics business processes to handle the agility and real time nature of our business across 30+ countries. We selected Infosys to define the IT strategy and roadmap for addressing the global ETRM (Energy Trade Risk Management) Platform requirement for London Energy Trading, for which Infosys has brought in their extensive experience in Energy Trading coupled with their high end consulting capabilities to define the operating model for future proofing our business.”

Rutherford and Associates, a Direct Store Delivery solution provider, has chosen us as a strategic implementation partner for its flagship product eoStar – which is a popular choice among leading beverage distributors across North America. Paul Rutherford, President Rutherford and Associates, said, “We are extremely excited about the expertise in project implementations and ability to scale that Infosys brings to this partnership. Due to the vast experience in ERP solutions for the CPG industry that Infosys possesses, it is a natural fit that we feel will help scale our company to the next level.”

Grassroots Innovation through Zero Distance

Zero Distance – Evolving from project coverage to delivering value

Our Zero Distance, the grassroots innovation program across projects at Infosys, has evolved over the last year from project coverage to delivering value to clients in the form of incremental or adjacent innovative solutions that have had a direct impact on their business.

Owen Shier, Finance Controller APAC, Hudson Global Resources, said, “Infosys has been our trusted partner for the last seven years and has done a fantastic job delivering the required services. In the past few years, Infosys’ focus towards automation and innovation under its Zero Distance Programme and Design Thinking Movement has added significant value to our partnership. Infosys has proactively identified opportunities to make the existing streams of work more efficient by implementing automation and working closely with us to deliver innovative solutions. This has produced results which have not just met, but exceeded our expectations. I am sure this change in approach of proactively seeking new areas of improvements and innovative thinking will bring in lot of value add to Infosys’ existing and new customers. I look forward to further successful initiatives and collaborations from Infosys over the next few years.”

Extending the Reach through our Ecosystem

We continue to expand and enter into multiple strategic partnerships to offer innovative solutions to our clients:

Expanded our relationship with Microsoft Corp. to simplify and automate migration to Microsoft products and to accelerate Microsoft Azure-based and other digital transformations for clients

Entered into a strategic collaboration with Amazon Web Services (AWS) to offer a suite of technologies to ease transition from legacy IT to a modern cloud-based platform

Partnered with KUKA Aktiengesellschaft to jointly develop solutions to support companies embracing Industry 4.0. The aim of the collaboration is the development of a software platform that will allow customers to collect, evaluate and utilize data to improve their own processes

Infosys Finacle and Samsung SDS partnered to provide end customers a secure, fast and convenient way to use mobile banking and payment services. This partnership offers financial services customers a seamless user experience and hassle-free access without lengthy authentication processes

Infosys Finacle partnered with Onegini to integrate its mobile security platform with Finacle banking solutions. This integration will allow banks to provide their customers enhanced security such as fingerprint, facial, eye and voice recognition as well as multi-factor authentication, as they transact on devices

Awards and Recognition

Positioned as a Leader in Everest Group's 2016 PEAK Matrix™ for Independent Testing Services

Recognized as the 'IT Services Provider of the Year – Banking Financial Services and Insurance Sector’ by Frost & Sullivan

Infosys Finacle positioned as a Leader in Gartner’s Magic Quadrant for Global Retail Core Banking

Infosys Finacle rated ‘Best-in-class’ in Advanced Technology and Breadth of Functionality in Celent’s report, ‘Ubiquitous Digital For Channel Banking: Global Digital Platforms Solutions Vendors, 2016’

Beyond Business

We are committed to contributing towards and giving back to the communities in which we are present.

In India, the Infosys Foundation continues to serve as a powerful catalyst to bring about a positive change in the society. In this quarter, among various programs, the Foundation provided several grants towards education and healthcare. Some of these include grants to the Indian Institute of Science Education and Research – Pune and Bangalore Life Science Cluster

Through the quarter, Infosys Foundation USA relentlessly pursued its mission of providing equal access to Computer Science and Maker education to under-represented communities in the US. To evangelize the Maker movement, the Foundation launched the #WhyIMake social campaign at the June Nation of Makers event at the White House as well as announced the winners of the spring cycle of the Infy Maker Awards. At CrossRoads 2016, the Foundation’s annual thought leadership conference, the Foundation announced its CS for All Community Giving program in partnerships with National Science Foundation and DonorsChoose.org. The program pioneers a new model of crowdsourced funding for training of computer science teachers in public schools.

About Infosys Ltd

Infosys is a global leader in technology services and consulting. We enable clients in more than 50 countries to create and execute strategies for their digital transformation. From engineering to application development, knowledge management and business process management, we help our clients find the right problems to solve, and to solve these effectively. Our team of 190,000+ innovators, across the globe, is differentiated by the imagination, knowledge and experience, across industries and technologies, that we bring to every project we undertake.

Visit www.infosys.com to see how Infosys (NYSE: INFY) can help your enterprise thrive in the digital age.

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, 2016. 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 July 15, 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]

Cristin Balog

+1 510 366 9484

[email protected]

Infosys Limited and subsidiaries

Unaudited Condensed Consolidated Interim Balance Sheets as of

(Dollars in millions except equity share data)

	June 30, 2016	March 31, 2016
ASSETS
Current assets
Cash and cash equivalents	4,598	4,935
Current investments	83	11
Trade receivables	1,761	1,710
Unbilled revenue	484	457
Prepayments and other current assets	805	672
Derivative financial instruments	9	17
Total current assets	7,740	7,802
Non-current assets
Property, plant and equipment	1,624	1,589
Goodwill	561	568
Intangible assets	142	149
Investment in Associates	16	16
Non-current investments	258	273
Deferred income tax assets	93	81
Income tax assets	772	789
Other non-current assets	111	111
Total non-current assets	3,577	3,576
Total assets	11,317	11,378
LIABILITIES AND EQUITY
Current liabilities
Trade payables	39	58
Derivative Financial Instruments	1	1
Current income tax liabilities	609	515
Client deposits	4	4
Unearned revenue	228	201
Employee benefit obligations	210	202
Provisions	79	77
Other current liabilities	1,014	940
Total current liabilities	2,184	1,998
Non-current liabilities
Deferred income tax liabilities	37	39
Other non-current liabilities	20	17
Total liabilities	2,241	2,054
Equity
Share capital- 5 ($0.16) par value 2,400,000,000 (2,400,000,000) equity shares authorized, issued and outstanding 2,285,633,494 (2,285,621,088) net of 11,311,170 (11,323,576) treasury shares, as of June 30, 2016 (March 31, 2016), respectively	199	199
Share premium	571	570
Retained earnings	11,014	11,083
Other reserves	–	–
Other components of equity	(2,708)	(2,528)
Total equity attributable to equity holders of the company	9,076	9,324
Non-controlling interests	–	–
Total equity	9,076	9,324
Total liabilities and equity	11,317	11,378

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 June 30, 2016	Three months ended June 30, 2015
Revenues	2,501	2,256
Cost of sales	1,592	1,434
Gross profit	909	822
Operating expenses:
Selling and marketing expenses	137	129
Administrative expenses	170	152
Total operating expenses	307	281
Operating profit	602	541
Other income, net	112	119
Share in associate's profit / (loss)	–	–
Profit before income taxes	714	660
Income tax expense	203	184
Net profit	511	476
Other comprehensive income
Items that will not be reclassified to profit or loss:
Remeasurement of the net defined benefit liability / asset	(2)	(1)
Cumulative impact on reversal of unrealized gain on quoted debt securities on adoption of IFRS 9	(5)	–
Equity instruments through other comprehensive income	–	–
Items that will be reclassified subsequently to profit or loss:
Fair valuation of investments	–	(2)
Exchange differences on translation of foreign operations	(173)	(137)
Total other comprehensive income, net of tax	(180)	(140)
Total comprehensive income	331	336
Profit attributable to:
Owners of the company	511	476
Non-controlling interests	–	–
	511	476
Total comprehensive income attributable to:
Owners of the company	331	336
Non-controlling interests	–	–
	331	336
Earnings per equity share
Basic ($)	0.22	0.21
Diluted ($)	0.22	0.21
Weighted average equity shares used in computing earnings per equity share
Basic	2,285,622,329	2,285,610,264
Diluted	2,285,768,122	2,285,672,309

NOTE:	1.	The unaudited Condensed Consolidated interim Balance sheets and Condensed Consolidated interim Statements of Comprehensive Income for the three months ended June 30, 2016 have been taken on record at the Board meeting held on July 15, 2016
	2.	A Fact Sheet providing the operating metrics of the company can be downloaded from www.infosys.com

Exhibit 99.2

IFRS INR Press Release

Infosys (NSE, BSE: INFY) Announces Results for the Quarter ended June 30, 2016

Q1 Revenue growth at 1.4% qoq in INR terms; 1.7% in constant currency terms; 2.2% qoq in USD terms

Q1 Revenue growth at 16.9% yoy in INR terms; 10.9% yoy in USD terms

Added 3 clients to $100 million + category taking total count to 17

FY 17 revenue guidance revised to 10.5%-12.0% in constant currency

Bangalore, India – July 15, 2016

Financial Highlights

Consolidated results under International Financial Reporting Standards (IFRS) for the quarter ended June 30, 2016

Quarter ended June 30, 2016

Revenues were 16,782 crore for the quarter ended June 30, 2016
QoQ growth of 1.4%

YoY growth of 16.9%

Operating profit was 4,047 crore for the quarter ended June 30, 2016
QoQ decline of 4.1%

YoY growth of 17.4%

Net profit was 3,436 crore for the quarter ended June 30, 2016
QoQ decline of 4.5%

YoY growth of 13.4%

Earnings per share (EPS) was 15.03 for the quarter ended June 30, 2016
QoQ decline of 4.5%

YoY growth of 13.4%

Liquid assets including cash and cash equivalents and investments were

33,212 crore as on June 30, 2016 as compared to

34,468 crore as on March 31, 2016 and

30,235 crore as on June 30, 2015. Dividend payout of

3,256 crore was made during the quarter

Outlook*

The Company’s outlook (consolidated) for the fiscal year ending March 31, 2017, under IFRS is as follows:

Revenues are expected to grow 10.5%-12.0% in constant currency*;

The above constant currency guidance translates to 11.7%-13.2% in INR terms based on March 31^st rates and 13.7%-15.2% based on June 30^th rates

*FY 16 constant currency rates - AUD/USD – 0.73; Euro/USD – 1.10; GBP/USD – 1.51

Currency rates as of March 31, 2016 - 1 US$ = 66.26

Currency rates as of June 30, 2016 - 1 US$ = 67.53

Investments

Business Highlights

Purposeful AI for the Enterprise

Jeff Augustin, Vice President and CIO at Johnson Controls, said, “Johnson Controls (JCI) is transforming the role IT plays in accelerating growth and delivering value to the business. Towards this objective, we have chosen Infosys Mana, a Knowledge-based Artificial Intelligence Platform, to help us drive automation, innovation, efficiency and excellence across the enterprise. We will be leveraging Mana to identify and execute on opportunities to lower the cost of maintenance, capture the know-how of our often fragmented and complex systems and enable our businesses to be more nimble and agile.”

IIP as the Data Storage and Machine Learning Foundation for Mana Continues to See Good Adoption

Strategy and Design Consulting: Finding and Solving the Most Significant Challenges of Our Clients

Over the last quarter, we made significant progress in leveraging design thinking to proactively drive new business transformation programs for our clients.

Panaya, Skava & EdgeVerve

The EdgeVerve business continued its strong market momentum with 16 wins and 21 go-lives for both the Finacle and Edge suite of solutions across markets.

Strengthening client relationships and adding new clients

Grassroots Innovation through Zero Distance

Zero Distance – Evolving from project coverage to delivering value

Extending the Reach through our Ecosystem

We continue to expand and enter into multiple strategic partnerships to offer innovative solutions to our clients:

Expanded our relationship with Microsoft Corp. to simplify and automate migration to Microsoft products and to accelerate Microsoft Azure-based and other digital transformations for clients

Entered into a strategic collaboration with Amazon Web Services (AWS) to offer a suite of technologies to ease transition from legacy IT to a modern cloud-based platform

Awards and Recognition

Positioned as a Leader in Everest Group's 2016 PEAK Matrix™ for Independent Testing Services

Recognized as the 'IT Services Provider of the Year – Banking Financial Services and Insurance Sector’ by Frost & Sullivan

Infosys Finacle positioned as a Leader in Gartner’s Magic Quadrant for Global Retail Core Banking

Beyond Business

We are committed to contributing towards and giving back to the communities in which we are present.

About Infosys Ltd

Visit www.infosys.com to see how Infosys (NYSE: INFY) can help your enterprise thrive in the digital age.

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]

Cristin Balog

+1 510 366 9484

[email protected]

Infosys Limited and subsidiaries

Consolidated Balance Sheets as of

(In crore except share data)

	June 30, 2016	March 31, 2016
ASSETS
Current assets
Cash and cash equivalents	31,050	32,697
Current investments	563	75
Trade receivables	11,893	11,330
Unbilled revenue	3,270	3,029
Prepayments and other current assets	5,437	4,448
Derivative financial instruments	60	116
Total current assets	52,273	51,695
Non-current assets
Property, plant and equipment	10,965	10,530
Goodwill	3,792	3,764
Intangible assets	958	985
Investment in associate	103	103
Non-current investments	1,740	1,811
Deferred income tax assets	626	536
Income tax assets	5,211	5,230
Other non-current assets	751	735
Total non-current assets	24,146	23,694
Total assets	76,419	75,389
LIABILITIES AND EQUITY
Current liabilities
Trade payables	262	386
Derivative financial instruments	7	5
Current income tax liabilities	4,109	3,410
Client deposits	26	28
Unearned revenue	1,539	1,332
Employee benefit obligations	1,420	1,341
Provisions	536	512
Other current liabilities	6,850	6,225
Total current liabilities	14,749	13,239
Non-current liabilities
Deferred income tax liabilities	248	256
Other non-current liabilities	135	115
Total liabilities	15,132	13,610
Equity
Share capital- 5 par value 240,00,00,000 (240,00,00,000) equity shares authorized, issued and outstanding 228,56,33,494 (228,56,21,088), net of 1,13,11,170 (1,13,23,576) treasury shares, as of June 30, 2016 (March 31, 2016), respectively	1,144	1,144
Share premium	2,250	2,241
Retained earnings	57,168	57,655
Other reserves	–	–
Other components of equity	725	739
Total equity attributable to equity holders of the company	61,287	61,779
Non-controlling interests	–	–
Total equity	61,287	61,779
Total liabilities and equity	76,419	75,389

Infosys Limited and subsidiaries

Consolidated Statements of Comprehensive Income

(In crore except share and per equity share data)

	Three months ended June 30, 2016	Three months ended June 30, 2015
Revenues	16,782	14,354
Cost of sales	10,681	9,123
Gross profit	6,101	5,231
Operating expenses:
Selling and marketing expenses	920	820
Administrative expenses	1,134	964
Total operating expenses	2,054	1,784
Operating profit	4,047	3,447
Other income, net	753	758
Share in associate’s profit/(loss)	(2)	–
Profit before income taxes	4,798	4,205
Income tax expense	1,362	1,175
Net profit	3,436	3,030
Other comprehensive income
Items that will not be reclassified to profit or loss:
Re-measurement of the net defined benefit liability/(asset)	(17)	(7)
Cumulative impact on reversal of unrealized gains on quoted debt securities on adoption of IFRS 9	(35)	–
Equity instruments through other comprehensive income	–	–
Items that may be reclassified subsequently to profit or loss:
Fair value changes on investments	–	(12)
Exchange differences on translation of foreign operations	38	144
Total other comprehensive income, net of tax	(14)	125
Total comprehensive income	3,422	3,155
Profit attributable to:
Owners of the company	3,436	3,030
Non-controlling interests	–	–
	3,436	3,030
Total comprehensive income attributable to:
Owners of the company	3,422	3,155
Non-controlling interests	–	–
	3,422	3,155
Earnings per equity share
Basic ()	15.03	13.26
Diluted ()	15.03	13.26
Weighted average equity shares used in computing earnings per equity share
Basic	228,56,22,329	228,56,10,264
Diluted	228,57,68,122	228,56,72,309

NOTE:

1.	The audited Consolidated interim Balance sheets and Consolidated interim Statements of Comprehensive Income for the three months ended June 30, 2016 have been taken on record at the Board meeting held on July 15, 2016
2.	A Fact Sheet providing the operating metrics of the company can be downloaded from www.infosys.com

Exhibit 99.3

Press Conference

PRESS CONFERENCE

Q1 FY 2017 RESULTS

July 15, 2016

CORPORATE PARTICIPANTs

Vishal Sikka

Chief Executive Officer & Managing Director

Pravin Rao

Chief Operating Officer

Ranganath D Mavinakere

Chief Financial Officer

Krishnamurthy Shankar

Executive Vice President & Group Head – Human Resource Development

Mohit Joshi

President & Head (Financial Services), Head – Infosys Brazil and Infosys Mexico

Sandeep Dadlani

President & Global Head – Manufacturing, Retail, CPG and Logistics, Head – Infosys Americas

Ravi Kumar S.

President & Chief Delivery Officer

Richard Lobo

Senior Vice President and Head – Human Resources, Infosys

ANALYSTS

Chandra

ET Now

Aditya

CNBC TV18

Sarjeet

Bloomberg Quint

Tanvi

Reuters

Varun

Mint

Pravin

New Indian Express

Balaji

Bhibu

Business Standard

Vishal Sikka

Hi! Good Afternoon, Everyone. Great to be here. We just reported our First Quarter Results. While the revenue performance was not quite up to our mark that what myself and Pravin expected, we actually did extremely well in many areas of our business especially in the core areas that we have been focusing on both in the renewal of our existing core business as well as especially in the new areas. So that was very encouraging. But, of course, we had a slowdown in revenue growth compared to what we had expected and that lead to our 2.2% increase in our revenue over the course of the quarter. That happened primarily, as I have said earlier today, on the basis of certain unexpected, unanticipated slowdown in discretionary spending in some parts of the business, in particular in Consulting Services and in Package Implementation and then also some of the projects were slow to ramp up in some of the large deals that we won in the last few quarters. So that is where we are.

We are actually quite excited that in the renewal of our existing services with Design Thinking, with our work in Automation and with our work in innovation initiatives like Zero Distance, our core strategy is kicking in, and I am very heartened by that. It is happening now at a great scale as well as in the embrace and the adoption of our new services are becoming a revenue driver, we saw significant growth. So that is something that we are quite positive about. So overall I am happy with the overall performance during the quarter and disappointed at the revenue growth, but the rest of the aspect of the business have done well.

So with that while we are waiting for Ranga, Pravin and I can start and also our three presidents are here, and Krish is here, Manish is here, lot of our leadership team is here and would love to answer your questions.

Chandra

Chandra here. Vishal, just want to understand, you are completing 2-years at the helm next month. Till last quarter people thought the turnaround was sort of complete, Infosys is out of the woods, all those statements. Based on this quarter would it be fair to assume there are still some persistent issues in terms of ramp up with certain clients, how would you really assess this? Also a question for the HR Head, because of the spike in attrition, is this a seasonal issue, because people go for higher studies usually this quarter or are there other reasons and will we see this come down next quarter?

Vishal Sikka

I think that the embrace of our strategy across the company and in our client base is actually going extremely well. If you just look at the details of that which is for example the growth in our large deals, which means the clients are more and more confident about giving us this business and in our existing clients if you look at our top-5, top-10 and top-25 clients, we have seen huge growth, so top-25 clients actually grew by 4.4%; top-10 clients grew by close to 4% and these are significant drivers of our revenue in the number of $100 million plus clients went from 14 to 17, so that is a huge jump as well. So all these things are working extremely well.

Then as I mentioned already the new areas that Sandeep has been driving, this is something that has seen amazing growth of $55 million revenues that we added in the course of the quarter, $12 million of that growth actually came from things that are completely new, which is roughly 30% of the growth came from there. So these are all extremely encouraging sign. So I would not read anything from this from a long-term perspective, the strategy is kicking and so forth. Of course if the renew part of our main core business is working well and if the new part is working well, then where is the problem? The problem happened in some of the pockets of our businesses in Consulting, we had a significant decline, as I mentioned earlier, because of this couple of things, and then our India business we de-grew by $4 million and Finacle had a very good Q4 and so Finacle had $2.5 mn of decline, BPO was flat compared to other businesses. So we have going forward in the course of rest of this year and in the time ahead, we will of course we will focus more on these businesses as well in addition to continuing to fire on all cylinders on the main strategy. So I would not read more than that into it.

Krishnamurthy Shankar

Yes, I think you are right what happens is this Q1 is always a quarter where attrition is high and we have seen it over the last 4-5-years where there is a pickup of attrition of over 3% to 5% points this time, and this year is no different. Most of the attrition is at the entry level and I do not think that is a cause for concern. So looking at the trends it seems quite natural.

Aditya

Hi! Aditya from CNBC TV18. Just wanted to understand in terms of the geography spread US is I think up 2.5% sequentially, Europe is marginally down on a constant currency basis. So how does this tie into the comment that was made on some large projects not ramping up and are these early signs of issues around Brexit and are these telltale signs really?

Vishal Sikka

Our main business is in US and Europe. So that is where the slow ramp up of the projects that I talked about and then from a Consulting perspective the discretionary reduction and non-renewal in some areas were also in Europe but this had nothing to do with Brexit or any of these kinds of macroeconomic, secular, the other fancy word is secular, so these have nothing to do with secular macroeconomic forces, this is simply client situation and our execution.

In terms of Brexit, it is my personal view on it is that whenever walls get created between businesses and between institutions, this is not a good thing generally from a societal perspective, but from a business point of view actually this is an opportunity for us, the more that systems become isolated and separate, the more there is need for integration, there is need for interoperability, there is need for transparency, analytics, governance, regulatory work, etc., So long term, over time assuming that Brexit happens this is going to be a good thing for us. In the near-term there is a lot of anxiety around it, people are trying to figure out what it means and so forth. So there is some uncertainty. But so far there is no impact in business because of Brexit and it has not. May be Mohit you can answer that part of the question.

Mohit Joshi

So as of now, I think the key thing is Brexit came as a shock for most of our clients as well. So they are in a process of preparing their plans depending on the approach the UK government takes for it. As of now with may be one exception, we have not really seen a negative impact to our business because of Brexit. In the long term as Vishal mentioned it is anybody’s guess, right, we could see potential upsides because of the restructuring of businesses, because of the regulatory mandates equally we could see negative surprises because of volatility and delays in decision-making, but as of now this externality has not really impacted our business.

Ranganath D. Mavinakere

Just to add I think in the near term of course we did see the currency volatility, and Q1 of course we affectively hedged and the impact on profitability in fact we had some gains on hedges as well, but I think we do expect certain near-term volatility to continue not just in rupee but also in the cross currency and we are monitoring and taking appropriate hedging position.

Sarjeet

Vishal, hi! this is Sarjeet here from Bloomberg Quint. When you ended FY-’16 you had a TCV of nearly $2.9 bn, that gave the assumption that the guidance of 13.5%, of that 4% to 5% would be taken care of the TCV, now that TCV is not reflecting into the revenue and that is why you had a disappointing quarter. What percentage of the TCV is inactive or you are not able to ramp up as of now and what was the kind of addition to the TCV in the first quarter?

Ranganath D. Mavinakere

I think you are right, our TCV wins last year was good and the same momentum has continued this quarter as well. The key thing is there is a natural progress of how that TCV translates into revenue and it is primarily affected by three big pieces -- One of course the nature of service itself, for example, certain services like Infrastructure Management, etc., the ramp up is gradual, first there will be transition followed by shadow support, then take over, it is a very gradual curve which kind of somewhat is back-ended, right, whereas in case of Application Development or Maintenance it is a more steady right from the first quarter you will have a very quick ramp up. So that is one.

The second one of course is sometimes clients also expect certain things to ramp up from existing vendor to the new vendor in one quarter and for various reasons say, Hey! This cannot happen in this quarter. We have been shifted to next quarter. It is not that the project are canceled, it is not that they are re-thinking, it is nothing to do with that. It is sometimes these things pushing by quarter and the ramp up happens. So it is a nature of service as well as it is very particular deal-specific, the ramp up curve. Typically, what we have seen is that for every $100 million of TCV for the current portfolio mix that we have in terms of services about 7.5% to 10% typically accrues during the first year. So that has been the trend line and we have not seen significant change on that. What Vishal and Pravin referred to earlier was primarily on account of certain ramp ups, the extent to which we expected did not happen in 1 or 2 cases, that is what they were referring to.

Sarjeet

Were they significant enough to bring down the guidance?

Ranganath D. Mavinakere

Bring down? That was not the only reason, right, they also said that it also had some of the discretionary Consulting and Package Implementation pieces slow down.

Participant

Hi! Vishal. So I have three to four doubts here. So basically the first thing you mentioned about the revenue declared the low revenue growth, but what I am also seeing here is the decline in the gross profit, which has gone into the negative territory for this and which is essentially as far as the income statement is coming, is showing the increase in the cost of sales is driven by that. Why has the cost of sales increased?

Ranganath D. Mavinakere

Let me first answer the profit question that you had. I think what you are comparing is really the quarter-to-quarter gross profit. That is not the right way to really compare for the first quarter, we have to really compare what has been the profit as compared to the Q1 of last year. As you clearly know the Q1 typically has compensation increases and the visa cost which will not be there in Q4. That is unique to Q1, right. But if you look at year-on-year, gross profit has increased by 10.5% and net profit has increased by 7.4% and operating profit has increased by 11.3%. So there is a seasonality on these compensation increase and visa cost which is unique to Q1 and it happens in every Q1. If we look at last Q1, also the same thing. So it is incorrect to state that year-on-year our profitability has declined, in fact, the operating margin of this quarter is 24.1%, it is 0.1% higher than operating profit of last year same quarter.

Participant

Talking about the segmentation, so how do you segment is as US, Europe and India. Now that Britain is separating from the Europe. Would you be creating another segment from that? Immigration issue I was talking about given the fact that every now and then Mr. Trump talks about the immigration thing, that he is against immigration and there is a probability that he would be coming to power in US and also to a certain extent …. is also quite not too in favor of immigrant. So how do you plan to deal with that issue and also H1B they are pushing somethings for H1B visa also?

Mohit Joshi

On the UK specific issue, the way we run our business is across global industry verticals and that will not change, so we will continue with that, and the reporting will continue, as we can see it now will continue to include Europe including the UK because the UK will geographically still remain a part of Europe. Then on the US immigration questions, I will pass it on to Sandeep.

Sandeep Dadlani

Thank you, Mohit. We have seen election cycle after election cycle, this is an election year and every election year there is the rhetoric over immigration, over H1B visas goes up dramatically, this year has been particularly dramatic because of the nature of the candidates and the nature of the polarization, but every year after this happens, things settle down and people come to their senses. What we are doing is consistent with our strategy which is three-fold here; #1 is leveraging disruptions in technology, we are trying to figure out new business models by which we have less dependency on onsite staffing in some kinds of projects. Second thing we are doing is in every market we operate at, not just America but in every other market we have to focus on local hiring, so we have local people, local experts who are closer to the client, who belong to that country. Thirdly, we leverage industry bodies like NASSCOM, CII, etc., to continue to articulate the value of our propositions to those different economies whether it is America or different countries. These three things we do on a continuous basis. That de-risks our dependency or on these kind of events if they may happen. So we are watching for developments very closely, but we do not expect anything dramatic.

Tanvi

Hi Vishal, this is Tanvi from Reuters, I was just wondering if you could throw some light on what other factors led to the cut in revenue forecast - are you expecting a slowdown in other markets or any other such reasons?

Vishal Sikka

No, as Ranga said earlier, we had a few factors contributing to lower-than-expected revenue growth in this quarter; one was the unexpected slowdown in the discretionary spending in Consulting and in Package Services, and the other was the slower-than-expected ramp up in projects from deals that we had won and couple of other small things like the decline in the India business and small decline in Finacle. So all together these contributed to revenue growth of 2.2%. When you look at the forecast guidance that we gave 11.5% to 13.5% for the year, the nature of our business is that it is centered on quarters and the first quarter impact ends up having a bigger impact on the rest of the year. So that is basically what brought down the guidance by 1 point.

Tanvi

So would the rise in Cloud-based services has had any impact yet?

Vishal Sikka

Yes, it will have a positive impact. Sandeep was just telling me that our partnership with Microsoft and with Amazon and others in the Cloud area is doing extremely well, and Ravi started back in February a Legacy Modernization practice moving Legacy Infrastructure to the Cloud, that has been growing extremely well and perhaps Ravi can talk a little about that. So yes, Cloud is the Infrastructure delivery and consumption mechanism of our times and we are extremely excited about our offerings in this area.

Ravi Kumar S

Cloud-based services certainly has a positive impact, the per capita spend just goes up, the ticket sizes go down, but the number of transactions go up. What we have also done is a modernization initiative to move mainframes onto Cloud and that has picked up significant momentum with both Microsoft and Amazon. So, that is actually getting a lot of traction now and we are actually hoping that we could actually monetize this lot more in the next three quarters of the year.

Varun

Hi! Vishal, Varun here from Mint. A couple of questions to the management: So three things explains the lower revenue guidance – slowness in Consulting, significant slowdown in the projects which were supposed to pick up and it did not happen and finally some problems in ERP. Can the management just help explain quantitatively say how much each of these shaved off your growth from your revenue, because the 2.2% however you slice it, it is a poor start to our fiscals?

Ranganath D. Mavinakere

Varun, I think as Vishal earlier said, Q1 has a compounding effect and a very important quarter for the financial year. If you recollect last year we grew 4.6% in Q1. That gave us a good subsequent growth rate. As a thumb rule, every 1% reduction in the growth of Q1 impacts the entire financial year’s growth by 1%. That is broadly what we have seen in all our traditional pieces. So, if you look at when we gave the revenue guidance of 11.5% to 13.5% compared to that we expect around that kind of reduction in the Q1. So correspondingly as a measure of what always we believe in, as a measure of our practice, we have guided lower.

That 1% if you look at approximately $25 mn, right. Will 75 mn make an impact on the entire year? It is not the question. I think the key question is 1% reduction in Q1 typically impacts the entire year by 1%. Of course, there are the new services which are there which we need to see how they ramp up. The momentum is quite encouraging in Q1. But at this point in time we have to kind of state our guidance based on the visibility that we have and that has been always our practice. We are not saying that “Look, the world has come down or something like that.” We are just saying, “Look, here is the mechanics that we have and here is what our visibility is.” Based on which we are stating the guidance.

Varun

But my question was this $25 mn, can you help me understand that of the three slow areas, how much did each contribute so Consulting had degrowth by how much?

Ranganath D. Mavinakere

I think we have stated the broad reasons, we cannot clearly talk about individual contracts and give customer names, etc., we have broadly indicated which are the revenue streams and broad reason. As I was responding to the earlier question on which of the projects ramp up which we had expected earlier in a couple of large deal wins, there are not many, couple of projects, but we cannot be that specific in naming the accounts.

Varun

The follow up to this is, the slowness in ERP, can you just give us some color – is it just limited to some particular clients or industries, let us say Retail, Financial sector, Healthcare what is really happening in this ERP space?

Vishal Sikka

The complex package implementations are not as frequent. I believe also this is a temporary thing, I do not see that as a secular thing. So, this is I think something that will come back. To your other question on ERP, we have a practice where we do package systems implementations and this practice grew less than the other practices. That is what we mean by this.

Varun

I mean, were you more vulnerable to particular industries?

Vishal Sikka

No.

Varun

All these projects ramp downs which have happened, can we expect it to come back in the second or the third quarter?

Vishal Sikka

No, so these are very different thing.

Varun

No, this is another thing.

Vishal Sikka

Let me explain, there are no ramp downs. There is a slower than expected ramp up in projects from the deals that we have won, that is one thing. Unexpected reductions in discretionary spending around the Package Systems and Consulting is another thing. And slowdown in Finacle to the tune of $2.5 mn and slowdown in India to the tune of $4 mn to $4.5 mn were other things. So this is basically the situation, it is not any bigger deal than this.

Varun

So that is what I am trying to understand, why the slowness from the large deal wins? Is there something specific to clients?

Vishal Sikka

Yes, we believe that it is in particular these two or three clients where we saw this happening, this is not anything broader than that.

Varun

And these two three clients are across which industry, I am not asking for names, but which industry?

Vishal Sikka

Generally, Lifesciences, generally all these combination of events impact Lifesciences this quarter more than others.

Varun

Meaning, business comings?

Ranganath D. Mavinakere

Its ramp-up, and it is not ramp-down that Vishal corrected.

Varun

And can we expect these ramp-ups to happen in the second quarter, Ranga?

Ranganath D. Mavinakere

I think at this point in time the visibility what we have we have said and we have to see how the Q2 progresses, let's see at the end of Q2. At this point in time we don’t want to make a very emphatic statement.

Varun

Just two more questions here. Firstly, a lot has been, like when you started with you brought Consulting last year through the parent Infosys, Infosys Consulting as a subsidiary, a lot more spoken in that it is the tip of the spear, you launched a new service line ‘Aikido’, great measures. Sadly, it has not really translated into revenue and now you have to live with this pain for the next nine months so to say. What is really happening sir, have you failed somewhere in your execution strategy?

Vishal Sikka

If you look at ‘Aikido’ and the design oriented services, those are actually growing quite well. The Consulting is our traditional Consulting business where close to 3,000 employees have worked, this is resulting from the earlier acquisition that we had made of Loadstone and of the home grown Management Consulting practice as well as the Package Implementation. So these are all together in this Consulting area. The tip of the spear initiative actually is our strategy and it has been working extremely well, that has in fact resulted in the huge number of strategic engagements that we have now with our clients, it has resulted in the large deal wins consistently over the last many quarters. This is all led by the same tip of the spear ‘Aikido’ services mindset, the $809 mn large deal TCV this quarter, $757 mn in the quarter before and so on and so forth. And also if you look at especially at our top clients’ performance, the top 25 clients grew by 4.5% in constant currency in the quarter. These top 25 clients in our business make a huge amount of percentage of revenue for us. Similarly, the top 10 clients also grew. This is all a result of the strategy.

The issue that I am talking about, there was an unanticipated issue was with regard to execution in a few projects from this, where because of discretionary spending cuts and so forth, the renewals did not happen and the projects ended without resulting in an ongoing follow through and so forth. So there is no significance to anything more broadly about Consulting in any of this. Consulting continues to be a very strategic part of our business and indeed the tip of the spear is the strategy that we have been executing on over the last year.

Varun

One last question sir. At the end of fourth quarter 13.8%, the upwards guidance that you had given on the dollar terms, in hindsight do you believe you and the board were a little aggressive in giving such kind of a guidance? And I am asking this question now because again you brought it down by 150 bps, the dollar, where you expect at best 12.3%. Are you now again under delivering? Why cannot we have an absolute whatever you are seeing in the market from your perch rather than so much of volatility, today the stock is down 9%, so much wealth investor has lost.

Vishal Sikka

Varun, as I have said and Ranga also said, we have had a practice of sharing our guidance, our philosophy and not only in my time here but also going back a long before that has been to minimize the asymmetry between what we as the management see in our business and what our investors and financial markets see. And we do that by providing as accurate a guidance as we see ourselves. At the beginning of the year we saw 11.5% to 13.5% on constant currency terms or 11.8% to 13.8% on March 31 terms, and that is what we gave as the guidance. Now that we are three months into it, couple of things that we did not expect happened and a couple of slowdowns and so forth that I talked about. So as a result of that the visibility that we have now is in the 10.5% to 12% range and that is what we are what we are setting. There is nothing more to that or less to that. Ranga, you want to add anything?

Ranganath D. Mavinakere

Just to add, just while you were back into this room three months ago, if you look at it we exited FY16 on a positive 1.6% growth after several years of negative growth. So we had a good tailwind. Plus during the previous year we had 45% uptick in the TCV and many of those TCV wins we expected some of the ramp ups happening in Q1. So these were one of the key factors on improving and giving that particular guidance of 10.5% and 13.5%. So what has happened, we have reduced it by 1% at the lower end, right, from 11.5% to 10.5%. So precisely the same reason which indicated earlier, typically 1% reduction in Q1 growth rates impacts the entire year by 1%. So keeping in view our earlier belief that we will go by what the visibility we have at this point in time and based on the Q1 performance we will give that visibility. Based on Q4 performance last year we had that visibility, we gave at that time.

Pravin

Sir, Pravin here from New Indian Express. Now, this is on HR sir. Sir, the attrition rate at the gross level is 21% which is almost a one-fifth at the attrition level. So can you tell me sir, what verticals were the ones which felt the brunt of it?

Krishnamurthy Shankar

So the 21% that you are talking about is for the Infosys Group level which includes BPO and other things. If you look at just Infosys, that is about 15.7% or 15.8%. So frankly, I don’t think there is any vertical that is there, I just mentioned that most of our attrition is natural, at this time of the year people go for studies and all those kind of things. And all of that is people with three to four, five years of experience, that is the kind of areas where we lose people. Equally though, the other interesting thing is when we look at it our high performer attrition has come down, over the last quarter it has come down by almost 2 percentage point from about 13.2% to about 11.2%. So that is the significant improvement in what we see. So I think the attrition is, if you ask me it is more natural, more for people moving and doing other things like further studies, etc. And more importantly, the high performer attrition is something which is much more in our flavor and that is what we are aiming to kind of improve.

Pravin

I have one more. Sir, so at a vertical level you will not be able to share?

Krishnamurthy Shankar

All the verticals, I don’t think there is any very significant at all in any of the verticals.

Balaji

I don’t know what has been covered, but from a technical point of view I would like to know from Ranganath, how much actually this hedging is helping or not helping you? The way you have revised it, particularly in dollar terms, dollar value. Very simple words, simple figures, how much you hedged for this year and whether there has been more hedging happened and what has been the non-operative sequentially?

Ranganath D. Mavinakere

Sure. I see there are two questions there, let me talk about first hedging. Always our policy is that we hedge net FX assets on a rolling basis for about two quarters. We have consistently followed that hedging policy over several quarters and it has helped us. Even this quarter also it helped us in reducing the volatility on the P&L. So about $980 mn of hedging that is there on the books today across currencies. And if you look at I think, if you are referring to guidance, guidance 1% dip is in constant currency, so it is not really on the hedging or the currency movement, it is in constant currency. So that is primarily because of the business reasons that Vishal and Pravin outlined earlier. So as far as hedging, we hedge the net foreign assets which on a rolling basis for about six months that works about $970 mn to $980 mn.

Balaji

So how much you attribute actually for business situation and then to volatility if you are revising, because I think it was lower, what could be the ratio or a percentage?

Ranganath D. Mavinakere

If you look at the hedging, primarily it comes under the other non-operating income and that has been stable, if you look at non-operating income is about $110 mn compared to $112 mn earlier, which has been pretty much stable. So we hedge our net FX asset on a rolling basis as I said. So hedging has actually shielded the volatility on the other operating income. I think if your question is on the revenue side, on the constant currency basis itself we have reduced the guidance, it is not really relating to a particular currency, it is in the constant currency basis.

Vishal Sikka

Maybe I can add that Ranga's team under Ranga's leadership runs an extraordinary treasury operation and the safety and the liquidity of the financials is the primary priority and it is quite extraordinary what they do.

Participant

…from CNBC TV18. Just wanted to understand what is the kind of pipeline that Company has at this point of time, both in terms of TCV and the number of large deals that the Company is chasing? And which verticals are showing more promise than others? Secondly, Vishal you did mention that there is some sort of slowness in the India business and some sort of tapering off of revenue happened on the Finacle side, if you could just throw some more light on that front. Thank you.

Mohit Joshi

So look, I mean we can talk more from a Q1 perspective, in Q1 we spoke about the fact that we had over $800 mn in TCV wins, these were 10 deals, these were spread across the world. So we had wins in Australia, the US, Europe and these were across industry segments. I think our pipeline remains healthy for large deals and we don’t quantify it beyond that. We have given you the breakup for Q1 and we remain optimistic about our conversion rates and the TCV to be declared for Q2.

Participant

Also on India revenues and Finacle revenues.

Pravin Rao

On India revenues, India typically a big percentage of our projects in India are government projects, these are all fixed priced system integration projects. So the revenue recognition and everything is based on the milestones we complete. India is also a very small base, so on a smaller base on a quarterly basis you will always find this fluctuations. So I don’t think we should read much into the India unit performance.

Vishal Sikka

And on Finacle, even though we have pointed that out as a decline, actually in the previous quarter Finacle had a great performance, in particular owing to a couple of large deals. And a drop by $2.5 mn in this quarter which again on a relatively small base of $72 mn - $73 mn, it looks large but actually the product has been doing extremely well. You heard some of the leading banks like PayTM and others have embraced Finacle and we have some massive deployments going on of Finacle, so we are continuing to be extremely excited about the prospects of Finacle.

…………..

I don’t want to comment on the strategy of other companies, in our case like Pravin said, a big percentage of the India business comes from government-related projects and so forth and then also the private sector projects are slowly increasing. But overall the India business is quite a small portion of our total revenue and that is in our case this is how it is.

…………

Pravin Rao

See, we are very selective in the kind of projects we take, we don’t go after every project in the government thing, we have been executing government projects and we have time and again said, it is very tough. But at the same time, if it is an interesting project which makes a big impact to the country, we want to take those. So we don’t go after every project, so whenever there is something interesting we do that. The last project we won was GST and which we thought is a good one. But as and when there are opportunities where it is very significant and impactful, we will be happy to bid.

Bhibu

One question about your short-term guidance and that has reflected on guidance that you have lowered for the full year. I wanted to check about the Vision 2020. Now given the uncertainty in the business environment and you have mentioned witnessed unanticipated slowdown in certain areas, also how slower ramp ups also happened in certain projects. And now that the full impact of Brexit is actually yet to unfold because it will take at least two years and you derive 23% of revenue from Euro. So given all this uncertainties, how comfortable you are at the moment towards the Vision 2020?

Vishal Sikka

So 2020 is a five to six-year long target, should not be affected by its definition if it is a long-term strategic ambition of the company, it should not be impacted by a quarter or even a particular year. We are on a large scale transformation of the way our company works, the way frankly also our industry works where we augment people with technology so that in the words of Prof. Mashelkar we can enable people to “do more with less for more” and in the process we transform ourselves from more a cost oriented industry towards an innovation and value-oriented industry where smaller number of people can do the same projects, where AI and automation simplify the work that is done by people that frees up productivity in order to unleash our creativity and our imagination. All of this, as we have showed in the last two years is happening, it is starting to pick up steam, it is starting to make an impact on the business and I expect that this will continue to grow and therefore I continue to be extremely excited about this ambition of ours, this aspiration of getting to $20 bn in 2020 with 30% margin and $80,000 of revenue per employee. This does not change as a result of one quarter.

Bibhu

Just one more follow-up question. Someone asked you about the India revenue, actually consistently for last few quarters we are seeing how India business for Infosys is not going. And in fact, you are one of the CEOs who are very bullish about this growth process in India, essentially after the new government took charge, how they are driving technology in all cities. Are we seeing that those are really not materializing in driving revenue for companies? And second thing, being someone who on and off discuss with global CEOs meet with them, how is the mood of the global CEOs about India?

Vishal Sikka

I think generally the mood of the global CEOs is hopeful, it is excited, they have a lot of hope assigned to the transformation that our government has been putting into place. A lot of the initiatives like ‘Make in India’ and ‘Smart Cities’ and so forth are still early, and in terms of deriving tangible commercial projects and software projects and services projects out of that, this is still in the early stages. We do remain excited about, for example, Smart Cities where we are doing a lot of work with other partner companies and actually using the Mana platform in many of these Internet of Things and Smart Cities oriented work. We have been working very hard towards transforming our campus in Mysore towards a Smart City and bringing in a lot of the instrumented air conditioning, power efficiency, power systems and so forth. Into our campuses, we have some of the latest, actually pioneering equipment running in our campuses including here in Bangalore. In Hyderabad we recently went 100% offgrid in terms of our energy consumption. Campus of close to 20,000 people is running 100% entirely on energy that we get from solar and so forth. And there are days when we give back the energy into the grid. So I think that we are at the cutting edge on these things and as the business opportunities become material and tangible, we will obviously go after that business as well. So there is a mood of optimism and hope but it is still I would say early in the journey.

Balaji

This, you are giving the guidance for the exchange rate of March 31^st and then for June, how do we actually factor this down? What actually, because your business mostly in terms of constant currency………and the conversion piece So what is the message you are giving at the 31st it was 66 or something, now it is 67. Going forward there is a new thing I am seeing that every quarter you are benching that guidance to volatility rather than business operations.

Ranganath D. Mavinakere

So I think the constant currency is the guiding factor. So in the past we have got a lot of feedback saying that look we also need your visibility in reported turns, because as you rightly said constant currency is one number. However, as the currency changes during the course of the quarter and the year, it is important that we indicate to the market, look what we meant by constant currency in March, today how does it translate today, how does it translate in June. So we need to keep the consistency, otherwise investors and media and general people will be very confused. So we wanted from purely transparency standpoint we wanted to indicate, hey we said 11.5% to 13.5%, that translates this much in March basis and this much in June basis. So it is purely from completeness of information and transparency we want to provide.

Balaji

……I don’t know it has been asked, it is a matter of concern, I don’t know what is now happening in France, God forbid, but this Swathi case in Chennai, though it happened somewhere in a station, it’s some kind of a crime and murder and all. In the light of these kind of unfortunate thing, what precautions or measures you are taking to ensure the safety and the protection of women employees? Previous quarter there was an unfortunate incident in Belgium that happened I don’t know, today in Nice it happened, I hope no Indian they said so far. But this regarding Swathi, has she really shared this information and whether the family will be compensated because she was in service, she was boarding a train to go to duty.

Vishal Sikka

No, this is an area that as a CEO you always dread hearing such a news and of course in the case of Belgium when we lost one of our Infoscions, Raghav, it was an extremely troubling time, it took us a long time to ascertain that it was in fact him and that he was there. And then in case of Swathi I found out that same evening that this had happened. We have 200,000 employees around the world and each one of us, our entire strategy, basis of our work is on the empowerment of each one of the employees and the value, the innovation, the creativity, the potential of each of one of these employees. So this is something that as a family it breaks our heart when we see this. We take it extremely seriously, I believe that we are as good as any company in the world when it comes to employee safety and creating a harmonious work environment where people come and feel happy and give their best. In particular, after Swathi's case, we did a lot of introspection, Krish and his team. I would like to ask if Richard is here, perhaps Richard can speak a few words about what are the kinds of things that we have done. With regard to Nice, we are watching that, so far we have no indication that there is any Infoscion involved there, but this is something that obviously we are watching extremely closely.

.……………….

Richard Lobo

This was very sad, I mean something which we did not know. Unfortunately, she had not shared it with anybody else so we found this out much later. So we have worked closely with the government. We are also working with all our employees, women as well as men, to see how we can increase awareness to help them with some amount of self-defense to see if they can learn to go to the police earlier if they face such situation and take precautions. Given that, we have had a lot of cooperation and help from the government of Tamil Nadu and they have helped in solving the crime as early as they could. But it remains that as a sad incident we will do just like we do in any other case to compensate the family, but we can never compensate to the extent of bringing anybody back to life. But we will do what we can and we have a very strong insurance policy which we have had from a long time and we use that. Given that, we really hope that we never have such incidents again.

…………………

The compensation is similar, I don’t want to give the individual amount, because that is between us and the family, but it is not dependent on the years of service or the age profile of the person because life is life so we do not really differentiate.

…………….

We need some documentation, we have to work with the agency but it does not take too much time, within a month or so we will close this.

Moderator

Thank you.

Exhibit 99.4

Common TV Call

COMMON TV CALL

Q1 FY 2017 RESULTS

July 15, 2016

CORPORATE PARTICIPANTs

Vishal Sikka

Chief Executive Officer & Managing Director

Pravin Rao

Chief Operating Officer

Ranganath D Mavinakere

Executive Vice President & Chief Financial Officer

Mohit Joshi

President & Head - Financial Services

Sandeep Dadlani

President & Head – Manufacturing, Retail, CPG and Logistics

Ravi Kumar S.

President & Chief Delivery Officer

PRESS

Rukmini Rao

CNBC TV18

Chandra

ET NOW

Sarjeet

Bloomberg Quint

Adith Charlie

CNBC TV18

Vishal Sikka

We have started Q1 on the back of very strong Q4 as we ended the previous financial year with one of the best Q4s in many years. I am disappointed with the revenue performance that we had in Q1. We grew by 2.2% in reported terms and I had expected that we will do better. This happened because of some unanticipated slowdown in some discretionary parts of Consulting and Package Implementation and also some of the large deals that we had won in the quarters before, were slower to ramp up. So as a result, the revenue performance was not quite what I expected. But at the same time, we had very strong performance in almost all the other metrics and I am quite encouraged by that. In particular in the execution of our strategy, we had strong performance in our delivery organization which has been renewing itself at a frantic pace on the basis of ‘Zero Distance’; collaborative grounds of innovation initiatives like that, on the basis of Design Thinking spreading pervasively; as well as on the basis of Automation where we saved additional 2,000 plus people worth of effort; as well as in large deal wins, we crossed $800 mn in large deal TCV wins; utilization improved. In almost every major metric in our top-5, top-10 and top-25 clients we grew significantly faster than the overall company. What I am most encouraged by is that our new services and our new areas in particular our MANA platform area, our work with Skava, with Edge Products showed significant improvement. That gives us quite a bit of reason to be excited as we look ahead to the future. So given the slowness in performance in particular in Consulting and related areas, where we lost in the neighborhood of about a percent or a little bit more than that that we had expected, we are lowering our guidance for the overall year given the visibility that we have in that part of the business, as well as looking at the overall situation and so forth. But, by and large we continue to be excited about our execution on our strategy in particular both in the renewal of our existing services and especially in the new areas that we are bringing that we are counting on as a way to transform our company to one where Software and Automation becomes an integral part of how services are delivered so that we can continually bring innovation, free people up to be more innovative, as well as continue to lower the cost, and improve the margins of our company on our march towards our 2020 ambition of $ 20 bn revenues, 30% operating margins and $80,000 revenue per employee. So, with that I would love to adopt to some questions.

Rukmini Rao

Rukmini Rao from CNBC TV 18. A couple of questions really: The slowdown that you have reported this quarter, is that a one-off thing and what is the visibility that you have for the rest of the year? Also, in terms of guidance cut that has come, wanted to understand what is driving this? Also, if you can elaborate on the volume growth front, we have seen a muted growth.

Vishal Sikka

So as we look ahead, we are extremely encouraged by the performance in particular in the new services as well as in the renewal of our core services and in the large deal wins. So these three are going to help us continue to deliver good performance over the rest of the year and obviously we will work very hard to get back to the kind of performance and even exceed the performance that we have seen in the recent years. But, the slowdown that we saw in a couple of these areas, since the nature of our business is that in the beginning of the year if you do this, then it takes a bit longer to recover from that, and some other macroeconomic uncertainties that we see. So altogether when we were looking at it given that we did 2.2% in the quarter, which is 1.7% in previous quarter’s constant currency rates, we are lowering our revenue guidance. But we are continuing to be very confident about the direction that we have in both the renewal of all our existing services which have showed a significant momentum as well as in particular in the new areas where our new offerings, for example, MANA, which we just launched it this quarter and we have already seen the first clients purchase it and already started to become successful with it. So that is something that we are extraordinarily happy about.

Chandra

Chandra here from ET Now. I have questions for all three of you, so I will just go one-by-one. Vishal, you sound pretty subdued compared to the optimism that you radiated in the last four quarters. I do not know if it is a sign of things to come. But just want to start by asking you, what has changed so dramatically in three months? Usually, we see companies lowering guidance or going back on their stated guidance perhaps two or three quarters into a financial year. So why did the management have such poor visibility into just one quarter and how you sort of going to assure shareholders that your visibility for the next quarter is not so bad and you will deliver on your stated number? Pravin, you flagged off some of the headwinds mid quarter, you said that there will be some bump-ups volatility because of weakness in Energy and Insurance. Are these the problem verticals? Are there more? Will they continue? Ranga, the deal growth has been very robust, but it is not getting reflected in terms of the revenue growth. So, is pricing again under a lot of pressure and is it only going to get worse because everybody is talking about commoditization of existing businesses, if you can just give us some color on that?

Vishal Sikka

I do not know about being subdued. As I said, I keep a long-term view on things when times are good as well as when times are not so good. I am actually extremely encouraged. I was in Bangalore for several weeks, meeting with the teams and so forth. I am actually quite excited about how our strategy is being embraced in a massive way both in renewal of our existing services and in the new areas that we have launched how we have started to rethink our client engagement with Design Thinking in a very pervasive way which is now reflecting in a consistent large deal win rates. Look, at the beginning of the quarter as we were ending the previous year, we did not anticipate the slowdown in the discretionary parts, in particular in Consulting this was certainly something that we did not expect at the beginning of the quarter and also some of the large deals that we had won in the previous quarter we won close to $750 mn of large deals. So we expected that those projects will ramp up and so forth. That ramp up has been slower than we anticipated. Couple of the very large deals that we won started towards the end of the quarter and so forth. So as we look ahead to the rest of the year, barring the fact that we had a couple of the slowdowns in a couple of parts of our business, all the parts of our strategy are actually functioning, are firing on almost all of the cylinders. So I am really excited and obviously we have to give our guidance to the market based on what we see and looking at the overall situation… Brexit just happened, so far Brexit has had no impact on us, but as we look ahead to the future, clearly, this is something that many banks are worried about and so forth. It creates this opportunity for us in the medium to long-term. But in the near-term, we do not know how this will play out and so forth. So given the visibility, we lowered our guidance by one point which is not that much and obviously our team is committed to working on it and ensuring that we deliver strong performance, but we have to guide the market based on what we see and this is what we see presently.

Pravin Rao

From a vertical perspective, we saw good growth in Retail and CPG about 5.5% growth. We saw very good growth in Telecom, Banking and Manufacturing was good. Banking if you ignore Finacle was 2.5% growth, Insurance actually did well. The two areas where we did not do well – one was expected which was Energy which degrew. Life Sciences was a bit of a surprise for us, we did not anticipate in the beginning of the quarter. But to some extent, Life Sciences was also massively hit by the slowdown in the discretionary spend that Vishal talked about earlier in the Consulting and Package Implementation and Life Sciences bore the brunt of it. So we hope that it is not a cyclical trend on the Life Sciences thing and it should recover over a period of time. Barring Energy, I think right now we feel fairly confident about rest of the industries.

Ranganath D. Mavinakere

I think while there is a lot of focus this quarter on the revenue from the kind of questions, I would also like to highlight the margin part of it. If you look at the operating margin for this quarter, it is at 24.1%. We did reasonably well on margin front. For example, if you look at the Q1, typically we have compensation increases which had an impact of 1.4% and the visa charges is about 0.8%, but we were able to offset all that and maintain the operating margin at the same level as Q1 of last year through cost optimization measures. Many of the cost optimization measures whether it is utilization going up and the subcontractor expenses as a percentage of revenue coming down, some of those factors continue to happen which is positive. You asked the other question of the deal ramp-up. As you know, this quarter also we won little over $ 800 mn. Now typically when we win a deal, roughly about 7.5% to 10% of the TCV converts back to revenue in the first year. That has been the thumb rule. Now, we expected certain deals that we had won in the earlier quarters to quickly ramp up in Q1 and some of them have actually. A couple of surprises were there which had got pushed back to the subsequent quarters. So that is the thing about the conversion. Coming back to your question on pricing, if you look at in constant currency on year-on-year, the pricing drop has been pretty much 0.2%. So the same kind of pricing drop that we saw has not been significantly different from what we saw earlier. As we have said in the past, this pricing drop we need to offset through operation efficiency and productivity improvements in the company, and some of the trajectory that we have seen on utilizations, subcon expenses, onsite employee cost as a percentage of revenue we held at 39.3%, which is same as last year. So some of these things we will offset the price decline. Cash flow generation, it is 33% up as compared to Q1 of last year at little over 450 mn. These are some of the factors which I would like to highlight in addition to the revenue part where the trajectory that we had assumed when we gave is in the right direction.

Sarjeet

Vishal, Hi, this is Sarjeet here from Bloomberg Quint. You gave a constant currency guidance of 10.5% to 12%. Can you elaborate on the dollar guidance because it was around 11.8% to 13.8%, what will be that dollar guidance now? Secondly, a color on the kind of deals which are coming from European Union or the Europe as a continent for you, will there be a hold up with respect to those deals coming in? How is the Banking and Financial vertical doing for you in that sense? Pravin, the attrition rate has gone up to 21%. What is the reason from 17-point something to nearly 21% despite a good wage hike which you did I think still the attrition has gone up? For Ranga, the EBIT margins has come down to 24.1%. As you said, you had given a band of EBIT margin of 24% to 26%. Do you think you will remain at the lower end of the band or you have that present potential to go up to 26% by the end of the year?

Vishal Sikka

The kinds of deals that we have won are all over the world in all geographies and also in Europe. So in terms of the large deal wins, there has not been a slowdown. So we are excited about that. We want to bring in the Renew-New mix to these large deals as we start to execute on these. In terms of the impact of Brexit on Europe and so forth, it is too early to tell. Clearly, some of the banks are in a state of trying to figure out what this means and what are the kinds of changes that they will need to make and what that means for near-term spending and so forth. My sense is that as unfortunate as some of these walls that are getting created because of things like Brexit are, it does create more need for services, more need for integration, more need for ways to interoperate across boundaries and so forth. So, in general, that would mean additional opportunities for revenue growth. But at the same time in the near-term I think that we might see some uncertainty due to this. But it is too early to tell. I want to clearly say that so far we have not seen any impact as a result of Brexit. On the dollar guidance, what we have guided in the beginning of the financial year was 11.5% to 13.5% on FY’16 constant currency and that amounted to 11.8% to 13.8% on March 31. That 11.5% to 13.5% has now become 10.5% to 12% and that correspond the 11.8% to 13.8% that we have guided earlier becomes 10.8% to 12.3% in March 31^st currency.

Ranganath D. Mavinakere

Just to add to the guidance, if you look at when we guided 11.5% to 13.5%, typically you see the Q1 is an important quarter and every 1% drop in Q1 growth rate typically impacts the overall growth rate by about 1%. So at the same time we have taken into account some of those aspects and the visibility we have at this point in time. If post Q2 performance things change, we will again relook at our guidance, if things pan out to be better than we have expected or it is same as what we see today, that assessment we will make later on.

Pravin Rao

On the attrition front, while the attrition has increased as compared to previous quarters, part of it is to do with the seasonality because typically in quarter one we have higher exit due to higher studies and so on. We also track high performers’ attrition and there actually it has come down. Earlier last quarter it was 13.4% and this quarter it has come down to 11.2%, so we are encouraged by that. Obviously we have to watch out but at this stage we are not unduly concerned. And we continue to do many, many things on the employee front, just today we re-launched our ESOP program after a gap of about 13 years. For starters, we are rewarding about 7,500 of our employees from junior to middle management with restricted stock options and we will extend it to middle management, senior leaders and title holders subsequently. We continue to focus on re-skilling employees, we have revamped our leadership development programs, we have launched many initiatives around career mobility, mentoring and so on. So we continue to focus a lot of employee experience and employee engagement. Even though the attrition has increased, we are not really concerned at this stage, obviously we will continue to watch out from here.

Chandra

Margins?

Ranganath D. Mavinakere

Yes. So coming back to the margins, as I said earlier, if you look at Q1 the operating margin of 24.1% is reasonable. Because every Q1 we have two pieces of additional cost as compared to previous quarters which is really the compensation increase which we announced which has impacted the margin by 1.4% and Visa charges 0.8% which we are able to offset through cost optimization measures. The key thing is, to compare it year-on-year basis. For example, Q1 of last year it was 24/0%, now it is 24.1%.

Having said that, there are several cost optimization measures whether it is utilization, sub-con expenses which I have talked about earlier. We have been able to reduce, for example, the sub-contractor expenses which hit a peak of 6.3% in Q3, came down to about 5.6% in Q4, now it is 5.4% in Q1. So the trajectory is right. Likewise, utilization consistently over the last five quarters is above 80%, excluding trainees. We further improved it this quarter. We feel there is scope for improvement there as well. Whereas some of the other levers like the onsite effort mix did not show improvement, we want to work on it. Likewise, on the onsite employee cost is 39.3% which is stable as compared to last year.

Margin is a derivative of two things, one of course is the cost optimization piece which we will continue to do and which are progressing well and it is also part of the revenue trajectory. Now we had given a medium-term revenue guidance of 24 to 26. We stick to that for the medium-term. The revenue trajectory for the balance three quarters, we need to watch. Keeping in view whatever we have given the revenue trajectory, at this point in time we are looking at comfortably 24% to 25% margins in the short-term

Participant

Sir, what is the reason for declined growth in India its declined by 7.6% quarter-on-quarter?

Pravin Rao

In India it is a very small percentage of our business and we typically execute system integration project. Some time some projects end and so that consequently result in decline in revenue. So in India, given the small base and the nature of projects that we execute, we continue to expect volatility quarter-on-quarter. I don’t think we should read too much into the India unit performance.

Adith Charlie

Adith Charlie from CNBC TV18. Just a couple of quick questions. In terms of the projects not ramping up in Q1, could you give us some sense on where are these projects in terms of geographies and verticals? Secondly, I believe that the Mana platform head has moved on, have you identified a replacement? And thirdly, Vishal, your previous employer SAP recently said that Brexit could also be an opportunity in terms of the kind of projects that will come up on the governance side on integration, on new systems. Would you share that optimism?

Vishal Sikka

Yes, I do share that optimism. As I said earlier, it is unfortunate that this Brexit kind of a thing means that more walls get created between organizations, institutions and societies. But nonetheless when there are more walls then there is more opportunity for integration, for interoperability and transparency across the boundaries and so forth. So this would mean more business over time. Nonetheless, in the near-term people are still trying to figure out what this means and so there could be some uncertainty. Mana platform head has not left, Mana platform head is Navin. Samson has left, he was the head of our Cloud and Infrastructure Services. He used to run also the Mana Implementation Services, so he was a long-term employee of Infosys and we wish him well but the Mana team and the Mana platform is very much within the Company.

Adith Charlie

Also on the ramp up.

Vishal Sikka

Yes, the ramp ups were across geographies. One large deal that we had won in Healthcare area in North America started a little bit later than we expected and one in Europe in the financial areas started a little bit later than we expected. As well as, again in the Lifesciences area some of the consulting projects were impacted by unanticipated discretionary spending related areas and so forth. So that is basically what happened.

Chandra

Hi, Chandra again. Just final couple of questions. Vishal, what does this do to your 2020 aspirational target? I know it is an aspirational target, but would you need to reset that in terms of revenues or even on the margins front because a 5% uptick in three years look challenging? And also Ranga, just wanted to clarify again, you are saying the margin band will be 24% to 25% instead of 24% to 26%, if you can just clarify over that, Vishal?

Vishal Sikka

So in terms of the 2020 ambition, this does not do anything to it, that is our aspiration. I believe that is the right direction, right aspiration for the company to have. As I have always said, that is not a goal. If we are able to execute and continue to execute and bring to scale the kinds of changes that we are doing, then this will be a consequence of the work that we do and will look back on it with great success. We are on that trajectory. I think if you look at revenue per employee overall for the company, that has gone up slightly and I think that is a direct result of on one hand the high margin non-linear growth that we see in the new software areas, as well as better utilization and deployment of zero bench for example, which is our initiative to more or less eliminate the notion of a bench in our industry which has now touched close to 100% of the folks on the bench, 99.5% of people on the bench have performed at least one job that is on our zero bench market. I am extraordinarily encouraged that, I think you start to see that in the productivity improvements. For the first time in a few quarters we have been able to decline that trend and revenue per employee has started to go up and our aspiration continues to be $80,000. So the 2020 aspiration is still very much what it is and one 90-day cycle does not hold us back on growing after that. Ranga, on the margins?

Ranganath D. Mavinakere

Yes. So as I said earlier in the margins, our medium-term band continues for the medium term 24% to 26%. If you look at this quarter, we are 24.1% and it is same level as last year's Q1. Q1 always has typical compensation hikes and Visa charges - compensation hike impacted 1.4% and visa also had an impact but we were able to kind of offset through the cost optimization measures that I talked about on the sub-con expenses, on the utilization improvement and the onsite role ratio and so on. Now every year in Q1, this is the impact and during the balance year some of these impacts get recovered. Now if you look at the margin, the question that you asked for the short-term margin guidance, margin is a combination of both revenue trajectory as well as the cost optimization. I believe that cost optimization parameters are moving in the right direction. We will continue to push those peddles and the levers which I talked about, the utilizations, sub-con expenses, onsite effort mix, onsite role ratio and so on. Now given the revenue trajectory that we foresee at this point in time for the balance three quarters, short-term band range for the operating margin is 24% to 25%. Our medium-term we still reiterate 24% to 26%. Short-term, we will see how the Q2 really pans out. So for the short-term we will reiterate 24% to 25%.

Chandra

Short term is three quarters?

Ranganath D. Mavinakere

Short-term is something we have to see how the next couple of quarters pan out.

Vishal Sikka

For FY 17, we are keeping it at 24% to 26%. Thank you.

Mohit Joshi

FSI grew over 2.5% on a reported basis. I think with the exception of some small sub segments like capital markets or like broker dealers, overall demand remains strong. If you look at the large deals as well, a portion of the large deals came from the financial services sector and some of these are very interesting deals. So for instance, we did a large consolidation deal with an asset manager, we did a large deal with an Australian bank to build out their payments platform. So BFSI overall performance in the quarter was strong. Overall, as Vishal mentioned, our story of software plus services, and this is really resonating with our clients. The entire story around artificial intelligence, automation and digital is really resonating with our clients.

On the Brexit thing, I think as both Vishal and Ranga mentioned, it is too early to tell. There are some opportunities coming out of Brexit because there could be restructuring for some clients, there is going to be some remediation work that will need to be done. On the other hand, there are some concerns around what it will mean for the spend, what it will mean for decision making, but really too early to tell.

Participant

My question was with respect to the Brexit question, I know there will be a lot of opportunities opening in companies like Infosys, but will it come after a lull or it will be a constant thing? Because decision making may get deferred until definite agreements coming into play between UK and European Union and till then the decision making will not happen, right. So will there be a dip in that before it actually picks up?

Mohit Joshi

That is absolutely a possibility. But what we are saying is as of now we are not seeing that impact. The other thing to understand is that technology is really such a critical component of banking, it is such a critical component that most of our clients, and indeed most banks across the world are extremely focused on it. To really cut off technology spending would really choke off a huge portion of their strategic ambitions. While it is certainly a possibility, the decision making may slow or some budgets may get cut, equally there is an opportunity for growth on account of the remediation, planning, at least that will need to start if they are looking to move certain businesses out of the UK into other parts of Europe. If they are looking at this as an overall opportunity to renew and refresh the systems, that equally is a possibility.

Rukmini Rao

Hi, this is Rukmini Rao from CNBC TV18. Sandeep, want to understand from you, given the election year in the US, in terms of spending over there, what is it looking like and what are you hearing from clients, especially from the US? And also, Ravi, in terms of the initiatives in the delivery that have been taking place, want to understand from you how have that been paying off currently and also in terms of a long-term growth plan that you have for the delivery, what is that like? Thank you.

Sandeep Dadlani

Thanks, Rukmini. You see, we have seen so many election cycles in America over the years and every time there is an election cycle there is some rhetoric. Sometimes there is a louder rhetoric depending on the candidates in fray, sometime there is a smaller rhetoric. We are not seeing any impact to business because of this. We are obviously watching legislation very carefully but so far we don’t see any impact to business. Now what we are doing proactively to ensure that the business model is sustainable, to ensure sustainable growth is, one is, we are leveraging the latest disruptions in technology to start taking care of the same delivery cycles without having too much onsite presence. Second thing is, ultimately we believe that local hiring in each country we operate in is important, that we are focusing on. And thirdly, we have to work through industry bodies, NASSCOM and the likes to articulate the value of our proposition very well even in these changing times to different economies we operate in. So these three things we can do proactively. The rest is something to wait and watch for. So far we think this is election rhetoric and common sense will prevail always.

Ravi Kumar S.

So coming to the delivery initiatives, you have actually seen the revenue numbers for the quarter which Ranga, Pravin and Vishal spoke about, on core IT services we grew by 3.6% and some of our service lines did extremely well. So the renewal of services has been on a good track. Application Development did around 7%, our Infrastructure Services did 5.9%, Engineering Services did 5%. So we have a very healthy core IT services. Our margins stood up you have seen that 24.1% on the back of high utilization, utilization went up from 80.1% to 80.5%. We have a very good initiative around building utilization you’ve heard about zero bench. We have almost 20,000+ jobs, 40,000 people are applying for it, 180,000 applications. We have stream line that through a set of themes which are monetizable in nature our zero distance initiative. I think it’s one of the most path breaking grass root invocation initiative in any corporate I have ever seen. We roughly have 111,000 applications on it, zero distance templates on it, quite a few number of them on client conversations; 3,000+ prototypes on it. We have started monetizing value out of it, so that has actually taken a very good trajectory. We are seeing extremely good traction on specific campaigns; in mainframe modernization we got massive upswing with our clients. We have got a very good opportunity with the ability to take new services and bundle it with the renewal of old services. In fact, a lot of large contracts we are looking at cost take outs using our AI platform. So that is actually playing very well, we are baking in software into a services in line with our strategy, that is actually moving well. So overall I see a very-very positive trajectory. Our revenue per employee has gone up from $50.7 thousand to $50.9 thousand that’s a good swing upwards. So overall, every service line has created reasonably good renewal of services to create an activeness with our clients to pick it up. So we are seeing good traction on core IT services.

Mohit Joshi

Yes. To supplement what Ravi was saying, I think we have always been known as a very efficient execution machine and thanks to a lot of the efforts that have happened in grass roots innovation led by Vishal and Ravi in terms of ‘Zero Distance’, the feedback from all of our clients was about our ability to come up with new ideas, the levels of engagement and passion that they are seeing from our development teams and the value that we can bring to their businesses; I think is significantly amplified thanks to all the efforts that Vishal and Ravi and the entire delivery organization has been putting in.

Chandra

Hi, Chandra from ET NOW. Question each for Sandeep, Ravi and Mohit. Sandeep, Pravin had some encouraging things to say about how retail has been performing but it has been pretty volatile because one quarter it has done well, one quarter it has not. How much of sentiment Brexit going to have on this going forward? Ravi, you are really driving initiatives as far as ‘Zero Distance’, delivery is concerned and a lot of the margin contribution is now coming from these optimization initiatives because revenue growth has been lagging. So what else will you be really doing to push the pedal on that. And finally, Mohit BFS also, has grown pretty well. What kind of opportunity does Blockchain really present for you going forward, I understand you already have a platform there but opportunities here going forward? Thank you.

Sandeep Dadlani

Thanks, Chandra. So you are right retail has been volatile because as an industry fundamentally, Retail is disrupted by call it ‘Amazonfication’ of retail or the digital disruption. For the last few months, I think a lot of brick-and-mortar retailers have figured out ways to adapt very strongly to their online and omni-channel strategies. May and June US retail sales have been quite solid; while not dramatically growing, they have been very solid. We have focused on driving their omni-channel strategy strongly and driving efficiencies through AI, Big Data, etc., and you can see that Retail &CPG has been the fastest growing vertical quarter this quarter at 5.5%+. We expect that our focus and investments to continue in this area. Now Brexit is interesting for retail. It is too early to tell but if you look at the statistics there are 500 retailers who sell online stuff in the US. 212 of them actually export things to the UK when a UK consumer order something online. Now with Brexit there is a no implication to U.S. exporting to UK per se. However if consumer sentiments suffer in the UK or if there are recessionary reasons that come in the UK then US retail sales start getting effected. We are trying to wait and watch to see how online sales of US retailers will get affected because of Brexit over the coming months.

Exhibit 99.5

Fact Sheet

Exhibit 99.6

Earnings Call 1

EARNINGS CALL 1

Q1 FY 2017 RESULTS

July 15, 2016

CORPORATE PARTICIPANTs

Vishal Sikka

Chief Executive Officer & Managing Director

Pravin Rao

Chief Operating Officer

Ranganath D Mavinakere

Executive Vice President & Chief Financial Officer

Mohit Joshi

President & Head - Financial Services

ANALYSTS

Arvind Ramnani

Pacific Crest

Sandeep Muthangi

IIFL

Anantha Narayan

Credit Suisse

Viju George

JP Morgan

James Friedman

Susquehanna

Ashwin Mehta

Nomura

Pankaj Kapoor

JM Financial

Sagar Rastogi

Ambit Capital

Moderator

Ladies and Gentlemen, Good Day and Welcome to the Infosys Earnings Conference Call. As a reminder all participant 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 ‘*’ then ‘0’ on your touchtone phone. Please note that this conference is being recorded. I would now like to hand the conference over to Sandeep Mahindroo. Thank you and over to you sir.

Sandeep Mahindroo

Hello! Everyone and Welcome to Infosys Earnings Call to Discuss Q1FY17 Results. I am Sandeep from the Investor Relations Team in Bangalore. Joining us today on this call is CEO & M.D. – 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 from the performance of the company by Dr. Sikka and Mr. Ranganath. Subsequently we will open up the call for questions. Please note 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. Sikka.

Vishal Sikka

Thank you so much, Sandeep. Good Morning, Good Afternoon, Everyone and Thanks for joining us today as we report the results of our Q1 of Fiscal ‘17.

To characterize this quarter, we had some unexpected headwinds that resulted in lower than expected revenue growth in this quarter. Yet at the same time we continue to make strong strides in the execution of our strategy. We started this year on the momentum from the fourth quarter of fiscal 2016 which was one of the best fourth quarters we had in recent years. We ended the first quarter of this year with revenue of $2.501 bn or Rs.16,782 crores. This represents a growth of 2.2% in US dollar reported terms, 1.4% in Indian rupee reported terms and 1.7% in quarter-on-quarter constant currency. Volumes grew by 2.2%; operating margin for the quarter was at 24.1%, largely impacted due to typical employee and visa related cost of the first quarter but also supported by improvement in utilization and reduced spending on sub-contractor services.

The softness in top line growth was primarily on account of unanticipated headwinds in discretionary spending in Consulting Services and Package Implementations as well as slower project ramp ups and large deals that we had won in earlier quarters. This resulted in lower revenue from some client engagements especially in our Life Sciences, Energy and Utilities portfolios. The revenue of our India and Finacle units declined slightly as well, all of which impacted our revenue for the quarter.

On a positive side, Telecom reported 11.4% sequential growth, Manufacturing 2.9%, Retail and CPG reported 5.5% growth and Transportation and Logistics reported 9.3% growth, all well above the company’s average for the quarter.

As a result of our focused effort on expanding strategic client relationships, our top-10 clients grew by 3.9% quarter-on-quarter and our top-25 clients grew 4.4% quarter-on-quarter. The number of clients in the 100 mn revenue bracket increased from 14 to 17. We have more work to do in growing the next tier of clients and this will continue to be a focus area for us going forward. We also added 95 new clients during the quarter.

Our headcount stands at 197,050 people as of June 30, 2016. While attrition was higher at 15.8%, the more important metric for us is high performer attrition which improved by more than 200 basis points. Revenue per employee showed a slight uptick from the previous quarter and was $50,897 for the quarter. Of course, we want this to be on a much higher trajectory going forward and this is where Automation and Innovation will play a key role.

Despite a challenging quarter we made many positive strides in the execution of our strategy of ‘Renew’ and ‘New’ working in parallel built on a foundation of culture. This is evident in the growth of renewed traditional services in large deal wins in top account growth, gathering momentum of our new services, the early stages of monetizing key initiatives such as ‘Zero Distance’, the number of FTEs that we have saved due to Automation, the increased level of employee engagement and the overall changing perception of Infosys from a supplier to strategic partner and more. Revenue per employee is also moving in the right direction and various operational efficiencies are starting to yield results.

We won $809 mn of TCV in large deals during the quarter, not including a frame agreement with a large financial services firm. These large deals give us better medium-term predictability though initial revenue from these deals maybe small as projects start to ramp up. Most importantly, these engagements give us access to a broader canvas of client operations that we can apply our software in automation, reduction of complexity and bringing together fragmented knowledge or data or understanding dependency across systems and so forth. This remains an important metric for us.

Let me talk about some of these business elements in a little bit more detail: In renewing our core business, our traditional services of Applications Development and Maintenance, Infrastructure and Cloud Services, Product Engineering Services and Software Testing grew above the company average, aided by Automation and Innovation. Our ‘Zero Distance’ Program to bring innovation to every project now covers more than 95% of all our projects and we are seeing this program move beyond ideas and start to monetize. I believe this initiative has enabled us to change the perception of our company on the ground with our clients, from a supplier to a strategic partner as one of our key clients recently described to me; a partner that strives to be a company of innovators working on behalf of our clients.

Our utilization improved 40 basis points to 80.5% and subcontractor spending reduced to 5.4% of revenue from the highs of earlier quarters. Leveraging our automation Solutions, we saved approximately 2,150 full time equivalent worth of effort across service lines, primarily in Application Maintenance, Package System Maintenance, BPO and Infrastructure Management. We are pushing the pedal on our cost optimization programs and Ranga will provide more color to you on this in his remarks.

‘Zero Bench’, our initiative to engage employees that are between projects on value creating assignments has now covered nearly the entire bench with more than 20,000 jobs created in almost one year since it has been launched. We are now taking this beyond our traditional delivery organization to include Consulting and BPO as well.

In the ‘New’ areas, I am very excited about the launch of Infosys Mana at the end of April as it brings to life something that I have been working on for a very long time; bringing purposeful AI to the Enterprise to help continuously renovate enterprise business processes. Mana is a knowledge-based AI platform capturing the fragmented knowledge in people and in long-lived systems and bringing this together with data and machine learning to drive automation. We are encouraged by the interest shown from clients across industries with a steadily increasing pipeline of opportunities and our first Mana wins and first successes already with Johnson Controls, Syngenta and others, give us great room to be excited.

Infosys Information Platform continues to gain traction. We have more than 227 engagements to-date. Many of them are strategic in nature, including our work with an electronic payment client on transforming their core processing platform and enabling them to take advantage of innovation in Internet of Things, AI, Machine Learning, Big Data and other area. We are already seeing customers benefiting from our investments in next-generation technologies such as Waterline and Trifacta. We have already integrated our IIP with Waterline and have customers such as Harley-Davidson using it. Going forward, we will bring IIP into the Mana portfolio, branding it as Mana for data. I believe this will enable us to tell a much more holistic and simpler story around the sophisticated things that Mana can do for our clients.

Skava, our Digital Cloud Platform had a great quarter. We continue to see the strong applicability of Skava in many industries including Financial Services and Insurance and of course in Retail. Nectar India which launched in India this week is built on the Skava platform.

The EdgeVerve business continued strong momentum with 16 wins and 21 Go Lives for both the Finacle and Edge suite of solutions across markets.

In bringing Design Thinking to our clients, we made significant progress over the last quarter to proactively drive new business transformation programs for our clients. We are working with the Hershey company on key transformational initiatives including their SAP implementation, their sales and digital initiatives as well as on their overall strategy to become an insights-driven company. We have many such examples and this to me is a truly exciting area where we continue to see significant potential.

On investments and ecosystem, in the first quarter, we expanded our relationship with Microsoft in Product Development and in Legacy Modernization, announced a strategic collaboration with Amazon Web Services to help clients transition from Mainframe and Legacy Systems to modern Cloud-based platforms and partnered with Kuka on Industry 4.0. We also announced an investment in Trifacta which develops software for data management and data wrangling.

On our culture of learning and education, we have now trained nearly 100,000 people in Design Thinking in our effort to empower every Infoscions to be an innovator and to help our client find the most important problems for them to solve. We continue to revamp our curriculum, introducing new ways of learning, leveraging our Infosys Learning Platform and other tools. Employee engagement continues to be high and this week we are rolling out the first phase of our equity program enabling employees to share in the successes and in the ownership of our performance.

Beyond our businesses and ourselves, we continue to bring a great passion and care to the communities around us. In India, the Infosys Foundation among various programs provided several grant this quarter towards education and healthcare. Some of these include grants to the Indian Institute of Science Education and Research in Pune and Bangalore Life Sciences cluster. In the United States, the Infosys Foundation USA continued its mission of providing equal access to computer science and maker education to underrepresented communities. Revangelize the Maker Movement, the foundation launch “@WhyIMake Social Campaign” at the June Nation of Makers Event at the White House as well as announced the winners of the spring cycle of the Infy Maker Award. At Crossroad 2016, the Foundation’s Annual Thought Leadership Conference, the foundation announced CS for all community giving program in partnership with the National Science Foundation and DonorsChoose.org.

In closing, as I said earlier, we had a challenging first quarter. At the same time, our long-term vision is stronger and more relevant than ever, as we see the promising signs of significant value that is possible with the software-led transformation of the services industry in these early successes along. Because of this, I take a balanced view on our overall performance in this quarter.

On Brexit, there are challenges for a company such as Infosys in this uncertainty and yet there is a great opportunity for technology and services. Technology has a key role to play to work across the walled gardens, to be the unifier through a time of disruption. It is still too early for our clients or for us to specifically determine the impact of Brexit other than possibly the cautiousness that comes with the short-term uncertainty. Clients are obviously cautious in embarking on new programs at this time, especially in Financial Services.

Given the weaker than expected Q1 revenue growth, our current visibility for Q2 and the remainder of the year and somewhat broader uncertainty and caution in the macro environment, we are lowering our full year fiscal ’17 growth estimate to 10.5% to 12% in constant currency. We had guided in April that our revenue growth in fiscal ’17 would be in the range of 11.5% to 13.5% in constant currency terms. As always, depending on our performance and the outlook at the end of Q2, we will provide you an update during the earnings report in October of this year.

Let me now hand it over to Ranga for his comments before we take your questions. Thank you.

Ranganath D Mavinakere

Thank you, Vishal. Hello Everyone. This is Ranga here.

Let me first start with Q1 revenue performance. Our revenues in Q1 were Rs.16,782 crores, this is a growth of 1.4% sequentially in rupee terms. On year-on-year basis when compared to Q1’16 our Q1’17 revenues have grown by 16.9% in rupee terms. In dollar terms, revenues grew sequentially in Q1 by 2.2% on reported currency basis and 1.7% in constant currency basis. On yearly basis, when compared to Q1’16, revenues have grown 10.9% in reported dollar terms and 12.1% in constant currency terms. Volumes grew by 2.2% during the quarter as compared to 2.4% in Q4 of FY16. On quarter-to-quarter basis onsite volume grew by 3.3% and offshore volume grew by 1.8%. Realization for the quarter declined 0.3% on reported basis and 0.7% in constant currency. However, on a year-on-year basis, realization declined in constant currency terms by 0.2%.

As Vishal mentioned earlier, we continue to focus on optimizing our operating efficiency levers. These levers are utilization, subcontractor cost as a percentage of revenue, onsite mix per cent and onsite employee cost as a percentage of revenue. Let me take a couple of moments to talk about their trajectory during this quarter. Let me first talk about utilization. Our utilization excluding trainees improved during the quarter and it increased by 40 basis points to 80.5%. Similarly, utilization including trainees went up to 76.5%. As you would recall, over the last five quarters, utilization excluding trainees has been consistently above 80% and we will continue to focus on further improvement.

Our subcontracting expenses as a percentage of revenue improved further during the quarter. You would recall that it was at a high level of 6.3% of revenue in Q3, it reduced to 5.6% in Q4 due to cost optimization measures and during the quarter it has further reduced to 5.4%. While some of the subcontractor cost is inevitable to address the business needs, we are further strengthening our talent planning to optimize the need for subcontractors.

Our onsite mix increased to 29.9% during the quarter and we need to focus on bringing this down in a gradual manner and are putting our efforts in this direction. Onsite employee cost as a percentage of revenue is 39.3%, primarily on account of compensation increase during the quarter. As you know in Q1, we announce annual compensation increase and we also have visa cost. On a comparable basis to Q1FY’16, employee cost as a percentage of revenue has remained flat at 39.2%. Typically, in Q1, margins are impacted on account of visa and compensation as I mentioned earlier.

The operating margin for the quarter was 24.1%, a decrease of 140 basis points during the quarter. Operating margin in Q4 was 25.5%. Margins for the quarter decreased 140 basis points due to wage hikes and additional 80 basis points on account of visa cost. This was partially offset by 80 basis points due to additional cost optimization measures and variable pay reduction.

Our emphasis on healthy operating cash flow generation continued in the quarter. Operating cash flow generation was very strong during the quarter. We generated operating cash flow of Rs.3,039 crores in Q1 as compared to Rs.2,202 crores in last year same quarter. Operating cash flow was up 31% as compared to Q1 of last year. Our cash and cash equivalents as of June 30 was Rs.33,212 crores as compared to Rs.34,468 crores last quarter. This is primarily on account of the dividend payment of Rs.3,256 crores during the quarter. Our collections were healthy during the quarter and DSO for the quarter was 66-days as compared to 68-days in Q1 of last year.

Coming to Employee Metrics, at the group level we added 13,268 gross employees with a net addition of 3,006 employees. The quarterly annualized attrition on a standalone basis has increased to 15.8% from 12.6% last quarter. At the group level the annualized attrition is 21% as compared to 17.3% last quarter.

Q1 saw huge volatility in currency especially in the backdrop of Brexit. We manage to navigate the volatility effectively. As you know, on a period end basis, USD appreciated by 6.6% against British Pound 2.1% against Euro and 3.1% against Australian Dollar. Our hedge position as of June 30th was $976 mn. We expect near-term volatility in cross-currency and rupee and we continue to manage the same through appropriate hedges.

Yield on cash balances was 7.8% this quarter as compared to 8% last quarter which is a reflection of softening interest rates in India. We expect the yield in FY’17 to be approximately 7.5% as compared to 8.6% in FY’16.

The Effective Tax Rate for the quarter was 28.4%. Full year Effective Tax Rate projection is expected to be around 29%. Our net margins during the quarter were 20.5% as compared to 21.1% in Q1’16. Our EPS for the quarter was Rs.15.03 as compared to Rs.13.26 in Q1’16. EPS grew 13.4% on year-on-year basis and was down 4.5% on a sequential basis.

During the quarter, number of $100 mn plus clients increased to 17 from 14 clients in the previous quarter. Active clients now stands at 1,126 as compared to 1,092 last quarter.

Coming to Segment Performance: Amongst verticals, FSI grew 2.2%, Manufacturing grew 2.9%, RCL grew 1%, Energy, Communications and Services grew by 3.1%.

In geographical terms, North America grew by 2.5%, Europe by 0.6%, Rest of the World 6.9% and India the revenues declined 7.6% during the quarter on a very small base.

Coming to Margins, we have always said that in the medium-term, our margin expectation is in the range of 24% to 26%. If you look at this quarter we had operating margin of 24.1%, almost at the same level of Q1 of last year. During the quarter we were able to offset to some extent the effect of compensation increase and visa cost through cost optimization. As I mentioned earlier, some of our cost efficiency levers are improving and we will continue to further optimize them in the coming quarters. Therefore, we continue to expect our medium-term margin range to be 24% to 26%.

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. We take the first question from the line of Arvind Ramnani from Pacific Crest. Please go ahead.

Arvind Ramnani

Hi. I just wanted to get a better sense of how the mechanics of your pricing decline works and if you can quantify your pricing decline over the past one year and over the past two years?

Ranganath D Mavinakere

What is comparable is really the year-on-year basis because quarter-to-quarter there will be volatility because of certain project shifts and how the milestones move between quarters. Year-on-year basis, on a constant currency basis it was 0.2% and in reported basis it is 1.3%. If we step back and look at FY’16, year-on-year over FY’15 the pricing decline was about 1.1% in constant currency. We do not see significant change from the current levels. While we continue to see pricing pressure in the commoditized business, we have always said that we need to offset these pricing declines through better internal cost efficiency and productivity metrics. So to answer your question, on year-on-year basis for the Q1 is 0.2%.

Arvind Ramnani

In terms of mechanics of this, are these basically rate card decline or is it some of the function mix, because what I am trying to get to you is like if we are seeing currency decline of a particular magnitude, you have a lot of ongoing projects, most of your projects are ongoing where pricing is already set. So if we are seeing a pricing decline of X per cent, can we infer that the kind of new project sign-ups, renewal are actually being priced at a magnitude more than just X per cent?

Pravin Rao

This is Pravin here. We do not find too much pressure on the rate card per se for existing clients. Clients are not coming back in between and asking for any rate card cuts or anything. But almost every deal of any reasonable size is bid out in a competitive way and there clients are typically expecting productivity improvements baked into the deal. So that is where we are finding pricing pressures and this is primarily in the legacy side or the IT and operations side of the business like ADM, Infrastructure Management, IVS and so on. So most of the pricing decline is reflective of the deals that we win during the year where we have to go aggressive, there is a clear expectation. Right now we have lot of levers on the operational side to try to mitigate that but in the long-term the efforts that we are putting in terms of automation and other things will help mitigate this. But that will take some time to kick in. In the interim, our pricing particularly in the business and IT operations side of the business will continue to be under pressure.

Arvind Ramnani

This quarter, whether a few specific client project ramps that caused the softness or do you think it was an overall situation across, what I am trying to get to is there is going to be more like a quarter shift kind of current quarter will probably be a lot more robust because of some project delays?

Vishal Sikka

It was generally in the Life Sciences area and generally in Consulting where we saw the big unanticipated decline, mostly in the discretionary areas. Some projects that were ending, some projects were slower to ramp up than what we expected from the large deals that we had won. It just happened to be the case that Life Sciences took a brunt of that. Some other areas like Finacle and India had small declines as well but the big part of it was in the Consulting and Package Implementation area where we saw a decline, we did not anticipate. Other than that, as you can see everything else had good performance. Going forward obviously we will keep a very close watch on this and focus on these two areas in particular among others. However, given the overall situation that we see, we have lowered the guidance by one point. But I want to reiterate that I continue to be confident and I am quite excited about the adoption that we have seen simultaneously in the new areas and also in the success in our overall delivery organization, our core machine, our core engine based on its renewal that we have already seen the signs of better operations.

Arvind Ramnani

Do you expect any impact from Brexit is a positive or negative in the next couple of quarters?

Vishal Sikka

Brexit is an example of some of these walls starting to show up across institutions which is unfortunate but actually it is an opportunity for a company like us over time. Why it is an opportunity? Because whenever walled gardens like this start to show up, then there is more need for transparency across the walls, there is more need for interoperability and integration and things of this nature, regulatory processes and so forth. I do see that assuming that this happens that over time this will create opportunities for us. But in the near-term, as you have seen there is a tremendous kind of sense of volatility and uncertainly in many industries, especially in the Financial Services. And so we are being cautious about it, but I do see this as an opportunity overtime. Mohit, you want to add something to that?

Mohit Joshi

Yes, Vishal. So just to basically reiterate what Vishal was saying, we have not seen any immediate impact. There is a degree of uncertainty and volatility, but in the long run with the restructuring, with the work that will need to be done around remediation of the platforms, this could be a long-term opportunity. I think some banks may also see this an opportunity to refresh their overall system landscape and that is a potential long-term opportunity as well. In short, we are not seeing any immediate impact, there is uncertainty and volatility and in the long run we hope that this will give us an opportunity. As technology becomes really central to most banks, we don’t feel that Brexit or no Brexit banks can afford to slowdown or delay their digital or their industrialization agendas.

Arvind Ramnani

To the press you mentioned 24% to 25% kind of margins in the short-term, is that for Q2 or for all of fiscal 2017?

Ranganath D Mavinakere

Let me again reiterate, our margin guidance for the year is 24% to 26%, there is absolutely no change in that. What we have seen is 24.1% for the current quarter is same level as last year and we are able to offset to some extent the comp increase and visa hike impact in the margins through cost optimization levers. As I said, several cost optimization levers, whether it is sub-con expenses as a percentage of revenue or utilization are moving in the right direction. We reiterate our margin guidance for the year at 24% to 26%.

Moderator

We take the next question from the line of Sandeep Muthangi from IIFL. Please go ahead.

Sandeep Muthangi

I have a question on the guidance. Vishal, you mentioned that you are seeing the guidance has been cut a bit, but even at the lower end it is still pretty strong and it still implies a significant acceleration from what you have delivered in the quarter. I just want to get some sense in to what is leading to this confidence on growth accelerating? Is it some of these deals you are saying ramping up going forward or things got delayed in the quarter which will pickup in the next couple of quarters, what is the confidence behind the strength and the guidance?

Vishal Sikka

There are three parts to that, Sandeep. The first one is that, as you know we have won several large deals in the last few quarters. Last quarter we were at $ 757 mn, this quarter we have just crossed $ 800 mn. So these will ramp up. The ramp up in the previous quarter has been little bit slower than we expected, but we do expect that these projects will start to ramp up and many of these are already ramping up so that is one dimension to that. One very exciting dimension which is under Ravi's leadership, our delivery organization is actually firing on all cylinders and that is led by bringing Design Thinking into our delivery organization in a massive way. We just crossed 100,000 people who have been trained on Design Thinking. It is based on ‘Zero Distance’ which is our initiative to bring innovation into every project. And basically under Ravi's leadership we have close to 100% of the project with ‘Zero Distance’, we have had more than 5,000 conversations with clients around ‘Zero Distance’ innovation ideas. The third part is the benefits that we are bringing because of automation. So you already see the signs of this in the improved utilization and so forth. So that is the second thing that gives me confidence. And the third one is that the new services, which perhaps is the most exciting, that the new services, the new seeds that we have planted are starting to grow dramatically under Sandeep Dadlani's leadership. This is something that we are really excited about, we just launched Mana on the 27^th of April and it has already seen not only wins with clients but also the early successes with clients and in our press release today we had a couple of quotes from major companies who have already started to see some benefits from this. Skava had a great quarter. Edge continues to roll and even though Finacle declined compared to the previous quarter, actually Finacle also had a good quarter. So I am really excited about those three things together.

Now Consulting and Packaged Services had this decline and BPO did not grow as well as we expected and the India business had a slight decline. So there are a few pockets, you can think of those as pot holes which are giving us this caution. But generally the big cylinders in the company both on the Renew side and New side are firing very well. So that gives us the confidence as we look ahead to the rest of the year.

Sandeep Muthangi

And just one more question, on the messaging or communication part of it. Vishal, I guess all of us know that the uncertainty in the business is increasing a bit and things like Brexit only add to the uncertainty. And analysts and investors are used to looking at IT results through a microscope. So these sort of results where there is a gap between what analysts expect and what the delivery is do tend to result in exaggerated stock price movements. Is there something that Infosys can do in terms of addressing special issues like this, do you want to look at some point of time reinstating the guidance, the quarterly guidance or some sort of a mid-quarter communication just to set expectation if you notice something that is way off from what the street is expecting.

Vishal Sikka

I think that a 90-day cycle and to govern a 200,000 employee company on a 90-day cycle, is hard enough and require micromanaging things in us that anymore precision and fine tuning on that will basically mean that we have no time left for longer term kind of thing. So I feel comfortable and plus it would take away a lot of your excitement in being able to forecasting on a quarterly basis by trying to interpolate and extrapolate things. By the way, if you do want our IIP platform has some extraordinary capabilities for doing those kinds of forecasting and so forth. I also want to take this opportunity to say that myself, Pravin and Ranga, we take this guidance matter very-very seriously and it is not around setting expectation or managing expectations, or ‘under promise and over deliver’ and all these types of things. Basically, our visibility on what we see in the business and we share that with you as we see. We take this responsibility very seriously and I am not in favor of making this anymore fine tuned than it already is. Ranga, perhaps you have something to add?

Ranganath D Mavinakere

Yes, Vishal. Yes, I fully endorse that. I think coming back to the main question of guidance. Infosys has always believed that the asymmetry of information between what the management knows and the investors know has to be minimal. We do not want to set wrong expectations either ways. When we see certain things positive we want to be positive, and when we don’t see certain things positive we don’t want to give a wrong expectation, even if it means that it hurts us in the short-term. I guess that is core principle that we work on. Consistently the Company always comes every quarter before announcing the results, re-evaluates the visibility that it has. If you recollect, last year in Q3, even with a flat growth we would have met the guidance. We didn’t increase the guidance in Q3 primarily because at that point in time we generally felt that we had certain challenges for Q3 and Q4. But we have overcome those challenges, but at the same time we want to be very upfront with the market in every quarter cycle.

Then coming to your second question, why not mid-quarter? Because we have a very unique month-to-month progression of revenues and certain deals and certain progressions have couple of linkages and there are always surprises on a quarter-to-quarter basis. We have consistently said that we will not confuse the market or give a direction which is kind of selective and so on. We have a very disciplined approach. At every quarter just before the announcement of results, we have an honest assessment of visibility and based on what we have done in the quarter we will continue to do that on that basis. At this point in time, as Vishal said, I think yearly guidance is something that we would stick to.

Moderator

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

Anantha Narayan

So I had a couple of questions. Vishal, firstly, if you look at this weaker than expected 1Q and you have laid out the reasons for that, but how much of it would you attribute to macro factors and how much of it would you attribute to maybe the client mix or the business mix of Infosys?

Vishal Sikka

Anantha, it is all us in this case. It is the client situation coupled with our execution.

Anantha Narayan

And my second question was on the attrition numbers. After a few quarters where we saw some pretty attractive improvements in attrition, things have slipped again. So what are the reasons you would attribute to that and what steps are you taking as well?

Vishal Sikka

I think the 15.8% is higher than we wanted to see. It is generally in line with the Q1 attrition numbers that we used to see in the past. There are couple of factors to that. First of all it is higher because at this time of the year the kids go to school and they get admitted to colleges and so forth. So there is a higher attribution due to that. And then also the variable payout and stuff like this happens. We want to continue our focus on that and bring it down further. Also, many of our employees are targets of our competition and that continues to always be an interesting thing where many of our competitors setup camp right outside our campuses to hire our folks with massive pay raises and so forth. But the thing that we have really focused on is through some unique talent management approaches, that are in some sense pioneering ones, where have put in a dedicated focus on preventing the attrition of the higher performers. We launched that towards the middle of the quarter and we were able to actually bring down the high performer attrition by 2 percentage points which is huge. It was something like 13.5% in the quarter before and it came down to 11.5% now and we will continue to really focus on that. So it is a little bit worse than we expected, generally this quarter is like this but this is not something that we are concerned about because in particular we have brought down the high performer attribution significantly. Pravin, you want to add anything to that?

Pravin Rao

I think you have communicated. If you look at over the last five years, on an average quarter one attrition has always been about 5% more than the Q4 and this is a consistent thing. Obviously we will watch this very closely but at this stage and given what we have seen in the high performance attrition which we have come down significantly. We are confident and we will continue to focus on employee engagement activities. In addition, today after a gap of 13 years we announced employee stock option plan. We have identified about 7,500 people, we are giving them RSUs. These are primarily junior to mid-management people. And we will follow through in subsequent weeks and announce a similar plan for senior management and title holders. Apart from that, we continue to focus on many of the employment engagement activities, focusing on training, re-skilling, leadership development and so on. So while it is higher than what we saw earlier, at this stage we are not too concerned and we will continue to focus on improving employee experience and employee engagement activities.

Moderator

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

Viju George

Vishal, I just wanted to probably probe a little bit on your comment on discretionary spending is a bit softer than expected. Apologize if you have answered this, but why do you think this has happened? Presumably it happened towards the end of the quarter and are you building a fair revival of this discretionary spend that is coming back for your guidance to hold?

Vishal Sikka

I think that in order for our revised guidance to hold, we have taken into account the pattern that we have seen. So I am not so concerned about it. I don’t see that as a big structural kind of a thing. In Q1 in particular what happened was that there were a couple of large deals that we had won in the quarters before, that we had expected that they would ramp up already and in most of the quarter we would get a revenue impact of that which did not happen. One started much slower than we expected and then the other one started towards the end of the quarter and there were other examples like that. In particular, in the Consulting area we saw some projects ending and us not anticipating not being able to renew those and extend those projects and so forth and both of this happen to be in the Lifesciences area. So that is basically what has happened. In Consulting we are working to fix to the extent that the issues were on our side. I am confident that we will be able to fix these. Rajesh Murthy has taken responsibility for our Consulting organization and we are confident that we will be able to get this going. And to the extent that the slow ramp up in the project was reflective of any underlying thing in those clients or in those industries, we have already accounted for that in our revised guidance.

Viju George

Sure. And one more follow-on, if I may please. It is interesting to see that you have called out some weakness in Consulting and Package Implementation which I presume are more onsite centric, your onsite mix has actually moved up in this quarter. Why has that happened even though the impression is that the business is a little bit more onsite-centric? Thank you.

Vishal Sikka

Yes, those two are more onsite heavy obviously but the onsite increase that you are seeing is a result of momentum from prior work that was happening, that continues to move forward. So there is of course a huge mass of movement that happens across the organization that impacts for this. Ranga?

Ranganath D Mavinakere

Just to add, as you know the first stage of ramp up of project typically happens onsite, to some extent that also we saw in this quarter.

Viju George

Sure. And a third and last question is, are you foreseeing any eventuality from Brexit in terms of are you provided for any allowance of that, any buffers of that in your revised guidance or should anything happen on that front then again we may have to sort of look at this again. Is that some possibility down the road?

Vishal Sikka

Viju, it is too early to say what impact it will have. I mean we have seen some banks decline significantly in their stock price and so forth and it is even a lot of the consultants are making a lot of money trying to explain to people what the nuances of these agreements are and all of that. So far it is too early to tell what is happening as a result of Brexit. Other than that, the longer term more of these walled gardens will end up creating opportunities for us. My sense is that in one more quarter we will have a better idea if there are any near term consequences of this. So that is what we have.

Moderator

Thank you. We have the next question from the line of James Friedman from Susquehanna. Please go ahead.

James Friedman

I wanted to ask generally about the waterfall from book-to-bill. What are some of the factors that influence how bookings get recognized in revenue?

Ranganath D Mavinakere

I assume that you are asking about how much of revenue conversion happens from this TCV. So if you look at, there are three factors I would say. One is of course the nature of the deal for example, between Infrastructure Management deal typically there are transition of efforts in the first phase, from the transition we start shadow support, then it comes to steady state and there are very well established accounting principles that we need to apply from when we can really translate that into revenue. While the project ramp ups can happen in terms of number of people being on the ground, etc., the actual translation to revenue typically depends upon the nature of transmission, nature of shadow support and what are some of the milestones that individual projects have. So Infrastructure Management, the ramp up is slow though it is probably more initially it will be much smaller and it is more back-ended and whereas for something like Application Development and Maintenance project it is more uniform. On a thumb rule basis, typically if you look at the TCV of every $100 mn that we have in a basket of services, roughly about 7.5% to 10% accrues in the first year. So that has been our thumb rule, but it can change the mix of the services can really change. The third factor is really the ramp up part of it. So suppose a particular project is awarded with a TCV of X mn, then sometimes we expect that to start with a quarter gap of one and sometimes the ramp-ups happen much faster. Many times the current vendors have to move out and there is a transition period. So these three factors principally impact the revenue conversion from TCV. But as a thumb rule, given the current basket of services, in the first year typically it is 7.5% to 10%.

James Friedman

And I just had a housekeeping question if you happen to have it there. I see from the fact sheet the de-growth in Health and Lifesciences, do you have to have that in constant currency?

Ranganath D Mavinakere

Yes, Lifesciences constant currency is (-16%) quarter-to-quarter.

Moderator

Thank you. Our next question is from the line of Ashwin Mehta from Nomura. Please go ahead.

Ashwin Mehta

I just wanted to get a sense in terms of the seasonality of growth that you are likely to see this year for achievement of your guidance. Would the seasonality be similar in terms of 2Q being stronger and possibly in the 4% to 6% range, or you would require some heavy lifting at the backend or back half of the year for your guidance to be met?

Vishal Sikka

Ashwin, we have assumed the typical seasonality. But at the same time that is impacted by the ramp up in the large deals that we have signed recently. In the new services there is basically no seasonality. So in the Software and both Software licenses and software subscriptions in the new areas like Mana, Skava and our Edge products, there is no seasonality. So there will be some impact as a result of that, but generally obviously our Delivery and Consulting, these continue to have the usual seasonality.

Ashwin Mehta

And I had just one book-keeping question, in terms of ESOP charges is there any estimate that you can give in terms of what is the ESOP charge going to be in terms of amount this year or as a percentage of sales what is that you are looking at going forward?

Ranganath D Mavinakere

Yes, we have already factored in that amount in our 24% to 26% range.

Moderator

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

Pankaj Kapoor

Sorry to persist, but I just had a couple of questions on the guidance. First is the adjustment for the first quarter lower revenues, is that the only thing which has gone into the adjustment in the guidance or are you factoring some incremental headwinds as well?

Vishal Sikka

Pankaj, that is primarily the factor. We look through the root causes of the lower than expected revenue performance and as a result of that we have a lower guidance. If you generally do the math you see that roughly 20 mn or so decline in one particular business, if you project that out over four quarters that amounts to more or less 1%. And a couple of other dimensions as well. Like I said earlier, it was not only this particular area in Consulting but also the slower ramp down and slightly lower performance in India and so forth which does not have that big an impact, these are small, but if you put it altogether that basically brings us to lowering this thing by 1%.

Pankaj Kapoor

So the slower ramp-up that mentioned in the couple of client situation, so are we back on track there or things are still slow?

Vishal Sikka

It is too early to tell. We have done many large deals in the last few quarters. It is too early to tell whether it is limited to these two or three clients or if there is more going on here. In one case it is just a progressive slow beginning and so the curve itself is slower than we expected. And in the other one it started later than we expected, but it is going at the normal speed. So whether it is limited to these two or not, we will watch but we don’t expect that there is any massive change because of this.

Pankaj Kapoor

Obviously there have been a few weeks since Brexit, in their last intervening few weeks have you seen any delayed decision making, at least in the UK or European clients? Although it is too early to call the impact of that, but anything in the decision making cycle if you have seen, especially on the large deals, any impact?

Vishal Sikka

Mohit, can you answer?

Mohit Joshi

Sure. So look, I don’t think it is anything significant. I just want to add that most of our clients themselves were caught by surprise, they were caught by surprise by the Brexit decision and they are scrambling to figure out next steps. In one client we have seen certain delays, but I would not make a trend out of it as Vishal and Ranga mentioned, it is really too early to tell because most of the banks are absorbing the news and waiting for the announcement on next steps before they start making their strategic decisions.

Pankaj Kapoor

So is it fair to assume that decision making as of now in the uncertainty is basically on hold till people figure out how things are going to play out? Is it a fair assumption?

Mohit Joshi

No, I don’t think we are saying that. I think what we are saying is as of now we have not seen any change in decision making patterns with one exception that I mentioned. As of now things have continued as before.

Pankaj Kapoor

And lastly, Ranga, if you can share the involuntary attrition number, is there a significant jump in that as well, if you can share the numbers quarter-on-quarter that would be helpful. Thanks.

Ranganath D Mavinakere

There is no significant change in the involuntary numbers. It is in the normal course as has been in the earlier quarters.

Moderator

Thank you. We have the next question from the line of Sagar Rastogi from Ambit Capital. Please go ahead.

Sagar Rastogi

Going back to attrition, did you do something different in terms of wage hikes and variable payouts this quarter as compared to the previous year? For example, was there a lot of dispersion between top performers and average performers? Also, you have postponed wage hikes for senior staff by a quarter, do you think that also had an impact on the attrition number?

Pravin Rao

See, we continue to focus on increasing the differentiation between top performers and bottom performers. So I don’t think the higher attribution numbers you can attribute to what you said. As I said earlier, if you look back over the last five years, on an average the attrition in quarter one is normally 5% more than what we see in quarter four. Particularly if you look at high performance attrition, it has actually come down dramatically from 13.4% to 11.2%. So I don’t think you should give too much meaning to attrition numbers at this stage. Obviously, I mean we will continue to focus on all our employee engagement initiatives and I talked about the stock option plans that we rolled out, announced today. So we are doing many-many things to make sure that we keep the employee motivated and the focus is increasingly more on higher differentiation so that we can reward high performance much more than people who are not performing well.

Sagar Rastogi

So you are right that typically June is seasonally stronger, but at least from the current levels it appears to be a bit of larger negative surprise. For example, in the March 2015 quarter to June 2015 quarter if you see, the increase in annualized attrition numbers was only 100 basis points which is why…

Pravin Rao

Last year was an exception, but if you look back over the last five years, on an average it is 5%.

Moderator

Thank you. Ladies and Gentlemen, that was the last question for today. I would now like to hand over the floor to Mr. Sandeep Mahindroo for his closing comments. Over to you, sir.

Sandeep Mahindroo

Thanks everyone for spending time with us. We look forward to talking to you again. Have a good day.

Moderator

Thank you very much, sir. Ladies and Gentlemen, with this we conclude today's conference call. Thank you for joining us and you may now disconnect your lines.

Exhibit 99.7

Earnings Call 2

EARNINGS CALL 2

Q1 FY 2017 RESULTS

July 15, 2016

CORPORATE PARTICIPANTs

Vishal Sikka

Chief Executive Officer & Managing Director

Pravin Rao

Chief Operating Officer

Ranganath D Mavinakere

Chief Financial Officer

Manish Tandon

Executive Vice President & Head-Healthcare, Insurance & Life Sciences and Hi-tech

Mohit Joshi

President & Head - Financial Services

Anantha Radhakrishnan

Chief Executive Officer and Managing Director - Infosys BPO

Krishnamurthy Shankar

Executive Vice President & Group Head – Human Resource Development

ANALYSTS

Edward Caso

Wells Cargo

Keith Bachman

Bank of Montreal

Rod Bourgeois

DeepDive Equity

Moshe Katri

Williams Trading

Bryan Bergin

Cowen

Ankur Rudra

CLSA

Joseph Foresi

Cantor

Moderator

Ladies and Gentlemen, Good Day and Welcome to the Infosys Earnings Conference Call. As a reminder all participant 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 ‘*’ then ‘0’ on your touchtone telephone. Please note that this conference is being recorded. I would now like to hand the conference over to Sandeep Mahindroo. Thank you and over to you.

Sandeep Mahindroo

Thanks, Karuna. Hello Everyone and Welcome to Infosys Earnings Call to Discuss Q1 FY17 Earnings Release. I am Sandeep from the Investor Relations Team. Joining us today on this call is CEO & M.D. – Dr. Vishal Sikka; COO – Mr. Pravin Rao; CFO – Mr. M.D. Ranganath along with other members of the senior management team.

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

Vishal Sikka

Thank you, Sandeep. Good Afternoon, Good Evening and Good Morning everyone and thanks for joining us today as we report the results of Q1 Fiscal ‘17.

To characterize the quarter, we had some unexpected headwinds that resulted in lower-than-expected revenue growth in Q1 and at the same time we continue to make strong strides in the execution of our strategy. We started this year on the momentum from the fourth quarter of fiscal ‘16 which was one of the best fourth quarters that we had in recent years. We ended the first quarter of fiscal ’17 with revenue of $2.501 bn or Rs. 16,782 crores. This represents a growth of 2.2% in US dollar reported terms, 1.4% in INR reported terms and 1.7% in quarter-on-quarter constant currency; volumes grew by 2.2%. Operating margin for the quarter was at 24.1%, largely impacted due to typical employee and visa related cost of the first quarter but also supported by improvement in utilization and reduced spending in subcontractor services among other measures that we took.

The softness in top line growth was primarily on account of unanticipated headwinds in discretionary spending in Consulting Services and in Package Implementations as well as slower project ramp ups and some large deals that we had won in earlier quarters. This resulted in lower revenue from some client engagements, especially in our Life Sciences, Energy and Utilities portfolios. The revenue of our India and Finacle units declined slightly as well; all of which impacted our revenue for the quarter.

On a positive side, Telecom reported 11.4% sequential growth, Manufacturing at 2.9%, Retail and CPG reported 5.5% growth and Transportation and Logistics reported 9.3% sequential growth, all well above the company’s average for the quarter.

As a result of our focused efforts on expanding strategic client relationships, our top-10 clients grew by 3.9% on quarter-on-quarter and top-25 clients grew 4.4% quarter-on-quarter. The number of clients in the $100 mn revenue bracket increased from 14 to 17. We have more work to do in growing the next tier of clients and this will be a focus area for us going forward. We have also added 95 new clients for the quarter.

Our headcount stands at 197,050 people as of June 30, 2016. While attrition was higher at 15.8%, the more important metric for us is high performer attrition, which improved by more than 200 basis points. Revenue per employee showed a slight uptick from the previous quarter and was $50,897 for the quarter. Of course, we want this to be on a much higher trajectory going forward and this is where Automation and Innovation will continue to play a key role.

Despite the challenges this quarter we made many positive strides in the execution of our strategy of ‘Renew’ and ‘New’ built on a culture of education and learning. This is evident in the growth of our renewed traditional services, large deal wins, top account growth, the gathering momentum of our new services, the early stages of monetizing key initiatives such as ‘Zero Distance’, the number of FTEs that we have saved due to Automation, the increased level of employee engagement, the overall changing perception of Infosys from a supplier to a strategic partner and more. Revenue per employee is moving in the right direction and various operational efficiencies are starting to yield results.

We won $809 mn of TCV in large deals during the quarter, not including a large framed agreement that we did with a large financial services firm. These large deals give us better medium-term predictability, though initial revenue from these deals maybe small as projects ramp up. Most importantly, these engagements give us access to a broader canvas of client operations that we can apply our software in Automation, in reduction of complexity, bringing together fragmented knowledge or data or understanding dependencies across systems. This remains an important metric for us.

Let me now talk about some of these in a little bit more detail: In renewing our core services, our traditional services of Applications Development and Maintenance, Infrastructure and Cloud Services, Product Engineering Services and Software Testing grew above the company average, aided by Automation and Innovation. Our Zero Distance Program to bring innovation to every project now covers more than 95% of all our projects and we are seeing this program move beyond ideas and start to monetize. I believe this initiative has enabled us to change the perception of Infosys on the ground with our clients from a supplier to a strategic partner as one of our key clients recently described to me; a partner that is striving to be a company of innovators.

Our utilization improved 40 basis points to 80.5% and subcontractor spending reduced to 5.4% of revenue from the highs of earlier quarters. Leveraging our Automation Solutions, we saved approximately 2,150 people worth of effort across service lines, primarily in Application Maintenance, Package System Maintenance, BPO and Infrastructure Management. We are pushing the pedal on our cost optimization programs and Ranga will provide more color on this in his remarks.

Zero Bench - our initiative to engage employees that are between projects on value creating assignments has now covered nearly the entire bench with more than 20,000 jobs created in almost one year since it was launched. We are now taking this beyond our traditional delivery organization also to include Consulting and BPO as well.

In the ‘New’ areas, I am very excited about the launch of Infosys Mana at the end of April, as it brings to life something that I have been working on for a very long time, bringing purposeful AI to the enterprise to continuously renovate enterprise business processes. Mana is a knowledge-based AI platform capturing the fragmented knowledge in people and in long-lived systems and bringing this together with Data and Machine Learning to drive Automation. We are encouraged by the interest shown from clients across industries with a steadily increasing pipeline of opportunities and our first Mana wins and first success is already with Johnson Controls, Syngenta and others.

Infosys Information Platform continues to gain traction with more than 227 engagements to-date. Many of them strategic in nature, including our work with an electronic payments client on transforming their core processing platform and enabling them to take advantage of innovation in Internet of Things, AI, Machine Learning, Big Data and more. We are already seeing customers benefiting from our investments in next-generation technologies such as Waterline and Trifacta. We have already integrated IIP with Waterline and have customers such as Harley-Davidson using it. Going forward, we are bringing IIP into the Mana portfolio, branded as Mana for data. I believe this will enable us to tell a much more holistic and yet simpler story around the sophisticated things that Mana can do for our clients.

Skava, our Digital Cloud Platform, had a great quarter. We continue to see strong applicability in many industries of Skava, including Financial Services and Insurance and of course in Retail. Nectar India which launched in India earlier this week is built on the Skava platform.

Our EdgeVerve business continued strong momentum with 16 wins and 21 Go Lives for both the Finacle and Edge suite of solutions across markets.

In bringing Design Thinking to our clients, we made significant progress over the last quarter to proactively drive new business transformation programs for our clients. We are working with the Hershey company on key transformational initiatives including their SAP implementation, their sales and digital initiatives as well as their overall strategy to becoming an insights-driven company. We have many such examples and this to me is a truly exciting area where we continue to see significant potential.

On Investments and Ecosystem, in the first quarter we expanded our relationship with Microsoft in Product Development and Legacy Modernization. We announced a strategic collaboration with Amazon Web Services to help clients transition from Mainframe and Legacy Systems to a modern Cloud-based platforms and partnered with Kuka on Industry 4.0. We also announced an investment in Trifacta which develops Software for Data Management and Data Wrangling.

Through our culture of learning and education, we have now trained nearly 100,000 people in Design Thinking in our effort to empower every Infoscion to be an innovator and to help our clients find the most important problems to solve together with us. We continue to revamp our curriculum, introducing new ways of learning, leveraging out Infosys Learning platform and other tools.

Employee engagement continues to be high. We are bringing new ways of doing talent management and bringing that to bear in retaining and growing and developing top talent. This week we are rolling out the first phase of our equity program enabling our employees to share in the successes and in the ownership of our performance.

Beyond our business and ourselves, we continue to bring a great passion and care to the communities around us. In India, the Infosys Foundation among various programs provided several grants this quarter towards Education and Healthcare. Some of these include grants include to the Indian Institute of Science Education and Research in Pune and Bangalore Life Sciences Cluster. In the US, the Infosys Foundation USA continued its mission of providing equal access to Computer Science and Maker Education to underrepresented communities. To evangelize the Maker Movement, the foundation launched the “@WhyIMake Social Campaign” at the June Nation of Makers Event at the White House as well as announced the winners of the spring cycle of the Infy Maker Awards. At Crossroad 2016, the Foundation’s Annual Thought Leadership Conference, the Foundation announced its CS for all community giving program in partnership with the National Science Foundation and DonorsChoose.org.

In closing, as I said earlier, we had some unexpected headwinds that resulted in lower-than-expected revenue growth in Q1. At the same time, our long-term vision is stronger and more relevant than ever as we see the promising signs of significant value that is possible with the software-led transformation of the services industry in these early successes that we have seen. Because of this, I take a balanced view of the quarter.

On Brexit, there are challenges for a company such as Infosys in this uncertainty and yet there is a great opportunity for technology and services in areas such as integration, interoperability and transparency that an event such as Brexit creates. Technology has a key role to play in this to work across the walled gardens to be a unifier through a time of disruption. It is still too early for our clients or for us to specifically determine the impact of Brexit other than possibly the cautiousness that comes with the short-term uncertainty. Clients are obviously cautious in embarking on new programs at this time especially in Financial Services.

Given the weaker-than-expected Q1, our current visibility for Q2 and somewhat broader uncertainty and caution in macro environment, we are lowering our full year fiscal ’17 growth estimate to 10.5% to 12% in constant currency. We had guided in April that our revenue growth in fiscal ’17 would be in the range of 11.5% to 13.5% in FY’16 constant currency terms. As always, depending on our performance and the outlook at the end of Q2, we will provide you an update during the earnings report in October of 2016.

Let me now hand it over to Ranga for his comments before we take your questions. Thank you.

Ranganath D. Mavinakere

Thank you, Vishal. Hello everyone. This is Ranga here.

Let me first start with Q1 revenue performance. Our revenues in Q1 were $2,501 mn, this is a growth of 2.2% on reported basis and 1.7% in constant currency basis. On year-on-year basis when compared to Q1 of ’16, revenues have grown 10.9% in dollar terms and 12.1% in constant currency terms.

Volumes grew 2.2% during the quarter as compared to 2.4% in Q4 of ’16. On quarter-to-quarter basis, onsite volume grew 3.3% and offshore volume grew 1.8%. Realization for the quarter declined by 0.3% on reported basis and 0.7% in constant currency basis as compared to previous quarter. However, on a year-on-year basis, realization declined 0.2% in constant currency basis and 1.3% in reported basis.

Let me first talk about utilization. Our utilization excluding trainees increased by 40 basis points to 80.5%. Similarly, utilization including trainees also went up to 76.5%. Over the last five quarters, utilization excluding trainees has been consistently above 80% and we will continue to focus further improvement and we do believe that there is scope for improvement.

On subcontracting expenses as a percentage of revenue, it improved further. You would recall that it was at a higher level of 6.3% of revenue in Q3 of last year, it reduced to 5.6% in Q4 and during this quarter it has further reduced to 5.4%. While some of the subcontractor cost is inevitable to address the business needs, we are further strengthening our talent planning to optimize the need for subcontractors.

Our onsite mix increased to 29.9% during the quarter and we need to focus on bringing this down in a gradual manner and we are working on it.

Onsite employee cost as a percentage of revenue is at 39.3%, primarily on account of compensation increase during the quarter. As you know in Q1, we announced annual compensation increase and we also have visa cost. On a comparable basis to Q1 FY’16, onsite employee cost as a percentage of revenue is flat at 39.2%.

Typically, in Q1, margins are impacted on account of visa cost and compensation hike. Our operating margin for the quarter was 24.1%, decrease of 140 basis points during the quarter as compared to previous quarter’s 25.5%. Margin for the quarter decreased as compared to previous quarter; 140 basis points due to wage hike and additional 80 basis points on account of visa cost. However, we were able to offset 80 basis points increase due to cost optimization measures that we ticked during the quarter as planned and reduction of variable pay.

Our emphasis on healthy operating cash flow generation continued this quarter. Operating cash flow generation was strong and we generated $452 mn of operating cash in Q1 compared to $345 mn last year same quarter. Operating cash flow was up 31% as compared to Q1 of last year.

Our cash and cash equivalents as of June 30th were $4.918 bn as compared to $5.202 bn last quarter. The decline in cash balance during the quarter was primarily due to dividend payment of $481 mn.

Our collections were healthy and DSO for the quarter was 66-days as compared to 68-days in Q1 of last year.

Coming to employee metrics, at the group level we added 13,268 gross employees during the quarter with a net addition of 3,006 employees. Our quarterly annualized attrition on a standalone basis has increased to 15.8% from 12.6% last quarter. At the group level annualized attrition was at 21.0% as against 17.3% last quarter.

As you know Q1 saw huge volatility in currency especially in the backdrop of Brexit. We managed to navigate the volatility effectively. On a period to period basis, USD appreciated 6.6% against GBP, 2.1% against Euro and 3.1% against Australian Dollar. Our hedge position as of June 30th was $976 mn. We expect some near-term volatility in cross-currency and rupee and we continue to manage the same through appropriate hedges.

Yield on cash balances was 7.8% in Q1’17 as compared to 8% in Q4’16 which is a reflection of softening interest rates in India. We expect yield for FY’17 to be approximately 7.5% as compared to 8.6% in FY’16.

Coming to taxes, the Effective Tax Rate for the quarter was 28.4%. We expect full year Effective Tax Rate for FY’17 to be around 29%.

Our net margins during the quarter were at 20.4% as compared to 21.1% in Q1’16. Our EPS for the quarter was $0.22 compared to $0.21 in Q1’16. So EPS grew 7.4% on year-on-year basis and was down 4.1% on a sequential basis.

Coming to clients and business segments, during the quarter, number of $100 mn plus clients increased for the first time after several quarters to 17 from 14 clients in previous quarter. Active clients now stands at 1,126 as compared to 1,092 previous quarter.

Coming to segment performance for Q1’17, amongst verticals, Financial Services and Insurance grew by 2.2%, Manufacturing 2.9%, RCL 1%, and ECS grew by 3.1%. In geographical terms, North America grew 2.5%, Europe by 0.6%, Rest of the World by 6.9% and India declined by 7.6% during the quarter on a smaller base.

Coming to margins, we have always said that in the medium-term, our margin expectation is in the range of 24% to 26%. If you look at this quarter we had operating margin of 24.1%, almost at the same level of Q1 of last year. During the quarter, we were able to offset to some extent the effect of compensation increase and visa cost through cost optimization measures through several levers that I mentioned earlier during this call. As I mentioned earlier, some of these cost efficiency levers are improving and we will continue to further optimize these levers and we do have opportunity. Therefore, we continue to expect our medium-term margin range to be 24% to 26%.

With that we will open the floor for Questions.

Moderator

Thank you very much. Ladies and Gentlemen, we will now begin the Question-and-Answer Session. We have first question from the line of Edward Caso from Wells Fargo. Please go ahead.

Edward Caso

Could you talk a little bit about the Insurance vertical? We have been hearing some sort of more cautious commentary across the industry in recent quarters, presumably now that they are more challenged with the extended period of low interest rates. Any thoughts there?

Manish Tandon

Hi, this is Manish. I run the Insurance sector. The spend in the sector is challenged overall. What is happening is that with the negative bond yields etc., treasury is not producing enough returns and there is overall cut that we see. With that said, we have had a couple of very good wins in the last quarter in the Insurance space and we remain bullish about sector at least for us.

Edward Caso

I just wanted to press a little bit on clarity on the margin guidance and what medium or intermediate term means. Can you help us out here on your press call earlier today you suggested in the short run the margins more in the 24-25% range. Now, is short term this year or shorter than that and given the seasonality of your business with your margins, just trying to help us clarify that?

Ranganath D. Mavinakere

We continue to reiterate FY’17 operating margin will be in the range of 24-26%, there is absolutely no change in that range.

Moderator

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

Keith Bachman

I would like to start with following up from Ed’s question. As you think about the trajectory of margins over the course of the year, you called out a few things, for instance, visa cost, I understand wage hikes impact this quarter, but how do you anticipate visa cost continuing to be a headwind and more broadly I should say, why do margins go back up? What are the forces that are going to get relieved that causes margins to go back up?

Ranganath D. Mavinakere

The margins dropping in Q1 of every financial year is seasonal. As you know, we announce our compensation hikes every year in Q1. Typically, the margin impact on account of compensation hikes is around 1.5%, and this quarter we had 1.4%. As you know, Q1 is also the time when we file for our H1 visas in the US and every Q1 of every year, we have this cost and this year also we had 0.8% impact on account of that. So over Q4, decline of margin by 140 basis points in Q1 of the year is very normal. It happens every year. That is nothing unusual about it. If you look at last year, for example, we were at 24% and this year we are at 24.1% on Q1-on-Q1. So typically the margin dips in first quarter because of these two reasons and afterwards it get normalized during the course of the quarter. So that is one trajectory while we re-iterate 24% to 26%. The second part is coming to the levers. As I mentioned three quarters earlier, there were couple of cost efficiency levers, which we had not fully optimized. First, we identified the subcontractor expenses as a percentage of revenue. It used to be 6.3% in Q3 of last year. We said we will bring it down and it came down to 5.6% of revenue in Q4 and further it came to 5.4% in Q1. While some of the subcontractor expense is required to meet business needs in short-term, at the same time, we do believe that some of that is also because of lack of better talent planning and some inefficiencies in that area. So that is what we are focusing on. We want to eradicate those inefficiencies. Likewise, in utilization, for example, for the last couple of quarters utilization has been consistently above 80% and we do believe that there is scope for couple of points improvement because in some of the quarters, we have had in the range of 82%, 83%. So that is second lever. Likewise, onsite employee cost. So, these are the levers that we believe we have at our disposal and we want to optimize them.

Keith Bachman

My follow-up question then would I want to talk more broadly about Financial Services. You talked a little bit about the Insurance side and there is some pressure there. But I wanted to hear some comments that you would be willing to share with us surrounding the broader Financial Services, in particular, the investment banking broker-dealer areas. I know in your previous comments you had said that it is a little early to think about the UK situation. How are you thinking about those? If you think about scenarios, the UK situation, what that might do to the investment bank or your broker-dealer world in particular and how that may either help or hurt in terms of the broader Financial sector spending in IT over the next couple of quarters?

Mohit Joshi

I think in Financial Services, we had a good quarter. If you strip out the results of Finacle, we grew at about 2.5%. You are right. In the broker-dealer segment, we did see some headwinds, so that was lower than we expected. But we are hopeful that it will come back in the second half of the year. Overall, our software plus services story, I think is really resonating well with our clients and the whole industry is in the middle of a transformation. There is a huge amount of interest in technology, what it can do from the perspective of industrialization and reducing cost-to-income ratios and from the perspective of what Digital Transformation can do for the industry. We also see that the pressure on regulatory mandates and the compliance pressure still continues specially in Europe with PSD2 and MiFID II. So we think that the spend in the industry should stay stable. From our perspective we see a strong pipeline for Q2. Even in Q1, if you read through our commentary, of the 10 large deal wins that we had, that is deals over $50 mn, 3 were in the Financial Services business. This included consolidation deals but it also included deals where we led or where we are leading a payment transformation initiative for a bank in Australia. So overall I think we had a good quarter with stable to strong volume growth.

On the Brexit question, I think this is something where like the rest of the industry and like the Financial Services business, we are in a wait-and-watch mode. There has been a lot of concern and there has been a lot of volatility. But with the exception of one example we have not really seen slowdowns or change in client behaviors. I think it could be a positive for us as clients look to restructure their businesses or as they look to move work forces to Continental Europe. There will also be a spend on account of new regulatory and compliance mandates which will mean system changes. But on the other hand, it could also mean a slowdown in decision-making and a cut in spending. So we are waiting to see the impact of that. Finally, just to echo what Manish said, I think more than Brexit we are concerned about the interest rate scenarios. So the fact that interest rate hikes are unlikely or are going to be slower in the second half of the year. So we are waiting to see what impact that has on spend.

Moderator

Thank you. The next question is from the line of Rod Bourgeois from DeepDive Equity Research. Please go ahead.

Rod Bourgeois

A question about your European business. If Brexit only really affected decision-making at one client which is what I think was said on the earlier conference call, I would like to understand what explains the relative growth weakness in your European geography, I would specifically like to know if Europe’s growth would have been weak in the quarter even in absence of Brexit?

Vishal Sikka

Rod, this was unrelated to Brexit. The one example I think Mohit gave in the earlier call was pertaining to slight slowdown that we saw which was not actually significant in relation to Brexit. However, the slowdown in Europe that we saw is related to the two things that we talked about earlier – the slowdown in the discretionary spending relating to Consulting Services and Package Systems Implementations, as well as one of the large deals that we had won a couple of quarters ago that we had expected to ramp up at a faster rate than it did over the course of the quarter, both examples were in Europe. So that is the reason that we saw the slowdown in Europe. It was not related to Brexit.

Rod Bourgeois

So on that note, let us talk for a second about the Consulting and Package Implementation business. Quarter-to-quarter swings in a given segment can definitely be misleading I know because of lumpiness of deals. But in that Consulting market you generally are not seeing a lot of lumpiness, you have got a lot of project-based deals there. It was interesting yesterday to hear TCS essentially report much improved consulting growth but I think you are today citing Consulting as a key reason for your revenue weakness and you had a sequential decline in that business. So in that context, can you characterize the latest demand trend in the overall Consulting and System Integration market? I would like to know, to what extent the recent weakness in your business there was due to the market or was it more due to specific challenges on Infosys-specific deals or maybe you encountered some execution setbacks in that business? In other words, can you dimension the market impact in the Consulting business versus the Infosys-specific impact in your Consulting segment in its latest growth rate?

Vishal Sikka

So I think that it is almost entirely us. It is our situation with clients and our execution. I would say almost all of it or a vast majority of it has nothing to do with the opportunities for Consulting in the broader market. It is all us and this is something that we are going to put a very strong focus on. Rajesh is now running our Consulting business. I do believe that there is actually a need in the tier above our traditional services to offer the next-generation strategic services and program management and high-end capabilities around complex programs whether these are around package systems or not. I think that is something that we continue to be very excited about. On the very top end around strategy and design-oriented engagements, as I mentioned in my commentary earlier, we actually have seen significant amount of success, but roughly 3,000 persons Consulting organization that we have, that we have integrated over the course of the last year, between the old Lodestone company and the Infosys Management Consulting team, that just ran into some challenges that were unanticipated over the course of the previous quarter and those are all largely due to our own execution and this is something that we are going to put a very strong focus on and fix.

Rod Bourgeois

How long does it realistically take to improve your position in that Consulting business? I am assuming that is a multi-quarter effort, it is not something that turns overnight, right?

Vishal Sikka

Yes, I do not think it will turn overnight. But now that we have a strong focus on it, I am confident that it is going to do better. But you are right, achieving a dramatic turnaround here is going to take couple or three quarters, but this is something that there is no shortage of opportunities there. So I see no reason why we cannot get it straight.

Rod Bourgeois

September is your seasonally strongest quarter. Do you see some improvement in that Consulting business occurring in your September quarter?

Vishal Sikka

Generally, September quarter is a good one in Consulting. In our case because of European holiday schedule and so forth, it has some impact. But we have factored all of that into the numbers that we have guided on.

Moderator

Thank you. We have next question from the line of Moshe Katri from Williams Trading. Please go ahead.

Moshe Katri

Vishal, I think it will be helpful if you provide some more color on some of that spending pause that you mentioned that you have seen in the Consulting universe? Just to clarity, should we assume that this actually continues for the second half of this calendar year based on what you are seeing out there?

Vishal Sikka

Hey, Moshe, first of all, congratulations man. Generally speaking, I do not read too much into that. If you look at the guidance and the underlying situation, the basic pillars of our strategy are both working extremely well - the renewal of our core business and the main delivery engine has worked very well. We delivered about 3.4% growth in the first quarter under Ravi’s leadership and this was clearly something that were the combination of Zero Distance like innovative initiatives on grassroots innovation, this is bringing Design Thinking in a massive way and also on the power of Automation, has all clicked in. Then even more encouragingly, in parallel to that, the new areas around Mana, Skava and Edge did extremely well. Where we had the challenges were in these small pockets in particular in Consulting and Package Implementation as well as in India and Finacle. Finacle was $4 mn decline, so I do not read much into that at all because we had a very good quarter before that. That is basically what has dragged down the performance in the quarter. Being the first quarter of the year and being the sequential quarter-on-quarter nature of the business, we are having to revise the guidance downwards by a point. So that is basically what has gone wrong.

The reason for that in the Consulting world as I mentioned, in answer to the previous quarter was primarily our own execution in some projects that ended that we did not anticipate not being renewed and exits in some cases and so forth. So that is something that we are determined to fix and I am not reading too much into the spending pattern and so forth as a broad thing in that context. As I mentioned with regard to Brexit and so forth, this is still too early to tell whether that has an impact in these areas or not, but the impact that I have talked about so far is not related to any of them.

Moshe Katri

Just a follow-up, are you restudying your hiring plans for the fiscal year because of what you have seen so far?

Vishal Sikka

No, we are hiring in all ways. Actually as I have said, our longer-term, the 2020 ambitions are around $80,000 revenue per employee which means that the rate at which we hire will tend to decrease and nonetheless it is still even at $20 bn and $80,000 revenue per employee that is 250,000 employees which is a little bit more than 50,000 employees more than where we are at now. So this would not slow down dramatically, it will slow down to some degree because of the benefits of Automation and productivity improvements kicking in. So that is kind of what we are doing.

Also, on attrition, yes, the attrition number went up to 15.8% or something thereabouts. But if you look at the high performance attrition, we put in a very specific talent management approach earlier this quarter. As a result of that we were able to decrease the high performance attrition by 2 percentage points from 13.2% in the previous quarter to 11.2%.

Moderator

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

Bryan Bergin

On BPO, I think I heard some slowness you mentioned earlier. Can you talk about what verticals or service lines is driving that?

Anantha Radhakrishnan

Yes, in BPO, we are adapting the ‘Renew’ and ‘New’ strategy. The renewal of the existing BPO is through automation and providing higher productivity. We are using people and software to create greater value for our customers. The new part of the BPO is what is very exciting. We are trying to reshape client experience or stakeholder experience of our clients. We are using Mana in ways very unique to try and create more value for our clients and clearly the operating model has to move from the headcount-based FTE models to percentage of value-based outcome models. That is the journey which we are undertaking, it is very exciting.

Bryan Bergin

Broadly, on your M&A pipeline, can you just remind us again your core areas and I guess areas of focus?

Vishal Sikka

The M&A priority continues to be about buying next-generation companies that help us accelerate our ambitions with new technologies. If you look at Skava, it is a great example of the kind of acquisitions that we wish to do or Panaya, the other company that we have bought. So, we are selectively looking for opportunities in new and emerging areas where differentiated technology solutions, AI-based Solutions, collaboration and design solutions can help us advance our mission and that continues to be the case.

Moderator

Thank you. The next question is from the line of Ankur Rudra from CLSA. Please go ahead.

Ankur Rudra

Just on the performance for this quarter, Vishal, it has probably been the second or the third quarter we have seen significant volatility on one side or the other compared to where we were expecting. Last time this happened I think you had indicated that you were taking in some steps in terms of getting internal early warning systems and improving execution. Maybe if you can elaborate what steps you have been taken to prevent internal surprises especially in terms of planning?

Vishal Sikka

The last several quarters, we have been consistently positive in how the changes have happened. This particular time, some of the surprises hit us relatively late, the combination of the Consulting that I mentioned and the slower ramp ups on the projects and so forth. Ultimately, there are bunch of things around simplifying our processes and building internal systems to be much more responsive in real-time. But to a certain degree, there is an inherent volatility in our business where ramp downs are immediate and ramp ups take a while. So that asymmetry creates a challenge in being able to forecast more accurately. Now, we are adding these new dimensions of the software business which have their own dimension of volatility. So, a combination of all these things has got to this point. The solution is very simple to do for us to ensure that we do for us what we do for clients also which is to build much more fine-grained real-time systems that can give us a more granular sense of where we are.

Ankur Rudra

Would a wider guidance range help given the greater volatility now?

Vishal Sikka

Ranga is saying we have reduced the guidance and yes, that is true. I think that if we were to increase the guidance range that would help stay within the band, but it would kind of miss the point as well at the same time. I think the better solution to this is to lower the volatility, to have smaller gaps and so forth. Part of it is the fact that we are transforming a business in quite a fundamental way. So, no matter how sophisticated our systems are, there will continue to be surprises that we get hit by. But your point is absolutely something that Pravin and I have been working on which is ultimately to simplify our processes. So Ranga and his team already have put in place earlier this quarter a brand new process that we call ‘OTR’ which is similar to our Order to Cash process and we will continue to make process improvements and bring ourselves and do real-time just as we do for our clients.

Ankur Rudra

Just one more question on the revised guidance. I realize that you have baked in the impact you have seen in the quarter. But I am not entirely sure I understood whether you baked in potential further caution beyond what you saw in this quarter. So, have you been overly cautious in terms of potential impact of weaker macro environment and Brexit beyond the loss of revenues this quarter?

Vishal Sikka

No, this is a visibility that we have as of today. We have not baked in the impact of Brexit because we do not know what the impact of Brexit is and where this thing is going to go. Our philosophy in the two years that I have been here as well as in times before, has always been to give our market a very accurate sense of what we see. It is not about this whole business of 'under promise and over deliver and managing expectations and stuff like that. Ranga put it very nicely earlier that we want to always minimize the asymmetry of information between what management sees and what the market sees. That is our always our endeavor and our commitment to you. This guidance is basically what we see at the present time. If this changes, we will of course let you know.

Ankur Rudra

Just last question. Maybe Ranga you can help me. You mentioned subcontracting cost is something you have worked on very closely in the past and maybe that will be a lever for the rest of the year as well. If you can help me understand, typically what is the transformation of reduction in subcontracting cost, because I am assuming when you reduce subcontracted labor, there is an adjustment in terms of rise in full-time employee cost, maybe an impact on utilization as well. So, net of that typically, how much is let us say 100 basis points decline in subcontracting actually transmit into margins?

Ranganath D. Mavinakere

Yes, I think that is a good question. One is looking at the subcontracted cost as a percentage of revenue. That has to be seen along with whether the total employee cost as a percentage of revenue is also showing the similar trend line. For example, if the subcontractor expenses by 1%, if the total employee cost goes up by 1% as a percentage of revenue, absolutely, no impact on P&L. However, if you look at this quarter and if you look at the last three quarters, both have moved in tandem. For example, in subcontractor expenses as a percentage of revenue, three quarters ago in Q3 was 6.3% and this quarter it is 5.4%. Now, if you look at the onsite employee cost as a percentage of revenue compared to the last year, it is flat; it is 39.3% and this quarter it is 39.2%.

Now, coming back to your second part of the question, which is how does it play out. Yes, there are two types of subcontractor reductions that we are looking at. One, is that subcontractor required at all in that position; can we replace with another employee? In that case, differential savings would really be what we pay to the subcontractor and what we pay to the employee. Typically, subcontractors are hired for niche skill sets and we have seen even up to 30% to 35% of cost differential between employee salary cost and subcontractor expenses. That is one. The second category is we do look at certain opportunities. Do we really need subcontractors beyond a certain period and can they really reduce a total number of headcount in that project, if it is a fixed priced project for example. So it is a combination of these three factors. But, we took a decision that we need to really optimize. While we all agree that subcontractors are required for meeting certain business needs, we looked at internal inefficiency if any in talent planning and timely availability of our own talent pool requirement. So we are able to reduce that.

Moderator

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

Joseph Foresi

I was wondering, just starting first with attrition, what part was voluntary versus non-voluntary, and do you expect that to directionally improve, and was any of that related to the project delays in the quarter?

Krishnamurthy Shankar

So, the involuntary attrition is about 1%, and that has been the average over the last couple of quarters. So, it has not kind of spiked up.

Joseph Foresi

Obviously directionally, you expect it to improve and none of the attrition was related to the projects themselves that were delayed, right?

Krishnamurthy Shankar

Normally this quarter, because this is a time many of these people go out and do higher education and all. So, attrition always goes up in this quarter. We have already seen it come down in June. So I think in the next quarter we think it will come down.

Joseph Foresi

You have done a very good job on the operational innovations. But, from a transformational standpoint I am wondering can you give us any color on the progress you are making on the Digital front? I know a lot of players have given percentages of revenues and you said a number of times that “Hey, all of what we do is Digital.” But, maybe you could either give us some examples or help us understand how you are competing in that particular arena?

Vishal Sikka

First of all, that term has been quite deeply abused in the industry. I know I have joked about it in the past, but over the course of this last quarter, I looked into some of these Digital projects in more detail. It turns out that a lot of things that are traditional ADM and so forth are characterized as Digital. Having said that, there are two very fundamental, very deeply true ways in which there is a digital revolution going on around us. You have to go back to Nicholas Negroponte’s book on ‘Being Digital’ to get inspiration from that.

The first one is areas where end-customer touch points where businesses are digitizing the previously physical end-user touch points. This applies to Retail but also to consumer facing aspects of any business. The second area is where the Internet of Things where the digital technology overlaying on to the physical world, whether in machinery or in the buildings or institutions, machines and so forth, creates new digital opportunities and experiences as a counterpart to the physical world. So, if you look at Digital as these two, our Digital practice that Ravi has, as well as our Skava business that we have run, applies very much to the first part of it, and our Engineering Services work and our Mana platform applies to the second part of it.

I do not see any particular value in breaking up this revenue and putting it into some category and then compete with somebody who calls a salesforce.com implementation as digital and so on. But, I can tell you about the things that we consider Digital. All the work that we do in bringing Skava as a new mobile or kiosk environment or virtual reality or chat environment bringing a new interface to engage with clients, that is all digital. The work that we do in creating new digital experiences, new ways of understanding product engagement and consumer behavior, those are in our Digital practice, which has been growing quite significantly under the leadership of the new leader that Ravi has hired.

Then on the Internet of Things physical world side, if you look at the work that we have done with Mana, the Internet of Things, Industry 4.0 work, we also did a partnership with Kuka over the course of this quarter in working on Industry 4.0. Our Engineering Services grew significantly in the last quarter, its one of our fastest growing practices. That is again to a large degree based on overlaying the digital world onto the mechanized world, whether it is in turbines or engines or airplanes or chillers or machines like that. I think that if we see enough need from all of you to characterize this particular revenue, then I would be happy to separate that out and call that out. But I am unwilling to call a mobile front-end on a 10-year old website as a Digital revenue.

Joseph Foresi

Just one last question from me on the pricing front; I know pricing has always been competitive. I am asking sort of a very hypothetical question here. But, should we see a downtick or some sort of disruption due to Brexit, is that your chief concern that pricing could get hit fairly hard because the business and the majority of the business is more commoditized at this point or should we be concerned more about discretionary spending? I am just trying to get a sense of sort of if you are prepared to go into this or if there was a downtick which I know you are not seeing yet, where you would start to see it, and how severe you think you might be able to get?

Pravin Rao

On the pricing front in the last few years on the business and IT operations side, it has always been under pressure and it is not from a rate card perspective but more from a deal perspective. Whenever a deal comes for renewal, clients are clearly expecting 30% to 40% reduction in what they have spent so that they can repurpose the spend on the discretionary side. Whatever pressure we have on pricing, we are trying to counter through operational metrics as well as through Automation and that is already factored in. But if Brexit happens, then, I think the impact will be mostly on the discretionary side. Because of the uncertainties, some of the projects in short-term may get pushed out or there may be pricing pressure on the discretionary side as well. But again, at this stage, it is hypothetical. We have to see how it will evolve.

Moderator

Thank you. Ladies and Gentlemen, this was the last question for today. I would now like to handover the floor back to Mr. Sandeep Mahindroo for his closing comments. Over to you.

Sandeep Mahindroo

We would like to thank everyone for joining us on this call and we look forward to talking to you again over the course of the quarter. Thank you

Moderator

Thank you very much. Ladies and Gentlemen, on behalf of Infosys that concludes this conference call. Thank you for joining us. 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 ended June 30, 2016, prepared in compliance with the Indian Accounting Standard(Ind-AS)

(in crore, except per equity share data)

Particulars	Quarter ended June 30,	Quarter ended March 31,	Quarter ended June 30,	Year ended March 31,
	2016	2016	2015	2016
	Audited	Audited	Audited	Audited
Revenue from operations	16,782	16,550	14,354	62,441
Other Income, net	753	772	756	3,123
Total Income	17,535	17,322	15,110	65,564
Expenses
Employee benefit expenses	9,282	9,024	8,053	34,406
Deferred consideration pertaining to acquisition	–	–	60	149
Cost of technical sub-contractors	917	925	750	3,531
Travel expenses	740	595	556	2,263
Cost of software packages and others	276	330	312	1,274
Communication expenses	120	117	112	449
Consultancy and professional charges	175	213	169	779
Depreciation and amortization expenses	400	419	313	1,459
Other expenses	825	707	582	2,511
Total Expenses	12,735	12,330	10,907	46,821
Profit Before Minority Interest / Share In Net Profit / (Loss) Of Associate	4,800	4,992	4,203	18,743
Share in net profit/(loss) of associate	(2)	(1)	–	(3)
Profit Before Tax	4,798	4,991	4,203	18,740
Tax expense:
Current tax	1,467	1,426	1,133	5,318
Deferred tax	(105)	(32)	42	(67)
Profit for the Period	3,436	3,597	3,028	13,489
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurement of the net defined benefit liability/asset	(17)	(3)	(7)	(12)
Equity instruments through other comprehensive income	–	–	–	–
Items that will be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations	38	96	144	303
Total other comprehensive income, net of tax	21	93	137	291
Total comprehensive income for the period	3,457	3,690	3,165	13,780
Paid up Share Capital (par Value 5/- each, fully paid)	1,144	1,144	1,144	1,144
Other Equity	60,600	60,600	54,198	60,600
Earnings per equity share (par value 5/- each)
Basic ()	15.03	15.74	13.25	59.02
Diluted ()	15.03	15.74	13.25	59.02

1.	The audited consolidated financial statements for the quarter ended June 30, 2016 have been taken on record by the Board of Directors at its meeting held on July 15, 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 Indian Accounting Standard (Ind-AS) as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

2.	These financial statements are the Group's first Ind-AS financial statements. The Group has adopted all the Ind-AS standards and the adoptions were carried out in accordance with Ind-AS 101-First time adoption of Indian Accounting Standards. The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed under Sec 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP), which was the previous GAAP.

3.	The Nomination and Remuneration Committee of the Board of Directors of Infosys Limited at its meeting held on July 14, 2016, approved the grant of 1,857,820 RSU's at par value which shall be made on August 1, 2016, to a total of 7,898 eligible and identified high performing employees upto mid level managers of the Company and its subsidiaries under the 2015 Employee Stock Compensation Plan. The RSU's shall vest over a period of four years from the date of grant which shall be exercisable within the period as approved by the committee. Out of these RSU’s, a total of 1,515,135 equity shares will be issued out of the existing treasury shares held by the Infosys Employee Benefits Trust and the balance will be in the form of ADR’s and Phantom stock rights.

4.	In accordance with the postal ballot approved by the shareholders on March 31, 2016, the Nomination and Remuneration Committee of the Board of Directors of Infosys Limited at its meeting held on July 14, 2016, approved the grant of RSU's amounting to $ 2 Million on August 1, 2016 to Dr. Vishal Sikka, CEO and Managing Director. The RSU's are time based and will vest over a period of 4 years subject to continuous service. The exercise price for the grant is equal to the par value of one share per RSU.

Information on dividends for the quarter June 30, 2016

(in )

Particulars	Quarter ended June 30,	Quarter ended March 31,	Quarter ended June 30,	Year ended March 31,
	2016	2016	2015	2016
Dividend per share (par value 5/- each)
Interim dividend	–	–	–	10.00
Final dividend	–	14.25	–	14.25

6. There are no items of expenditure which exceeds 10% of the total expenditure.

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

(in crore)

Particulars	Quarter ended June 30,	Quarter ended March 31,	Quarter ended June 30,	Year ended March 31,
	2016	2016	2015	2016
Revenue from operations	14,420	14,158	12,738	53,983
Profit before tax	4,460	4,705	3,990	17,600
Profit for the period	3,180	3,391	2,891	12,693

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 standalone financial statements as stated.

8. Reconciliation of Consolidated Statement of Profit and loss as previously reported under IGAAP to Ind AS

(in crore)

Particulars	Note	Three months ended June 30, 2015
		IGAAP	Effects of transition to Ind-AS	Ind AS
Revenue from operations		14,354	–	14,354
Other income, net		756	–	756
Net Income		15,110	–	15,110
Expenses
Employee benefit expenses	1.1	8,061	(8)	8,053
Deferred consideration pertaining to acquisition	1.2	46	14	60
Cost of technical sub-contractors		750	–	750
Travel expenses		556	–	556
Cost of software packages and others		312	–	312
Communication expenses		112	–	112
Consultancy and professional charges		169	–	169
Depreciation and amortization expenses	1.3	282	31	313
Other expenses	1.2	581	1	582
Total expenses		10,869	38	10,907
Profit before minority interest / share in net profit / (loss) of associate		4,241	(38)	4,203
Share in net profit/(loss) of associate		–	–	–
PROFIT BEFORE TAX		4,241	(38)	4,203
Tax expense:
Current tax	1.4	1,131	2	1,133
Deferred tax	1.5	49	(7)	42
Profit for the Period		3,061	(33)	3,028
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurement of the net defined benefit liability/asset	1.1	–	(7)	(7)
Equity instruments through other comprehensive income		–	–	–
Items that will be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations	1.6	39	105	144
Total other comprehensive income, net of tax		39	98	137
Total comprehensive income for the period		3,100	65	3,165

This reconciliation statement has been provided in accordance with circular CIR/CFD/FAC/62/2016 issued by SEBI dated July 05, 2016 on account of implementation of Ind-AS by listed companies

Explanations for reconciliation of Consolidated Statement of profit and loss as previously reported under IGAAP to Ind-AS

1.1	a)	As per Ind-AS 19 - Employee Benefits, actuarial gain and losses are recognized in other comprehensive income and not reclassified to profit and loss in a subsequent period.
	b)	Adjustments reflect unamortized negative past service cost arising on modification of the gratuity plan in an earlier period. Ind AS 19 requires such gains and losses to be adjusted to retained earnings.
1.2	Adjustments reflect impact of discounting pertaining to deferred and contingent consideration payable for business combination
1.3	Adjustment reflects impact of amortisation of intangible assets included within goodwill under the IGAAP, separately recognized under Ind-AS
1.4	Tax component on actuarial gains and losses which was transferred to other comprehensive income under Ind AS
1.5	The reduction in deferred tax expense is on account of reversal of deferred tax liabilities recorded on intangible assets acquired in business combination.
1.6	Under Ind-AS, exchange differences on translation of foreign operations are recorded in other comprehensive income.

9. Segment reporting (Ind-AS Consolidated - Audited)

(in crore)

Particulars	Quarter ended June 30,	Quarter ended March 31,	Quarter ended June 30,	Year ended March 31,
	2016	2016	2015	2016
Revenue by business segment
Financial Services (FS)	4,551	4,522	3,882	17,024
Manufacturing (MFG)	1,844	1,748	1,616	6,948
Energy & utilities, Communication and Services (ECS)	3,719	3,635	3,166	13,547
Retail, Consumer packaged goods and Logistics (RCL)	2,861	2,727	2,342	10,226
Life Sciences, Healthcare and Insurance (HILIFE)	2,004	2,083	1,870	8,090
Hi-Tech	1,322	1,327	1,151	4,891
All other segments	481	508	327	1,715
Total	16,782	16,550	14,354	62,441
Less: Inter-segment revenue	–	–	–	–
Net revenue from operations	16,782	16,550	14,354	62,441
Segment profit before tax, depreciation and non-controlling interests:
Financial Services (FS)	1,267	1,249	1,073	4,839
Manufacturing (MFG)	451	426	346	1,560
Energy & utilities, Communication and Services (ECS)	1,066	1,108	952	4,029
Retail, Consumer packaged goods and Logistics (RCL)	802	767	649	2,840
Life Sciences, Healthcare and Insurance (HILIFE)	522	626	478	2,265
Hi-Tech	321	364	270	1,301
All other segments	21	105	(7)	259
Total	4,450	4,645	3,761	17,093
Less: Other unallocable expenditure	403	425	314	1,473
Add: Unallocable other income	753	772	756	3,123
Add: Share in Associate's profit / (loss)	(2)	(1)	–	(3)
Profit before tax and non-controlling interests	4,798	4,991	4,203	18,740

Notes on segment information

Business segments

Based on the "management approach" as defined in Ind AS 108 - Operating Segments, the Chief Operating Decision Marker evaluates the Company's performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented along these business segments. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments

Segmental capital employed

Assets and liabilities used in the 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

July 15, 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 ended June 30, 2016, 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 June 30,	Quarter ended March 31 ,	Quarter ended June 30,	Year ended March 31,
	2016	2016	2015	2016
Revenues	2,501	2,446	2,256	9,501
Cost of sales	1,592	1,516	1,434	5,950
Gross profit	909	930	822	3,551
Net profit	511	533	476	2,052
Earnings per Equity Share
Basic	0.22	0.23	0.21	0.90
Diluted	0.22	0.23	0.21	0.90
Total assets	11,317	11,378	10,587	11,378
Cash and cash equivalents including current investments	4,681	4,946	4,537	4,946

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, 2016. 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 July 15, 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 ended June 30, 2016, prepared in compliance with the Indian Accounting Standard (Ind-AS)

( in crore except equity share data)

Particulars	Quarter ending June 30,	Year ending March 31,	Quarter ending June 30,
	2016	2016	2015
Revenues from operations	16,782	62,441	14,354
Net profit	3,436	13,489	3,028
Total Comprehensive Income for the period (comprising profit for the period after tax and other comprehensive income after tax)	3,457	13,780	3,165
Paid-up equity share capital (par value 5/- each, fully paid)	1,144	1,144	1,144
Other Equity	60,600	60,600	54,198
Earnings per share (par value 5/- each)
Basic	15.03	59.02	13.25
Diluted	15.03	59.02	13.25

Note:

	1.	The audited consolidated financial statements for the quarter ended June 30, 2016 have been taken on record by the Board of Directors at its meeting held on July 15, 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 Indian Accounting Standard (Ind-AS) as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

	2.	These financial statements are the Group's first Ind-AS financial statements. The Group has adopted all the Ind-AS standards and the adoptions were carried out in accordance with Ind-AS 101-First time adoption of Indian Accounting Standards. The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed under Sec 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP), which was the previous GAAP.

	3.	The Nomination and Remuneration Committee of the Board of Directors of Infosys Limited at its meeting held on July 14, 2016, approved the grant of 1,857,820 RSU's at par value which shall be made on August 1, 2016, to a total of 7,898 eligible and identified high performing employees upto mid level managers of the Company and its subsidiaries under the 2015 Employee Stock Compensation Plan.The RSU's shall vest over a period of four years from the date of grant which shall be exercisable within the period as approved by the committee. Out of these RSU’s, a total of 1,515,135 equity shares will be issued out of the existing treasury shares held by the Infosys Employee Benefits Trust and the balance will be in the form of ADR’s and Phantom stock rights.

	4.	In accordance with the postal ballot approved by the shareholders on March 31, 2016, the Nomination and Remuneration Committee of the Board of Directors of Infosys Limited at its meeting held on July 14, 2016, approved the grant of RSU's amounting to $ 2 Million on August 1, 2016 to Dr. Vishal Sikka, CEO and Managing Director. The RSU's are time based and will vest over a period of 4 years subject to continuous service. The exercise price for the grant is equal to the par value of one share per RSU.

Reconciliation of Consolidated Statement of Profit and loss as previously reported under IGAAP to Ind AS

( in crore)

Particulars	Note	Three months ended June 30, 2015
		IGAAP	Effects of transition to Ind-AS	Ind AS
Revenue from operations		14,354	–	14,354
Other income, net		756	–	756
Net Income		15,110	–	15,110
Expenses
Employee benefit expenses	1.1	8,061	(8)	8,053
Deferred consideration pertaining to acquisition	1.2	46	14	60
Cost of technical sub-contractors		750	–	750
Travel expenses		556	–	556
Cost of software packages and others		312	–	312
Communication expenses		112	–	112
Consultancy and professional charges		169	–	169
Depreciation and amortization expenses	1.3	282	31	313
Other expenses	1.2	581	1	582
Total expenses		10,869	38	10,907
Profit before minority interest / share in net profit / (loss) of associate		4,241	(38)	4,203
Share in net profit/(loss) of associate		–	–	–
PROFIT BEFORE TAX		4,241	(38)	4,203
Tax expense:
Current tax	1.4	1,131	2	1,133
Deferred tax	1.5	49	(7)	42
Profit For the Period		3,061	(33)	3,028
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurement of the net defined benefit liability/asset	1.1	–	(7)	(7)
Equity instruments through other comprehensive income		–	–	–
Items that will be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations	1.6	39	105	144
Total other comprehensive income, net of tax		39	98	137
Total comprehensive income for the period		3,100	65	3,165

Explanations for reconciliation of Consolidated Statement of profit and loss as previously reported under IGAAP to Ind AS

1.1	a)	As per Ind-AS 19 - Employee Benefits, actuarial gain and losses resulting from experience adjustment and effects of changes in actuarial assumptions are recognized in other comprehensive income and not reclassified to profit and loss in a subsequent period.
	b)	Adjustments reflect unamortized negative past service cost arising on modification of the gratuity plan in an earlier period. Ind AS 19 requires such gains and losses to be adjusted to retained earnings.
1.2	Adjustments reflect impact of discounting pertaining to deferred and contingent consideration payable for business combinations
1.3	Adjustment reflects impact of amortisation of intangible assets included within goodwill under the IGAAP, separately recognized under Ind-AS
1.4	Tax component on actuarial gains and losses arising from changes in present value of obligation which was transferred to other comprehensive income under Ind AS
1.5	The reduction in deferred tax expense is on account of reversal of deferred tax liabilities recorded on intangible assets acquired in business combination.
1.6	Under Ind-AS, exchange differences on translation of foreign operations are recorded in other comprehensive income.

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

(in crore)

Particulars	Quarter ending June 30,	Year ending March 31,	Quarter ending June 30,
	2016	2016	2015
Revenues	14,420	53,983	12,738
Profit before tax	4,460	17,600	3,990
Profit for the period	3,180	12,693	2,891

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 are available on the Stock Exchange websites, www.nseindia.com and www.bseindia.com, and on the Company's website, www.infosys.com.

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 ended June 30, 2016, prepared in compliance with the Indian Accounting Standard (Ind-AS)

(in crore, except per equity share data)

Particulars	Quarter Ended June 30,	Quarter Ended March 31,	Quarter Ended June 30,	Year Ended March 31,
	2016	2016	2015	2016
	Audited	Audited	Audited	Audited
Revenue from operations	14,420	14,158	12,738	53,983
Other Income, net	761	773	721	3,006
Total Income	15,181	14,931	13,459	56,989
Expenses
Employee benefit expenses	7,605	7,297	6,807	28,207
Deferred consideration pertaining to acquisition	–	–	60	149
Cost of technical sub-contractors	1,135	1,191	965	4,417
Travel expenses	576	438	432	1,655
Cost of software packages and others	224	223	291	1,049
Communication expenses	82	79	80	311
Consultancy and professional charges	119	155	132	563
Depreciation and amortization expense	319	315	252	1,115
Other expenses	661	528	450	1,923
Total Expenses	10,721	10,226	9,469	39,389
Profit before tax	4,460	4,705	3,990	17,600
Tax Expense:
Current tax	1,314	1,309	1,053	4,898
Deferred tax	(34)	5	46	9
Profit for the period	3,180	3,391	2,891	12,693
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurement of the net defined benefit liability/asset	(17)	(3)	(8)	(2)
Equity instruments through other comprehensive income	–	–	–	–
Items that will be reclassified to profit or loss	–	–	–	–
Total other comprehensive income, net of tax	(17)	(3)	(8)	(2)

Total comprehensive income, for the period	3,163	3,388	2,883	12,691
Paid-up share capital (par value 5/- each fully paid)	1,148	1,148	1,148	1,148
Other Equity	59,934	59,934	51,617	59,934
Earnings per equity share ( par value 5 /- each)
Basic ()	13.85	14.76	12.59	55.26
Diluted ()	13.85	14.76	12.59	55.26

1.	The audited financial statements for the quarter ended June 30, 2016 have been taken on record by the Board of Directors at its meeting held on July 15, 2016. The statutory auditors have expressed an unqualified audit opinion. The information presented above is extracted from the audited standalone financial statements. The financial statements are prepared in accordance with the Indian Accounting Standard (Ind-AS) as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

2.	These financial statements are the Company's first Ind-AS financial statements. The Company has adopted all the Ind-AS standards and the adoptions were carried out in accordance with Ind-AS 101-First time adoption of Indian Accounting Standards. The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed under Sec 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP), which was the previous GAAP.

3.	The Nomination and Remuneration Committee of the Board of Directors of Infosys Limited at its meeting held on July 14, 2016, approved the grant of 1,857,820 RSU's at par value which shall be made on August 1, 2016, to a total of 7,898 eligible and identified high performing employees upto mid level managers of the Company and its subsidiaries under the 2015 Employee Stock Compensation Plan. The RSU's shall vest over a period of four years from the date of grant which shall be exercisable within the period as approved by the committee. Out of these RSU’s, a total of 1,515,135 equity shares will be issued out of the existing treasury shares held by the Infosys Employee Benefits Trust and the balance will be in the form of ADR’s and Phantom stock rights.

4.	In accordance with the postal ballot approved by the shareholders on March 31, 2016, the Nomination and Remuneration Committee of the Board of Directors of Infosys Limited at its meeting held on July 14, 2016, approved the grant of RSU's amounting to $ 2 Million on August 1, 2016 to Dr. Vishal Sikka, CEO and Managing Director. The RSU's are time based and will vest over a period of 4 years subject to continuous service. The exercise price for the grant is equal to the par value of one share per RSU.

5.	Information on dividends for the quarter ended June 30, 2016

(in )

Particulars	Quarter ended June 30,	Quarter ended March 31,	Quarter ended June 30,	Year ended March 31,
	2016	2016	2015	2016
Dividend per share (par value 5/- each)
Interim dividend	–	–	–	10.00
Final dividend	–	14.25	–	14.25

6. There are no items of expenditure which exceeds 10% of the total expenditure.

7. Reconciliation of Statement of Profit and loss as previously reported under IGAAP to Ind-AS

(in crore)

Particulars	Note	Three months ended June 30, 2015
		IGAAP	Effects of transition to Ind AS	Ind -AS
Revenue from operations		12,738	–	12,738
Other income, net		719	2	721
Total Income		13,457	2	13,459
Expenses
Employee benefit expenses	1.1	6,817	(10)	6,807
Deferred consideration pertaining to acquisition	1.2	46	14	60
Cost of technical sub-contractors		965	–	965
Travel expenses		432	–	432
Cost of software packages and others		291	–	291
Communication expenses		80	–	80
Consultancy and professional charges		132	–	132
Depreciation and amortization expenses		252	–	252
Other expenses	1.2	449	1	450
Total expenses		9,464	5	9,469
Profit before Tax		3,993	(3)	3,990
Tax expense:
Current tax	1.3	1,050	3	1,053
Deferred tax		46	–	46
Profit for the Period		2,897	(6)	2,891
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurement of the net defined benefit liability/asset	1.1	–	(8)	(8)
Equity instruments through other comprehensive income		–	–	–
Items that will be reclassified subsequently to profit or loss		–	–	–
Total other comprehensive income, net of tax		–	(8)	(8)
Total comprehensive income for the period		2,897	(14)	2,883

This reconciliation statement has been provided in accordance with circular CIR/CFD/FAC/62/2016 issued by SEBI dated July 05, 2016 on account of implementation of Ind-AS by listed companies

Explanations for Reconciliation of profit and loss as previously reported under IGAAP to Ind AS

1.1	a)	As per Ind-AS 19 - Employee Benefits, actuarial gains and losses are recognized in other comprehensive income and not reclassified to profit and loss in a subsequent period
	b)	Adjustments reflect unamortized negative past service cost arising on modification of the gratuity plan in an earlier period. Ind AS 19 requires such gains and losses to be adjusted to retained earnings.
1.2.	Adjustments reflect impact of discounting pertaining to deferred consideration and contingent consideration payable for business combinations
1.3	Tax component on actuarial gains and losses which was transferred to other comprehensive income under Ind AS

8. Segment Reporting - Standalone audited

(in crore)

Particulars	Quarter ended June 30,	Quarter ended March 31,	Quarter ended June 30,	Year ended March 31,
	2016	2016	2015	2016
Revenue by business segment
Financial Services (FS)	3,873	3,805	3,652	14,846
Manufacturing (MFG)	1,472	1,395	1,249	5,434
Energy & utilities, Communication and Services (ECS)	3,341	3,256	2,842	12,124
Retail, Consumer Packaged Goods and Logistics (RCL)	2,583	2,502	2,179	9,411
Life Sciences, Healthcare and Insurance (HILIFE)	1,627	1,626	1,507	6,392
Hi-Tech	1,270	1,265	1,118	4,736
All Other Segments	254	309	191	1,040
Total	14,420	14,158	12,738	53,983
Less: Inter-segment revenue	–	–	–	–
Net revenue from operations	14,420	14,158	12,738	53,983
Segment profit before tax
Financial Services (FS)	1,026	1,030	1,054	4,185
Manufacturing (MFG)	410	386	325	1,436
Energy & utilities, Communication and Services (ECS)	1,022	1,081	854	3,829
Retail, Consumer Packaged Goods and Logistics (RCL)	771	757	639	2,817
Life Sciences, Healthcare and Insurance (HILIFE)	451	514	395	1,844
Hi-Tech	341	381	278	1,373
All Other Segments	–	104	(23)	239
Total	4,021	4,253	3,522	15,723
Less: Other unallocable expenditure	322	321	253	1,129
Add: Unallocable other income	761	773	721	3,006
Profit before tax	4,460	4,705	3,990	17,600

Notes on segment information:

Business segments

Segment Assets/Liabilities

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

July 15, 2016

Dr. Vishal Sikka

Chief Executive Officer and Managing Director

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, 2016. 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 July 15, 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.

Exhibit 99.9

IFRS USD Earning Release

Infosys Limited and Subsidiaries

Unaudited Condensed Consolidated Balance Sheets as of

(Dollars in millions except equity share)

	Note	June 30, 2016	March 31, 2016
ASSETS
Current assets
Cash and cash equivalents	2.1	4,598	4,935
Current Investments	2.2	83	11
Trade receivables		1,761	1,710
Unbilled revenue		484	457
Prepayments and other current assets	2.4	805	672
Derivative financial instruments	2.3	9	17
Total current assets		7,740	7,802
Non-current assets
Property, plant and equipment	2.7	1,624	1,589
Goodwill	2.8	561	568
Intangible assets		142	149
Investment in associate		16	16
Non-current investments	2.2	258	273
Deferred income tax assets		93	81
Income tax assets		772	789
Other non-current assets	2.4	111	111
Total Non-current assets		3,577	3,576
Total assets		11,317	11,378
LIABILITIES AND EQUITY
Current liabilities
Trade payables		39	58
Derivative financial instruments	2.3	1	1
Current income tax liabilities		609	515
Client deposits		4	4
Unearned revenue		228	201
Employee benefit obligations		210	202
Provisions	2.6	79	77
Other current liabilities	2.5	1,014	940
Total current liabilities		2,184	1,998
Non-current liabilities
Deferred income tax liabilities		37	39
Other non-current liabilities	2.5	20	17
Total liabilities		2,241	2,054
Equity
Share capital - 5 ($0.16) par value 2,400,000,000 (2,400,000,000) equity shares authorized, issued and outstanding 2,285,633,494 (2,285,621,088) net of 11,311,170 (11,323,576) treasury shares, as of June 30, 2016 (March 31, 2016), respectively		199	199
Share premium		571	570
Retained earnings		11,014	11,083
Other reserves		–	–
Other components of equity		(2,708)	(2,528)
Total equity attributable to equity holders of the company		9,076	9,324
Non-controlling interests		–	–
Total equity		9,076	9,324
Total liabilities and equity		11,317	11,378

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	U. B. Pravin Rao
	Chairman	Chief Executive Officer and Managing Director	Chief Operating Officer and Whole-time Director

Bangalore	Roopa Kudva	M. D. Ranganath	A.G.S. Manikantha
July 15, 2016	Director	Chief Financial Officer	Company Secretary

Infosys Limited and Subsidiaries

Unaudited Condensed Consolidated Statements of Comprehensive Income

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

	Note	Three months ended June 30,
		2016	2015
Revenues		2,501	2,256
Cost of sales	2.15	1,592	1,434
Gross profit		909	822
Operating expenses:
Selling and marketing expenses	2.15	137	129
Administrative expenses	2.15	170	152
Total operating expenses		307	281
Operating profit		602	541
Other income, net		112	119
Share in associate's profit / (loss)		–	–
Profit before income taxes		714	660
Income tax expense	2.11	203	184
Net profit		511	476
Other comprehensive income
Items that will not be reclassified to profit or loss:
Re-measurements of the net defined benefit liability/asset		(2)	(1)
Cumulative impact on reversal of unrealised gain on quoted debt securities on adoption of IFRS 9	2.2	(5)	–
Equity instruments through other comprehensive income		–	–
		(7)	(1)
Items that will be reclassified subsequently to profit or loss:
Fair valuation of investments	2.2	–	(2)
Exchange differences on translation of foreign operations		(173)	(137)
		(173)	(139)
Total other comprehensive income, net of tax		(180)	(140)
Total comprehensive income		331	336
Profit attributable to:
Owners of the company		511	476
Non-controlling interests		–	–
		511	476
Total comprehensive income attributable to:
Owners of the company		331	336
Non-controlling interests		–	–
		331	336
Earnings per equity share
Basic ($)		0.22	0.21
Diluted ($)		0.22	0.21
Weighted average equity shares used in computing earnings per equity share	2.12
Basic		2,285,622,329	2,285,610,264
Diluted		2,285,768,122	2,285,672,309

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	U. B. Pravin Rao
	Chairman	Chief Executive Officer and Managing Director	Chief Operating Officer and Whole-time Director

Bangalore	Roopa Kudva	M. D. Ranganath	A.G.S. Manikantha
July 15, 2016	Director	Chief Financial Officer	Company Secretary

Infosys Limited and Subsidiaries

Unaudited Condensed Consolidated 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, 2015	1,142,805,132	109	659	10,090	–	(2,096)	8,762
Changes in equity for the three months ended June 30, 2015
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	–	–	–	(21)	21	–	–
Transfer from other reserves on utilization	–	–	–	21	(21)	–	–
Employee stock compensation expense (refer to note 2.10)	–	–	–	–	–	–	–
Fair value of investments (Refer note 2.2)	–	–	–	–	–	(2)	(2)
Remeasurement of the net defined benefit liability/asset, net of tax effect	–	–	–	–	–	(1)	(1)
Dividends (including corporate dividend tax)	–	–	–	(636)	–	–	(636)
Net profit	–	–	–	476	–	–	476
Exchange differences on translation of foreign operations	–	–	–	–	–	(137)	(137)
Balance as of June 30, 2015	2,285,610,264	199	569	9,930	–	(2,236)	8,462
Balance as of April 1, 2016	2,285,621,088	199	570	11,083	–	(2,528)	9,324
Changes in equity for the three months ended June 30, 2016
Cumulative impact of Reversal of unrealized gain on quoted debt securities on adoption of IFRS 9 (Refer note 2.2)	–	–	–	–	–	(5)	(5)
Shares issued on exercise of employee stock options (refer to note 2.10)	12,406	–	–	–	–	–	–
Transfer to other reserves	–	–	–	(41)	41	–	–
Transfer from other reserves on utilization	–	–	–	41	(41)	–	–
Employee stock compensation expense (refer to note 2.10)	–	–	1	–	–	–	1
Remeasurement of the net defined benefit liability/asset, net of tax effect	–	–	–	–	–	(2)	(2)
Dividends (including corporate dividend tax)	–	–	–	(580)	–	–	(580)
Net profit	–	–	–	511	–	–	511
Exchange differences on translation of foreign operations	–	–	–	–	–	(173)	(173)
Balance as of June 30, 2016	2,285,633,494	199	571	11,014	–	(2,708)	9,076

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 11,311,170 as of June 30, 2016, 11,323,576 as of April 1, 2016, 11,334,400 as of June 30, 2015 and 5,667,200 as of April 1, 2015, 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.

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

	R. Seshasayee	Dr. Vishal Sikka	U. B. Pravin Rao
	Chairman	Chief Executive Officer and Managing Director	Chief Operating Officer and Whole-time Director

Bangalore	Roopa Kudva	M. D. Ranganath	A.G.S. Manikantha
July 15, 2016	Director	Chief Financial Officer	Company Secretary

Infosys Limited and Subsidiaries

Unaudited Condensed Consolidated Statements of Cash Flows

(Dollars in millions)

	Note	Three months ended June 30,
		2016	2015
Operating activities:
Net Profit		511	476
Adjustments to reconcile net profit to net cash provided by operating activities :
Depreciation and amortisation	2.15	60	49
Income on investments	2.11	(8)	(8)
Income tax expense		203	184
Effect of exchange rate changes on assets and liabilities		3	1
Deferred purchase price		–	9
Impairment loss on financial assets		2	(1)
Other adjustments		10	(2)
Changes in Working Capital
Trade receivables and unbilled revenue		(122)	(138)
Prepayments and other assets		(127)	(110)
Trade payables		(18)	8
Client deposits		–	(1)
Unearned revenue		31	21
Other liabilities and provisions		18	62
Cash generated from operations		563	550
Income taxes paid		(111)	(205)
Net cash provided by operating activities		452	345
Investing activities:
Expenditure on property, plant and equipment, net of sale proceeds, including changes in retention money and capital creditors		(128)	(105)
Loans to employees		3	–
Deposits placed with corporation		(9)	(3)
Income on investments		4	3
Payment for acquisition of business, net of cash acquired	2.9	–	(87)
Payment of contingent consideration pertaining to acquisition of business	2.9	(5)	–
Investment in preference securities		(4)	(2)
Investment in quoted debt securities		1	–
Redemption of quoted debt securities		(1)	–
Investment in liquid mutual fund units		(1,587)	(1,303)
Redemption of liquid mutual fund units		1,515	1,321
Redemption of fixed maturity plan securities		–	5
Net cash used in investing activities		(211)	(171)
Financing activities:
Payment of dividend		(481)	(528)
Net cash used in financing activities		(481)	(528)
Effect of exchange rate changes on cash and cash equivalents		(97)	(84)
Net (decrease) in cash and cash equivalents		(240)	(354)
Cash and cash equivalents at the beginning	2.1	4,935	4,859
Cash and cash equivalents at the end	2.1	4,598	4,421
Supplementary information:
Restricted cash balance	2.1	76	59

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	U. B. Pravin Rao
	Chairman	Chief Executive Officer and Managing Director	Chief Operating Officer and Whole-time Director

Bangalore	Roopa Kudva	M. D. Ranganath	A.G.S. Manikantha
July 15, 2016	Director	Chief Financial Officer	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 leading provider 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 July 15, 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 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, 2016. Accounting policies have been applied consistently to all periods presented in these unaudited condensed consolidated interim 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. 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 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

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 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

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

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 development and 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 recognized 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 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 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.

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 Financial instruments

Effective April 1, 2016, the group has elected to early adopt IFRS 9 - Financial Instruments considering April 1, 2015 as the date of initial application of the standard even though the stipulated effective date for adoption is April 1, 2018. As per IFRS 9, the group has classified its financial assets into the following categories based on the business model for managing those assets and the contractual cash flow characteristics:- Financial assets carried at amortised cost- Financial assets fair valued through other comprehensive income- Financial assets fair valued through profit and loss. The adoption of IFRS 9 did not have any other material impact on the consolidated financial statements, hence prior period figures have not been restated. The impact on account of adoption of IFRS 9 is given in Note 2.2.

1.9.1 Initial recognition

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

1.9.2 Subsequent measurement

a. Non-derivative financial instruments

(i) Financial assets carried at amortised cost

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

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

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

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

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

(iv) Financial liabilities

Financial liabilities are subsequently carried at amortized cost using the effective interest method, except for contingent consideration recognized in a business combination which is subsequently measured at fair value through profit and loss. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

b. Derivative financial instruments

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

(i) Financial assets or financial liabilities, 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 IFRS 9, Financial Instruments. Any derivative that is either not designated a hedge, or is so designated but is ineffective as per IFRS 9, is categorized as a financial asset or financial liability, at fair value through profit or loss.

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

(ii) Cash flow hedge

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

c. Share capital and treasury shares

(i) 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.

(ii) 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.

1.9.3 Derecognition of financial instruments

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

1.10 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.

1.11 Impairment

a. Financial assets

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

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. An impairment loss is reversed in net profit in the statement of comprehensive income if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

1.12 Employee benefits

1.12.1 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.

1.12.2 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.

1.12.3 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.

1.12.4 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.

1.13 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.

1.14 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.

1.15 Recent accounting pronouncements

1.15.1 Standards issued but not yet effective

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 is evaluating the effect of IFRS 15 on the consolidated financial statements including the transition method to be adopted and the related disclosures.

The Group continues to evaluate the effect of the standard on ongoing financial reporting.

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 recognize 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.

2.1 Cash and cash equivalents

Cash and cash equivalents consist of the following:

(Dollars in millions)

	As of
	June 30, 2016	March 31, 2016
Cash and bank deposits	3,865	4,139
Deposits with financial institutions	733	796
	4,598	4,935

Cash and cash equivalents as of June 30, 2016 and March 31, 2016 include restricted cash and bank balances of $76 million and $74 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 financial institutions 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
	June 30, 2016	March 31, 2016
Current accounts
ANZ Bank, Taiwan	2	2
Banamex Bank, Mexico	1	1
Bank of America, Mexico	3	3
Bank of America, USA	112	103
Bank Zachodni WBK S.A, Poland	1	1
Barclays Bank, UK	–	3
Bank Leumi, Israel (US Dollar account)	1	3
Bank Leumi, Israel	2	2
China Merchants Bank, China	1	1
Citibank N.A, China	7	10
Citibank N.A., China (U.S. Dollar account)	15	11
Citibank N.A., Australia	14	11
Citibank N.A., Brazil	2	1
Citibank N.A., Dubai	1	–
Citibank N.A., India	1	–
Citibank N.A., Japan	3	2
Citibank N.A., New Zealand	2	1
Citibank N.A., South Africa	1	1
CitiBank N.A., USA	8	9
Commerzbank, Germany	3	3
Crédit Industriel et Commercial Bank, France	–	1
Deutsche Bank, India	5	1
Deutsche Bank, Philippines	2	2
Deutsche Bank, Philippines (U.S. Dollar account)	1	–
Deutsche Bank, Poland	1	1
Deutsche Bank, Poland (Euro account)	1	–
Deutsche Bank, EEFC (Euro account)	6	5
Deutsche Bank, EEFC (Swiss Franc account)	2	1
Deutsche Bank, EEFC (U.S. Dollar account)	9	15
Deutsche Bank, EEFC (United Kingdom Pound Sterling account)	2	1
Deutsche Bank, Belgium	5	9
Deutsche Bank, Malaysia	–	1
Deutsche Bank, Czech Republic	5	2
Deutsche Bank, Czech Republic (U.S. Dollar account)	2	4
Deutsche Bank, France	4	2
Deutsche Bank, Germany	7	3
Deutsche Bank, Netherlands	2	1
Deutsche Bank, Singapore	1	1
Deutsche Bank, Switzerland	1	–
Deutsche Bank, United Kingdom	5	26
HSBC Bank, Brazil	–	1
ICICI Bank, India	5	11
ICICI Bank, EEFC (U.S. Dollar account)	1	2
ICICI Bank-Unpaid dividend account	1	–
ING Bank, Belgium	1	–
Nordbanken, Sweden	12	2
Punjab National Bank, India	3	1
Raiffeisen Bank, Czech Republic	1	1
Raiffeisen Bank, Romania	1	1
Royal Bank of Canada, Canada	18	12
Santander Bank, Argentina	1	–
State Bank of India, India	2	1
Silicon Valley Bank, USA	–	1
Silicon Valley Bank, (Euro account)	8	10
Silicon Valley Bank, (United Kingdom Pound Sterling account)	1	3
Union Bank of Switzerland AG	2	2
Union Bank of Switzerland AG, (Euro account)	2	2
Union Bank of Switzerland AG, (U.S. Dollar account)	–	4
Union Bank of Switzerland AG, (United Kingdom Pound Sterling account)	–	1
Wells Fargo Bank N.A., USA	4	3
Westpac, Australia	–	1
	304	303
Deposit accounts
Andhra Bank	134	143
Axis Bank	132	202
Bank of India	6	11
Canara Bank	337	339
Central Bank of India	225	232
Citibank	16	19
Corporation Bank	190	194
Deutsche Bank, Poland	36	36
HDFC Bank Ltd.	383	400
ICICI Bank	639	634
IDBI Bank	281	287
Indian Overseas Bank	185	189
Indusind Bank	37	38
Jammu & Kashmir Bank	4	4
Kotak Mahindra Bank Limited	54	81
Oriental Bank of Commerce	291	297
Punjab National Bank	–	3
South Indian Bank	3	3
State Bank of India	348	357
Syndicate Bank	136	191
Union Bank of India	18	21
Vijaya Bank	45	46
Yes Bank	61	109
	3,561	3,836
Deposits with financial institutions
HDFC Limited, India	733	796
	733	796
Total	4,598	4,935

2.2 Investments

The carrying value of investments are as follows:

(Dollars in millions)

	As of
	June 30, 2016	March 31, 2016
(i) Current
Amortised cost
Quoted debt securities:
Cost	1	1
Fair value through profit and loss
Liquid mutual fund
Cost and fair value	82	10
	83	11
(ii) Non-current
Amortised cost
Quoted debt securities:
Cost	237	256
Fair value through Other comprehensive income
Unquoted equity and preference securities:
Fair value	18	14
Others:
Fair value	3	3
	258	273
Total investments	341	284
Investment carried at amortized cost	238	257
Investments carried at fair value through other comprehensive income	21	17
Investments carried at fair value through profit and loss account	82	10

Liquid mutual funds:

The cost and fair value of liquid mutual funds as of June 30, 2016 and March 31, 2016 was $82 million and $10 million, respectively. The fair value is based on quoted prices.

Quoted debt securities:

Investment in quoted debt securities represents the investments made in debt securities issued by government and quasi governement organisations. The fair value of quoted debt securities (including interest accrued) as on June 30, 2016 and March 31, 2016 was $261 million and $257 million, respectively. The fair value is based on the quoted prices and market observable inputs.

Impact on account of adoption of IFRS 9

Certain investments which were earlier carried at fair value through other comprehensive income under IAS 39, Financial Instruments: Recognition and measurement are now carried at amortised cost under IFRS 9, where the business model is to hold the asset, in order to collect contractual cash flows and the contractual terms of the financial asset give rise, on specified dates, to cash flows that are solely payments of principal and interest on the principal amount. The impact of such change in measurement did not have a material impact on the financial statements. Hence, the company has not restated the prior period figures and the cumulative impact has been recorded in other comprehensive income for the three months ended June 30, 2016.

Accordingly, for the three months ended June 30, 2016, the company has recorded, in its other comprehensive income, a reversal of unrealised gain, net of taxes, of $5 million (recorded on quoted debt securities as on April, 1, 2016), with a corresponding change in investment and deferred taxes.

Further, under IFRS 9, the impairment of financial assets is measured under the 'Expected Credit Loss' (ECL) model, which 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 change in the impairment model did not have a material impact on the financial statements.

Details showing the changes in the classification and the corresponding differences in carrying value as of the transition date April 1, 2016.

(Dollars in millions)

	As per IAS 39		As per IFRS 9
Instrument	Category	Carrying value	Category	Carrying value
(i) Current
Liquid mutual funds	Available for sale financial assets ⁽¹⁾	10	Fair value through profit or loss	10
Quoted debt securities	Available for sale financial assets ⁽¹⁾	1	Amortized cost	1
Total		11		11
(ii) Non current
Quoted debt securities:	Available for sale financial assets ⁽¹⁾	256	Amortized cost	241
Unquoted equity and preference securities	Available for sale financial assets ⁽¹⁾	17	Fair value through other comprehensive income	17
Total		273		258
Total investments		284		269

⁽¹⁾ Fair value changes through other comprehensive income

Details showing the changes in the classification and the corresponding differences in carrying value as of the transition date April 1, 2015.

(Dollars in millions)

	As per IAS 39		As per IFRS 9
Instrument	Category	Carrying value	Category	Carrying value
(i) Current
Liquid mutual funds	Available for sale financial assets ⁽¹⁾	135	Fair value through profit or loss	135
Fixed maturity plan securities:	Available for sale financial assets ⁽¹⁾	5	Fair value through profit or loss	5
Total		140		140
(ii) Non current
Quoted debt securities	Available for sale financial assets ⁽¹⁾	215	Amortized cost	208
Unquoted equity and preference securities	Available for sale financial assets ⁽¹⁾	–	Fair value through other comprehensive income	–
Total		215		208
Total investments		355		348

⁽¹⁾ Fair value changes through other comprehensive income

2.3 Financial instruments

Financial instruments by category

The carrying value and fair value of financial instruments by categories as of June 30, 2016 were as follows:

(Dollars in millions)

	Amortised cost	Financial assets/ liabilities at fair value through profit or loss		Financial assets/liabilities at fair value through OCI		Total carrying value	Total fair value
		Designated upon initial recognition	Mandatory	Equity instruments designated upon initial recognition	Mandatory
Assets:
Cash and cash equivalents (Refer to Note 2.1)	4,598	–	–	–	–	4,598	4,598
Investments (Refer Note 2.2)
Liquid mutual funds	–	–	82	–	–	82	82
Quoted debt securities	238	–	–	–	–	238	261 ⁽¹⁾
Unquoted equity and preference securities:	–	–	–	21	–	21	21
Trade receivables	1,761	–	–	–	–	1,761	1,761
Unbilled revenue	484	–	–	–	–	484	484
Prepayments and other assets (Refer to Note 2.4)	491	–	–	–	–	491	491
Derivative financial instruments	–	–	9	–	–	9	9
Total	7,572	–	91	21	–	7,684	7,707
Liabilities:
Trade payables	39	–	–	–	–	39	39
Derivative financial instruments	–	–	1	–	–	1	1
Client deposits	4	–	–	–	–	4	4
Other liabilities including contingent consideration (Refer note 2.5)	733	–	12	–	–	745	745
Total	776	–	13	–	–	789	789

The carrying value and fair value of financial instruments by categories as of March 31, 2016 were as follows:

(Dollars in millions)

	Amortised cost	Financial assets/ liabilities at fair value through profit or loss		Financial assets/liabilities at fair value through OCI		Total carrying value	Total fair value
		Designated upon initial recognition	Mandatory	Equity instruments designated upon initial recognition	Mandatory
Assets:
Cash and cash equivalents (Refer to Note 2.1)	4,935	–	–	–	–	4,935	4,935
Investments (Refer Note 2.2)		–
Liquid mutual funds	–	–	10	–	–	10	10
Quoted debt securities	257	–	–	–	–	257	257 ⁽¹⁾
Unquoted equity and preference securities:	–	–	–	17	–	17	17
Trade receivables	1,710	–	–	–	–	1,710	1,710
Unbilled revenue	457	–	–	–	–	457	457
Prepayments and other assets (Refer to Note 2.4)	393	–	–	–	–	393	393
Derivative financial instruments	–	–	17	–	–	17	17
Total	7,752	–	27	17	–	7,796	7,796
Liabilities:
Trade payables	58	–	–	–	–	58	58
Derivative financial instruments	–	–	1	–	–	1	1
Client deposits	4	–	–	–	–	4	4
Other liabilities including contingent consideration (Refer note 2.5)	737	–	17	–	–	754	754
Total	799	–	18	–	–	817	817

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

Fair value hierarchy

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

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

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

Fair value hierarchy of assets and liabilities as of June 30, 2016:

(Dollars in millions)

	As of June 30, 2016	Fair value measurement at end of the reporting period / year using
		Level 1	Level 2	Level 3
Assets
Investments in liquid mutual fund units (Refer to Note 2.2)	82	82	–	–
Investments in quoted debt securities (Refer to Note 2.2)	261	41	220	–
Investments in equity and preference securities (Refer to Note 2.2)	18	–	–	18
Others (Refer Note 2.2)	3	–	–	3
Derivative financial instruments- gain on outstanding foreign exchange forward and option contracts	9	–	9	–
Liabilities				–
Derivative financial instruments- loss on outstanding foreign exchange forward and option contracts	1	–	1	–
Liability towards contingent consideration (Refer note 2.5)*	12	–	–	12

During the three months ended June 30, 2016, quoted debt securities of 17 million were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs.

* Discounted $14 million at 13.4%.

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.

Fair value hierarchy of assets and liabilities as of March 31, 2016:

(Dollars in millions)

	As of March 31, 2016	Fair value measurement at end of the reporting period / year using
		Level 1	Level 2	Level 3
Assets
Investments in liquid mutual fund units (Refer to Note 2.2)	10	10	–	–
Investments in quoted debt securities (Refer to Note 2.2)	257	57	200	–
Investments in equity and preference securities (Refer to Note 2.2)	14	–	–	14
Others (Refer Note 2.2)	3	–	–	3
Derivative financial instruments- gain on outstanding foreign exchange forward and option contracts	17	–	17	–
Liabilities
Derivative financial instruments- loss on outstanding foreign exchange forward and option contracts	1	–	1	–
Liability towards contingent consideration (Refer note 2.5)	17	–	–	17

* Discounted $20 million at 13.7%.

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 movement in contingent consideration as of June 30, 2016 from March 31, 2016 is on account of settlement of contingent consideration of $6 million and change in discount rates and passage of time.

Income from financial assets or liabilities is as follows:

(Dollars in millions)

	Three months ended June 30,
	2016	2015
Interest income on investments carried at amortized cost	97	107
Dividend income on investments carried at fair value through profit or loss	3	4
	100	111

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.

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 Indian rupee appreciates / depreciates against these currencies.

The following table analyses foreign currency risk from financial instruments as of June 30, 2016:

(Dollars in millions)

	U.S. dollars	Euro	United Kingdom Pound Sterling	Australian dollars	Other currencies	Total
Cash and cash equivalents	168	29	7	25	111	340
Trade receivables	1,184	197	106	89	112	1,688
Unbilled revenue	310	63	37	15	39	464
Other assets	16	5	3	2	13	39
Trade payables	(6)	(4)	(3)	(1)	(18)	(32)
Client deposits	(2)	–	–	–	(2)	(4)
Accrued expenses	(123)	(27)	(21)	(6)	(31)	(208)
Employee benefit obligation	(92)	(14)	(4)	(26)	(19)	(155)
Other liabilities	(140)	(21)	(6)	(3)	(32)	(202)
Net assets / (liabilities)	1,315	228	119	95	173	1,930

The following table analyses foreign currency risk from financial instruments as of March 31, 2016:

(Dollars in millions)

	U.S. dollars	Euro	United Kingdom Pound Sterling	Australian dollars	Other currencies	Total
Cash and cash equivalents	170	25	30	26	91	342
Trade receivables	1,141	193	109	90	105	1,638
Unbilled revenue	282	56	29	17	38	422
Other assets	14	6	4	2	12	38
Trade payables	(19)	(11)	(11)	(1)	(11)	(53)
Client deposits	(3)	–	–	–	(1)	(4)
Accrued expenses	(119)	(23)	(18)	(5)	(33)	(198)
Employee benefit obligation	(87)	(12)	(7)	(25)	(19)	(150)
Other liabilities	(159)	(20)	(5)	(6)	(32)	(222)
Net assets / (liabilities)	1,220	214	131	98	150	1,813

For the three months ended June 30, 2016 and June 30, 2015, 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 0.49%, 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.

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. 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
	June 30, 2016	March 31, 2016
Forward contracts
In U.S. dollars	543	510
In Euro	94	100
In United Kingdom Pound Sterling	30	65
In Australian dollars	60	55
In Canadian dollars	20	–
In Swiss Franc	25	25
Options Contracts
In U.S. dollars	135	125
In United Kingdom Pound Sterling	50	–

The Group recognized a net gain on derivative financial instruments of $7 million for the three months ended June 30, 2016 and a net loss of $12 million for the three months ended June 30, 2015, 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
	June 30, 2016	March 31, 2016
Not later than one month	196	238
Later than one month and not later than three months	573	516
Later than three months and not later than one year	207	157
	976	911

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:

(Dollars in millions)

	As of
	June 30, 2016		March 31, 2016
	Derivative financial asset	Derivative financial liability	Derivative financial asset	Derivative financial liability
Gross amount of recognized financial asset/liability	12	(4)	18	(2)
Amount set off	(3)	3	(1)	1
Net amount presented in balance sheet	9	(1)	17	(1)

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 $1,761 million and $1,710 million as of June 30, 2016 and March 31, 2016, respectively and unbilled revenue amounting to $484 million and $457 million as of June 30, 2016 and March 31, 2016, 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 group uses a provision matrix to compute the expected credit loss allowance for trade receivables and unbilled revenues. The provision matrix takes into account available external and internal credit risk factors such as credit default swap quotes, credit ratings from international credit rating agencies and the Group's historical experience for customers.

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

(In %)

	Three months ended June 30,
	2016	2015
Revenue from top customer	3.6	3.7
Revenue from top five customers	13.7	14.0

Credit risk exposure

The allowance for lifetime expected credit loss on customer balances for the three months ended June 30, 2016 was $2 million. The reversal of allowance for lifetime expected credit losses on customer balances for the three months ended June 30, 2015 was $1 million.

(Dollars in millions)

	Three months ended June 30,
	2016	2015
Balance at the beginning	44	59
Translation differences	(1)	–
Impairment loss recognized/(reversed) (refer note 2.15)	2	(1)
Write offs	–	–
Balance at the end	45	58

The Company’s credit period generally ranges from 30-60 days.

(Dollars in millions except otherwise stated)

	As of
	June 30, 2016	March 31, 2016
Trade receivables	1,761	1,710
Unbilled revenues	484	457
Days Sales Outstanding- DSO (days)	66	66

Credit risk on cash and cash equivalents is limited as we generally invest in deposits with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies. Investments primarily include investment in liquid mutual fund units, quoted bonds issued by government and quasi government organizations and certificates of deposit which are funds deposited at a bank for a specified time period.

Liquidity risk

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

As of June 30, 2016, the Group had a working capital of $5,556 million including cash and cash equivalents of $4,598 million and current investments of $83 million. As of March 31, 2016, the Group had a working capital of $5,804 million including cash and cash equivalents of $4,935 million and current investments of $11 million.

As of June 30, 2016 and March 31, 2016, the outstanding employee benefit obligations were $210 million and $202 million, respectively, which have been substantially funded. Accordingly, no liquidity risk is perceived.

The table below provides details regarding the contractual maturities of significant financial liabilities as of June 30, 2016

(Dollars in millions)

Particulars	Less than 1 year	1–2 years	2–4 years	4–7 years	Total
Trade payables	39	–	–	–	39
Client deposits	4	–	–	–	4
Other liabilities (excluding liability towards contingent consideration - Refer Note 2.5)	726	5	2	–	733
Liability towards contingent consideration on an undiscounted basis -Refer Note 2.5	7	7	–	–	14

The table below provides details regarding the contractual maturities of significant financial liabilities as of March 31, 2016:

(Dollars in millions)

Particulars	Less than 1 year	1–2 years	2–4 years	4–7 years	Total
Trade payables	58	–	–	–	58
Client deposits	4	–	–	–	4
Other liabilities (excluding liability towards acquisition - Refer Note 2.5)	732	4	1	–	737
Liability towards acquisitions on an undiscounted basis (Refer Note 2.5)	13	7	–	–	20

2.4 Prepayments and other assets

Prepayments and other assets consist of the following:

(Dollars in millions)

	As of
	June 30, 2016	March 31, 2016
Current
Rental deposits	3	2
Security deposits	1	1
Loans to employees	41	46
Prepaid expenses ⁽¹⁾	62	30
Interest accrued and not due	197	106
Withholding taxes ⁽¹⁾	277	272
Advance payments to vendors for supply of goods ⁽¹⁾	17	17
Deposit with corporation	192	187
Deferred contract cost⁽¹⁾	8	7
Other assets	7	4
	805	672
Non-Current
Loans to employees	4	4
Security deposits	12	12
Deposit with corporation	9	9
Prepaid gratuity ⁽¹⁾	2	1
Prepaid expenses ⁽¹⁾	11	13
Deferred contract cost ⁽¹⁾	48	50
Rental Deposits	25	22
	111	111
	916	783
Financial assets in prepayments and other assets	491	393

⁽¹⁾Nonfinancial assets

Withholding taxes primarily consist of input tax credits. Other assets primarily represent travel advances and other recoverable. Security deposits relate principally to leased telephone lines and electricity supplies. Deferred contract costs are upfront costs incurred for the contract and are amortised over the term of the contract.

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 Other liabilities

Other liabilities comprise the following:

(Dollars in millions)

	As of
	June 30, 2016	March 31, 2016
Current
Accrued compensation to employees	332	342
Accrued expenses	344	331
Withholding taxes payable ⁽¹⁾	183	196
Retainage	12	12
Liabilities of controlled trusts	23	25
Liability towards contingent consideration (Refer note 2.9)	6	12
Tax on dividend ⁽¹⁾	99	–
Others	15	22
	1,014	940
Non-Current
Liability towards contingent consideration (Refer note 2.9)	6	5
Accrued compensation to employees	7	5
Deferred income - government grant on land use rights⁽¹⁾	7	7
	20	17
	1,034	957
Financial liabilities included in other liabilities	745	754
Contingent consideration on undiscounted basis	14	20

⁽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.

2.6 Provisions

Provisions comprise the following:

(Dollars in millions)

	As of
	June 30, 2016	March 31, 2016
Provision for post sales client support and other provisions	79	77
	79	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 June 30, 2016
Balance at April 1, 2016	77
Translation differences	-
Provision recognized/(reversed)	5
Provision utilized	(3)
Balance at June 30, 2016	79

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

As of June 30, 2016 and March 31, 2016, 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 $41 million (280 crore) and $42 million (277 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.

2.7 Property, plant and equipment

Following are the changes in the carrying value of property, plant and equipment for the three months ended June 30, 2016:

(Dollars in millions)

	Land	Buildings	Plant and machinery	Computer equipment	Furniture and fixtures	Vehicles	Total
Gross carrying value as of April 1, 2016	244	955	392	615	218	4	2,428
Additions	1	5	24	27	8	–	65
Deletions	–	–	–	(2)	–	–	(2)
Translation difference	(4)	(18)	(8)	(12)	(5)	1	(46)
Gross carrying value as of June 30, 2016	241	942	408	628	221	5	2,445
Accumulated depreciation as of April 1, 2016	(3)	(332)	(243)	(395)	(149)	(3)	(1,125)
Depreciation	–	(8)	(13)	(24)	(7)	–	(52)
Accumulated depreciation on deletions	–	–	–	2	–	–	2
Translation difference	–	6	5	7	4	–	22
Accumulated depreciation as of June 30, 2016	(3)	(334)	(251)	(410)	(152)	(3)	(1,153)
Capital work-in progress as of June 30, 2016							332
Carrying value as of June 30, 2016	238	608	157	218	69	2	1,624
Capital work-in progress as of April 1, 2016							286
Carrying value as of April 1, 2016	241	623	149	220	69	1	1,589

Following are the changes in the carrying value of property, plant and equipment for the three months ended June 30, 2015:

(Dollars in millions)

	Land	Buildings	Plant and machinery	Computer equipment	Furniture and fixtures	Vehicles	Total
Gross carrying value as of April 1, 2015	250	940	337	535	189	6	2,257
Additions	3	12	14	48	7	–	84
Deletions	–	–	–	(2)	–	–	(2)
Translation difference	(5)	(16)	(6)	(8)	(3)	(1)	(39)
Gross carrying value as of June 30, 2015	248	936	345	573	193	5	2,300
Accumulated depreciation as of April 1, 2015	(3)	(317)	(207)	(365)	(132)	(3)	(1,027)
Depreciation	–	(8)	(12)	(18)	(6)	–	(44)
Accumulated depreciation on deletions	–	–	–	1	–	–	1
Translation difference	–	5	5	5	2	–	17
Accumulated depreciation as of June 30, 2015	(3)	(320)	(214)	(377)	(136)	(3)	(1,053)
Capital work-in progress as of June 30, 2015							247
Carrying value as of June 30, 2015	245	616	131	196	57	2	1,494
Capital work-in progress as of April 1, 2015							230
Carrying value as of April 1, 2015	247	623	130	170	57	3	1,460

Following are the changes in the carrying value of property, plant and equipment for the year ended March 31, 2016:

(Dollars in millions)

	Land	Buildings	Plant and machinery	Computer equipment	Furniture and fixtures	Vehicles	Total
Gross carrying value as of April 1, 2015	250	940	337	535	189	6	2,257
Additions	9	68	76	168	40	1	362
Deletions	–	–	(1)	(60)	(1)	(2)	(64)
Translation difference	(15)	(53)	(20)	(28)	(10)	(1)	(127)
Gross carrying value as of March 31, 2016	244	955	392	615	218	4	2,428
Accumulated depreciation as of April 1, 2015	(3)	(317)	(207)	(365)	(132)	(3)	(1,027)
Depreciation	(1)	(33)	(49)	(84)	(24)	(1)	(192)
Accumulated depreciation on deletions	–	–	1	36	1	1	39
Translation difference	1	18	12	18	6	–	55
Accumulated depreciation as of March 31, 2016	(3)	(332)	(243)	(395)	(149)	(3)	(1,125)
Capital work-in progress as of March 31, 2016							286
Carrying value as of March 31, 2016	241	623	149	220	69	1	1,589
Capital work-in progress as of April 1, 2015							230
Carrying value as of April 1, 2015	247	623	130	170	57	3	1,460

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

Carrying value of land includes $94 million and $95 million as of June 30, 2016 and March 31, 2016, 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 $212 million and $224 million as of June 30, 2016 and March 31, 2016, respectively.

2.8 Goodwill

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

(Dollars in millions)

	As of
	June 30, 2016	March 31, 2016
Carrying value at the beginning	568	495
Goodwill on Kallidus d.b.a Skava acquisition (Refer note 2.9)	–	71
Goodwill on Noah acquisition (Refer note 2.9)	–	5
Translation differences	(7)	(3)
Carrying value at the end	561	568

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.

During the year ended March 31, 2016, the Company reorganized some of its segments to enhance executive customer relationships, improve focus of sales investments and increase management oversight. Consequent to these internal reorganizations 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 March 31, 2016.

(Dollars in millions)

Segment	As of
	March 31, 2016
Financial services	128
Manufacturing	64
Retail, Consumer packaged goods and Logistics	87
Life Sciences, Healthcare and Insurance	99
Energy & utilities, Communication and Services	119
	497
Operating segments without significant goodwill	71
Total	568

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 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. As of March 31, 2016, 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 %

	As of March 31, 2016
Long term growth rate	8–10
Operating margins	17–20
Discount rate	14.2

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.

2.9 Business combination

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 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 retention bonus is treated as a post-acquisition employee remuneration expense as per IFRS 3R. For the three months ended June 30, 2016, a post-acquisition employee remuneration expense of $5 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 year ended March 31, 2016.

Finacle and Edge Services

On April 24, 2015, the Board of Directors of Infosys 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 had 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.

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 fully 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.

During the three months ended June 30, 2016 contingent consideration of $6 million was paid to the sellers of Kallidus on the achievement of certain financial targets. The balance contingent consideration as of June 30, 2016 and March 31, 2016 is $14 million and $20 million on an undiscounted basis.

The transaction costs of $2 million related to the acquisition have been included under administrative expenses in the statement of comprehensive income for the year ended March 31, 2016.

2.10 Employees' Stock Option Plans (ESOP)

2015 Stock Incentive Compensation Plan (the 2015 Plan): SEBI issued the Securities and Exchange Board of India (Share based Employee Benefits) Regulations, 2014 (‘SEBI Regulations’) which replaced the SEBI ESOP Guidelines, 1999. The 2011 Plan (as explained below) was required to be amended and restated in accordance with the SEBI Regulations. Consequently, to effect this change and to further introduce stock options/ADR’s and other stock incentives, the Company put forth the 2015 Stock Incentive Compensation Plan (the 2015 Plan) for approval to the shareholders of the Company. Pursuant to the approval by the shareholders through postal ballot which ended on March 31, 2016, the Board of Directors have been authorised to introduce, offer, issue and allot share-based incentives to eligible employees of the Company and its subsidiaries under the 2015 Plan. The maximum number of shares under the 2015 plan shall not exceed 2,40,38,883 equity shares (this includes 11,223,576 equity shares which were held by the Trust towards the 2011 Plan as at March 31, 2016). 1,70,38,883 equity shares will be issued as RSUs at par value and 70,00,000 equity shares will be issued as stock options at market price. These instruments will vest over a period of 4 years and the Company expects to grant the instruments under the 2015 Plan over the period of 4 to 7 years. As of June 30, 2016, 11,211,170 shares are held by the trust towards 2015 Plan.

2011 RSU Plan (the 2011 Plan) now called the 2015 Stock Incentive Compensation Plan (the 2015 Plan): The Company had a 2011 RSU Plan which provided for the grant of restricted stock units (RSUs) to eligible employees of the Company. The Board of Directors recommended the 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 was 1,13,34,400 and the plan was expected to continue in effect for a term of 10 years from the date of initial grant under the plan. 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 Officer and Managing Director. The Board in its meeting held on June 22, 2015, on recommendation of Nomination and Remuneration Committee, further granted 1,24,061 RSUs to Dr. Vishal Sikka. These RSUs are vesting 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. Further the Company has earmarked 100,000 equity shares for welfare activities of the employees, approved by the shareholders vide postal ballot which ended on March 31, 2016. The equity shares as of March 31, 2016 held under this plan, i.e. 11,223,576 equity shares (this includes the aggregate number of equity shares that may be awarded under the 2011 Plan as reduced by 10,824 equity shares already exercised by Dr. Vishal Sikka and 100,000 equity shares which have been earmarked for welfare activities of the employees) have been subsumed under the 2015 Plan. The award granted to Dr. Vishal Sikka on June 22, 2015 was modified by the Nomination and remuneration committee on April 14, 2016. There is no modification or change in the total number of RSUs granted or the vesting period (which is four years). The modifications relate to the criteria of vesting for each of the years. Based on the modification, the first tranche of the RSUs will vest subject to achievement of certain key performance indicators for the year ended March 31, 2016. Subsequent vesting of RSU's for each of the remaining years would be subject to continued employment.

The activity in the 2015 Plan (formerly 2011 Plan) during the three months ended June 30, 2016 and June 30, 2015 is set out below:

Particulars	Three months ended June 30, 2016		Three months ended June 30, 2015
	Shares arising out of options	Weighted average exercise price ($)	Shares arising out of options	Weighted average exercise price ($)
2015 Plan (formerly 2011 Plan):
Outstanding at the beginning*	221,505	0.08	108,268	0.08
Granted	–	–	124,061	0.08
Forfeited and expired	–	–	–	–
Exercised	12,406	0.08	–	–
Outstanding at the end	2,09,099	0.08	2,32,329	0.08
Exercisable at the end	–	–	–	–

* Adjusted for bonus issues. (Refer note 2.12)

Pursuant to the approval from the shareholders through postal ballot on March 31, 2016, Dr. Vishal Sikka is eligible to receive an annual grant of $2,000,000 of fair value in RSUs which vest over time, subject to continued service, and an annual grant $5,000,000 in performance based equity and stock options, subject to achievement of performance targets set by the Board or its committee, which vest overtime. Though the above RSUs and performance based equity and stock options have not been granted as of June 30, 2016, in accordance with IFRS 2 Share-based Payment, the company has recorded an employee stock compensation expense of $1 million during the three months ended June 30, 2016 for the same.

The weighted average share price of options exercised under the 2015 Plan on the date of exercise was $18.

The weighted average remaining contractual life of RSUs outstanding as of June 30, 2016 and March 31, 2016 under the 2015 Plan was 1.84 years and 1.98 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 the three months ended June 30, 2016 and June 30, 2015, the company recorded an employee stock compensation expense of $1 million and less than $1 million, respectively, in the statement of comprehensive income towards CEO compensation.

2.11 Income taxes

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

(Dollars in millions)

	Three months ended June 30,
	2016	2015
Current taxes
Domestic taxes	163	142
Foreign taxes	56	36
	219	178
Deferred taxes
Domestic taxes	(5)	7
Foreign taxes	(11)	(1)
	(16)	6
Income tax expense	203	184

Income tax expense for the three months ended June 30, 2016 and June 30, 2015 includes provisions (net of reversals) of $1 million and reversals (net of provisions) of $13 million, respectively, pertaining to earlier periods.

Entire deferred income tax for the three months ended June 30, 2016 and June 30, 2015 relates to origination and reversal of temporary differences.

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 June 30,
	2016	2015
Profit before income taxes	714	660
Enacted tax rates in India	34.61%	34.61%
Computed expected tax expense	248	229
Tax effect due to non-taxable income for Indian tax purposes	(72)	(62)
Overseas taxes	28	23
Tax provision (reversals), overseas and domestic	1	(13)
Effect of differential overseas tax rates	–	(1)
Effect of exempt non operating income	(4)	(3)
Effect of unrecognized deferred tax assets	–	2
Effect of non-deductible expenses	5	11
Additional deduction on research and development expense	(2)	(2)
Others	(1)	–
Income tax expense	203	184

The applicable Indian statutory tax rate for fiscal 2017 and fiscal 2016 is 34.61%.

During the quarter ended June 30, 2016 and June 30, 2015, the Group has claimed weighted tax deduction on eligible research and development expenditure based on the approval received from Department of Scientific and Industrial Research (DSIR) which is valid upto 31st March 2017. The weighted tax deduction is equal to 200% of such expenditure incurred.

The foreign 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 for export of software from the units registered under the Special Economic Zones Act, 2005 (SEZ). SEZ units which began the provision of 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 further five years. Up to 50% of such profits or gains is also available for a further five years subject to creation of a Special Economic Zone re-Investment Reserve out of the profit of the eligible SEZ units and utilization of such reserve by the Company for acquiring new plant and machinery for the purpose of its business as per the provisions of the Income Tax Act, 1961.

As of June 30, 2016, claims against the group not acknowledged as debts from the Indian Income tax authorities net of amount paid to statutory authorities of $649 million (4,383 crore) amounted to $1 million (7 crore).

As of March 31, 2016, claims against the group not acknowledged as debts from the Indian Income tax authorities net of amount paid to statutory authorities of $662 million (4,383 crore) amounted to $1 million (7 crore).

Payment of $662 million (4,383 crore) includes demands from the Indian Income tax authorities of $624 million ( 4,135 crore), including interest of $185 million (1,224 crore) upon completion of their tax assessment for fiscal 2007, fiscal 2008, fiscal 2009, fiscal 2010 and fiscal 2011. These demands were paid to statutory tax authorities, which includes $138 million (913 crore) paid during the year March 31, 2016 consequent to demands from tax authorities in India for fiscal 2007 towards denial of certain tax benefits. The company has filed an appeal with the income tax appellate authorities.

Demand for fiscal 2007, fiscal 2008 and fiscal 2009 includes disallowance of a 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. Demand for fiscal 2007, fiscal 2008, fiscal 2009, fiscal 2010 and fiscal 2011 also includes disallowance of portion of profit earned outside India from the STP units under section 10A of the Income Tax Act and disallowance of profits earned from SEZ units under section 10AA of the Income Tax Act. The matters for fiscal 2007, fiscal 2008 and fiscal 2009 are pending before the Commissioner of Income Tax (Appeals) Bangalore. The matter for fiscal 2010 and fiscal 2011 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 Reconciliation of basic and diluted shares used in computing earnings per 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 June 30,
	2016	2015
Basic earnings per equity share - weighted average number of equity shares outstanding⁽¹⁾⁽²⁾	2,285,622,329	2,285,610,264
Effect of dilutive common equivalent shares	145,793	62,045
Diluted earnings per equity share - weighted average number of equity shares and common equivalent shares outstanding	2,285,768,122	2,285,672,309

⁽¹⁾

Excludes treasury shares

⁽²⁾

adjusted for bonus issues. Refer Note 2.17

For the three months ended June 30, 2016 and June 30, 2015 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 June 30,
	2016	2015
Salaries and other employee benefits to whole-time directors and executive officers⁽¹⁾	3	4
Commission and other benefits to non-executive/ independent directors	–	–
Total	3	4

⁽¹⁾

Includes employee stock compensation expense of $1 million and less than $1 million for the three months ended June 30, 2016 and June 30, 2015, respectively towards CEO compensation. Refer to note 2.10

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 group's operations predominantly relate to providing end-to-end business solutions to enable clients to enhance business performance. During the quarter ended March 31, 2016, the Group reorganized some of its segments to enhance executive customer relationships, improve focus of sales investments and increase management oversight consequent to which, erstwhile manufacturing segment is now being reviewed as Hi-Tech, Manufacturing and others included in ECS. Additionally, Infosys Public services (IPS) is being reviewed separately by the Chief Operating Decision Maker (CODM). Consequent to the internal reorganizations, there were changes effected in the reportable business segments based on the "management approach" as defined in IFRS 8, Operating Segments. The CODM 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 Group are primarily enterprises in Financial Services (FS), enterprises in Manufacturing (MFG), enterprises in Retail, Consumer packaged goods and Logistics (RCL), enterprises in the Energy & utilities, Communication and Services (ECS), enterprises in Hi-Tech (Hi-Tech), 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 and IPS. 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 by IPS and 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 Group.

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

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 June 30, 2016 and June 30, 2015

(Dollars in millions)

	FS	MFG	ECS	RCL	HILIFE	Hi-Tech	All other segments	Total
Revenues	678	275	554	426	299	197	72	2,501
	610	253	498	368	294	182	51	2,256
Identifiable operating expenses	334	142	262	204	149	102	51	1,244
	301	135	227	177	148	97	40	1,125
Allocated expenses	156	66	133	103	72	47	18	595
	141	62	122	89	71	44	12	541
Segment profit	188	67	159	119	78	48	3	662
	168	56	149	102	75	41	(1)	590
Unallocable expenses								60
								49
Operating profit								602
								541
Other income, net								112
								119
Share in associate's profit / (loss)								–
								–
Profit before Income taxes								714
								660
Income tax expense								203
								184
Net profit								511
								476
Depreciation and amortisation								60
								49
Non-cash expenses other than depreciation and amortisation								–
								–

2.14.2 Geographic Segments

Three months ended June 30, 2016 and June 30, 2015

(Dollars in millions)

	North America	Europe	India	Rest of the World	Total
Revenues	1,550	576	68	307	2,501
	1,426	506	50	274	2,256
Identifiable operating expenses	796	275	37	136	1,244
	721	253	37	114	1,125
Allocated expenses	373	138	14	70	595
	346	122	10	63	541
Segment profit	381	163	17	101	662
	359	131	3	97	590
Unallocable expenses					60
					49
Operating profit					602
					541
Other income, net					112
					119
Share in associate's profit / (loss)					–
					–
Profit before Income taxes					714
					660
Income Tax expense					203
					184
Net profit					511
					476
Depreciation and amortisation					60
					49
Non-cash expenses other than depreciation and amortisation					–
					–

2.14.3 Significant clients

No client individually accounted for more than 10% of the revenues for the three months ended June 30, 2016 and June 30, 2015.

2.15 Break-up of expenses

Cost of sales

(Dollars in millions)

	Three months ended June 30,
	2016	2015
Employee benefit costs	1,235	1,123
Deferred purchase price pertaining to acquisition	–	9
Depreciation and amortisation	60	49
Travelling costs	84	64
Cost of technical sub-contractors	137	118
Cost of software packages for own use	27	29
Third party items bought for service delivery to clients	14	18
Operating lease payments	11	8
Consultancy and professional charges	1	–
Communication costs	8	7
Repairs and maintenance	12	8
Provision for post-sales client support	3	(1)
Others	–	2
Total	1,592	1,434

Sales and marketing expenses

(Dollars in millions)

	Three months ended June 30,
	2016	2015
Employee benefit costs	99	98
Travelling costs	15	13
Branding and marketing	17	12
Operating lease payments	2	2
Consultancy and professional charges	2	2
Communication costs	1	1
Others	1	1
Total	137	129

Administrative expenses

(Dollars in millions)

	Three months ended June 30,
	2016	2015
Employee benefit costs	50	45
Consultancy and professional charges	25	24
Repairs and maintenance	38	28
Power and fuel	9	8
Communication costs	9	10
Travelling costs	11	11
Rates and taxes	6	5
Operating lease payments	3	3
Insurance charges	2	2
Impairment loss recognised/(reversed) on financial assets	2	(1)
Contributions towards Corporate Social Responsibility	7	7
Others	8	10
Total	170	152

2.16 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 amount of per share dividend recognized as distributions to equity shareholders for the three months ended June 30, 2016 and June 30, 2015 was 14.25/- per equity share ($0.22 per equity share) and 29.50/- per equity share ($0.47 per equity share) (not adjusted for June 17, 2015 bonus issue).

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. 11,311,170 and 11,323,576 shares were held by controlled trust, as of June 30, 2016 and March 31, 2016, 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.

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	U. B. Pravin Rao
	Chairman	Chief Executive Officer and Managing Director	Chief Operating Officer and Whole-time Director

Bangalore	Roopa Kudva	M. D. Ranganath	A.G.S. Manikantha
July 15, 2016	Director	Chief Financial Officer	Company Secretary

Exhibit 99.10

IFRS INR Earning Release

Independent Auditors’ Report

To the Board of Directors of Infosys Limited

Report on the Condensed Consolidated Interim Financial Statements

We have audited the accompanying condensed consolidated interim financial statements of Infosys Limited (“the Company”) and its subsidiaries (collectively referred to as “the Group”), which comprise the condensed consolidated balance sheet as at June 30, 2016, the condensed consolidated statement of comprehensive income, condensed consolidated statements of changes in equity and cash flows for the three months then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Condensed Consolidated Interim Financial Statements

Management is responsible for the preparation and presentation of these condensed 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 financial control relevant to the preparation and presentation of the condensed 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 condensed 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 condensed 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 condensed consolidated interim financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the condensed consolidated interim financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Group’s preparation and presentation of the condensed 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 condensed 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 condensed consolidated interim financial statements.

Opinion

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

(a)

in the case of the condensed consolidated balance sheet, of the consolidated interim financial position as at June 30, 2016;

(b)

in the case of the condensed consolidated statement of comprehensive income, of the consolidated interim financial performance for the three months ended on that date;

(c)

in the case of the condensed consolidated statement of changes in equity, of the consolidated changes in equity for the three months ended on that date; and

(d)

in the case of the condensed consolidated statement of cash flows, of the consolidated cash flows for the three 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

July 15, 2016

Infosys Limited and subsidiaries

(In crore except equity share data)

Condensed Consolidated Balance Sheets as of	Note	June 30, 2016	March 31, 2016
ASSETS
Current assets
Cash and cash equivalents	2.1	31,050	32,697
Current investments	2.2	563	75
Trade receivables		11,893	11,330
Unbilled revenue		3,270	3,029
Prepayments and other current assets	2.4	5,437	4,448
Derivative financial instruments	2.3	60	116
Total current assets		52,273	51,695
Non-current assets
Property, plant and equipment	2.7	10,965	10,530
Goodwill	2.8	3,792	3,764
Intangible assets		958	985
Investment in associate		103	103
Non-current investments	2.2	1,740	1,811
Deferred income tax assets		626	536
Income tax assets		5,211	5,230
Other non-current assets	2.4	751	735
Total non-current assets		24,146	23,694
Total assets		76,419	75,389
LIABILITIES AND EQUITY
Current liabilities
Trade payables		262	386
Derivative financial instruments	2.3	7	5
Current income tax liabilities		4,109	3,410
Client deposits		26	28
Unearned revenue		1,539	1,332
Employee benefit obligations		1,420	1,341
Provisions	2.6	536	512
Other current liabilities	2.5	6,850	6,225
Total current liabilities		14,749	13,239
Non-current liabilities
Deferred income tax liabilities		248	256
Other non-current liabilities	2.5	135	115
Total liabilities		15,132	13,610
Equity
Share capital- 5 par value 240,00,00,000 (240,00,00,000) equity shares authorized, issued and outstanding 228,56,33,494 (228,56,21,088) net of 1,13,11,170 (1,13,23,576) treasury shares as of June 30, 2016 (March 31, 2016), respectively		1,144	1,144
Share premium		2,250	2,241
Retained earnings		57,168	57,655
Other reserves		–	–
Other components of equity		725	739
Total equity attributable to equity holders of the Company		61,287	61,779
Non-controlling interests		–	–
Total equity		61,287	61,779
Total liabilities and equity		76,419	75,389

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

As per our report of even date attached

for B S R & Co. LLP

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

Chartered Accountants

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

Supreet Sachdev	R. Seshasayee	Dr. Vishal Sikka	U. B. Pravin Rao
Partner	Chairman	Chief Executive Officer and Managing Director	Chief Operating Officer and Whole-time Director
Membership No. 205385
Bangalore	Roopa Kudva	M. D. Ranganath	A.G.S. Manikantha
July 15, 2016	Director	Chief Financial Officer	Company Secretary

Infosys Limited and subsidiaries

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

Condensed Consolidated Statements of Comprehensive Income	Note	Three months ended June 30,
		2016	2015
Revenues		16,782	14,354
Cost of sales	2.15	10,681	9,123
Gross profit		6,101	5,231
Operating expenses:
Selling and marketing expenses	2.15	920	820
Administrative expenses	2.15	1,134	964
Total operating expenses		2,054	1,784
Operating profit		4,047	3,447
Other income, net		753	758
Share in associate's profit / (loss)		(2)	–
Profit before income taxes		4,798	4,205
Income tax expense	2.11	1,362	1,175
Net profit		3,436	3,030
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurement of the net defined benefit liability/asset		(17)	(7)
Cumulative impact on reversal of unrealised gain on quoted debt securities on adoption of IFRS 9	2.2	(35)	–
Equity instruments through other comprehensive income		–	–
		(52)	(7)
Items that will be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations		38	144
Fair value changes on investments	2.2	–	(12)
		38	132
Total other comprehensive income, net of tax		(14)	125
Total comprehensive income		3,422	3,155
Profit attributable to:
Owners of the company		3,436	3,030
Non-controlling interests		–	–
		3,436	3,030
Total comprehensive income attributable to:
Owners of the company		3,422	3,155
Non-controlling interests		–	–
		3,422	3,155
Earnings per equity share
Basic ()		15.03	13.26
Diluted ()		15.03	13.26
Weighted average equity shares used in computing earnings per equity share	2.12
Basic		228,56,22,329	228,56,10,264
Diluted		228,57,68,122	228,56,72,309

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

As per our report of even date attached

for B S R & Co. LLP

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

Chartered Accountants

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

Supreet Sachdev	R. Seshasayee	Dr. Vishal Sikka	U. B. Pravin Rao
Partner	Chairman	Chief Executive Officer and Managing Director	Chief Operating Officer and Whole-time Director
Membership No. 205385
Bangalore	Roopa Kudva	M. D. Ranganath	A.G.S. Manikantha
July 15, 2016	Director	Chief Financial Officer	Company Secretary

Infosys Limited and subsidiaries

Condensed Consolidated Statements of Changes in Equity

(In crore 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, 2015	114,28,05,132	572	2,806	50,978	–	407	54,763
Changes in equity for the three months ended June 30, 2015
Increase in share capital on account of bonus issue ⁽¹⁾ (refer to note 2.17)	114,28,05,132	572	–	–	–	–	572
Amounts utilized for bonus issue (refer note 2.17)⁽¹⁾	–	–	(572)	–	–	–	(572)
Transferred to other reserves	–	–	–	(135)	135	–	–
Transferred from other reserves on utilisation	–	–	–	135	(135)	–	–
Fair value changes on investments (Refer note 2.2)	–	–	–	–	–	(12)	(12)
Employee stock compensation expense (refer to note 2.10)	–	–	2	–	–	–	2
Remeasurement of the net defined benefit liability/asset, net of tax effect	–	–	–	–	–	(7)	(7)
Dividends (including corporate dividend tax)	–	–	–	(4,061)	–	–	(4,061)
Net profit	–	–	–	3,030	–	–	3,030
Exchange differences on translation of foreign operations	–	–	–	–	–	144	144
Balance as of June 30, 2015	228,56,10,264	1,144	2,236	49,947	–	532	53,859
Balance as of April 1, 2016	228,56,21,088	1,144	2,241	57,655	–	739	61,779
Changes in equity for the three months ended June 30, 2016
Cumulative impact on reversal of unrealised gain on quoted debt securities on adoption of IFRS 9 (Refer note 2.2)	–	–	–	–	–	(35)	(35)
Shares issued on exercise of employee stock options (Refer note 2.10)	12,406	–	–	–	–	–	–
Employee stock compensation expense (refer to note 2.10)	–	–	9	–	–	–	9
Transferred to other reserves	–	–	–	(276)	276	–	–
Transferred from other reserves on utilisation	–	–	–	276	(276)	–	–
Remeasurement of the net defined benefit liability/asset, net of tax effect	–	–	–	–	–	(17)	(17)
Dividends	–	–	–	(3,923)	–	–	(3,923)
Net profit	–	–	–	3,436	–	–	3,436
Exchange differences on translation of foreign operations	–	–	–	–	–	38	38
Balance as of June 30, 2016	2,285,633,494	1,144	2,250	57,168	–	725	61,287

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

⁽¹⁾	net of treasury shares
⁽²⁾	excludes treasury shares of 1,13,11,170 as of June 30, 2016, 1,13,23,576 as of April 1, 2016, 1,13,34,400 as of June 30, 2015 and 56,67,200 as of April 1, 2015, 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.

As per our report of even date attached

for B S R & Co. LLP

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

Chartered Accountants

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

Supreet Sachdev	R. Seshasayee	Dr. Vishal Sikka	U. B. Pravin Rao
Partner	Chairman	Chief Executive Officer and Managing Director	Chief Operating Officer and Whole-time Director
Membership No. 205385
Bangalore	Roopa Kudva	M. D. Ranganath	A.G.S. Manikantha
July 15, 2016	Director	Chief Financial Officer	Company Secretary

Infosys Limited and subsidiaries

(In crore)

Condensed Consolidated Statements of Cash Flows	Note	Three months ended June 30,
		2016	2015
Operating activities:
Net Profit		3,436	3,030
Adjustments to reconcile net profit to net cash provided by operating activities:
Depreciation and amortization	2.15	400	313
Income tax expense	2.11	1,362	1,175
Income on investments		(50)	(49)
Effect of exchange rate changes on assets and liabilities		18	7
Deferred purchase price		–	60
Impairment loss on financial assets		15	(4)
Other adjustments		69	(10)
Changes in working capital
Trade receivables and unbilled revenue		(818)	(883)
Prepayments and other assets		(852)	(702)
Trade payables		(124)	53
Client deposits		(2)	(6)
Unearned revenue		207	131
Other liabilities and provisions		122	392
Cash generated from operations		3,783	3,507
Income taxes paid		(744)	(1,305)
Net cash provided by operating activities		3,039	2,202
Investing activities:
Expenditure on property, plant and equipment net of sale proceeds, including changes in retention money and capital creditors		(859)	(669)
Loans to employees		20	(1)
Deposits placed with corporation		(60)	(19)
Income on investments		28	21
Payment for acquisition of business, net of cash acquired	2.9	–	(549)
Payment of contingent consideration pertaining to acquisition of business	2.9	(36)	–
Investment in preference securities		(26)	(13)
Investment in quoted debt securities		(5)	–
Redemption of quoted debt securities		4	–
Investment in liquid mutual fund units		(10,669)	(8,304)
Redemption of liquid mutual fund units		10,183	8,415
Redemption of fixed maturity plan securities		–	33
Net cash used in investing activities		(1,420)	(1,086)
Financing activities:
Payment of dividends		(3,256)	(3,366)
Net cash used in financing activities		(3,256)	(3,366)
Effect of exchange rate changes on cash and cash equivalents		(10)	25
Net decrease in cash and cash equivalents		(1,637)	(2,250)
Cash and cash equivalents at the beginning	2.1	32,697	30,367
Cash and cash equivalents at the end	2.1	31,050	28,142
Supplementary information:
Restricted cash balance	2.1	512	375

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

As per our report of even date attached

for B S R & Co. LLP

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

Chartered Accountants

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

Supreet Sachdev	R. Seshasayee	Dr. Vishal Sikka	U. B. Pravin Rao
Partner	Chairman	Chief Executive Officer and Managing Director	Chief Operating Officer and Whole-time Director
Membership No. 205385
Bangalore	Roopa Kudva	M. D. Ranganath	A.G.S. Manikantha
July 15, 2016	Director	Chief Financial Officer	Company Secretary

Notes to the Condensed 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 condensed consolidated interim financial statements are authorized for issue by the company's Board of Directors on July 15, 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 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 consolidated financial statements for the year ended March 31, 2016. Accounting policies have been applied consistently to all periods presented in these condensed consolidated interim financial statements.

1.3 Basis of consolidation

1.4 Use of estimates

1.5 Critical accounting estimates

a. Revenue recognition

b. Income taxes

c. Business combinations and intangible assets

d. Property, plant and equipment

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

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	5 years

Depreciation methods, useful lives and residual values are reviewed periodically, including at each financial year end. (Refer note 2.7)

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 Financial instruments

As per IFRS 9, the group has classified its financial assets into the following categories based on the business model for managing those assets and the contractual cash flow characteristics:

- Financial assets carried at amortised cost

- Financial assets fair valued through other comprehensive income

- Financial assets fair valued through profit and loss

The adoption of IFRS 9 did not have any other material impact on the consolidated financial statements, hence prior period figures have not been restated. The impact on account of adoption of IFRS 9 is given in Note 2.2.

1.9.1 Initial recognition

1.9.2 Subsequent measurement

a. Non-derivative financial instruments

(i) Financial assets carried at amortised cost

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

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

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

(iv) Financial liabilities

b. Derivative financial instruments

(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.

(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

(i) Ordinary Shares

(ii) Treasury Shares

1.9.3 Derecognition of financial instruments

1.10 Fair value of financial instruments

For all other financial instruments the carrying amounts approximate fair value due to the short maturity of those instruments.

1.11 Impairment

a. Financial assets

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

b. Non-financial assets

(i) Goodwill

(ii) Intangible assets and property, plant and equipment

1.12 Employee benefits

1.12.1 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.

1.12.2 Superannuation

1.12.3 Provident fund

1.12.4 Compensated absences

1.13 Share-based compensation

1.14 Earnings per equity share

1.15 Recent accounting pronouncements

1.15.1 Standards issued but not yet effective

The Group continues to evaluate the effect of the standard on ongoing financial reporting.

IFRS 16 Leases : On January, 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 recognize 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 condensed consolidated interim financial statements

2.1 Cash and cash equivalents

Cash and cash equivalents consist of the following:

(In crore)

	As of
	June 30, 2016	March 31, 2016
Cash and bank deposits	26,103	27,420
Deposits with financial institution	4,947	5,277
	31,050	32,697

Cash and cash equivalents as of June 30, 2016 and March 31, 2016 include restricted cash and bank balances of 512 crore and 492 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 financial institution 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
	June 30, 2016	March 31, 2016
Current Accounts
ANZ Bank, Taiwan	17	13
Axis Bank account, India	1	1
Axis Bank - Unpaid Dividend Account	2	2
Banamex Bank, Mexico	5	5
Banamex Bank, Mexico (U.S. Dollar account)	3	3
Bank of America, Mexico	17	21
Bank of America, USA	753	681
Bank Zachodni WBK S.A, Poland	6	3
Bank of Tokyo-Mitsubishi UFJ Ltd., Japan	1	1
Barclays Bank, UK	1	19
Bank Leumi, Israel (US Dollar account)	7	17
Bank Leumi, Israel	10	10
BNP Paribas Bank, Norway	3	–
China Merchants Bank, China	7	8
Citibank N.A, China	46	65
Citibank N.A., China (U.S. Dollar account)	101	72
Citibank N.A., Costa Rica	1	2
Citibank N.A., Australia	95	72
Citibank N.A., Brazil	14	5
Citibank N.A., Dubai	7	1
Citibank N.A., India	4	1
Citibank N.A., Japan	22	15
Citibank N.A., New Zealand	13	6
Citibank N.A., Portugal	2	2
Citibank N.A., Singapore	2	3
Citibank N.A., South Africa	5	5
CitiBank N.A., South Africa (Euro account)	1	1
Citibank N.A., Philippines, (U.S. Dollar account)	1	1
CitiBank N.A., USA	55	60
Commerzbank, Germany	17	19
Crédit Industriel et Commercial Bank, France	1	4
Deutsche Bank, India	32	8
Deutsche Bank, Philippines	10	13
Deutsche Bank, Philippines (U.S. Dollar account)	7	1
Deutsche Bank, Poland	9	5
Deutsche Bank, Poland (Euro account)	4	–
Deutsche Bank, EEFC (Australian Dollar account)	1	2
Deutsche Bank, EEFC (Euro account)	37	32
Deutsche Bank, EEFC (Swiss Franc account)	13	5
Deutsche Bank, EEFC (U.S. Dollar account)	61	96
Deutsche Bank, EEFC (United Kingdom Pound Sterling account)	11	9
Deutsche Bank, Belgium	31	59
Deutsche Bank, Malaysia	2	9
Deutsche Bank, Czech Republic	36	14
Deutsche Bank, Czech Republic (Euro account)	–	1
Deutsche Bank, Czech Republic (U.S. Dollar account)	11	28
Deutsche Bank, France	28	10
Deutsche Bank, Germany	45	17
Deutsche Bank, Netherlands	11	6
Deutsche Bank, Russia	–	2
Deutsche Bank, Russia (U.S. Dollar account)	3	1
Deutsche Bank, Singapore	7	4
Deutsche Bank, Spain	–	1
Deutsche Bank, Switzerland	6	1
Deutsche Bank, United Kingdom	31	170
HDFC Bank-Unpaid dividend account	1	1
HSBC Bank, Brazil	3	5
HSBC Bank, Hong Kong	3	1
ICICI Bank, India	37	72
ICICI Bank, EEFC (U.S. Dollar account)	9	10
ICICI Bank-Unpaid dividend account	3	2
ING Bank, Belgium	5	3
Nordbanken, Sweden	78	15
Punjab National Bank, India	23	4
Raiffeisen Bank, Czech Republic	5	5
Raiffeisen Bank, Romania	6	4
Royal Bank of Canada, Canada	118	78
Santander Bank, Argentina	4	–
State Bank of India, India	13	8
Silicon Valley Bank, USA	1	5
Silicon Valley Bank, (Euro account)	54	65
Silicon Valley Bank, (United Kingdom Pound Sterling account)	8	19
Union Bank of Switzerland AG	17	15
Union Bank of Switzerland AG, (Euro account)	17	12
Union Bank of Switzerland AG, (Australian Dollar account)	1	2
Union Bank of Switzerland AG, (U.S. Dollar account)	2	28
Union Bank of Switzerland AG, (United Kingdom Pound Sterling account)	–	4
Wells Fargo Bank N.A., USA	29	23
Westpac, Australia	1	6
	2,054	1,999
Deposit Accounts
Andhra Bank	908	948
Axis Bank	889	1,340
Bank of India	39	77
Canara Bank	2,274	2,247
Central Bank of India	1,518	1,538
Citibank	109	128
Corporation Bank	1,285	1,285
Deutsche Bank, Poland	246	237
HDFC Bank Ltd.	2,586	2,650
ICICI Bank	4,313	4,199
IDBI Bank	1,900	1,900
Indian Overseas Bank	1,250	1,250
Indusind Bank	250	250
Jammu & Kashmir Bank	25	25
Kotak Mahindra Bank Limited	362	537
National Australia Bank Limited	–	1
Oriental Bank of Commerce	1,967	1,967
Punjab National Bank	–	18
South Indian Bank	23	23
State Bank of India	2,350	2,367
Syndicate Bank	916	1,266
Union Bank of India	120	140
Vijaya Bank	304	304
Yes Bank	415	724
	24,049	25,421
Deposits with financial institution
HDFC Limited, India	4,947	5,277
	4,947	5,277
Total	31,050	32,697

2.2 Investments

The carrying value of the investments are as follows:

(In crore)

	As of
	June 30, 2016	March 31, 2016
(i) Current
Amortised Cost
Quoted debt securities:
Cost	8	7
Fair Value through profit and loss
Liquid mutual funds
Cost and fair value	555	68
	563	75
(ii) Non-current
Amortised Cost
Quoted debt securities:
Cost	1,599	1,696
Fair Value through Other comprehensive income
Unquoted equity and preference securities:
Fair value	119	93
Others:
Fair value	22	22
	1,740	1,811

Total investments	2,303	1,886
Investments carried at amortised cost	1,607	1,703
Investments carried at fair value thorough other comprehensive income	141	115
Investments carried at fair value through profit and loss account	555	68

Liquid mutual funds

The cost and fair value of liquid mutual funds as of June 30, 2016 and March 31, 2016 was 555 crore and 68 crore, respectively. The fair value is based on quoted price.

Quoted debt securities:

Investment in quoted debt securities represents the investments made in debt securities issued by government and quasi governement organisations.The fair value of quoted debt securities (including interest accrued) as of June 30, 2016 and March 31, 2016 is 1,766 crore and 1,703 crore, respectively.The fair value is based on quoted prices and market observable inputs.

Impact on account of adoption of IFRS 9

Accordingly, for the three months ended June 30, 2016, the company has recorded, in its other comprehensive income, a reversal of unrealised gain, net of taxes, of 35 crore (recorded on quoted debt securities as on April, 1, 2016), with a corresponding change in investment and deferred taxes.

Details showing the changes in the classification and the corresponding differences in carrying amounts as of the transition date April 1, 2016

(In crore)

	As per IAS 39		As per IFRS 9
Instrument	Category	Carrying value	Category	Carrying value
(i) Current
Liquid mutual funds	Available for sale financial assets ⁽¹⁾	68	Fair value through profit or loss	68
Quoted debt securities:	Available for sale financial assets ⁽¹⁾	7	Amortized cost	7
Total		75		75
(ii) Non current
Quoted debt securities	Available for sale financial assets ⁽¹⁾	1,696	Amortized cost	1,599
Unquoted equity and preference securities	Available for sale financial assets ⁽¹⁾	115	Fair value through other comprehensive income	115
Total		1,811		1,714
Total investments		1,886		1,789

⁽¹⁾ Fair value changes through other comprehensive income

Details showing the changes in the classification and the corresponding differences in carrying amounts as of the transition date April 1, 2015

(In crore)

	As per IAS 39		As per IFRS 9
Instrument	Category	Carrying value	Category	Carrying value
(i) Current
Liquid mutual funds	Available for sale financial assets ⁽¹⁾	842	Fair value through profit or loss	842
Fixed maturity plan securities:	Available for sale financial assets ⁽¹⁾	32	Fair value through profit or loss	32
Total		874		874
(ii) Non current
Quoted debt securities	Available for sale financial assets ⁽¹⁾	1,344	Amortized cost	1,304
Unquoted equity and preference securities	Available for sale financial assets ⁽¹⁾	1	Fair value through other comprehensive income	1
Total		1,345		1,305
Total investments		2,219		2,179

⁽¹⁾ Fair value changes through other comprehensive income

2.3 Financial instruments

Financial instruments by category

The carrying value and fair value of financial instruments by categories as of June 30, 2016 were as follows:

(In crore)

	Amortised cost	Financial assets/ liabilities at fair value through profit or loss		Financial assets/liabilities at fair value through OCI		Total carrying value	Total fair value
		Designated upon initial recognition	Mandatory	Equity instruments designated upon initial recognition	Mandatory
Assets:
Cash and cash equivalents (Refer Note 2.1)	31,050	–	–	–	–	31,050	31,050
Investments (Refer Note 2.2)
Liquid mutual funds	–	–	555	–	–	555	555
Quoted debt securities	1,607	–	–	–	–	1,607	1,766 *
Unquoted equity and preference securities	–	–	–	141	–	141	141
Trade receivables	11,893	–	–	–	–	11,893	11,893
Unbilled revenue	3,270	–	–	–	–	3,270	3,270
Prepayments and other assets (Refer Note 2.4)	3,324	–	–	–	–	3,324	3,324
Derivative financial instruments	–	–	60	–	–	60	60
Total	51,144	–	615	141	–	51,900	52,059
Liabilities:
Trade payables	262	–	–	–	–	262	262
Derivative financial instruments	–	–	7	–	–	7	7
Client deposits	26	–	–	–	–	26	26
Other liabilities including contingent consideration (Refer Note 2.5)	4,952	–	81	–	–	5,033	5,033
Total	5,240	–	88	–	–	5,328	5,328

The carrying value and fair value of financial instruments by categories as of March 31, 2016 were as follows:

(In crore)

	Amortised cost	Financial assets/ liabilities at fair value through profit or loss		Financial assets/liabilities at fair value through OCI		Total carrying value	Total fair value
		Designated upon initial recognition	Mandatory	Equity instruments designated upon initial recognition	Mandatory
Assets:
Cash and cash equivalents (Refer Note 2.1)	32,697	–	–	–	–	32,697	32,697
Investments (Refer Note 2.2)
Liquid mutual funds	–	–	68	–	–	68	68
Quoted debt securities	1,703	–	–	–	–	1,703	1,703 *
Unquoted equity and preference securities:	–	–	–	115	–	115	115
Trade receivables	11,330	–	–	–	–	11,330	11,330
Unbilled revenue	3,029	–	–	–	–	3,029	3,029
Prepayments and other assets (Refer Note 2.4)	2,601	–	–	–	–	2,601	2,601
Derivative financial instruments	–	–	116	–	–	116	116
Total	51,360	–	184	115	–	51,659	51,659
Liabilities:
Trade payables	386	–	–	–	–	386	386
Derivative financial instruments	–	–	5	–	–	5	5
Client deposits	28	–	–	–	–	28	28
Other liabilities including contingent consideration (Refer Note 2.5)	4,880	–	117	–	–	4,997	4,997
Total	5,294	–	122	–	–	5,416	5,416

* On account of fair value changes including interest accrued

Fair value hierarchy

Level 1	–	Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2	–	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3	–	Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

Fair value hierarchy of assets and liabilities as of June 30, 2016:

(In crore)

	As of June 30, 2016	Fair value measurement at end of the reporting period/year using
		Level 1	Level 2	Level 3
Assets
Investments in liquid mutual fund units (Refer Note 2.2)	555	555	–	–
Investments in quoted debt securities (Refer Note 2.2)	1,766	277	1,489	–
Investments in equity and preference securities (Refer Note 2.2)	119	–	–	119
Others (Refer Note 2.2)	22	–	–	22
Derivative financial instruments - gain on outstanding foreign exchange forward and option contracts	60	–	60	–
Liabilities
Derivative financial instruments - loss on outstanding foreign exchange forward and option contracts	7	–	7	–
Liability towards contingent consideration (Refer note 2.5)*	81	–	–	81

During the three months ended June 30, 2016, quoted debt securities of 115 crore, were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs.

*Discounted $14 million (approximately 95 crore) at 13.4%

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.

Fair value hierarchy of assets and liabilities measured as of March 31, 2016:

(In crore)

	As of March 31, 2016	Fair value measurement at end of the reporting period/year using
		Level 1	Level 2	Level 3
Assets
Investments in liquid mutual fund units (Refer Note 2.2)	68	68	–	–
Investments in quoted debt securities (Refer Note 2.2)	1,703	376	1,327	–
Investments in equity securities and preference securities(Refer Note 2.2)	93	–	–	93
Others (Refer Note 2.2)	22	–	–	22
Derivative financial instruments- gain on outstanding foreign exchange forward and option contracts	116	–	116	–
Liabilities
Derivative financial instruments- loss on outstanding foreign exchange forward and option contracts	5	–	5	–
Liability towards contingent consideration (Refer note 2.5)*	117	–	–	117

* Discounted $20 million (approximately 132 crore) at 13.7%

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 movement in contingent consideration as of June 30, 2016 from March 31, 2016 is on account of settlement of contingent consideration of 40 crore and change in discount rates and passage of time.

Income from financial assets or liabilities is as follows:

(In crore)

	Three months ended June 30,
	2016	2015
Interest income from investments carried at amortised cost	651	683
Dividend income from investments carried at fair value through Profit or Loss	19	23
	670	706

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.

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 Indian 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 analyzes foreign currency risk from financial instruments as of June 30, 2016:

(In crore)

	U.S. dollars	Euro	United Kingdom Pound Sterling	Australian dollars	Other currencies	Total
Cash and cash equivalents	1,134	198	44	167	751	2,294
Trade receivables	7,995	1,330	718	604	753	11,400
Unbilled revenue	2,095	424	248	103	262	3,132
Other assets	110	38	23	12	84	267
Trade payables	(43)	(24)	(18)	(5)	(123)	(213)
Client deposits	(14)	(2)	(1)	–	(9)	(26)
Accrued Expenses	(829)	(181)	(139)	(43)	(212)	(1,404)
Employee benefit obligations	(620)	(98)	(26)	(178)	(126)	(1,048)
Other liabilities	(947)	(144)	(36)	(22)	(217)	(1,366)
Net assets / (liabilities)	8,881	1,541	813	638	1,163	13,036

The following table analyzes foreign currency risk from financial instruments as of March 31, 2016:

(In crore)

	U.S. dollars	Euro	United Kingdom Pound Sterling	Australian dollars	Other currencies	Total
Cash and cash equivalents	1,124	167	202	171	601	2,265
Trade receivables	7,558	1,280	721	598	696	10,853
Unbilled revenue	1,871	368	190	114	253	2,796
Other assets	96	37	26	10	84	253
Trade payables	(126)	(75)	(73)	(4)	(76)	(354)
Client deposits	(20)	(2)	–	–	(6)	(28)
Accrued expenses	(788)	(152)	(116)	(35)	(219)	(1,310)
Employee benefit obligations	(573)	(80)	(49)	(166)	(125)	(993)
Other liabilities	(1,049)	(135)	(32)	(42)	(208)	(1,466)
Net assets / (liabilities)	8,093	1,408	869	646	1,000	12,016

For the three months ended June 30, 2016 and June 30, 2015, 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 0.49%, respectively.

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. 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
	June 30, 2016		March 31, 2016
	In million	In crore	In million	In crore
Forward contracts
In U.S. dollars	543	3,667	510	3,379
In Euro	94	703	100	750
In United Kingdom Pound Sterling	30	275	65	623
In Australian dollars	60	302	55	281
In Canadian dollars	20	105	–	–
In Swiss Franc	25	176	25	173
Option Contracts
In U.S. dollars	135	912	125	828
In United Kingdom Pound Sterling	50	455	–	–
Total forwards & options		6,595		6,034

The Group recognized a net gain of 47 crore on derivative financial instruments during the three months ended June 30, 2016 as against a net loss on derivative financial instruments of 74 crore during the three months ended June 30, 2015, 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
	June 30, 2016	March 31, 2016
Not later than one month	1,328	1,577
Later than one month and not later than three months	3,871	3,420
Later than three months and not later than one year	1,396	1,037
	6,595	6,034

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

(In crore)

	As of		As of
	June 30, 2016		March 31, 2016
	Derivative financial asset	Derivative financial liability	Derivative financial asset	Derivative financial liability
Gross amount of recognized financial asset/liability	80	(27)	124	(13)
Amount set off	(20)	20	(8)	8
Net amount presented in balance sheet	60	(7)	116	(5)

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 11,893 crore and 11,330 crore as of June 30, 2016 and March 31, 2016, respectively and unbilled revenue amounting to 3,270 crore and 3,029 crore as of June 30, 2016 and March 31, 2016, 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 has always been managed by the group 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. On account of adoption of IFRS 9, the group uses expected credit loss model to assess the impairment loss or gain. The group uses a provision matrix to compute the expected credit loss allowance for trade receivables and unbilled revenues. The provision matrix takes into account available external and internal credit risk factors such as credit default swap quotes, credit ratings from international credit rating agencies and the Group's historical experience for customers.

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

(In %)

	Three months ended June 30,
	2016	2015
Revenue from top customer	3.6	3.7
Revenue from top five customers	13.7	14.0

Credit risk exposure

The allowance for lifetime expected credit loss on customer balances for the three months ended June 30, 2016 was 15 crore. The reversal of allowance for lifetime expected credit losses on customer balances for the three months ended June 30, 2016 was 4 crore.

(In crore)

	Three months ended
	June 30, 2016	June 30, 2015
Balance at the beginning	289	366
Translation differences	1	5
Impairment loss recognised/(reversed) (refer note 2.15)	15	(4)
Write-offs	–	–
Balance at the end	305	367

The Company’s credit period generally ranges from 30-60 days.

(In crore except otherwise stated)

	As of
	June 30, 2016	March 31, 2016
Trade receivables	11,893	11,330
Unbilled revenues	3,270	3,029
Days Sales Outstanding- DSO (days)	66	66

Liquidity risk

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

As of June 30, 2016, the Group had a working capital of 37,524 crore including cash and cash equivalents of 31,050 crore and current investments of 563 crore. As of March 31, 2016, the Group had a working capital of 38,456 crore including cash and cash equivalents of 32,697 crore and current investments of 75 crore.

As of June 30, 2016 and March 31, 2016, the outstanding employee benefit obligations were 1,420 crore and 1,341 crore, respectively, which have been substantially funded. Accordingly, no liquidity risk is perceived.

The table below provides details regarding the contractual maturities of significant financial liabilities as of June 30, 2016:

(In crore)

Particulars	Less than 1 year	1–2 years	2–4 years	4–7 years	Total
Trade payables	262	–	–	–	262
Client deposits	26	–	–	–	26
Other liabilities (excluding liability towards acquisition) (Refer Note 2.5)	4,900	37	15	–	4,952
Liability towards acquisitions on an undiscounted basis (including contingent consideration) -Refer Note 2.5	47	48	–	–	95

The table below provides details regarding the contractual maturities of significant financial liabilities as of March 31, 2016:

(In crore)

Particulars	Less than 1 year	1–2 years	2–4 years	4–7 years	Total
Trade payables	386	–	–	–	386
Client deposits	28	–	–	–	28
Other liabilities ( excluding liabilities towards acquisition ) (Refer Note 2.5)	4,847	25	9	–	4,881
Liability towards acquisitions on an undiscounted basis (Refer Note 2.5)	86	46	–	–	132

2.4 Prepayments and other assets

Prepayments and other assets consist of the following:

(In crore)

	As of
	June 30, 2016	March 31, 2016
Current
Rental deposits	20	13
Security deposits	7	7
Loans to employees	279	303
Prepaid expenses⁽¹⁾	421	201
Interest accrued and not due	1,329	704
Withholding taxes⁽¹⁾	1,859	1,799
Advance payments to vendors for supply of goods⁽¹⁾	113	110
Deposit with corporations	1,300	1,238
Deferred contract cost⁽¹⁾	56	48
Other assets	53	25
	5,437	4,448
Non-current
Loans to employees	29	25
Deposit with corporations	60	62
Rental deposits	166	146
Security deposits	81	78
Deferred contract cost⁽¹⁾	325	333
Prepaid expenses⁽¹⁾	78	87
Prepaid gratuity⁽¹⁾	12	4
	751	735
	6,188	5,183
Financial assets in prepayments and other assets	3,324	2,601

⁽¹⁾Non financial 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. Deferred contract costs are upfront cost incurred for the contract and are amortised over the term of the contract.

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 Other liabilities

Other liabilities comprise the following :

(In crore)

	As of
	June 30, 2016	March 31, 2016
Current
Accrued compensation to employees	2,245	2,265
Accrued expenses	2,325	2,189
Withholding taxes payable⁽¹⁾	1,237	1,296
Retainage	77	80
Liabilities of controlled trusts	157	167
Deferred income - government grant on land use rights⁽¹⁾	1	1
Deferred Rent⁽¹⁾	1	–
Accrued gratuity	1	–
Liability towards contingent consideration (Refer note 2.9)	43	81
Tax on dividend ⁽¹⁾	666	–
Others	97	146
	6,850	6,225
Non-current
Liability towards contingent consideration (Refer note 2.9)	38	36
Accrued compensation to employees	51	33
Deferred income - government grant on land use rights⁽¹⁾	46	46
	135	115
	6,985	6,340
Financial liabilities included in other liabilities	5,033	4,997
Financial liability towards acquisitions on an undiscounted basis (including contingent consideration) - Refer note 2.9	95	132

⁽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.

2.6 Provisions

Provisions comprise the following:

(In crore)

	As of
	June 30, 2016	March 31, 2016
Provision for post sales client support and other provisions	536	512
	536	512

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 June 30, 2016
Balance as of April 1, 2016	512
Provision recognized/ (reversed)	36
Provision utilized	(21)
Translation difference	9
Balance as of June 30, 2016	536

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

As of June 30, 2016 and March 31, 2016, claims against the company, not acknowledged as debts, net of amounts paid (excluding demands from Indian Income tax authorities- Refer note 2.11) amounted to 280 crore and 277 crore, respectively.

2.7 Property, plant and equipment

Following are the changes in the carrying value of property, plant and equipment for the three months ended June 30, 2016:

(In crore)

	Land	Buildings	Plant and machinery	Computer equipment	Furniture and fixtures	Vehicles	Total
Gross carrying value as of April 1, 2016	1,620	6,325	2,598	4,072	1,444	29	16,088
Additions	9	36	162	184	52	3	446
Deletions	–	–	(3)	(15)	(1)	(1)	(20)
Translation difference	–	–	–	–	(1)	–	(1)
Gross carrying value as of June 30, 2016	1,629	6,361	2,757	4,241	1,494	31	16,513
Accumulated depreciation as of April 1, 2016	(22)	(2,201)	(1,608)	(2,617)	(986)	(17)	(7,451)
Depreciation	(1)	(57)	(90)	(164)	(45)	(1)	(358)
Accumulated depreciation on deletions	–	–	3	15	1	1	20
Translation difference	–	–	–	–	1	(1)	–
Accumulated depreciation as of June 30, 2016	(23)	(2,258)	(1,695)	(2,766)	(1,029)	(18)	(7,789)
Capital work-in progress as of June 30, 2016							2,241
Carrying value as of June 30, 2016	1,606	4,103	1,062	1,475	465	13	10,965
Capital work-in progress as of April 1, 2016							1,893
Carrying value as of April 1, 2016	1,598	4,124	990	1,455	458	12	10,530

Following are the changes in the carrying value of property, plant and equipment for the three months ended June 30, 2015:

(In crore)

	Land	Buildings	Plant and machinery	Computer equipment	Furniture and fixtures	Vehicles	Total
Gross carrying value as of April 1, 2015	1,562	5,881	2,104	3,347	1,179	34	14,107
Addition through Business Combination (Refer note 2.9)	–	–	1	2	1	–	4
Additions	18	74	92	303	47	1	535
Deletions	–	–	(3)	(13)	(1)	(1)	(18)
Translation difference	–	–	2	8	6	1	17
Gross carrying value as of June 30, 2015	1,580	5,955	2,196	3,647	1,232	35	14,645
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 2.9)	–	–	(1)	(1)	–	–	(2)
Depreciation	(1)	(53)	(72)	(114)	(40)	(1)	(281)
Accumulated depreciation on deletions	–	–	3	7	1	1	12
Translation difference	–	–	(2)	(7)	(4)	(1)	(14)
Accumulated depreciation as of June 30, 2015	(17)	(2,035)	(1,365)	(2,402)	(868)	(20)	(6,707)
Capital work-in progress as of June 30, 2015							1,573
Carrying value as of June 30, 2015	1,563	3,920	831	1,245	364	15	9,511
Capital work-in progress as of April 1, 2015							1,440
Carrying value as of April 1, 2015	1,546	3,899	811	1,060	354	15	9,125

Following are the changes in the carrying value of property, plant and equipment for the year ended March 31, 2016:

(In crore)

	Land	Buildings	Plant and machinery	Computer equipment	Furniture and fixtures	Vehicles	Total
Gross carrying value as of April 1, 2015	1,562	5,881	2,104	3,347	1,179	34	14,107
Acquisition through Business Combination (Refer note 2.9)	–	–	1	2	1	–	4
Additions	58	444	499	1,103	265	6	2,375
Deletions	–	–	(8)	(396)	(7)	(12)	(423)
Translation difference	–	–	2	16	6	1	25
Gross carrying value as of March 31, 2016	1,620	6,325	2,598	4,072	1,444	29	16,088
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 2.9)	–	–	(1)	(1)	–	–	(2)
Depreciation	(6)	(219)	(320)	(553)	(161)	(5)	(1,264)
Accumulated depreciation on deletions	–	–	7	237	4	7	255
Translation difference	–	–	(1)	(13)	(4)	–	(18)
Accumulated depreciation as of March 31, 2016	(22)	(2,201)	(1,608)	(2,617)	(986)	(17)	(7,451)
Capital work-in progress as of March 31, 2016							1,893
Carrying value as of March 31, 2016	1,598	4,124	990	1,455	458	12	10,530
Capital work-in progress as of April 1, 2015							1,440
Carrying value as of April 1, 2015	1,546	3,899	811	1,060	354	15	9,125

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

Carrying value of land includes 632 crore and 628 crore as of June 30, 2016 and March 31, 2016, 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 1,431 crore and 1,486 crore, as of June 30, 2016 and March 31, 2016, respectively.

2.8 Goodwill

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

(In crore)

	As of
	June 30, 2016	March 31, 2016
Carrying value at the beginning	3,764	3,091
Goodwill on Kallidus d.b.a Skava acquisition (Refer note 2.9)	–	452
Goodwill on Noah acquisition (Refer note 2.9)	–	30
Translation differences	28	191
Carrying value at the end	3,792	3,764

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.

(In crore)

Segment	As of
	March 31, 2016
Financial services	851
Manufacturing	423
Retail, Consumer packaged goods and Logistics	573
Life Sciences, Healthcare and Insurance	656
Energy & Utilities, Communication and Services	789
	3,292
Operating segments without significant goodwill	472
Total	3,764

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 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 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. An average of the range of each assumption used is mentioned below. As of March 31, 2016, 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 %)

	March 31, 2016
Long term growth rate	8-10
Operating margins	17-20
Discount rate	14.2

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.

2.9 Business combinations

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 over 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 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 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. During the year ended March 31, 2016, based on an assessment of Noah achieving the targets for the year ending December 31, 2015 and December 31, 2016, the entire contingent consideration has been reversed in the statement of comprehensive income. The retention bonus is treated as a post-acquisition employee remuneration expense as per IFRS 3R. For the three months ended June 30, 2016, a post-acquisition employee remuneration expense of 31 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 year ended March 31, 2016.

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.

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 has been fully 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 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.

During the three months ended June 30, 2016 contingent consideration of 40 crore was paid to the sellers of Kallidus on the achievement of the certain financial targets. The balance contingent consideration as of June 30, 2016 and March 31, 2016 is 95 crore and 132 crore respectively, on an undiscounted basis.

The transaction costs of 12 crore related to the acquisition have been included under administrative expenses in the statement of comprehensive income for the year ended March 31, 2016.

2.10 Employees' Stock Option Plans (ESOP)

2015 Stock Incentive Compensation Plan (the 2015 Plan) : SEBI issued the Securities and Exchange Board of India (Share based Employee Benefits) Regulations, 2014 (‘SEBI Regulations’) which replaced the SEBI ESOP Guidelines, 1999. The 2011 Plan (as explained below) was required to be amended and restated in accordance with the SEBI Regulations. Consequently, to effect this change and to further introduce stock options/ADR’s and other stock incentives, the Company put forth the 2015 Stock Incentive Compensation Plan (the 2015 Plan) for approval to the shareholders of the Company. Pursuant to the approval by the shareholders through postal ballot which ended on March 31, 2016, the Board of Directors have been authorised to introduce, offer, issue and allot share-based incentives to eligible employees of the Company and its subsidiaries under the 2015 Plan. The maximum number of shares under the 2015 plan shall not exceed 2,40,38,883 equity shares (this includes 11,223,576 equity shares which were held by the Trust towards the 2011 Plan as at March 31, 2016). 1,70,38,883 equity shares will be issued as RSUs at par value and 70,00,000 equity shares will be issued as stock options at market price. These instruments will vest over a period of 4 years and the Company expects to grant the instruments under the 2015 Plan over the period of 4 to 7 years. As of June 30, 2016, 11,211,170 shares are held by the trust towards 2015 Plan.

2011 RSU Plan (the 2011 Plan) now called 2015 Stock Incentive Compensation Plan ( the 2015 Plan): The Company had a 2011 RSU Plan which provided for the grant of restricted stock units (RSUs) to eligible employees of the Company. The Board of Directors recommended the 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 was 1,13,34,400 and the plan was expected to continue in effect for a term of 10 years from the date of initial grant under the plan. 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 Officer and Managing Director. The Board in its meeting held on June 22, 2015, on recommendation of Nomination and Remuneration Committee, further granted 1,24,061 RSUs to Dr. Vishal Sikka. These RSUs are vesting 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. Further the Company has earmarked 100,000 equity shares for welfare activities of the employees, approved by the shareholders vide postal ballot which ended on March 31, 2016. The equity shares as of March 31, 2016 held under this plan, i.e. 11,223,576 equity shares (this includes the aggregate number of equity shares that may be awarded under the 2011 Plan as reduced by 10,824 equity shares already exercised by Dr. Vishal Sikka and 100,000 equity shares which have been earmarked for welfare activities of the employees) have been subsumed under the 2015 Plan. The award granted to Dr. Vishal Sikka on June 22, 2015 was modified by the Nomination and remuneration committee on April 14, 2016. There is no modification or change in the total number of RSUs granted or the vesting period (which is four years). The modifications relate to the criteria of vesting for each of the years. Based on the modification, the first tranche of the RSUs will vest subject to achievement of certain key performance indicators for the year ended March 31, 2016. Subsequent vesting of RSU's for each of the remaining years would be subject to continued employment.

The activity in the 2015 Plan ( formerly 2011 Plan) during the three months ended June 30, 2016 and June 30, 2015 is set out below:

Particulars	Three months ended June 30, 2016		Three months ended June 30, 2015
	Shares arising out of options	Weighted average exercise price	Shares arising out of options	Weighted average exercise price
2015 Plan (Formerly 2011 Plan):
Outstanding at the beginning*	221,505	5	108,268	5
Granted	–	–	124,061	5
Forfeited and expired	–	–	–	–
Exercised	12,406	5	–	–
Outstanding at the end	209,099	5	232,329	5
Exercisable at the end	–	–	–	–

* Adjusted for bonus issues. (Refer note 2.12)

Pursuant to the approval from the shareholders through postal ballot on March 31, 2016, Dr. Vishal Sikka is eligible to receive an annual grant of $2,000,000 of fair value in RSUs which vest over time, subject to continued service, and an annual grant of $5,000,000 in performance based equity and stock options, subject to achievement of performance targets set by the Board or its committee, which vest over time. Though the above RSUs and performance based equity and stock options have not been granted as of June 30, 2016, in accordance with IFRS 2 Share-based Payment, the company has recorded an employee stock compensation expense of 7 crore during the three months ended June 30, 2016 for the same.

The weighted average share price of options exercised under the 2011 Plan on the date of exercise was 1,206/-.

The weighted average remaining contractual life of RSUs outstanding as of June 30, 2016 and March 31, 2016 under the 2015 Plan was 1.84 years and 1.98 years,

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 ended June 30, 2016 and June 30, 2015, the company recorded an employee stock compensation expense of 9 crore and 2 crore, respectively in the statement of comprehensive income towards CEO compensation.

2.11 Income taxes

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

(In crore)

	Three month ended June 30,
	2016	2015
Current taxes
Domestic taxes	1,094	901
Foreign taxes	373	232
	1,467	1,133
Deferred taxes
Domestic taxes	(29)	45
Foreign taxes	(76)	(3)
	(105)	42
Income tax expense	1,362	1,175

Income tax expense for the three months ended June 30, 2016 and June 30, 2015 includes provisions (net of reversals) of 8 crore and reversals (net of provisions) of 83 crore, respectively, pertaining to earlier periods.

Entire deferred income tax for the three months ended June 30, 2016 and June 30, 2015 relates to origination and reversal of temporary differences.

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 June 30,
	2016	2015
Profit before income taxes	4,798	4,205
Enacted tax rates in India	34.61%	34.61%
Computed expected tax expense	1,661	1,455
Tax effect due to non-taxable income for Indian tax purposes	(484)	(394)
Overseas taxes	190	149
Tax provision (reversals), overseas and domestic	8	(83)
Effect of exempt non-operating income	(28)	(18)
Effect of unrecognized deferred tax assets	(3)	10
Effect of differential overseas tax rates	2	(6)
Effect of non-deductible expenses	32	75
Additional deduction on research and development expense	(14)	(14)
Others	(2)	1
Income tax expense	1,362	1,175

The applicable Indian statutory tax rates for fiscal 2017 and fiscal 2016 is 34.61% and 34.61%, respectively.

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 has provided to the export of software for the units registered under the Special Economic Zones Act, 2005 (SEZ). SEZ units which began the provision of 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 further five years. Up to 50% of such profits or gains is also available for a further five years subject to creation of a Special Economic Zone re-Investment Reserve out of the profit to the eligible SEZ units and utilization of such reserve by the Company for acquiring new plant and machinery for the purpose of its business as per the provisions of the Income Tax Act, 1961.

As of June 30, 2016 and March 31, 2016, claims against the group not acknowledged as debts from the Indian Income tax authorities (net of amount paid to statutory authorities of 4,383 crore and 4,383 crore) amounted to 7 crore and 7 crore, respectively.

Payment of 4,383 crore (4,383 crore) includes demands from the Indian Income tax authorities of 4,135 crore (4,135 crore), including interest of 1,224 crore (1,224 crore) upon completion of their tax assessment for fiscal 2007, fiscal 2008, fiscal 2009, fiscal 2010 and fiscal 2011. These demands were paid to statutory tax authorities, which includes 913 crore paid during the year March 31, 2016 consequent to demands from tax authorities in India for fiscal 2007 towards denial of certain tax benefits. The company has filed an appeal with the income tax appellate authorities.

2.12 Reconciliation of basic and diluted shares used in computing earnings per share

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

	Three month ended June 30,
	2016	2015
Basic earnings per equity share - weighted average number of equity shares outstanding^{(1) & (2)}	228,56,22,329	228,56,10,264
Effect of dilutive common equivalent shares - share options outstanding	145,793	62,045
Diluted earnings per equity share - weighted average number of equity shares and common equivalent shares outstanding	228,57,68,122	228,56,72,309

⁽¹⁾	Excludes treasury shares

⁽²⁾	adjusted for bonus issues. Refer note 2.17

For the three months ended June 30, 2016 and June 30, 2015, respectively, 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:

(In crore)

	Three months ended June 30,
	2016	2015
Salaries and other employee benefits to whole-time directors and executive officers⁽¹⁾	21	22
Commission and other benefits to non-executive/independent directors	3	2
Total	24	24

⁽¹⁾

Includes employee stock compensation expense of

9 crore and

2 crore for the three months ended June 30, 2016 and June 30, 2015, respectively towards CEO compensation.

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 Group's operations predominantly relate to providing end-to-end business solutions to enable clients to enhance business performance. During the quarter ended March 31, 2016, the Group reorganized some of its segments to enhance executive customer relationships, improve focus of sales investments and increase management oversight consequent to which, erstwhile manufacturing segment is now being reviewed as Hi-Tech, Manufacturing and others included in ECS. Additionally, Infosys Public services (IPS) is being reviewed separately by the Chief Operating Decision Maker (CODM). Consequent to the internal reorganizations, there were changes effected in the reportable business segments based on the "management approach" as defined in IFRS 8, Operating Segments. The CODM evaluates the Group'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 Group are primarily enterprises in Financial Services (FS), enterprises in Manufacturing (MFG), enterprises in Retail, Consumer packaged goods and Logistics (RCL), enterprises in the Energy & utilities, Communication and Services (ECS), enterprises in Hi-tech (Hi-TECH), 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 and IPS. 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.

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 June 30, 2016 and June 30, 2015

(In crore)

Particulars	FS	MFG	ECS	RCL	HILIFE	Hi-TECH	All other segments	Total
Revenues	4,551	1,844	3,719	2,861	2,004	1,322	481	16,782
	*3,882*	*1,616*	*3,166*	*2,342*	*1,870*	*1,151*	*327*	*14,354*
Identifiable operating expenses	2,238	949	1,757	1,370	1,000	683	344	8,341
	1,913	878	1,445	1,124	938	602	255	7,155
Allocated expenses	1,046	444	896	689	482	318	116	3,991
	896	392	769	569	454	279	79	3,438
Segment profit	1,267	451	1,066	802	522	321	21	4,450
	*1,073*	*346*	*952*	*649*	*478*	*270*	*(7)*	*3,761*
Unallocable expenses								403
								314
Operating profit								4,047
								*3,447*
Other income, net								753
								758
Share in Associate's profit / (loss)								(2)
								–
Profit before income taxes								4,798
								*4,205*
Income tax expense								1,362
								1,175
Net profit								3,436
								*3,030*
Depreciation and amortization								400
								313
Non-cash expenses other than depreciation and amortization								3
								–

2.14.2 Geographic segments

Three months ended June 30, 2016 and June 30, 2015

(In crore)

Particulars	North America	Europe	India	Rest of the World	Total
Revenues	10,400	3,868	457	2,057	16,782
	*9,074*	*3,219*	*319*	*1,742*	*14,354*
Identifiable operating expenses	5,336	1,845	247	913	8,341
	4,589	1,609	236	721	7,155
Allocated expenses	2,503	928	95	465	3,991
	2,201	777	64	396	3,438
Segment profit	2,561	1,095	115	679	4,450
	*2,284*	*833*	19	*625*	*3,761*
Unallocable expenses					403
					314
Operating profit					4,047
					*3,447*
Other income, net					753
					758
Share in Associate's profit / (loss)					(2)
					–
Profit before income taxes					4,798
					*4,205*
Income tax expense					1,362
					1,175
Net profit					3,436
					*3,030*
Depreciation and amortization					400
					313
Non-cash expenses other than depreciation and amortization					3
					–

2.14.3 Significant clients

No client individually accounted for more than 10% of the revenues in the three months and year ended June 30, 2016 and June 30, 2015.

2.15 Break-up of expenses

Cost of sales

(In crore)

	Three months ended June 30,
	2016	2015
Employee benefit costs	8,286	7,144
Deferred purchase price pertaining to acquisition (Refer Note 2.9)	–	60
Depreciation and amortization	400	313
Travelling costs	566	401
Cost of Software packages for own use	183	187
Consultancy and professional charges	7	–
Third party items bought for service delivery to clients	93	113
Cost of technical sub-contractors	917	749
Operating lease payments	73	54
Communication costs	54	48
Repairs and maintenance	77	54
Provision for post-sales client support	21	(9)
Others	4	9
Total	10,681	9,123

Selling and marketing expenses

(In crore)

	Three months ended June 30,
	2016	2015
Employee benefit costs	661	625
Travelling costs	102	84
Branding and marketing	116	74
Operating lease payments	14	10
Communication costs	5	4
Consultancy and professional charges	12	13
Others	10	10
Total	920	820

Administrative expenses

(In crore)

	Three months ended June 30,
	2016	2015
Employee benefit costs	335	284
Consultancy and professional charges	165	151
Repairs and maintenance	252	177
Power and fuel	63	53
Communication costs	62	60
Travelling costs	72	71
Impairment loss recognised/(reversed) on financial assets	15	(4)
Rates and taxes	40	31
Insurance charges	14	15
Operating lease payments	22	17
Commission to non-whole time directors	3	2
Contribution towards Corporate Social Responsibility	49	45
Others	42	62
Total	1,134	964

2.16 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 amount of per share dividend recognized as distributions to equity shareholders for the three months ended June 30, 2016 and June 30, 2015 was 14.25/- and 29.50/-(not adjusted for bonus issue on June, 2015) respectively.

2.17 Share capital and share premium

As per our report of even date attached

for B S R & Co. LLP

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

Chartered Accountants

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

Supreet Sachdev	R. Seshasayee	Dr. Vishal Sikka	U. B. Pravin Rao
Partner	Chairman	Chief Executive Officer and Managing Director	Chief Operating Officer and Whole-time Director
Membership No. 205385
Bangalore	Roopa Kudva	M. D. Ranganath	A.G.S. Manikantha
July 15, 2016	Director	Chief Financial Officer	Company Secretary

Exhibit 99.11

Ind AS Standalone

Independent Auditor’s Report

To the Board of Directors of Infosys Limited

Report on the Standalone Interim Financial Statements

We have audited the accompanying standalone interim financial statements of Infosys Limited (“the Company”), which comprise the balance sheet as at 30 June 2016, the statement of profit and loss (including other comprehensive income), the statement of cash flows and the statement of changes in equity for the quarter ended on that date and a summary of the significant accounting policies and other explanatory information.

Management’s Responsibility for the Standalone Interim Financial Statements

The Company’s Board of Directors is responsible for the preparation and presentation of these standalone interim financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) 34, Interim Financial Reporting as specified under section 133 of the Companies Act, 2013 (‘the Act’) read with relevant rules issued thereunder.

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 financial 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 standalone interim financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit of the standalone interim financial statements 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 standalone interim financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the standalone interim financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the standalone interim financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company’s preparation of the standalone 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 the Company’s Directors, as well as evaluating the overall presentation of the standalone 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 standalone interim financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone interim financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the financial position of the Company as at 30 June 2016 and its financial performance including other comprehensive income, its cash flows and the changes in equity for the quarter 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
15 July 2016

INFOSYS LIMITED

(In crore)

Balance Sheet as at	Note	June 30, 2016	March 31, 2016	April 1, 2015
ASSETS
Non-current assets
Property, plant and equipment	2.3	8,326	8,248	7,347
Capital work-in-progress		1,118	934	769
Intangible assets	2.4	–	–	–
Financial Assets
Investments	2.5	11,287	11,076	6,108
Loans	2.6	10	5	4
Other financial assets	2.7	225	192	110
Deferred tax assets (net)	2.17	432	405	433
Other non-current assets	2.10	777	755	349
Income tax assets (net)	2.17	4,935	5,020	3,941
Total Non - Current Assets		27,110	26,635	19,061
Current assets
Financial Assets
Investments	2.5	332	2	749
Trade receivables	2.8	10,359	9,798	8,627
Cash and cash equivalents	2.9	27,311	29,176	27,722
Loans	2.6	333	355	225
Other financial assets	2.7	5,496	4,801	4,045
Other current assets	2.10	2,221	1,965	1,384
Total Current Assets		46,052	46,097	42,752
Total Assets		73,162	72,732	61,813
EQUITY AND LIABILITIES
Equity
Equity share capital	2.12	1,148	1,148	574
Other equity		59,167	59,934	51,617
Total equity		60,315	61,082	52,191
LIABILITIES
Non-current liabilities
Financial Liabilities
Other financial liabilities	2.13	65	62	27
Deferred tax liabilities (net)	2.17	–	–	–
Total Non - Current Liabilities		65	62	27
Current liabilities
Financial Liabilities
Trade payables	2.14	301	623	124
Other financial liabilities	2.13	5,134	5,132	4,847
Other current liabilities	2.15	2,926	2,093	1,564
Provisions	2.16	462	436	382
Income tax liabilities (net)	2.17	3,959	3,304	2,678
Total Current Liabilities		12,782	11,588	9,595
Total Equity and Liabilities		73,162	72,732	61,813

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

As per our report of even date attached

for B S R & Co. LLP

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

Chartered Accountants

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

Supreet Sachdev	R. Seshasayee	Dr. Vishal Sikka	U. B. Pravin Rao
Partner	Chairman	Chief Executive Officer and Managing Director	Chief Operating Officer and Whole-time Director
Membership No. 205385
Bangalore	Roopa Kudva	M. D. Ranganath	A.G.S. Manikantha
July 15, 2016	Director	Chief Financial Officer	Company Secretary

INFOSYS LIMITED

In crore, except equity share and per equity share data

Statement of Profit and Loss for the three months ended	Note	June 30,
		2016	2015
Revenue from operations	2.18	14,420	12,738
Other Income, net	2.19	761	721
Total Income		15,181	13,459
Expenses
Employee benefit expenses	2.20	7,605	6,807
Deferred consideration pertaining to acquisition		–	60
Cost of technical sub-contractors		1,135	965
Travel expenses		576	432
Cost of software packages and others	2.20	224	291
Communication expenses		82	80
Consultancy and professional charges		119	132
Depreciation and amortisation expense	2.3 & 2.4	319	252
Other expenses	2.20	661	450
Total Expenses		10,721	9,469
Profit before tax		4,460	3,990
Tax Expense:
Current tax	2.17	1,314	1,053
Deferred tax	2.17	(34)	46
Profit for the period		3,180	2,891
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurement of the net defined benefit liability/asset		(17)	(8)
Equity instruments through other comprehensive income		–	–
Items that will be reclassified to profit or loss		–	–
Total other comprehensive income, net of tax		(17)	(8)

Total comprehensive income for the period		3,163	2,883
Earnings per equity share
Equity shares of par value 5/- each
Basic ()		13.85	12.59
Diluted ()		13.85	12.59
Weighted average equity shares used in computing earnings per equity share
Basic	2.23	2,29,69,44,664	2,29,69,44,664
Diluted	2.23	2,29,69,44,664	2,29,69,44,664

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

As per our report of even date attached

for B S R & Co. LLP

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

Chartered Accountants

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

Supreet Sachdev	R. Seshasayee	Dr. Vishal Sikka	U. B. Pravin Rao
Partner	Chairman	Chief Executive Officer and Managing Director	Chief Operating Officer and Whole-time Director
Membership No. 205385
Bangalore	Roopa Kudva	M. D. Ranganath	A.G.S. Manikantha
July 15, 2016	Director	Chief Financial Officer	Company Secretary

INFOSYS LIMITED

STATEMENTS OF CHANGE IN EQUITY

In crore

Particulars		OTHER EQUITY
		Reserves & Surplus							Other comprehensive income
	EQUITY SHARE CAPITAL	Securities premium reserve	Retained earnings	Capital reserve	General reserve	Share Options Outstanding Account	Special Economic Zone Re-investment reserve ⁽¹⁾	Business transfer adjustment reserve⁽²⁾	Equity Instruments through other comprehensive income	Other items of other comprehensive income	Total equity attributable to equity holders of the Company
Balance as of April 1, 2015	574	2,778	40,065	54	8,291	2	–	412	–	15	52,191
Changes in equity for the three months ended June 30, 2015
Increase in share capital on account of bonus issue(refer to note 2.12)	574	–	–	–	–	–	–	–	–	–	574
Transfer to general reserve	–	–	(1,217)	–	1,217	–	–	–	–	–	–
Amounts utilized for bonus issue (refer note 2.12)	–	(574)	–	–	–	–	–	–	–	–	(574)
Transferred to Special Economic Zone Re-investment reserve	–	–	(135)	–	–	–	135	–	–	–	–
Transferred from Special Economic Zone Re-investment reserve on utilization	–	–	135	–	–	–	(135)	–	–	–	–
Share based payment to employees (refer to note 2.12)	–	–	–	–	–	2	–	–	–	–	2
Remeasurement of the net defined benefit liability/asset, net of tax effect (refer note 2.22 and 2.17)	–	–	–	–	–	–	–	–	–	(8)	(8)
Equity instruments through other comprehensive income	–	–	–	–	–	–	–	–	–	–	–
Dividends (including corporate dividend tax)	–	–	(4,078)	–	–	–	–	–	–	–	(4,078)
Profit for the period	–	–	2,891	–	–	–	–	–	–	–	2,891
Balance as of June 30, 2015	1,148	2,204	37,661	54	9,508	4	–	412	–	7	50,998

INFOSYS LIMITED

STATEMENTS OF CHANGE IN EQUITY

In ` crore

Particulars		OTHER EQUITY
		Reserves & Surplus							Other comprehensive income
	EQUITY SHARE CAPITAL	Securities premium reserve	Retained earnings	Capital reserve	General reserve	Share Options Outstanding Account	Special Economic Zone Re-investment reserve ⁽¹⁾	Business transfer adjustment reserve⁽²⁾	Equity Instruments through other comprehensive income	Other items of other comprehensive income	Total equity attributable to equity holders of the Company
Balance as of April 1, 2016	1,148	2,204	44,698	54	9,508	9	–	3,448	–	13	61,082
Changes in equity for the three months ended June 30, 2016
Transfer to general reserve	–	–	(1,579)	–	1,579	–	–	–	–	–	–
Transferred to Special Economic Zone Re-investment reserve	–	–	(276)	–	–	–	276	–	–	–	–
Transferred from Special Economic Zone Re-investment reserve on utilization	–	–	276	–	–	–	(276)	–	–	–	–
Excersice of stock options (refer to note 2.12)	–	1	–	–	–	(1)	–	–	–	–	–
Share based payment to employees (refer to note 2.12)	–	–	–	–	–	9	–	–	–	–	9
Remeasurement of the net defined benefit liability/asset, net of tax effect (refer note 2.22 and 2.17)	–	–	–	–	–	–	–	–	–	(17)	(17)
Equity instruments through other comprehensive income	–	–	–	–	–	–	–	–	–	–	–
Dividends (including corporate dividend tax)	–	–	(3,939)	–	–	–	–	–	–	–	(3,939)
Profit for the period	–	–	3,180	–	–	–	–	–	–	–	3,180
Balance as of June 30, 2016	1,148	2,205	42,360	54	11,087	17	–	3,448	–	(4)	60,315

⁽¹⁾

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

⁽²⁾

Profit on transfer of business between entities under common control taken to reserve on account of transition to Indian Accounting Standards (Ind AS)

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

As per our report of even date attached

for B S R & Co. LLP

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

Chartered Accountants

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

Supreet Sachdev	R. Seshasayee	Dr. Vishal Sikka	U. B. Pravin Rao
Partner	Chairman	Chief Executive Officer and Managing Director	Chief Operating Officer and Whole-time Director
Membership No. 205385
Bangalore	Roopa Kudva	M. D. Ranganath	A.G.S. Manikantha
July 15, 2016	Director	Chief Financial Officer	Company Secretary

INFOSYS LIMITED

(In crore)

Statements of Cash Flows	Three months ended June 30,
	2016	2015
Cash flow from operating activities:
Profit for the period	3,180	2,891
Adjustments to reconcile net profit to net cash provided by operating activities:
Depreciation and amortization	319	252
Income tax expense	1,280	1,099
Allowance for credit losses on financial assets	23	(19)
Deferred purchase price	–	60
Interest and dividend income	(671)	(662)
Other adjustments	26	12
Exchange differences on translation of assets and liabilities	16	5
Changes in assets and liabilities
Trade receivables and unbilled revenue	(797)	(693)
Loans and other financial assets and other assets	(179)	(269)
Trade payables	(322)	27
Other financial liabilities, other liabilities and provisions	249	471
Cash generated from operations	3,124	3,174
Income taxes paid	(569)	(1,241)
Net cash generated by operating activities	2,555	1,933
Cash flow from investing activities:
Expenditure on property, plant and equipment net of sale proceeds, including changes in retention money and capital creditors	(647)	(585)
Deposits with corporations	(59)	(6)
Loans to employees	19	5
Investment in subsidiaries	(185)	(191)
Payment towards contingent consideration pertaining to acquisition	(36)	(578)
Payments to acquire financial assets
Preference securities	(26)	(13)
Liquid mutual fund units	(10,087)	(8,234)
Proceeds on sale of financial assets
Liquid mutual fund units	9,757	8,381
Interest and dividend received on investments	123	223
Net cash used in investing activities	(1,141)	(998)
Cash flow from financing activities:
Loan given to subsidiaries	–	(48)
Loan repaid by subsidiary	–	5
Payment of dividends	(3,272)	(3,383)
Net cash used in financing activities	(3,272)	(3,426)
Effect of exchange differences on translation of foreign currency cash and cash equivalents	(7)	–
Net decrease in cash and cash equivalents	(1,858)	(2,491)
Cash and cash equivalents at the beginning	29,176	27,722
Cash and cash equivalents at the end	27,311	25,231
Supplementary information:
Restricted cash balance	359	201

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

As per our report of even date attached

for B S R & Co. LLP

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

Chartered Accountants

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

Supreet Sachdev	R. Seshasayee	Dr. Vishal Sikka	U. B. Pravin Rao
Partner	Chairman	Chief Executive Officer and Managing Director	Chief Operating Officer and Whole-time Director
Membership No. 205385
Bangalore	Roopa Kudva	M. D. Ranganath	A.G.S. Manikantha
July 15, 2016	Director	Chief Financial Officer	Company Secretary

INFOSYS LIMITED

Notes to the Financial Statements

1. Company Overview and Significant Accounting Policies

1.1 Company overview

Infosys ('the Company') is a leading provider 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.

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 interim financial statements are approved for issue by the company's Board of Directors on July 15, 2016.

1.2 Basis of preparation of financial statements

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 (‘Act') (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies ( Indian Accounting Standards) Amendment Rules, 2016.

These financial statements are the company's first Ind AS financial statements. The company has adopted all the Ind AS standards and the adoptions was carried out in accordance with Ind AS 101 First time adoption of Indian Accounting Standards. The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed under Sec 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP), which was the previous GAAP. Reconciliations and descriptions of the effect of the transition has been summarized in Note 2.1.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

1.3 Use of estimates

The preparation of the financial statements in conformity with Ind AS 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 1.4. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

1.4 Critical accounting estimates

a. Revenue recognition

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

b. Income taxes

The company's two major tax jurisdictions are India and the U.S., though the company also files tax returns in other overseas jurisdictions. Significant judgements are involved in determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions. Also refer to Note 2.17 and Note 2.24

d. Property, plant and equipment

Property, plant and equipment represent a significant proportion of the asset base of the company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of company's assets are determined by 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.

1.5 Revenue recognition

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

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

1.6 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 company depreciates property, plant and equipment over their estimated useful lives using the straight-line method. The estimated useful lives of assets are as follows:

Building	22-25 years
Plant and machinery	5 years
Office equipment	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.

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date is classified as capital advances under other non current assets and the cost of assets not 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 company and the cost of the item can be measured reliably. Repairs and maintenance costs are recognized in net profit in the statement of profit and loss when incurred. The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset and the resultant gains or losses are recognized in the statement of profit and loss. Assets to be disposed off are reported at the lower of the carrying value or the fair value less cost to sell.

1.7 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.

1.8 Financial instruments

1.8.1 Initial recognition

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

1.8.2 Subsequent measurement

a. Non-derivative financial instruments

(i) Financial assets carried at amortised cost

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

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

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

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

(iv) Financial liabilities

(v) Investment in subsidiaries

Investment in subsidiaries is carried at cost in the separate financial statements.

b. Derivative financial instruments

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

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

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

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

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

(ii) Cash flow hedge

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

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

c. Share capital

Ordinary Shares

1.8.3 Derecognition of financial instruments

The company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the company's balance sheet when the obligation specified in the contract is discharged or cancelled or expires.

1.9 Fair value of financial instruments

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

1.10 Impairment

a. Financial assets

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

b. Non-financial assets

(ii) Intangible assets and property, plant and equipment

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

1.11 Provisions

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

a. Post sales client support

The company provides its clients with a fixed-period post sales support for corrections of errors and support on all its fixed-price, 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 company estimates such costs based on historical experience and estimates are reviewed on a periodic basis for any material changes in assumptions and likelihood of occurrence.

b. Onerous contracts

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

1.12 Foreign currency

Functional currency

The functional currency of the company is the Indian rupee. These financial statements are presented in Indian rupees (rounded off to crore; one crore equals ten million).

Transactions and translations

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

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

1.13 Earnings per equity share

1.14 Income taxes

Income tax expense comprises current and deferred income tax. Income tax expense is recognized in net profit in the statement of profit and loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in other comprehensive income. Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

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

1.15 Employee benefits

1.15.1 Gratuity

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

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

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

1.15.2 Superannuation

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

1.15.3 Provident fund

1.15.4 Compensated absences

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

1.16 Share-based compensation

The company recognizes compensation expense relating to share-based payments in net profit using fair-value in accordance with Ind AS 102, 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 options outstanding account.

1.17 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

1.18 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.

1.19 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.

1.20 Leases

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

2 Notes to the standalone financial statements for the three months ended June 30, 2016

2.1 First-time adoption of Ind-AS

These standalone interim financial statements of Infosys Limited for the three months ended June 30, 2016 have been prepared in accordance with Ind AS. This is the Company's first set of financial statements in accordance with Ind AS. For the purposes of transition to Ind AS, the Company has followed the guidance prescribed in Ind AS 101 - First Time adoption of Indian Accounting Standard, with April 1, 2015 as the transition date and IGAAP as the previous GAAP.

The transition to Ind AS has resulted in changes in the presentation of the financial statements, disclosures in the notes thereto and accounting policies and principles. The accounting policies set out in note 1 have been applied in preparing the standalone financial statements for the three months ended June 30, 2016 and the comparative information. An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s Balance sheet , Statement of profit and loss, is set out in note 2.2 and 2.2.2. Exemptions on first time adoption of Ind AS availed in accordance with Ind AS 101 have been set out in note 2.1.1.

2.1.1 Exemptions availed on first time adoption of Ind-AS 101

Ind-AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The company has accordingly applied the following exemptions.

(a) Share-based payment

The Company is allowed to apply Ind AS 102 Share-based payment to equity instruments that remain unvested as of transition date. The compnay has elected to avail this exemption and apply the requirements of Ind AS 102 to all such grants under the 2015 plan (formerly 2011 plan). Accordingly, these options have been measured at fair value as against intrinsic value previously under IGAAP.

The excess of stock compensation expense measured using fair value over the cost recognized under IGAAP using intrinsic value has been adjusted in 'Share Option Outstanding Account', with the corresponding impact taken to the retained earnings as on the transition date.

(b) Designation of previously recognized financial instruments

Under Ind AS 109, at initial recognition of a financial asset, an entity may make an irrevocable election to present subsequent changes in the fair value of an investment in an equity instrument in other comprehensive income. Ind AS 101 allows such designation of previously recognized financial assets, as 'FVOCI' on the basis of the facts and circumstances that existed at the date of transition to Ind AS.

Accordingly, the Company has designated its investments in certain equity instruments at fair value through other comprehensive income on the basis of the facts and circumstances that existed at the date of transition to Ind AS.

2.2 Reconciliations

The following reconciliations provides the effect of transition to Ind AS from IGAAP in accordance with Ind AS 101

1. Equity as at April 1, 2015, June 30, 2015 and March 31, 2016

2. Net profit for the three months ended June 30, 2015 and year ended March 31, 2016

2.2.1 Reconciliation of equity as previously reported under IGAAP to Ind AS

(In crore)

Particulars	Note	Opening Balance Sheet as at April 1, 2015			Balance Sheet as at June 30, 2015			Balance Sheet as at March 31, 2016
		IGAAP	Effects of transition to Ind-AS	Ind AS	IGAAP	Effects of transition to Ind-AS	Ind AS	IGAAP	Effects of transition to Ind-AS	Ind AS
ASSETS
Non-current assets
Property, plant and equipment		7,347	–	7,347	7,603	–	7,603	8,248	–	8,248
Capital work-in-progress		769	–	769	818	–	818	934	–	934
Intangible assets		–	–	–	–	–	–	–	–	–
Financial Assets:
Investments	A	6,108	–	6,108	7,018	(28)	6,990	11,111	(35)	11,076
Loans		4	–	4	4	–	4	5	–	5
Other financial assets		110	–	110	128	–	128	192	–	192
Deferred tax assets (net)		433	–	433	381	–	381	405	–	405
Other non–current assets		349	–	349	389	–	389	755	–	755
Income tax assets (net)		3,941	–	3,941	4,427	–	4,427	5,020	–	5,020
Total non-current assets		*19,061*	–	*19,061*	*20,768*	*(28)*	*20,740*	*26,670*	(35)	*26,635*
Current assets
Financial Assets:
Investments	A	749	–	749	602	–	602	2	–	2
Trade Receivables		8,627	–	8,627	9,200	–	9,200	9,798	–	9,798
Cash and cash equivalents		27,722	–	27,722	25,231	–	25,231	29,176	–	29,176
Loans		225	–	225	263	–	263	355	–	355
Other financial assets		4,045	–	4,045	4,656	–	4,656	4,801	–	4,801
Other Current Assets		1,384	–	1,384	1,579	–	1,579	1,965	–	1,965
Total current assets		*42,752*	–	*42,752*	*41,531*	–	*41,531*	*46,097*	–	*46,097*
Total assets		*61,813*	–	*61,813*	*62,299*	(28)	*62,271*	*72,767*	*(35)*	*72,732*
EQUITY AND LIABILITIES
Equity
Equity share capital		574	–	574	1,148	–	1,148	1,148	–	1,148
Other equity	E	47,494	4,123	51,617	49,819	31	49,850	56,009	3,925	59,934
Total equity		48,068	4,123	52,191	50,967	31	50,998	57,157	3,925	61,082
Non–controlling interests		–	–	–	–	–	–	–	–	–
Total equity		48,068	4,123	*52,191*	*50,967*	31	*50,998*	*57,157*	*3,925*	*61,082*
Non-current liabilities
Financial Liabilities:
Others financial liabilities	B	27	–	27	117	(23)	94	73	(11)	62
Deferred tax liabilities (net)		–	–	–	–	–	–	–	–	–
Other non-current liabilities	C	3	(3)	–	3	(3)	–	–	–	–
Total non-current liabilities		30	*(3)*	27	*120*	*(26)*	94	73	*(11)*	62
Current liabilities
Financial Liabilities
Trade Payables		124	–	124	151	–	151	623	–	623
Other financial liabilities	B	4,885	(38)	4,847	5,024	(30)	4,994	5,138	(6)	5,132
Other current liabilities	C	1,568	(4)	1,564	1,977	(3)	1,974	2,097	(4)	2,093
Provisions	D	4,460	(4,078)	382	1,088	–	1,088	4,375	(3,939)	436
Income Tax Liabilities (Net)		2,678	–	2,678	2,972	–	2,972	3,304	–	3,304
Total current liabilities		13,715	(4,120)	*9,595*	*11,212*	*(33*)	*11,179*	*15,537*	*(3,949)*	*11,588*
Total liabilities and equity		*61,813*	–	*61,813*	*62,299*	*(28)*	*62,271*	*72,767*	(35)	*72,732*

Explanations for Reconciliation of Balance Sheet as previously reported under IGAAP to INDAS

A. Investment

a)	Tax free bonds are carried at amortized cost under Ind AS and IGAAP. Investment in equity instruments are carried at fair value through OCI in Ind AS compared to being carried at cost under IGAAP.

b)	Investments include discounted value of contingent consideration payable on acquisition of business under IndAS as compared to undiscounted value of contingent consideration under IGAAP

B. Other financial Liabilities

Other financial liabilities - adjustments includes impact of discounting the deferred and contingent consideration payable for acquisitions under Ind AS

C. Other liabilities

Adjustments that reflect unamortised negative past service cost arising on modification of the gratuity plan in an earlier period. Ind AS 19 requires such gains and losses to be adjusted to retained earnings.

D. Provisions

Adjustments reflect dividend (including corporate dividend tax), declared and approved post reporting period.

E. Other Equity

a)	Adjustments to retained earnings and other comprehensive income has been made in accordance with Ind AS, for the above mentioned line items.

b)	In addition, as per Ind-AS 19, actuarial gain and losses are recognized in other comprehensive income as compared to being recognized in the Statement of Profit and Loss under IGAAP.

c)	Profit on transfer of business between entities under common control which were earlier recognized in Statement of Profit and Loss under IGAAP are adjusted to reserves on transition to Ind AS.

2.2.2 Reconciliation Statement of Profit and loss as previously reported under IGAAP to Ind AS

(In crore)

Particulars	Note	Three months ended June 30, 2015			Year ended March 31 2016
		IGAAP	Effects of transition to Ind-AS	Ind AS	IGAAP	Effects of transition to Ind-AS	Ind AS
Revenue from operations		12,738	–	12,738	53,983	–	53,983
Other income, net		719	2	721	3,009	(3)	3,006
Total Income		13,457	2	13,459	56,992	(3)	56,989
Expenses
Employee benefit expenses	F	6,817	(10)	6,807	28,206	1	28,207
Deferred consideration pertaining to acquisition	G	46	14	60	110	39	149
Cost of technical sub-contractors		965	–	965	4,417	–	4,417
Travel expenses		432	–	432	1,655	–	1,655
Cost of software packages and others		291	–	291	1,049	–	1,049
Communication expenses		80	–	80	311	–	311
Consultancy and professional charges		132	–	132	563	–	563
Depreciation and amortisation expenses		252	–	252	1,115	–	1,115
Other expenses	G	449	1	450	1,909	14	1,923
Total expenses		9,464	5	9,469	39,335	54	39,389
Profit before exceptional items and tax		3,993	(3)	3,990	17,657	(57)	17,600
Profit on transfer of business	H	–	–	–	3,036	(3,036)	–
Profit before tax		3,993	(3)	3,990	20,693	(3,093)	17,600
Tax expense:
Current tax	I	1,050	3	1,053	4,898	–	4,898
Deferred tax		46	–	46	9	–	9
Profit for the period		2,897	(6)	2,891	15,786	(3,093)	12,693
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurement of the net defined benefit liability/asset	F	–	(8)	(8)	–	(2)	(2)
		–	(8)	(8)	–	(2)	(2)
Items that will be reclassified subsequently to profit or loss
		–	–	–	–	–	–
Total other comprehensive income, net of tax		–	(8)	(8)	–	(2)	(2)
Total comprehensive income, for the period		2,897	(14)	2,883	15,786	(3,095)	12,691

Explanations for reconciliation of Statement of Profit and loss as previously reported under IGAAP to Ind AS

F. Employee Benefit expenses

a)	As per Ind-AS 19, actuarial gain and losses are recognized in other comprehensive income and not reclassified to profit and loss in a subsequent period.
b)	Adjustments reflect unamortised negative past service cost arising on modification of the gratuity plan in an earlier period. Ind AS 19 requires such gains and losses to be adjusted to retained earnings.

G. Deferred and contingent consideration pertaining to acquisition

Adjustments reflect impact of discounting pertaining to deferred consideration and contingent consideration payable for business combinations

H. Reversal of exceptional item

Profit on transfer of business between entities under common control has been reversed and taken to business transfer reserve on account of transition to Ind AS

I. Current tax

Tax component on actuarial gains and losses which is transferred to other comprehensive income under Ind AS

2.2.3 Cash Flow Statement

There were no significant reconciliation items between cash flows prepared under Indian GAAP and those prepared under Ind AS.

2.3 PROPERTY, PLANT AND EQUIPMENT

Following are the changes in the carrying value of property, plant and equipment for the three months ended June 30, 2016:

(In crore)

Particulars	Land- Freehold	Land- Leasehold	Buildings ⁽¹⁾	Plant and machinery⁽²⁾	Office Equipment ⁽²⁾	Computer equipment ⁽²⁾	Furniture and fixtures ⁽²⁾	Vehicles	Total
Gross carrying value as of April 1, 2016	970	638	6,173	1,679	679	3,481	1,070	19	14,709
Additions	4	5	35	113	48	141	49	2	397
Deletions	–	–	–	(1)	–	(5)	(1)	–	(7)
Gross carrying value as of June 30, 2016	974	643	6,208	1,791	727	3,617	1,118	21	15,099
Accumulated depreciation as of April 1, 2016	–	(21)	(2,150)	(1,044)	(369)	(2,195)	(671)	(11)	(6,461)
Depreciation	–	(1)	(56)	(59)	(26)	(140)	(36)	(1)	(319)
Accumulated depreciation on deletions	–	–	–	1	–	5	1	–	7
Accumulated depreciation as of June 30, 2016	–	(22)	(2,206)	(1,102)	(395)	(2,330)	(706)	(12)	(6,773)
Carrying value as of June 30, 2016	974	621	4,002	689	332	1,287	412	9	8,326

Following are the changes in the carrying value of property, plant and equipment for the three months ended June 30, 2015:

(In crore)

Particulars	Land– Freehold	Land- Leasehold	Buildings ⁽¹⁾⁽²⁾	Plant and machinery⁽²⁾	Office Equipment ⁽²⁾	Computer equipment ⁽²⁾	Furniture and fixtures ⁽²⁾	Vehicles	Total
Gross carrying value as of April 1, 2015	929	621	5,733	1,361	525	2,812	832	14	12,827
Additions	18	–	74	64	26	281	45	1	509
Deletions	–	–	–	–	–	(4)	(1)	–	(5)
Gross carrying value as of June 30, 2015	947	621	5,807	1,425	551	3,089	876	15	13,331
Accumulated depreciation as of April 1, 2015	–	(16)	(1,937)	(838)	(280)	(1,852)	(549)	(8)	(5,480)
Depreciation	–	(1)	(51)	(47)	(20)	(101)	(31)	(1)	(252)
Accumulated depreciation on deletions	–	–	–	–	–	3	1	–	4
Accumulated depreciation as of June 30, 2015	–	(17)	(1,988)	(885)	(300)	(1,950)	(579)	(9)	(5,728)
Carrying value as of June 30, 2015	947	604	3,819	540	251	1,139	297	6	7,603

Following are the changes in the carrying value of property, plant and equipment for the year ended March 31, 2016:

(In crore)

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
Gross carrying value as of April 1, 2015	929	621	5,733	1,361	525	2,812	832	14	12,827
Additions	41	17	440	319	155	945	241	5	2,163
Deletions	–	–	–	(1)	(1)	(276)	(3)	–	(281)
Gross carrying value as of March 31, 2016	970	638	6,173	1,679	679	3,481	1,070	19	14,709
Accumulated depreciation as of April 1, 2015	–	(16)	(1,937)	(838)	(280)	(1,852)	(549)	(8)	(5,480)
For the period	–	(5)	(213)	(207)	(90)	(472)	(125)	(3)	(1,115)
Deduction / Adjustments during the period	–	–	–	1	1	129	3	–	134
Accumulated depreciation as of March 31, 2016	–	(21)	(2,150)	(1,044)	(369)	(2,195)	(671)	(11)	(6,461)
Carrying value as of March 31, 2016	970	617	4,023	635	310	1,286	399	8	8,248
Carrying value as of April 1, 2015	929	605	3,796	523	245	960	283	6	7,347

⁽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, 2016, computer equipment having net book value of 20 crore was transferred to EdgeVerve (Refer note 2.5.3)

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

The aggregate depreciation has been included under depreciation and amortisation expense in the statement of profit and loss.

Tangible assets provided on operating lease to subsidiaries as at June 30, 2016 and March 31, 2016 are as follows:

(In crore)

Particulars	Cost	Accumulated depreciation	Net book value
Buildings	197	77	120
	197	75	122
Plant and machinery	33	15	18
	33	14	19
Furniture and fixtures	25	13	12
	25	12	13
Computer Equipment	3	2	1
	3	2	1
Office equipment	18	8	10
	18	7	11

The aggregate depreciation charged on the above assets during three months ended June 30, 2016 amounted to 6 crore (2 crore for the three months ended June 30, 2015).

The rental income from subsidiaries for the three months ended June 30, 2016 amounted to 16 crore (8 crore for the three months ended June 30, 2015).

2.4 Intangible assets

Following are the changes in the carrying value of acquired intangible assets for the three months ended June 30, 2016:

(In crore)

Particulars	Sub-contracting rights related	Others	Total
Gross carrying value as of April 1, 2016	21	9	30
Additions	–	–	–
Deletion	–	–	–
Gross carrying value as of June 30, 2016	21	9	30
Accumulated amortization as of April 1, 2016	21	9	30
Amortization expense	–	–	–
Deletion	–	–	–
Accumulated amortization as of June 30, 2016	21	9	30
Carrying value as of June 30, 2016	–	–	–

Following are the changes in the carrying value of acquired intangible assets for the three months ended June 30, 2015:

(In crore)

Particulars	Intellectual property rights related	Sub-contracting rights related	Others	Total
Gross carrying value as of April 1, 2015	12	21	9	42
Additions	–	–	–	–
Deletion	–	–	–	–
Gross carrying value as of June 30, 2015	12	21	9	42
Accumulated amortization as of April 1, 2015	12	21	9	42
Amortization expense	–	–	–	–
Deletion	–	–	–	–
Accumulated amortization as of June 30, 2015	12	21	9	42
Carrying value as of June 30, 2015	–	–	–	–

Following are the changes in the carrying value of acquired intangible assets for the year ended March 31, 2016:

(In crore)

Particulars	Intellectual property rights related	Sub-contracting rights related	Others	Total
Gross carrying value as of April 1, 2015	12	21	9	42
Additions	–	–	–	–
Deletion/Retirement	(12)	–	–	(12)
Gross carrying value as of March 31, 2016	–	21	9	30
Accumulated amortization as of April 1, 2015	12	21	9	42
Amortization expense	–	–	–	–
Deletion/Retirement	(12)	–	–	(12)
Accumulated amortization as of March 31, 2016	–	21	9	30
Carrying value as of March 31, 2016	–	–	–	–

Research and development expense recognized in net profit in the statement of profit and loss is 79 crore and 134 crore for the three months ended June 30, 2016 and June 30, 2015 respectively.

2.5 INVESTMENTS

(In crore)

Particulars	As at
	June 30, 2016	March 31, 2016	April 1, 2015
Non-current investments
Equity instruments of subsidiaries	7,086	6,901	4,873
Debentures of subsidiary	2,549	2,549	–
Preference securities and equity investments	119	93	1
Tax free bonds	1,533	1,533	1,234
	11,287	11,076	6,108
Current investments
Liquid mutual fund units	330	–	749
Government bonds	2	2	–
	332	2	749
Total carrying value	11,619	11,078	6,857

in crore, except as otherwise stated

Particulars	As at
	June 30, 2016	March 31, 2016
Non-current investments
Unquoted
Investment carried at cost
Investments in equity instruments of subsidiaries
Infosys BPO Limited	659	659
3,38,22,319 (3,38,22,319) equity shares of 10/- each, fully paid
Infosys Technologies (China) Co. Limited	236	169
Infosys Technologies (Australia) Pty Limited	66	66
1,01,08,869 (1,01,08,869) equity shares of AUD 0.11 par value, fully paid
Infosys Technologies, S. de R.L. de C.V., Mexico	65	65
17,49,99,990 (17,49,99,990) equity shares of MXN 1 par value, fully paid up
Infosys Technologies (Sweden) AB	51	–
651,000 (1,000) equity shares of SEK 100 par value, fully paid
Infosys Technologia do Brasil Ltda	149	149
5,91,24,348 (5,91,24,348) shares of BRL 1.00 par value, fully paid
Infosys Technologies (Shanghai) Company Limited	713	646
Infosys Public Services, Inc.	99	99
3,50,00,000 (3,50,00,000) shares of USD 0.50 par value, fully paid
Infosys Consulting Holding AG (formerly Lodestone Holding AG)	1,323	1,323
23,350 (23,350) - Class A shares of CHF 1,000 each and 29,400
(29,400) - Class B Shares of CHF 100 each, fully paid up
Infosys Americas Inc.	1	1
10,000 (10,000) shares of USD 10 per share, fully paid up
EdgeVerve Systems Limited (refer note 2.5.3)	1,312	1,312
131,18,40,000 (131,18,40,000) equity shares of 10/- each, fully paid
Panaya Inc.	1,398	1,398
2 (2) shares of USD 0.01 per share, fully paid up
Infosys Nova Holdings LLC	94	94
Kallidus Inc. (refer note 2.5.2)	619	619
10,21,35,416 (10,21,35,416) shares
Skava Systems Private Limited (refer note 2.5.2)	59	59
25,000 (25,000) shares of 10 per share, fully paid up
Noah Consulting LLC ( refer note 2.5.1)	242	242
	7,086	6,901
Investment carried at amortised cost
Investment in debentures of subsidiary
EdgeVerve Systems Limited (refer note 2.5.3)
25,49,00,000 (25,49,00,000) Unsecured redeemable, non-convertible debentures of 100 each fully paid up	2,549	2,549
	2,549	2,549
	9,635	9,450
Investment carried at fair value through other comprehensive income (FVOCI) (refer note 2.5.5)
Preference securities	118	92
Equity instruments	1	1
	119	93
Quoted
Investments carried at amortized cost
Tax free bonds (refer note 2.5.6)	1,533	1,533
	1,533	1,533
Total non-current investments	11,287	11,076
Current investments
Unquoted
Investments carried at fair value through profit or loss
Liquid mutual fund units (refer note 2.5.7)	330	–
	330	–
Quoted
Investments carried at amortized cost
Government bonds (refer note 2.5.6)	2	2
	2	2
Total current investments	332	2
Total investments	11,619	11,078
Aggregate amount of quoted investments	1,535	1,535
Market value of quoted investments (including interest accrued)	1,686	1,627
Aggregate amount of unquoted investments	10,084	9,543
Aggregate amount of impairment in value of investments	6	6
Investments carried at cost	7,086	6,901
Investments carried at amortised cost	4,084	4,084
Investments carried at fair value through other comprehensive income	119	93
Investments carried at fair value through profit or loss	330	–

2.5.1 Investment in 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 up to $5 million (approximately 33 crore on acquisition date) and retention bonus up to $32 million (approximately 212 crore on acquisition date). The payment of contingent consideration to the sellers of Noah was dependent upon the achievement of certain financial targets by Noah for the year ended December 31, 2015 and December 31, 2016. During the three months ended March 31, 2016 based on the assessment of Noah achieving the targets for the respective periods, the entire contingent consideration was reversed.

2.5.2 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 $91 million (approximately 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.

2.5.3 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 were transferred and accordingly a gain of 412 crore had been recorded as an exceptional item under previous GAAP. On adoption of Ind AS, the same has been reversed from retained earnings and transferred to 'Business Transfer Adjustment Reserve', in accordance with Ind AS 103 which requires common control transactions to be recorded at book values. 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 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) were transferred and accordingly a gain of 3,036 crore had been recorded as an exceptional item under previous GAAP. On adoption of Ind AS, the same has been reversed from retained earnings and transferred to 'Business Transfer Adjustment Reserve' under retained earnings, in accordance with Ind AS 103 which requires common control transactions to be recorded at book values.

2.5.4 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 recognized on a proportionate basis over a period of three years from the date of acquisition. During the year ended March 31, 2016, the liability towards deferred consideration was settled.

2.5.5 Details of Investments

The details of investments in preference and equity instruments as at June 30, 2016 and March 31, 2016 are as follows:

(In crore)

Particulars	As at
	June 30, 2016	March 31, 2016
Preference Securities
Airviz Inc.
2,82,279 (2,82,279) Series A Preferred Stock, fully paid up, par value USD 0.001 each	13	13
ANSR Consulting
52,631 (52,631) Series A Preferred Stock, fully paid up, par value USD 0.001 each	9	9
Whoop Inc
16,48,352 (16,48,352) Series B Preferred Stock, fully paid up, par value USD 0.0001 each	20	20
CloudEndure Ltd.
12,79,645 (12,79,645) Preferred Series B Shares, fully paid up, par value ILS 0.01 each	13	13
Nivetti Systems Private Limited
2,28,501 (2,28,501) Preferred Stock, fully paid up, par value 1 each	10	10
Waterline Data Science, Inc
39,33,910 (39,33,910) Preferred Series B Shares, fully paid up, par value USD 0.00001 each	27	27
Trifacta Inc.
11,80,358 (Nil) Preferred Stock	26	-
Equity Instrument
OnMobile Systems Inc., USA
21,54,100 (21,54,100) common stock at USD 0.4348 each, fully paid up, par value USD 0.001 each	–	–
Merasport Technologies Private Limited
2,420 (2,420) equity shares at 8,052/– each, fully paid up, par value 10/- each	–	–
Global Innovation and Technology Alliance
15,000 (15,000) equity shares at 1,000/- each, fully paid up, par value 1,000/- each	1	1
	119	93

2.5.6 Details of Investments in tax free bonds and government bonds

The balances held in tax free bonds as at June 30, 2016 and March 31, 2016 is as follows:

(In crore)

Particulars	Face Value	As at June 30, 2016		As at March 31, 2016
		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	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	1,000/-	4,22,800	42	4,22,800	42
7.35% National Highways Authority of India Bonds 11JAN31	1,000/-	5,71,396	57	5,71,396	57
		68,02,646	1,533	68,02,646	1,533

The balances held in government bonds as at June 30, 2016 and March 31, 2016 is as follows:

(In crore)

Particulars	Face Value PHP	As at June 30, 2016		As at March 31, 2016
		Units	Amount	Units	Amount
Fixed Rate Treasury Notes 1.70 PCT PHY6972FW G18 MAT Date 22 Feb 2017	100	1,50,000	2	1,50,000	2
		1,50,000	2	1,50,000	2

2.5.7 Details of investments in liquid mutual fund units

The balances held in liquid mutual fund as at June 30, 2016 is as follows:

in crore

Particulars	As at June 30, 2016
	Units	Amount
Reliance Liquid Fund - Treasury Plan - Direct Daily Dividend Option	21,59,032	330
	21,59,032	330

2.6 LOANS

(In crore)

Particulars	As at
	June 30, 2016	March 31, 2016	April 1, 2015
Non- Current
Unsecured, considered good
Other Loans
Loans to employees	10	5	4
	10	5	4
Unsecured, considered doubtful
Loans to employees	14	13	10
	24	18	14
Less: Allowance for doubtful loans to employees	14	13	10
	10	5	4
Current
Unsecured, considered good
Loans to subsidiary (Refer to note 2.25)	93	91	24
Other Loans
Loans to employees	240	264	201
	333	355	225
Total Loans	343	360	229

2.7 OTHER FINANCIAL ASSETS

(In crore)

Particulars	As at
	June 30, 2016	March 31, 2016	April 1, 2015
Non-current
Security deposits ⁽¹⁾	76	73	65
Rental deposits ⁽¹⁾⁽³⁾	149	119	45
	225	192	110
Current
Security deposits ⁽¹⁾	1	1	1
Rental deposits ⁽¹⁾	2	2	6
Restricted deposits ⁽¹⁾	1,213	1,154	1,039
Unbilled revenues ⁽¹⁾⁽⁴⁾	2,886	2,673	2,423
Interest accrued but not due ⁽¹⁾	1,243	696	433
Foreign currency forward and options contracts ⁽²⁾	54	109	94
Others ⁽¹⁾⁽⁵⁾	97	166	49
	5,496	4,801	4,045
Total	5,721	4,993	4,155
⁽¹⁾ Financial assets carried at amortized cost	5,667	4,884	4,061
⁽²⁾ Financial assets carried at fair value through Profit or Loss	54	109	94
⁽³⁾ Includes dues from subsidiaries (Refer note 2.25)	21	21	21
⁽⁴⁾ Includes dues from subsidiaries (Refer note 2.25)	23	20	6
⁽⁵⁾ Includes dues from subsidiaries (Refer note 2.25)	13	24	43

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

2.8 TRADE RECEIVABLES ⁽¹⁾

(In crore)

Particulars	As at
	June 30, 2016	March 31, 2016	April 1, 2015
Current
Unsecured
Considered good⁽²⁾	10,359	9,798	8,627
Considered doubtful	168	249	322
	10,527	10,047	8,949
Less: Allowances for credit losses	168	249	322
	10,359	9,798	8,627
⁽¹⁾ Includes dues from companies where directors are interested	–	1	6
⁽²⁾ Includes dues from subsidiaries (refer note 2.25)	355	244	309

2.9 CASH AND CASH EQUIVALENTS

(In crore)

Particulars	As at
	June 30, 2016	March 31, 2016	April 1, 2015
Balances with banks
In current and deposit accounts	22,911	24,276	23,722
Cash on hand	–	–	–
Others
Deposits with financial institution	4,400	4,900	4,000
	27,311	29,176	27,722
Balances with banks in unpaid dividend accounts	6	5	3
Deposit with more than 12 months maturity	269	237	182
Balances with banks held as margin money deposits against guarantees	353	336	185

Cash and cash equivalents as of June 30, 2016, March 31, 2016 and March 31, 2015 include restricted cash and bank balances of 359 crore, 341 crore, 188 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 dividends bank accounts.

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
	June 30, 2016	March 31, 2016
In current accounts
ANZ Bank, Taiwan	17	13
BNP Paribas Bank, Norway	1	–
Bank of America, USA	580	563
Citibank N.A., Australia	43	24
Citibank N.A., India	4	1
Citibank N.A., Dubai	7	1
Citibank N.A., Japan	22	15
Citibank N.A., New Zealand	10	2
Citibank N.A., South Africa	5	4
Deutsche Bank, Philippines	8	11
Deutsche Bank, India	30	4
Deutsche Bank, EEFC (Euro account)	7	17
Deutsche Bank, EEFC (GBP account)	9	8
Deutsche Bank, EEFC (AUD account)	1	2
Deutsche Bank, EEFC (U.S. Dollar account)	56	95
	2	2
Deutsche Bank, Belgium	31	59
Deutsche Bank, France	28	10
Deutsche Bank, Germany	45	17
Deutsche Bank, Netherlands	9	4
Deutsche Bank, Russia (U.S. Dollar account)	3	1
Deutsche Bank, Russia (Russian Ruble account)	–	2
Deutsche Bank, Singapore	7	4
Deutsche Bank, Switzerland	6	1
Deutsche Bank, UK	31	170
Deutsche Bank, Malaysia	2	9
HSBC, Hong Kong	3	1
ICICI Bank, India	21	57
ICICI Bank, EEFC (U.S. Dollar account)	7	10
Nordbanken, Sweden	17	5
Punjab National Bank, India	23	4
Royal Bank of Canada, Canada	10	24
State Bank of India	13	7
	1,058	1,147

(In crore)

Particulars	As at
	June 30, 2016	March 31, 2016
In deposit accounts
Andhra Bank	848	848
Axis Bank	695	1,170
Canara Bank	1,861	1,861
Central Bank of India	1,518	1,518
Corporation Bank	1,185	1,185
HDFC Bank	2,500	2,500
ICICI Bank	3,845	3,755
IDBI Bank	1,750	1,750
Indusind Bank	250	250
Indian Overseas Bank	1,000	1,000
Jammu & Kashmir Bank	25	25
Kotak Mahindra Bank Limited	317	492
Oriental Bank of Commerce	1,967	1,967
State Bank of India	2,311	2,310
Syndicate Bank	900	1,250
Union Bank of India	7	7
Vijaya Bank	200	200
Yes Bank	315	700
	21,494	22,788
In unpaid dividend accounts
Axis Bank Limited-Unpaid Dividend Account	2	2
HDFC Bank - Unpaid dividend account	1	1
ICICI bank - Unpaid dividend account	3	2
	6	5
In margin money deposits against guarantees
Canara Bank	159	132
ICICI Bank	155	147
State Bank of India	39	57
	353	336
Deposits with financial institution
HDFC Limited	4,400	4,900
	4,400	4,900
Total cash and cash equivalents as per Balance Sheet	27,311	29,176

2.10 OTHER ASSETS

(In crore)

Particulars	As at
	June 30, 2016	March 31, 2016	April 1, 2015
Non-current
Capital Advances	363	333	316
Advances other than capital advance
Prepaid gratuity (Refer note 2.22)	11	2	26
Others
Prepaid expenses	78	87	7
Deferred contract cost	325	333	-
	777	755	349
Current
Advances other than capital advance
Payment to vendors for supply of goods	84	58	60
Others
Prepaid expenses ⁽¹⁾	398	209	71
Deferred Contract Cost	56	48
Withholding and other tax receivables	1,683	1,650	1,253
	2,221	1,965	1,384
Total Other Assets	2,998	2,720	1,733
⁽¹⁾ Includes dues from subsidiaries (Refer note 2.25)	45	43	–

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

2.11 FINANCIAL INSTRUMENTS

Financial instruments by category

The carrying value and fair value of financial instruments by categories as of June 30, 2016 were as follows:

(In crore)

Particulars	Amortised cost	Financial assets/ liabilities at fair value through profit or loss		Financial assets/liabilities at fair value through OCI		Total carrying value	Total fair value
		Designated upon initial recognition	Mandatory	Equity instruments designated upon initial recognition	Mandatory
Assets:
Cash and cash equivalents (Refer Note 2.9)	27,311	–	–	–	–	27,311	27,311
Investments (Refer note 2.5)
Equity and preference securities	–	–	–	119	–	119	119
Tax free bonds and government bonds	1,535	–	–	–	–	1,535	1,686 *
Liquid mutual fund units	–	–	330	–	–	330	330
Redeemable, non–convertible debentures ⁽¹⁾	2,549	–	–	–	–	2,549	2,549
Trade receivables (Refer Note 2.8)	10,359	–	–	–	–	10,359	10,359
Loans (Refer note 2.6)	343	–	–	–	–	343	343
Other financial assets (Refer Note 2.7)	5,667	–	54	–	–	5,721	5,721
Total	47,764	–	384	119	–	48,267	48,418
Liabilities:
Trade payables (Refer note 2.14)	301	–	–	–	–	301	301
Other financial liabilities (Refer Note 2.13)	3,916	–	88	–	–	4,004	4,004
Total	4,217	–	88	–	–	4,305	4,305

The carrying value and fair value of financial instruments by categories as of March 31, 2016 were as follows:

(In crore)

Particulars	Amortised cost	Financial assets/ liabilities at fair value through profit or loss		Financial assets/liabilities at fair value through OCI		Total carrying value	Total fair value
		Designated upon initial recognition	Mandatory	Equity instruments designated upon initial recognition	Mandatory
Assets:
Cash and cash equivalents (Refer Note 2.9)	29,176	–	–	–	–	29,176	29,176
Investments (Refer Note 2.5)
Equity and preference securities	–	–	–	93	–	93	93
Tax free bonds and government bonds	1,535	–	–	–	–	1,535	1,627 *
Redeemable, non–convertible debentures ⁽¹⁾	2,549	–	–	–	–	2,549	2,549
Trade receivables (Refer Note 2.8)	9,798	–	–	–	–	9,798	9,798
Loans (Refer note 2.6)	360	–	–	–	–	360	360
Other financial assets (Refer Note 2.7)	4,884	–	109	–	–	4,993	4,993
Total	48,302	–	109	93	–	48,504	48,596
Liabilities:
Trade payables (Refer note 2.14)	623	–	–	–	–	623	623
Other financial liabilities (Refer Note 2.13)	3,947	–	117	–	–	4,064	4,064
Total	4,570	–	117	–	–	4,687	4,687

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

The carrying value and fair value of financial instruments by categories as of April 1, 2015 were as follows:

(In crore)

Particulars	Amortised cost	Financial assets/ liabilities at fair value through profit or loss		Financial assets/liabilities at fair value through OCI		Total carrying value	Total fair value
		Designated upon initial recognition	Mandatory	Equity instruments designated upon initial recognition	Mandatory
Assets:
Cash and cash equivalents (Refer Note 2.9)	27,722	–	–	–	–	27,722	27,722
Investments (Refer Note 2.5)
Equity, preference and other securities	–	–	–	1	–	1	1
Bonds and government bonds	1,234	–	–	–	–	1,234	1,269 *
Liquid mutual fund units	–	–	749	–	–	749	749
Trade receivables (Refer Note 2.8)	8,627	–	–	–	–	8,627	8,627
Loans (Refer note 2.6)	229	–	–	–	–	229	229
Other financial assets (Refer Note 2.7)	4,061	–	94	–	–	4,155	4,155
Total	41,873	–	843	1	–	42,717	42,752
Liabilities:
Trade payables (Refer note 2.14)	124	–	–	–	–	124	124
Other financial liabilities (Refer Note 2.13)	3,967	–	–	–	–	3,967	3,967
Total	4,091	–	–	–	–	4,091	4,091

* On account of fair value changes including interest accrued

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 June 30, 2016:

(In crore)

Particulars	As of June 30, 2016	Fair value measurement at end of the reporting period/year using
		Level 1	Level 2	Level 3
Assets
Investments in liquid mutual fund units (Refer Note 2.5)	330	330	–	–
Investments in tax free bonds (Refer Note 2.5)	1,684	195	1,489	–
Investments in government bonds (Refer Note 2.5)	2	2	–	–
Investments in equity instruments (Refer Note 2.5)	1	–	–	1
Investments in preference securities (Refer Note 2.5)	118	–	–	118
Derivative financial instruments – foreign currency forward and option contracts (Refer Note 2.7)	54	–	54	–
Liabilities
Derivative financial instruments – foreign currency forward and option contracts (Refer Note 2.13)	7	–	7	–
Liability towards contingent consideration (Refer note 2.13)*	81	–	–	81

*Discounted $14 million (approximately 95 crore) at 13.4%

During the three months ended June 30, 2016, tax free bonds of 115 crore were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of March 31, 2016:

(In crore)

Particulars	As of March 31, 2016	Fair value measurement at end of the reporting period/year using
		Level 1	Level 2	Level 3
Assets
Investments in tax free bonds (Refer Note 2.5)	1,625	298	1,327	–
Investments in government bonds (Refer Note 2.5)	2	2	–	–
Investments in equity instruments (Refer Note 2.5)	1	–	–	1
Investments in preference securities (Refer Note 2.5)	92	–	–	92
Derivative financial instruments - foreign currency forward and option contracts (Refer note 2.7)	109	–	109	–
Liabilities
Derivative financial instruments - foreign currency forward and option contracts (Refer note 2.13)	2	–	2	–
Liability towards contingent consideration (Refer note 2.13)*	115	–	–	115

* Discounted $20 million (approximately 132 crore) at 13.7%

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of April 1, 2015:

(In crore)

Particulars	As of April 1, 2015	Fair value measurement at end of the reporting period/year using
		Level 1	Level 2	Level 3
Assets
Investments in liquid mutual fund units (Refer Note 2.5)	749	749	–	–
Investments in tax free bonds (Refer Note 2.5)	1,269	533	736	–
Investments in equity instruments (Refer Note 2.5)	1	–	–	1
Derivative financial instruments - foreign currency forward and option contracts (Refer note 2.7)	94	–	94	–
Liabilities
Derivative financial instruments - foreign currency forward and option contracts (Refer note 2.13)	–	–	–	–

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 movement in contingent consideration as of June 30, 2016 from March 31, 2016 is on account of settlement of contingent consideration of 40 crore and change in discount rates and passage of time.

The fair value of liquid mutual funds is based on quoted price. The fair value of tax free bonds and government bonds is based on quoted prices and market observable inputs. 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.

Financial risk management

Financial risk factors

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

Market risk

The Company operates internationally and a major portion of the business is transacted in several currencies and consequently the Company is exposed to foreign exchange risk through its sales and services in the United States and elsewhere, and purchases from overseas suppliers in various foreign currencies. The Company holds derivative financial instruments such as foreign exchange forward and 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 Company’s operations are adversely affected as the rupee appreciates/ depreciates against these currencies.

The following table analyzes foreign currency risk from financial instruments as of June 30, 2016:

(In crore)

Particulars	U.S. dollars	Euro	United Kingdom Pound Sterling	Australian dollars	Other currencies	Total
Cash and cash equivalents	648	120	41	44	115	968
Trade receivables	7,219	1,137	689	547	330	9,922
Other financials assets ( including loans)	2,147	391	275	111	140	3,064
Trade payables	(121)	(14)	(69)	(32)	(27)	(263)
Other financial liabilities	(2,161)	(261)	(144)	(213)	(152)	(2,931)
Net assets / (liabilities)	7,732	1,373	792	457	406	10,760

The following table analyzes foreign currency risk from financial instruments as of March 31, 2016:

(In crore)

Particulars	U.S. dollars	Euro	United Kingdom Pound Sterling	Australian dollars	Other currencies	Total
Cash and cash equivalents	670	107	178	26	93	1,074
Trade Receivables	6,875	973	664	539	296	9,347
Other financials assets ( including loans)	2,005	370	210	108	125	2,818
Trade payables	(199)	(42)	(133)	(32)	(39)	(445)
Other financial liabilities	(2,241)	(232)	(139)	(200)	(146)	(2,958)
Net assets / (liabilities)	7,110	1,176	780	441	329	9,836

For the three month ended June 30, 2016 and June 30, 2015, 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 0.51%, respectively.

Derivative financial instruments

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

(In crore)

Particulars	As of		As of
	June 30, 2016		March 31, 2016
	In million	In crore	In million	In crore
Forward contracts
In U.S. dollars	495	3,343	467	3,094
In Euro	84	632	84	633
In United Kingdom Pound Sterling	25	227	60	573
In Australian dollars	55	277	50	255
In Canadian dollars	20	105	–	–
In Swiss Franc	25	176	25	173
Option Contracts
In U.S. dollars	135	912	125	828
In GBP	50	455
Total forwards and options		6,127		5,556

(In crore)

Particulars	As of
	June 30, 2016	March 31, 2016
Not later than one month	1,214	1,468
Later than one month and not later than three months	3,630	3,260
Later than three months and not later than one year	1,283	828
	6,127	5,556

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

Particulars	As of		As of
	June 30, 2016		March 31, 2016
	Derivative financial asset	Derivative financial liability	Derivative financial asset	Derivative financial liability
Gross amount of recognized financial asset/liability	74	(27)	117	(10)
Amount set off	(20)	20	(8)	8
Net amount presented in balance sheet	54	(7)	109	(2)

Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to 10,359 crore and 9,798 crore as of June 30, 2016 and March 31, 2016, respectively and unbilled revenue amounting to 2,886 crore and 2,673 crore as of June 30, 2016 and March 31, 2016, 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 has always been managed by the group 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. On account of adoption of Ind AS 109, the group uses expected credit loss model to assess the impairment loss or gain. The group uses a provision matrix to compute the expected credit loss allowance for trade receivables and unbilled revenues. The provision matrix takes into account available external and internal credit risk factors such as credit default swap quotes, credit ratings from international credit rating agencies and the Group's historical experience for customers.

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

(In %)

Particulars	Three months ended June 30,
	2016	2015
Revenue from top customer	4.1	3.9
Revenue from top five customers	15.6	14.6

Credit risk exposure

The allowance for lifetime expected credit loss on customer balances for the three months ended June 30, 2016 was 23 crore. The reversal of allowance for lifetime expected credit loss on customer balances for the three months ended June 30, 2015 was 19 crore.

(In crore)

Particulars	Three months ended June 30,
	2016	2015
Balance at the beginning	249	322
Impairment loss recognised/ reversed (Refer note 2.20)	23	(19)
Amounts written off	–	–
Translation differences	3	4
Balance at the end	275	307

Liquidity risk

The company's principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The company has no outstanding bank borrowings. The company believes that the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived.

As of June 30, 2016, the Company had a working capital of 33,270 crore including cash and cash equivalents of 27,311 crore and current investments of 332 crore. As of March 31, 2016, the Company had a working capital of 34,509 crore including cash and cash equivalents of 29,176 crore and current investments of 2 crore.

As of June 30, 2016 and March 31, 2016, the outstanding employee benefit obligations were 1,195 crore and 1,130 crore, respectively, which have been substantially funded. Accordingly, no liquidity risk is perceived.

The table below provides details regarding the contractual maturities of significant financial liabilities as of June 30, 2016:

(In crore)

Particulars	Less than 1 year	1-2 years	2-4 years	4-7 years	Total
Trade payables	301	–	–	–	301
Other financial liabilities (excluding liability towards acquisition) (Refer Note 2.13)	3,896	27	–	–	3,923
Liability towards acquisitions on an undiscounted basis (including contingent consideration)	47	48	–	–	95

The table below provides details regarding the contractual maturities of significant financial liabilities as of March 31, 2016:

(In crore)

Particulars	Less than 1 year	1-2 years	2-4 years	4-7 years	Total
Trade payables	623	–	–	–	623
Other liabilities (excluding liability towards acquisition) (Refer Note 2.13)	3,922	27	–	–	3,949
Liability towards acquisitions on an undiscounted basis (including contingent consideration)	86	46	–	–	132

2.12 EQUITY

EQUITY SHARE CAPITAL

in crore, except as otherwise stated

Particulars	As at
	June 30, 2016	March 31, 2016	April 1, 2015
Authorized
Equity shares, 5/- par value
240,00,00,000 (240,00,00,000⁽²⁾) equity shares	1,200	1,200	600
Issued, Subscribed and Paid-Up
Equity shares, 5/- par value ⁽¹⁾	1,148	1,148	574
229,69,44,664 (229,69,44,664⁽²⁾) equity shares fully paid-up
	1,148	1,148	574

⁽¹⁾ Refer note 2.23 for details of basic and diluted shares

⁽²⁾ Represents number of shares as of March 31, 2016

The authorised equity shares were 120,00,00,000 and the issued, subscribed and paid-up shares were 114,84,72,332 as of April 1, 2015.

Forfeited shares amounted to 1,500/- (1,500/-)

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

In the period of five years immediately preceding June 30, 2016:

The Company has allotted 114,84,72,332 and 57,42,36,166 fully paid-up shares of face value 5/- each during the quarter ended June 30, 2015 and December 31, 2014, pursuant to bonus issue approved by the shareholders through postal ballot. For both the bonus issues, bonus share of one equity share for every equity share held, and a stock dividend of one 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.

The Board of Directors, in its meeting on April 15, 2016, proposed a final dividend of 14.25/- per equity share and the same was approved by the shareholders at the Annual General Meeting held on June 18, 2016. The amount was recognized as distributions to equity shareholders during the three month ended June 30, 2016 and the total appropriation was 3,939 crore including corporate dividend tax. (Refer note 2.2.1 for impact on transition to Ind AS)

The amount of per share dividend recognized as distributions to equity shareholders during the three month ended June 30, 2015 was 29.50/- per equity share (not adjusted for June 17, 2015 bonus issue).

The details of shareholder holding more than 5% shares as at June 30, 2016 and March 31, 2016 are set out below :

in crore, except as stated otherwise

Name of the shareholder	As at June 30, 2016		As at March 31, 2016
	Number of shares	% held	Number of shares	% held
Deutsche Bank Trust Company Americas (Depository of ADR's - legal ownership)	38,53,17,937	16.78	38,53,17,937	16.78
Life Insurance Corporation of India	12,86,15,818	5.60	13,22,74,300	5.76

The reconciliation of the number of shares outstanding and the amount of share capital as at June 30, 2016 and March 31, 2016 is set out below:

Particulars	As at June 30, 2016		As at March 31, 2016
	Number of shares	Amount	Number of shares	Amount
Number of shares at the beginning of the period	2,29,69,44,664	1,148	1,14,84,72,332	574
Add: Bonus shares issued (including bonus on treasury shares)	–	–	1,14,84,72,332	574
Number of shares at the end of the period	2,29,69,44,664	1,148	2,29,69,44,664	1,148

Employee Stock Option Plan (ESOP):

2015 Stock Incentive Compensation Plan (the 2015 Plan): SEBI issued the Securities and Exchange Board of India (Share based Employee Benefits) Regulations, 2014 (‘SEBI Regulations’) which replaced the SEBI ESOP Guidelines, 1999. The 2011 Plan (as explained below) was required to be amended and restated in accordance with the SEBI Regulations. Consequently, to effect this change and to further introduce stock options/ADR’s and other stock incentives, the Company put forth the 2015 Stock Incentive Compensation Plan (the 2015 Plan) for approval to the shareholders of the Company. Pursuant to the approval by the shareholders through postal ballot which ended on March 31, 2016, the Board of Directors have been authorised to introduce, offer, issue and allot share-based incentives to eligible employees of the Company and its subsidiaries under the 2015 Plan. The maximum number of shares under the 2015 plan shall not exceed 2,40,38,883 equity shares(this includes 1,12,23,576 equity shares which were held by the Trust towards the 2011 Plan as at March 31, 2016). 1,70,38,883 equity shares will be issued as RSUs at par value and 70,00,000 equity shares will be issued as stock options at market price. These instruments will vest over a period of 4 years and the Company expects to grant the instruments under the 2015 Plan over the period of 4 to 7 years. As of June 30, 2016, 1,12,11,170 shares are held by the trust towards 2015 Plan.

2011 RSU Plan (the 2011 Plan) now called 2015 Stock Incentive Compensation Plan ( the 2015 Plan): The Company had a 2011 RSU Plan which provided for the grant of restricted stock units (RSUs) to eligible employees of the Company. The Board of Directors recommended the 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 was 1,13,34,400 and the plan was expected to continue in effect for a term of 10 years from the date of initial grant under the plan. 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 Officer and Managing Director. The Board in its meeting held on June 22, 2015, on recommendation of Nomination and Remuneration Committee, further granted 1,24,061 RSUs to Dr. Vishal Sikka. These RSUs are vesting 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. Further the Company has earmarked 1,00,000 equity shares for welfare activities of the employees, approved by the shareholders vide postal ballot which ended on March 31, 2016. The equity shares as of March 31, 2016 held under this plan, i.e. 1,12,23,576 equity shares (this includes the aggregate number of equity shares that may be awarded under the 2011 Plan as reduced by 10,824 equity shares already exercised by Dr. Vishal Sikka and 1,00,000 equity shares which have been earmarked for welfare activities of the employees) have been subsumed under the 2015 Plan.

The award granted to Dr. Vishal Sikka on June 22, 2015 was modified by the Nomination and remuneration committee on April 14, 2016. There is no modification or change in the total number of RSUs granted or the vesting period (which is four years). The modifications relate to the criteria of vesting for each of the years. Based on the modification, the first tranche of the RSUs will vest subject to achievement of certain key performance indicators for the year ended March 31, 2016. Subsequent vesting of RSU's for each of the remaining years would be subject to continued employment.

The activity in the 2015 Plan ( formerly 2011 RSU Plan) during the three months ended June 30, 2016 and June 30, 2015 is set out below:

Particulars	Three months ended June 30, 2016		Three months ended June 30, 2015
	Shares arising out of options	Weighted average exercise price	Shares arising out of options	Weighted average exercise price
2015 Plan (Formerly 2011 Plan):
Outstanding at the beginning*	2,21,505	5	1,08,268	5
Granted	–	–	1,24,061	5
Forfeited and expired	–	–	–	–
Exercised	12,406	5	–	–
Outstanding at the end	2,09,099	5	2,32,329	5
Exercisable at the end	–	–	–	–

* adjusted for bonus issues (Refer above note 2.12)

Pursuant to the approval from the shareholders through postal ballot on March 31, 2016, Dr. Vishal Sikka is eligible to receive an annual grant of $2,000,000 of fair value in RSUs which vest over time, subject to continued service, and an annual grant $5,000,000 in performance based equity and stock options, subject to achievement of performance targets set by the Board or its committee, which vest overtime. Though the above RSUs and performance based equity and stock options have not been granted as of June 30, 2016, in accordance with Ind AS 102 Share-based Payment, the company has recorded an employee stock compensation expense of 7 crore during the three months ended June 30, 2016 for the same.

The weighted average share price of options exercised under the 2015 Plan on the date of exercise was 1,206/-

The weighted average remaining contractual life of RSUs outstanding as of June 30, 2016 and March 31, 2016 under the 2015 Plan was 1.84 years and 1.98 years respectively.

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

Particulars	For options granted in
	Fiscal 2016	Fiscal 2015
Grant date	22-Jun-15	21-Aug-14
Weighted average share price ()*	1,024	3,549
Exercise price ()*	5.00	5.00
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 ended June 30, 2016 and June 30, 2015, the company recorded an employee stock compensation expense of 9 crore and 2 crore, respectively in the statement of profit and loss towards CEO compensation.

2.13 OTHER FINANCIAL LIABLITIES

(In crore)

Particulars	As at
	June 30, 2016	March 31, 2016	April 1, 2015
Non-current
Rental deposits ⁽¹⁾	27	27	27
Payable for acquisition of business (refer note 2.5.1 & 2.5.2)	38	35	–
	65	62	27
Current
Unpaid dividends	6	5	3
Others
Accrued compensation to employees	1,740	1,764	1,719
Accrued expenses ⁽²⁾	1,808	1,707	1,582
Retention monies	57	58	50
Payable for acquisition of business (refer note 2.5.1 and note 2.5.2)
- Deferred consideration	–	–	487
- Contingent consideration	43	80	–
Client deposits	7	16	20
Capital creditors	31	66	37
Compensated absences	1,195	1,130	907
Other payables ⁽³⁾	240	304	42
Foreign currency forward and options contracts	7	2	–
	5,134	5,132	4,847
Total financial liabilities	5,199	5,194	4,874
Financial liability carried at amortized cost	3,916	3,947	3,967
Financial liability carried at fair value through profit or loss	88	117	–
Contingent consideration on undiscounted basis	95	132	–
⁽¹⁾ Includes dues from subsidiaries (Refer note 2.25)	27	27	27
⁽²⁾ Includes dues from subsidiaries (Refer note 2.25)	2	29	36
⁽³⁾ Includes dues from subsidiaries (Refer note 2.25)	28	38	33

2.14 TRADE PAYABLES

(In crore)

Particulars	As at
	June 30, 2016	March 31, 2016	April 1, 2015
Trade payables *	301	623	124
	301	623	124
*Includes dues to subsidiaries (refer note 2.25)	127	145	102

2.15 OTHER LIABILITIES

(In crore)

Particulars	As at
	June 30, 2016	March 31, 2016	April 1, 2015
Current
Unearned revenue	1,181	1,025	831
Others
Tax on dividend	666	–	–
Withholding and other taxes payable	1,079	1,068	733
	2,926	2,093	1,564

2.16 PROVISIONS

(In crore)

Particulars	As at
	June 30, 2016	March 31, 2016	April 1, 2015
Current
Others
Post-sales client support and warranties and others	462	436	382
	462	436	382

Provision for post-sales client support and warranties and others

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

(In crore)

Particulars	Quarter ended June 30, 2016
Balance at the beginning	436
Provision recognized/(reversed)	36
Provision utilized	(18)
Exchange difference	8
Balance at the end	462

Provision for post-sales client support and warranties and other provisions are expected to be utilized over a period of 6 months to 1 year.

2.17 INCOME TAXES

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

(In crore)

Particulars	Three months ended June 30,
	2016	2015
Current taxes	1,314	1,053
Deferred taxes	(34)	46
Income tax expense	1,280	1,099

Current tax expense for the three months period ended June 30, 2016 and June 30, 2015 includes reversals (net of provisions) amounting to Nil and 88 crore respectively pertaining to prior periods

Entire deferred income tax for the three months ended June 30, 2016 and June 30, 2015 relates to origination and reversal of temporary differences.

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

(In crore)

Particulars	Three months ended June 30,
	2016	2015
Profit before income taxes	4,460	3,990
Enacted tax rates in India	34.61%	34.61%
Computed expected tax expense	1,544	1,381
Tax effect due to non-taxable income for Indian tax purposes	(465)	(379)
Overseas taxes	187	146
Tax reversals, overseas and domestic	–	(88)
Effect of exempt non-operating income	(16)	(15)
Effect of unrecognized deferred tax assets	–	–
Effect of differential overseas tax rates	(3)	(1)
Effect of non-deductible expenses	32	69
Additional deduction on research and development expense	–	(14)
Others	1	–
Income tax expense	1,280	1,099

The applicable Indian statutory tax rate for fiscal 2017 and fiscal 2016 is 34.61%.

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 has provided to the export of software for the units registered under the Special Economic Zones Act, 2005 (SEZ). SEZ units which began the provision of 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 further five years. Up to 50% of such profits or gains is also available for a further five years subject to creation of a Special Economic Zone re-Investment Reserve out of the profit of the eligible SEZ units and utilization of such reserve by the Company for acquiring new plant and machinery for the purpose of its business as per the provisions of the Income Tax Act, 1961.

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, 2016, Infosys' U.S. branch net assets amounted to approximately 5,109 crore. As of June 30, 2016, the Company has provided for branch profit tax of 341 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 7 crore movement on account of exchange rate during three months ended June 30, 2016.

Deferred income tax liabilities have not been recognized on temporary differences amounting to 4,530 crore and 4,195 crore as of June 30, 2016 and March 31, 2016, 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 June 30, 2016, March 31, 2016 and April 1, 2015

(In crore)

	As at
	June 30, 2016	March 31, 2016	April 1, 2015
Income tax assets	4,935	5,020	3,941
Current income tax liabilities	3,959	3,304	2,678
Net current income tax assets/ (liability) at the end	976	1,716	1,263

The gross movement in the current income tax asset/ (liability) for the three months ended June 30, 2016 and June 30, 2015 is as follows:

(In crore)

	Three months ended June 30,
	2016	2015
Net current income tax asset/ (liability) at the beginning	1,716	1,263
Income tax paid	569	1,241
Current income tax expense (Refer Note 2.17)	(1,314)	(1,053)
Income tax on other comprehensive income	5	3
Translation difference	–	1
Net current income tax asset/ (liability) at the end	976	1,455

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

(In crore)

Particulars	As at
	June 30, 2016	March 31, 2016	April 1, 2015
Deferred income tax assets
Property, plant and equipment	126	146	210
Computer software	50	50	51
Accrued compensation to employees	46	46	29
Trade receivables	89	79	100
Compensated absences	374	359	280
Post sales client support	82	76	72
Others	24	21	7
Total deferred income tax assets	791	777	749
Deferred income tax liabilities
Branch profit tax	341	334	316
Others	18	38	–
Total deferred income tax liabilities	359	372	316
Deferred income tax assets after set off	432	405	433
Deferred income 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.

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 ended June 30, 2016 and June 30, 2015, is as follows:

(In crore)

Particulars	Three months ended June 30,
	2016	2015
Net deferred income tax asset at the beginning	405	433
Translation differences	(7)	18
Credits / (charge) relating to temporary differences (Refer Note 2.17)	34	(46)
Temporary differences on other comprehensive income	–	–
Net deferred income tax asset at the end	432	405

The credits relating to temporary differences during the three months ended June 30, 2016 are primarily on account of trade receivable, accrued compensation to employees and compensated absences partially offset by reversal of credits pertaining to property plant and equipment and trade receivables. The charge relating to temporary differences during the three months ended June 30, 2015 are primarily on account of property plant and equipment, trade receivables, accrued compensation to employees partially offset by compensated absences.

2.18 REVENUE FROM OPERATIONS

(In crore)

Particulars	Three months ended June 30,
	2016	2015
Income from software services	14,416	12,260
Income from software products	4	478
	14,420	12,738

2.19 OTHER INCOME

(In crore)

Particulars	Three months ended June 30,
	2016	2015
Interest received on financial assets- Carried at amortised cost
Tax free bonds, government bonds and debentures	84	24
Deposit with Bank and others	569	616
Dividend received on investments carried at fair value through profit or loss
Mutual fund units	18	22
Exchange gains/(losses) on foreign currency forward and options contracts	45	(71)
Exchange gains/(losses) on translation of other assets and liabilities	4	48
Miscellaneous income, net	41	82
	761	721

2.20 EXPENSES

(In crore)

Particulars	Three months ended June 30,
	2016	2015
Employee benefit expenses
Salaries including bonus	7,430	6,638
Contribution to provident and other funds	143	149
Share based payments to employees ( Refer note 2.12 )	9	2
Staff welfare	23	18
	7,605	6,807
Cost of software packages and others
For own use	171	183
Third party items bought for service delivery to clients	53	108
	224	291

(In crore)

Particulars	Three months ended June 30,
	2016	2015
Other expenses
Power and fuel	52	46
Brand & Marketing	97	65
Operating lease payments	57	41
Rates and taxes	31	26
Repairs and Maintenance	284	188
Consumables	7	7
Insurance	11	11
Provision for post-sales client support and warranties	28	5
Commission to non-whole time directors	2	2
Allowances for credit losses on financial assets	23	(19)
Auditor's remuneration
Statutory audit fees	–	–
Other services	–	–
Reimbursement of expenses	–	–
Bank charges and commission	2	2
Contributions towards Corporate Social Responsibility	45	43
Others	22	33
	661	450

2.21 LEASES

Obligations on long-term, non-cancellable operating leases

The lease rentals charged during the period is as under:

(In crore)

Particulars	Three months ended June 30,
	2016	2015
Lease rentals recognized during the period	57	41

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

(In crore)

	As at
Future minimum lease payable	June 30, 2016	March 31, 2016	April 1, 2015
Not later than 1 year	184	170	101
Later than 1 year and not later than 5 years	397	417	284
Later than 5 years	294	315	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.

2.22 EMPLOYEE BENEFITS

a. Gratuity

The following tables set out the funded status of the gratuity plans and the amounts recognized in the Company's financial statements as at June 30, 2016 and March 31, 2016:

(In crore)

Particulars	As at
	June 30, 2016	March 31, 2016
Change in benefit obligations
Benefit obligations at the beginning	826	755
Service cost	28	106
Interest expense	16	55
Curtailment Gain	(3)	–
Transfer of obligation	–	(34)
Remeasurements - Actuarial (gains)/ losses	25	10
Benefits paid	(18)	(66)
Benefit obligations at the end	874	826
Change in plan assets
Fair value of plan assets at the beginning	828	781
Interest income	16	59
Transfer of assets	1	(43)
Remeasurements- Return on plan assets excluding amounts included in interest income	3	7
Contributions	55	90
Benefits paid	(18)	(66)
Fair value of plan assets at the end	885	828
Funded status	11	2
Prepaid gratuity benefit	11	2

Amount for the three months ended June 30, 2016, and three months ended June 30, 2015 recognized in the Statement of Profit and Loss under employee benefit expenses.

(In crore)

Particulars	Three months ended June 30,
	2016	2015
Service cost	28	27
Net interest on the net defined benefit liability/asset	–	(1)
Curtailment Gain	(3)	–
Net gratuity cost	25	26

Amount for the three months ended June 30, 2016 and June 30, 2015 recognized in statement of other comprehensive income:

(In crore)

Particulars	Three months ended June 30,
	2016	2015
Remeasurements of the net defined benefit liability/ (asset)
Actuarial (gains) / losses	25	13
(Return) / loss on plan assets excluding amounts included in the net interest on the net defined benefit liability/(asset)	(3)	(2)
	22	11

(In crore)

Particulars	Three months ended June 30,
	2016	2015
(Gain)/loss from change in demographic assumptions	–	–
(Gain)/loss from change in financial assumptions	10	(13)
	10	(13)

The weighted-average assumptions used to determine benefit obligations as at June 30, 2016, March 31, 2016 and April 1, 2015 are set out below:

Particulars	As of
	June 30, 2016	March 31, 2016	April 1, 2015
Discount rate	7.6%	7.8%	7.8%
Weighted average rate of increase in compensation levels	8.0%	8.0%	8.0%

The weighted-average assumptions used to determine net periodic benefit cost for the three months ended June 30, 2016 and June 30, 2015 are set out below:

Particulars	Three months ended June 30,
	2016	2015
Discount rate	7.8%	7.8%
Weighted average rate of increase in compensation levels	8.0%	8.0%
Weighted average duration of defined benefit obligation	6.4 years	6.5 years

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

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

As of June 30, 2016, every percentage point increase / decrease in discount rate will affect our gratuity benefit obligation by approximately 49 crore.

As of June 30, 2016, every percentage point increase / decrease in weighted average rate of increase in compensation levels will affect our gratuity benefit obligation by approximately 41 crore.

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.

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

The Company contributes all ascertained liabilities towards gratuity to the Infosys Limited Employees' Gratuity Fund Trust. Trustees administer contributions made to the trust. As of June 30, 2016 and March 31, 2016, the plan assets have been primarily invested in insurer managed funds.

Actual return on assets for the three months ended June 30, 2016 and June 30, 2015 were 19 crore and 17 crore, respectively.

The Company expects to contribute 50 crore to the gratuity trusts during the remainder of fiscal 2017.

Maturity profile of defined benefit obligation:

(In crore)

Within 1 year	125
1-2 year	131
2-3 year	139
3-4 year	149
4-5 year	164
5-10 years	824

b. Superannuation

The Company contributed 36 crore and 57 crore to the superannuation plan during the three months ended June 30, 2016 and June 30, 2015, respectively and the same has been recognised in the Statement of Profit and Loss under the head Employee Benefit expense.

c. Provident fund

Infosys has an obligation to fund any shortfall on the yield of the trust’s investments over the administered interest rates on an annual basis. These administered rates are determined annually predominantly considering the social rather than economic factors and in most cases the actual return earned by the Company has been higher in the past years. The actuary has provided a valuation for provident fund liabilities on the basis of guidance issued by Actuarial Society of India and based on the below provided assumptions there is no shortfall as at June 30, 2016 and March 31, 2016 and April 1, 2015, respectively.

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

(In crore)

Particulars	As of
	June 30, 2016	March 31, 2016	April 1, 2015
Plan assets at period end, at fair value	3,882	3,808	2,912
Present value of benefit obligation at period end	3,882	3,808	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:

Particulars	As at
	June 30, 2016	March 31, 2016	April 1, 2015
Government of India (GOI) bond yield	7.60%	7.80%	7.80%
Remaining term to maturity of portfolio	7 years	7 years	7 years
Expected guaranteed interest rate- First year:	8.75%	8.75%	8.75%
- Thereafter:	8.60%	8.60%	8.60%

The Company contributed 93 crore during the three months ended June 30, 2016 (86 crore during the three months ended June 30, 2015) and has been recognised in the Statement of Profit and Loss under the head employee benefit expenses.

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

Employee benefits cost include:

(In crore)

Particulars	Three months ended June 30,
	2016	2015
Salaries and bonus*	7,451	6,638
Defined contribution plans	36	57
Defined benefit plans	118	112
	7,605	6,807

* Includes stock compensation expense of 9 crore and 2 crore for the three months ended June 30, 2016 and June 30, 2015, respectively. Refer note 2.12.

2.23 RECONCILIATION OF BASIC AND DILUTED SHARES USED IN COMPUTING EARNING PER 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 June 30,
	2016	2015
Basic earnings per equity share - weighted average number of equity shares outstanding	229,69,44,664	229,69,44,664
Effect of dilutive common equivalent shares - share options outstanding	–	–
Diluted earnings per equity share - weighted average number of equity shares and common equivalent shares outstanding	229,69,44,664	229,69,44,664

2.24 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

(In crore)

Particulars	As at
	June 30, 2016	March 31, 2016	April 1, 2015
Contingent liabilities :
Claims against the Company, not acknowledged as debts⁽¹⁾	191	188	167
[Net of amount paid to statutory authorities 4,388 crore (4,386 crore)]
Commitments :
Estimated amount of contracts remaining to be executed on capital contracts and not provided for (net of advances and deposits)	1,168	1,295	1,272

⁽¹⁾

Claims against the company not acknowledged as debts as on June 30, 2016 include demand from the Indian Income tax authorities for payment of tax of 4,135 crores (4,135 crores), including interest of 1,224 crore ( 1,224 crore) upon completion of their tax assessment for fiscal 2007, fiscal 2008, fiscal 2009, fiscal 2010 and fiscal 2011. These demands were paid to statutory tax authorities . The company has filed an appeal with the income tax appellate authorities.

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.

2.25 RELATED PARTY TRANSACTIONS

List of related parties:

Name of subsidiaries	Country	Holding as at
		June 30, 2016	March 31, 2016	April 1, 2015
Infosys BPO Limited (Infosys BPO)	India	99.98%	99.98%	99.98%
Infosys Technologies (China) Co. Limited (Infosys China)	China	100%	100%	100%
Infosys Technologies S. de R. L. de C. V. (Infosys Mexico)	Mexico	100%	100%	100%
Infosys Technologies (Sweden) AB. (Infosys Sweden)	Sweden	100%	100%	100%
Infosys Technologies (Shanghai) Company Limited (Infosys Shanghai)	China	100%	100%	100%
Infosys Tecnologia DO Brasil LTDA. (Infosys Brasil)	Brazil	100%	100%	100%
Infosys Public Services, Inc. USA (Infosys Public Services)	U.S.	100%	100%	100%
Infosys Americas Inc., (Infosys Americas)	U.S.	100%	100%	100%
Infosys (Czech Republic) Limited s.r.o. (formerly Infosys BPO s. r. o) ⁽¹⁾	Czech Republic	99.98%	99.98%	99.98%
Infosys Poland Sp Z.o.o (formerly Infosys BPO (Poland) Sp Z.o.o)⁽¹⁾	Poland	99.98%	99.98%	99.98%
Infosys BPO S.DE R.L. DE.C.V ^(1)(17)	Mexico	–	–	–
Infosys McCamish Systems LLC ⁽¹⁾	U.S.	99.98%	99.98%	99.98%
Portland Group Pty Ltd⁽¹⁾	Australia	99.98%	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%	100%
EdgeVerve Systems Limited (EdgeVerve) ⁽⁷⁾	India	100%	100%	100%
Infosys Consulting Holding AG (Infosys Lodestone) (formerly Lodestone Holding AG)	Switzerland	100%	100%	100%
Lodestone Management Consultants Inc. ⁽³⁾	U.S.	100%	100%	100%
Infosys Management Consulting Pty Limited ( formerly Lodestone Management Consultants Pty Limited)⁽³⁾	Australia	100%	100%	100%
Infosys Consulting AG (formerly Lodestone Management Consultants AG) ⁽³⁾	Switzerland	100%	100%	100%
Lodestone Augmentis AG ⁽²⁾⁽⁶⁾	Switzerland	100%	100%	100%
Lodestone GmbH (formerly Hafner Bauer & Ödman GmbH) ⁽²⁾⁽³⁾	Switzerland	100%	100%	100%
Lodestone Management Consultants (Belgium) S.A. ⁽⁴⁾	Belgium	99.90%	99.90%	99.90%
Infosys Consulting GmbH (formerly Lodestone Management Consultants GmbH) ⁽³⁾	Germany	100%	100%	100%
Infosys Consulting Pte Ltd. (formerly Lodestone Management Consultants Pte Ltd) ⁽³⁾	Singapore	100%	100%	100%
Infosys Consulting SAS (formerly Lodestone Management Consultants SAS) ⁽³⁾	France	100%	100%	100%
Infosys Consulting s.r.o.(formerly Lodestone Management Consultants s.r.o.) ⁽³⁾	Czech Republic	100%	100%	100%
Lodestone Management Consultants GmbH ⁽³⁾	Austria	100%	100%	100%
Lodestone Management Consultants Co., Ltd. ⁽³⁾	China	100%	100%	100%
Infy Consulting Company Limited (formerly Lodestone Management Consultants Ltd.) ⁽³⁾	U.K.	100%	100%	100%
Infy Consulting B.V. (Lodestone Management Consultants B.V.) ⁽³⁾	Netherlands	100%	100%	100%
Infosys Consulting Ltda. (formerly Lodestone Management Consultants Ltda.) ⁽⁴⁾	Brazil	99.99%	99.99%	99.99%
Infosys Consulting Sp. Z.o.o. (formerly Lodestone Management Consultants Sp. z o.o.) ⁽³⁾	Poland	100%	100%	100%
Lodestone Management Consultants Portugal, Unipessoal, Lda. ⁽³⁾	Portugal	100%	100%	100%
S.C. Infosys Consulting S.R.L.(formerly S.C. Lodestone Management Consultants S.R.L.) ⁽³⁾	Romania	100%	100%	100%
Infosys Consulting S.R.L. (formerly Lodestone Management Consultants S.R.L.) ⁽³⁾	Argentina	100%	100%	100%
Infosys Canada Public Services Ltd.⁽⁸⁾	Canada	–	–	–
Infosys Nova Holdings LLC. (Infosys Nova)⁽⁹⁾	U.S.	100%	100%	100%
Panaya Inc. (Panaya) ⁽¹⁰⁾	U.S.	100%	100%	100%
Panaya Ltd.⁽¹¹⁾	Israel	100%	100%	100%
Panaya GmbH⁽¹¹⁾	Germany	100%	100%	100%
Panaya Pty Ltd⁽¹¹⁾	Australia	–	–	–
Panaya Japan Co. Ltd.⁽¹¹⁾	Japan	100%	100%	100%
Skava Systems Pvt. Ltd. (Skava Systems)⁽¹²⁾	India	100%	100%	–
Kallidus Inc. (Kallidus)⁽¹³⁾	U.S.	100%	100%	–
Noah Consulting LLC (Noah) ⁽¹⁴⁾	U.S.	100%	100%	–
Noah Information Management Consulting Inc. (Noah Canada) ⁽¹⁵⁾	Canada	100%	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 2.5.3)
⁽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.
⁽¹¹⁾	Wholly owned subsidiary of Panaya Inc^.
⁽¹²⁾	On June 2, 2015, Infosys acquired 100% of the voting interest in Skava Systems (Refer note 2.5.2)
⁽¹³⁾	On June 2, 2015, Infosys acquired 100% of the voting interest in Kallidus Inc. (Refer note 2.5.2)
⁽¹⁴⁾	On November 16, 2015, Infosys acquired 100% of the membership interests in Noah (Refer Note 2.5.1)
⁽¹⁵⁾	Wholly owned subsidiary of Noah
⁽¹⁶⁾	Incorporated effective November 20, 2015
⁽¹⁷⁾	Liquidated effective March 15, 2016

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

Name of Associates	Country	Holding as at
		June 30, 2016	March 31, 2016	April 1, 2015
DWA Nova LLC⁽¹⁾	U.S.	16%	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 Benefits Trust	India	Controlled trust

Refer notes 2.22 for information on transactions with post-employment benefit plans mentioned above.

List of key management personnel

Whole time directors

U B Pravin Rao

Dr. Vishal Sikka

Non-whole-time directors

K.V.Kamath ( resigned effective June 5, 2015)

Prof. Jeffrey S. Lehman

R. Seshasayee

Ravi Venkatesan

Kiran Mazumdar Shaw

Carol M. Browner (resigned effective November 23, 2015)

Prof. John W. Etchemendy

Roopa Kudva

Dr. Punita Kumar-Sinha (appointed effective January 14, 2016)

Executive Officers

M. D. Ranganath, Chief Financial Officer (effective October 12, 2015)

David D. Kennedy, Executive Vice President, General Counsel and Chief Compliance Officer (effective November 1, 2014)

Rajiv Bansal, Chief Financial Officer ( till October 12, 2015)

Company Secretary

A.G.S. Manikantha, (appointed effective June 22, 2015)

The details of amounts due to or due from related parties as at June 30, 2016, March 31, 2016 and April 1, 2015 are as follows:

(In crore)

Particulars	As at
	June 30, 2016	March 31, 2016	April 1, 2015
Investment in debentures
EdgeVerve⁽¹⁾	2,549	2,549	–
Trade Receivables
Infosys China	32	29	16
Infosys Mexico	8	6	1
Infosys Brasil	1	1	5
Infosys BPO	5	5	1
Infy Consulting Company Ltd.	20	8	26
EdgeVerve	–	–	14
Infosys Public Services	237	153	246
Infosys Sweden	32	28	–
Panaya Ltd	20	14	–
	355	244	309
Loans⁽¹⁾
Infy Consulting Company Ltd.	–	–	6
Infosys Sweden	24	24	–
Infosys Technologies China	69	67	–
EdgeVerve	–	–	18
	93	91	24
Prepaid and other financial assets
Infosys BPO	5	5	1
Infosys Public Services	1	8	4
EdgeVerve	–	3	14
Panaya	45	43	–
Infosys Consulting SAS	6	6	3
Infosys Consulting GmbH	–	1	1
Infy Consulting Company Ltd.	1	1	20
	58	67	43
Unbilled revenues
Infosys Consulting SAS	–	–	1
EdgeVerve	22	20	–
Kallidus	1	–	–
Infosys McCamish Systems LLC	–	–	5
	23	20	6
Trade payables
Infosys China	10	10	10
Infosys BPO	6	6	–
Infosys (Czech Republic) Limited s.r.o.	3	2	–
Infosys Poland Sp Z.o.o	1	–	–
Portland Group Pty Ltd	–	–	1
Infosys Mexico	3	2	1
Infosys Sweden	8	8	5
Infosys Management Consulting Pty Limited	15	16	10
Infosys Consulting Pte Ltd.	2	7	8
Infy Consulting Company Ltd.	57	83	65
Infosys Brasil	1	–	2
Noah Consulting LLC	9	–	–
Panaya Ltd.	8	9	–
Infosys Public Services	4	2	–
	127	145	102
Other financial liabilities
Infosys BPO	26	27	16
Infosys McCamish Systems LLC	–	–	2
Infosys Consulting AG	–	1	1
Infy Consulting Company Ltd.	1	1	1
EdgeVerve	–	–	9
Panaya Ltd.	–	1	–
Infosys Public Services	–	7	4
Infosys Sweden	–	–	–
Infosys Mexico	1	1	–
	28	38	33
Provision for expenses
Infosys BPO	–	1	(1)
Kallidus Inc	1	18	–
Noah Consulting, LLC	–	10	–
Noah Information Management Consulting Inc.	1	–	–
EdgeVerve	–	–	37
	2	29	36
Rental Deposit given for shared services
Infosys BPO	21	21	21
Rental Deposit taken for shared services
Infosys BPO	27	27	27

⁽¹⁾

The above loans were given in accordance with the terms and conditions of the loan agreement and carries an interest rate of 6% each and is repayable within a period of one year and at anytime within four years from the date of grant for Infosys China and Infosys Sweden respectively.

⁽²⁾

At an interest rate of 8.5% per annum.

The details of the related parties transactions entered into by the Company, in addition to the lease commitments described in note 2.21, for the three months ended June 30, 2016 and June 30, 2015 are as follows:

(In crore)

Particulars	Three months ended June 30,
	2016	2015
Capital transactions:
Financing transactions
Equity
Infosys China	67	–
Infosys Sweden	51	–
Infosys Shanghai	67	191
	185	191
Loans (net of repayment)
Lodestone Management Consultants Ltd.	–	(5)
Kallidus	–	10
Infosys Sweden	–	12
Infosys China	1	–
EdgeVerve	–	26
	1	43
Revenue transactions:
Purchase of services
Infosys China	29	31
Infosys Management Consulting Pty Limited	32	29
Infy Consulting Company Limited	187	174
Infosys Consulting Pte Ltd.	8	31
Portland Group Pty Ltd	–	1
Infosys BPO s.r.o	7	3
Infosys BPO	92	73
Infosys Sweden	24	19
Infosys Mexico	5	3
EdgeVerve	–	29
Infosys Public Services	4	3
Panaya Ltd.	9	1
Infosys Poland Sp Z.o.o	1	–
Kallidus	1	–
Noah Consulting, LLC	29	–
Noah Information Management Consulting Inc.	1	–
Infosys Brasil	1	1
	430	398
Purchase of shared services including facilities and personnel
Panaya Ltd.	1	–
Infosys BPO	3	2
	4	2
Interest income
Infosys China	1	–
EdgeVerve	54	1
	55	1
Sale of services
Infosys China	4	3
Infosys Mexico	8	7
Infy Consulting Company Limited	17	4
Infosys Brasil	2	2
Infosys BPO	14	18
McCamish Systems LLC	–	1
Infosys Sweden	4	7
EdgeVerve	–	17
Infosys Public Services	235	214
	284	273
Sale of shared services including facilities and personnel
EdgeVerve	68	3
Panaya Ltd.	6	–
Infosys BPO	11	5
	85	8

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

(In crore)

Particulars	Three months ended June 30,
	2016	2015
Salaries and other employee benefits to whole-time directors and executive officers ⁽¹⁾	21	22
Commission and other benefits to non-executive/independent directors	3	2
Total	24	24

⁽¹⁾

Includes stock compensation expense of 9 crore for the three months ended June 30, 2016 (2 crore for the three months ended June 30, 2015) towards CEO compensation (Refer note 2.12).

2.26 SEGMENT REPORTING

Ind AS 108 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. Based on the "management approach" as defined in Ind AS 108, the Chief Operating Decision Maker (CODM) 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 Retail, Consumer packaged goods and Logistics (RCL), enterprises in the Energy & utilities, Communication and Services (ECS), enterprises in Hi-tech (Hi-tech), enterprises in Life Sciences, Healthcare and Insurance (HILIFE) and all other segments. 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.

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.

Business segments

Three months ended June 30, 2016 and June 30, 2015

(In crore)

Particulars	FS	MFG	ECS	RCL	HILIFE	Hi-tech	All other segments	Total
Revenue from operations	3,873	1,472	3,341	2,583	1,627	1,270	254	14,420
	*3,652*	*1,249*	*2,842*	*2,179*	*1,507*	*1,118*	*191*	*12,738*
Identifiable operating expenses	2,056	761	1,636	1,284	843	669	202	7,451
	1,843	654	1,373	1,069	786	599	173	6,497
Allocated expenses	791	301	683	528	333	260	52	2,948
	755	270	615	471	326	241	41	2,719
Segment operating income	1,026	410	1,022	771	451	341	–	4,021
	*1,054*	*325*	*854*	*639*	*395*	*278*	*(23)*	*3,522*
Unallocable expenses								322
								253
Operating profit								3,699
								*3,269*
Other income, net								761
								721
Profit before income taxes								4,460
								*3,990*
Income tax expense								1,280
								1,099
Net profit								3,180
								*2,891*
Depreciation and amortization								319
								252
Non-cash expenses other than depreciation and amortization								3
								1

Geographic segments

Three months ended June 30, 2016 and June 30, 2015

(In crore)

Particulars	North America	Europe	India	Rest of the World	Total
Revenue from operations	9,410	3,244	336	1,430	14,420
	*8,355*	*2,613*	*329*	*1,441*	*12,738*
Identifiable operating expenses	5,002	1,591	187	671	7,451
	4,322	1,331	233	611	6,497
Allocated expenses	1,925	664	68	291	2,948
	1,805	562	61	291	2,719
Segment profit	2,483	989	81	468	4,021
	*2,228*	*720*	35	*539*	*3,522*
Unallocable expenses					322
					253
Operating profit					3,699
					*3,269*
Other income, net					761
					721
Profit before income taxes					4,460
					*3,990*
Income tax expense					1,280
					1,099
Net profit					3,180
					*2,891*
Depreciation and amortization					319
					252
Non-cash expenses other than depreciation and amortization					3
					1

Significant clients

No client individually accounted for more than 10% of the revenues in the three months ended June 30, 2016 and June 30, 2015.

2.27 FUNCTION WISE CLASSIFICATION OF STATEMENT OF PROFIT AND LOSS

(In crore)

Particulars	Three months ended June 30,
	2016	2015
Revenue from operations	14,420	12,738
Cost of sales	9,167	7,774
Gross Profit	5,253	4,964
Operating expenses
Selling and marketing expenses	699	690
General and administration expenses	855	1,005
Total operating expenses	1,554	1,695
Operating profit	3,699	3,269
Other income	761	721
Profit before tax	4,460	3,990
Tax expense:
Current tax	1,314	1,053
Deferred tax	(34)	46
Profit for the period	3,180	2,891
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurement of the net defined benefit liability/asset	(17)	(8)
Equity instruments through other comprehensive income	–	–
Items that will be reclassified to profit or loss
Total other comprehensive income, net of tax	(17)	(8)
Total comprehensive income for the period	3,163	2,883

As per our report of even date attached

for B S R & Co. LLP

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

Chartered Accountants

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

Supreet Sachdev	R. Seshasayee	Dr. Vishal Sikka	U. B. Pravin Rao
Partner	Chairman	Chief Executive Officer and Managing Director	Chief Operating Officer and Whole-time Director
Membership No. 205385
Bangalore	Roopa Kudva	M. D. Ranganath	A.G.S. Manikantha
July 15, 2016	Director	Chief Financial Officer	Company Secretary

Auditor’s Report on Quarterly Financial 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 standalone financial results of Infosys Limited (‘the Company’) for the quarter ended 30 June 2016, 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 standalone quarterly 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 standalone financial statements, which have been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard (Ind AS) for Interim Financial Reporting (Ind AS) 34, 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 standalone financial results:

(i)

have been presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and SEBI circular dated 5 July 2016 in this regard; and

(ii)

give a true and fair view of the financial performance including other comprehensive income and other financial information for the quarter ended 30 June 2016.

for B S R & Co. LLP
Chartered Accountants
Firm’s registration number: 101248W/ W-100022

Supreet Sachdev
Partner
Membership number: 205385

Bangalore
July 15, 2016

Exhibit 99.12

Ind AS Consolidated

Independent Auditor’s Report

To the Board of Directors of Infosys Limited

Report on the Consolidated Interim Financial Statements

We have audited the accompanying consolidated interim financial statements of Infosys Limited (“the Company”), which comprise the consolidated balance sheet as at 30 June 2016, the consolidated statement of profit and loss (including other comprehensive income), the consolidated statement of cash flows and the consolidated statement of changes in equity for the quarter ended on that date and a summary of the significant accounting policies and other explanatory information.

Management’s Responsibility for the Consolidated Interim Financial Statements

The Company’s Board of Directors 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 including other comprehensive income, consolidated cash flows and consolidated changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) 34, Interim Financial Reporting as specified under section 133 of the Companies Act, 2013 (‘the Act’) read with relevant rules issued thereunder. .

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 financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, 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 of the consolidated interim financial statements 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 financial control relevant to the Company’s preparation 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 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 bythe Company’s Directors, 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 aforesaid consolidated interim financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the consolidated financial position of the Company as at 30 June 2016 and its consolidated financial performance including other comprehensive income, its consolidated cash flows and the consolidated changes in equity for the quarter 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
15 July 2016

INFOSYS LIMITED AND SUBSIDIARIES

In crore

Consolidated Balance Sheets as at	Note	June 30, 2016	March 31, 2016	April 1, 2015
ASSETS
Non-current assets
Property, plant and equipment	2.4	8,724	8,637	7,685
Capital work-in-progress		1,163	960	776
Goodwill	2.5	3,792	3,764	3,091
Other Intangible assets	2.5	958	985	638
Investment in associate	2.25	103	103	93
Financial Assets:
Investments	2.6	1,740	1,714	1,305
Loans	2.7	29	25	31
Other financial assets	2.8	307	286	173
Deferred tax assets (net)	2.17	626	536	536
Income tax assets (net)	2.17	5,211	5,230	4,089
Other non-current assets	2.11	1,493	1,357	698
Total non-current assets		24,146	23,597	19,115
Current assets
Financial Assets:
Investments	2.6	563	75	874
Trade Receivables	2.9	11,893	11,330	9,713
Cash and cash equivalents	2.10	31,050	32,697	30,367
Loans	2.7	279	303	222
Other financial assets	2.8	6,039	5,190	4,527
Other Current Assets	2.11	2,449	2,158	1,541
Total current assets		52,273	51,753	47,244
Total assets		76,419	75,350	66,359
EQUITY AND LIABILITIES
Equity
Equity share capital	2.13	1,144	1,144	572
Other equity		60,143	60,600	54,198
Total equity attributable to equity holders of the Company		61,287	61,744	54,770
Non-controlling interests		–	–	–
Total equity		61,287	61,744	54,770
Liabilities
Non-current liabilities
Financial Liabilities
Others financial liabilities	2.14	89	69	–
Deferred tax liabilities (net)	2.17	248	252	159
Other non-current liabilities	2.15	46	46	47
Total non-current liabilities		383	367	206
Current liabilities
Financial Liabilities
Trade Payables		262	386	140
Others financial liabilities	2.14	6,398	6,302	5,990
Other current liabilities	2.15	3,444	2,629	1,957
Provisions	2.16	536	512	478
Income tax liabilities (net)	2.17	4,109	3,410	2,818
Total current liabilities		14,749	13,239	11,383
Total Equity and liabilities		76,419	75,350	66,359

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

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

Chartered Accountants

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

Supreet Sachdev	R. Seshasayee	Dr. Vishal Sikka	U. B. Pravin Rao
Partner	Chairman	Chief Executive Officer and Managing Director	Chief Operating Officer and Whole-time Director
Membership No. 205385
Bangalore	Roopa Kudva	M. D. Ranganath	A.G.S. Manikantha
July 15, 2016	Director	Chief Financial Officer	Company Secretary

INFOSYS LIMITED AND SUBSIDIARIES

in crore, except equity share and per equity share data

Consolidated Statement of Profit and Loss for the three months ended	Note	June 30, 2016	June 30, 2015
Revenue from operations	2.18	16,782	14,354
Other income, net	2.19	753	756
Total Income		17,535	15,110
Expenses
Employee benefit expenses	2.20	9,282	8,053
Deferred consideration pertaining to acquisition		–	60
Cost of technical sub-contractors		917	750
Travel expenses		740	556
Cost of software packages and others	2.20	276	312
Communication expenses		120	112
Consultancy and professional charges		175	169
Depreciation and amortisation expenses	2.4 and 2.5	400	313
Other expenses	2.20	825	582
Total expenses		12,735	10,907
PROFIT BEFORE MINORITY INTEREST / SHARE IN NET PROFIT / (LOSS) OF ASSOCIATE		4,800	4,203
Share in net profit/(loss) of associate		(2)	–
PROFIT BEFORE TAX		4,798	4,203
Tax expense:
Current tax	2.17	1,467	1,133
Deferred tax	2.17	(105)	42
PROFIT FOR THE PERIOD		3,436	3,028
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurement of the net defined benefit liability/asset		(17)	(7)
Equity instruments through other comprehensive income		–	–
		(17)	(7)
Items that will be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations		38	144
		38	144
Total other comprehensive income, net of tax		21	137
Total comprehensive income for the period		3,457	3,165
Profit attributable to:
Owners of the company		3,436	3,028
Non-controlling interests		–	-
		3,436	3,028
Total comprehensive income attributable to:
Owners of the company		3,457	3,165
Non–controlling interests		–	–
		3,457	3,165
EARNINGS PER EQUITY SHARE
Equity shares of par value 5/- each
Basic ()		15.03	13.25
Diluted ()		15.03	13.25
Weighted average equity shares used in computing earnings per equity share	2.23
Basic		228,56,22,329	228,56,10,264
Diluted		228,57,68,122	228,56,72,309

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

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

Chartered Accountants

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

Supreet Sachdev	R. Seshasayee	Dr. Vishal Sikka	U. B. Pravin Rao
Partner	Chairman	Chief Executive Officer and Managing Director	Chief Operating Officer and Whole-time Director
Membership No. 205385
Bangalore	Roopa Kudva	M. D. Ranganath	A.G.S. Manikantha
July 15, 2016	Director	Chief Financial Officer	Company Secretary

INFOSYS LIMITED AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

In crore

Particulars

OTHER EQUITY

RESERVES & SURPLUS

Other comprehensive income

Equity Share capital ^#

Securities premium
reserve

Retained earnings

Capital reserve

General reserve

Share Options Outstanding Account

Special Economic Zone Re-investment reserve ⁽¹⁾

Other reserves⁽²⁾

Equity instruments through Other comprehensive income

Exchange differences on translating the financial statements of a foreign operation

Other items of other comprehensive income

Total equity attributable to equity holders of the Company

Balance as of April 1, 2015

572

2,784

41,606

9,336

–

411

54,770

Changes in equity for the three months ended
June 30, 2015

Increase in share capital on account of bonus issue^#(refer to note 2.13)

572

–

572

Amounts utilized for bonus issue (refer note 2.13)^#

–

(572)

–

(572)

Transfer to general reserve

–

(1,217)

–

1,217

–

Transferred to Special Economic Zone Re-investment reserve

–

(135)

–

135

–

Transferred from Special Economic Zone Re-investment reserve on utilization

–

135

–

(135)

–

Share based payments to employees (refer to note 2.13)

–

Remeasurement of the net defined benefit liability/asset, net of tax effect (refer note 2.22.1 and 2.17)

–

(7)

Equity instruments through other comprehensive income

–

Dividends (including corporate dividend tax)

–

(4,061)

–

(4,061)

Fair value changes on derivatives designated as cash flow hedge

–

Profit for the period

–

3,028

–

3,028

Exchange differences on translation of foreign operations

–

144

–

144

Balance as of June 30, 2015

1,144

2,212

39,356

10,553

–

555

(6)

53,876

Consolidated Statements of Changes in Equity (contd.)

In crore

Particulars

OTHER EQUITY

RESERVES & SURPLUS

Other comprehensive income

Equity Share capital #

Securities premium
reserve

Retained earnings

Capital reserve

General reserve

Share Options Outstanding Account

Special Economic Zone Re-investment reserve ⁽¹⁾

Other reserves⁽²⁾

Equity instruments through Other comprehensive income

Exchange differences on translating the financial statements of a foreign operation

Other items of other comprehensive income

Total equity attributable to equity holders of the Company

Balance as of April 1, 2016

1,144

2,213

47,063

10,553

–

715

(11)

61,744

Changes in equity for the three months ended June 30, 2016

Share based payments to employees (refer to note 2.13)

–

Excersice of stock options (refer to note 2.13)

–

(1)

–

Dividends (including corporate dividend tax)

–

(3,923)

–

(3,923)

Transfer to general reserve

–

(1,579)

–

1,579

–

Transferred to Special Economic Zone Re–investment reserve

–

(276)

–

276

–

Transferred from Special Economic Zone Re-investment reserve on utilization

–

276

–

(276)

–

Remeasurement of the net defined benefit liability/asset, net of tax effect (refer note 2.22.1 and 2.17)

–

(17)

Equity instruments through other comprehensive income

–

Fair value changes on derivatives designated as cash flow hedge

–

Profit for the period

–

3,436

–

3,436

Exchange differences on translation of foreign operations

–

Balance as of June 30, 2016

1,144

2,214

44,997

12,132

–

753

(28)

61,287

^#	net of treasury shares

The non controlling interest for each of the above periods is less than 1 crore

⁽¹⁾	The Special Economic Zone Re-investment Reserve has been created out of the profit of eligible SEZ units in terms of the provisions of Sec 10AA(1)(ii) of Income Tax Act,1961. The reserve should be utilized by the Company for acquiring new plant and machinery for the purpose of its business in the terms of the Sec 10AA(2) of the Income Tax Act, 1961.
⁽²⁾	Under the Swiss Code of Obligation, few subsidiaries of Infosys Lodestone are required to appropriate a certain percentage of the annual profit to legal reserve which may be used only to cover losses or for measures designed to sustain the company through difficult times, to prevent unemployment or to mitigate its consequences.

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

As per our report of even date attached

for B S R & Co. LLP

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

Chartered Accountants

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

Supreet Sachdev	R. Seshasayee	Dr. Vishal Sikka	U. B. Pravin Rao
Partner	Chairman	Chief Executive Officer and Managing Director	Chief Operating Officer and Whole-time Director
Membership No. 205385
Bangalore	Roopa Kudva	M. D. Ranganath	A.G.S. Manikantha
July 15, 2016	Director	Chief Financial Officer	Company Secretary

INFOSYS LIMITED AND SUBSIDIARIES

In crore

Consolidated Statements of Cash Flows	Three months ended June 30,
	2016	2015
Cash flow from operating activities
Profit for the period	3,436	3,028
Adjustments to reconcile net profit to net cash provided by operating activities:
Income tax expense	1,362	1,175
Depreciation and amortization	400	313
Interest and dividend income	(670)	(704)
Allowances for credit losses on financial assets	15	(4)
Exchange differences on translation of assets and liabilities	18	7
Deferred purchase price	–	60
Other adjustments	69	(10)
Changes in assets and liabilities
Trade receivables and unbilled revenue	(818)	(883)
Loans, other financial assets and other assets	(327)	(281)
Trade payables	(124)	53
Other financial liabilities, other liabilities and provisions	327	517
*Cash generated from operations*	3,688	3,271
Income taxes paid	(744)	(1,305)
*Net cash generated by operating activities*	2,944	1,966
Cash flows from investing activities
Expenditure on property, plant and equipment net of sale proceeds, including changes in retention money and capital creditors	(859)	(669)
Loans to employees	20	(1)
Deposits placed with corporation	(60)	(19)
Interest and dividend received on investments	123	257
Payment for acquisition of business, net of cash acquired	-	(549)
Payment of contingent consideration for acquisition of business	(36)	–
Payments to acquire financial assets
Preference securities	(26)	(13)
Tax free bonds and government bonds	(5)	–
Liquid mutual fund units	(10,669)	(8,304)
Proceeds on sale of financial assets
Tax free bonds and government bonds	4	–
Liquid mutual fund units	10,183	8,415
Fixed maturity plan securities	–	33
*Net cash used in investing activities*	(1,325)	(850)
Cash flows from financing activities:
Payment of dividends	(3,256)	(3,366)
*Net cash used in financing activities*	(3,256)	(3,366)
*Net decrease in cash and cash equivalents*	(1,637)	(2,250)
Cash and cash equivalents at the beginning	32,697	30,367
Effect of exchange rate changes on cash and cash equivalents	(10)	25
Cash and cash equivalents at the end	31,050	28,142
Supplementary information:
Restricted cash balance	512	375

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

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

Chartered Accountants

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

Supreet Sachdev	R. Seshasayee	Dr. Vishal Sikka	U. B. Pravin Rao
Partner	Chairman	Chief Executive Officer and Managing Director	Chief Operating Officer and Whole-time Director
Membership No. 205385
Bangalore	Roopa Kudva	M. D. Ranganath	A.G.S. Manikantha
July 15, 2016	Director	Chief Financial Officer	Company Secretary

INFOSYS LIMITED AND SUBSIDIARIES

Notes to the Consolidated 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 approved for issue by the company's Board of Directors on July 15, 2016

1.2 Basis of preparation of financial statements

These consolidated financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 ('Act') (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

These financial statements are the Group's first Ind AS financial statements. The Group has adopted all the Ind AS standards and the adoptions was carried out in accordance with Ind AS 101 - First time adoption of Indian Accounting Standards. The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed under Sec 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP), which was the previous GAAP. Reconciliations and descriptions of the effect of the transition has been summarized in Note 2.1 and 2.2

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 2.25. 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.

1.4 Use of estimates

The preparation of the financial statements in conformity with Ind AS 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 financial statements.

1.5 Critical accounting estimates

a. Revenue recognition

b. Income taxes

c. Business combinations and intangible assets

Business combinations are accounted for using Ind AS 103, Business Combinations. Ind AS 103 requires the identifiable intangible assets and contingent consideration to be fair valued in order to ascertain the net fair value of identifiable assets, liabilities and contingent liabilities of the acquiree. 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

e. Impairment of Goodwill

1.6 Revenue recognition

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

The group 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 profit and loss

1.7 Property, plant and equipment

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

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

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date is classified as capital advances under other non-current assets and the cost of assets not 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 profit and loss when incurred. The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset and the resultant gains or losses are recognized in the statement of profit and loss. 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 Ind AS 103, Business Combinations.

Business combinations between entities under common control 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 profit and loss. Goodwill is measured at cost less accumulated impairment losses.

1.10 Intangible assets

1.11 Financial instruments

1.11.1 Initial recognition

1.11.2 Subsequent measurement

a. Non-derivative financial instruments

(i) Financial assets carried at amortised cost

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

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

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

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

(iv) Financial liabilities

b. Derivative financial instruments

(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 Ind AS 109, Financial Instruments. Any derivative that is either not designated a hedge, or is so designated but is ineffective as per Ind AS 109, is categorized as a financial asset or financial liability, at fair value through profit or loss.

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

(ii) Cash flow hedge

The 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 profit and loss. If the hedging instrument no longer meets the criteria for hedge accounting, then hedge accounting is discontinued prospectively. If the hedging instrument expires or is sold, terminated or exercised, the cumulative gain or loss on the hedging instrument recognized in cash flow hedging reserve till the period the hedge was effective remains in cash flow hedging reserve until the forecasted transaction occurs. The cumulative gain or loss previously recognized in the cash flow hedging reserve is transferred to the net profit in the statement of profit and loss upon the occurrence of the related forecasted transaction. If the forecasted transaction is no longer expected to occur, then the amount accumulated in cash flow hedging reserve is reclassified to net profit in the statement of profit and loss.

c. Share capital and treasury shares

(i) Ordinary Shares

(ii) Treasury Shares

1.11.3 Derecognition of financial instruments

The group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the group's balance sheet when the obligation specified in the contract is discharged or cancelled or expires.

1.12 Fair value of financial instruments

For all other financial instruments the carrying amounts approximate fair value due to the short maturity of those instruments.

1.13 Impairment

a. Financial assets

b. Non-financial assets

(i) Goodwill

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 profit and loss and is not reversed in the subsequent period.

(ii) Intangible assets and property, plant and equipment

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

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

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 profit and loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in other comprehensive income. Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements 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 profit and loss.

1.18.2 Superannuation

1.18.3 Provident fund

1.18.4 Compensated absences

1.19 Share-based compensation

The Group recognizes compensation expense relating to share-based payments in net profit using fair-value in accordance with Ind AS 102, 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 options outstanding account.

1.20 Cash Flow Statement

1.21 Dividends

1.22 Other income

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 profit and loss 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 profit and loss on a systematic and rational basis over the useful life of the asset. Government grants related to revenue are recognized on a systematic basis in net profit in the statement of profit and loss over the periods necessary to match them with the related costs which they are intended to compensate.

INFOSYS LIMITED AND SUBSIDIARIES

2 Notes to the consolidated financial statements for the three months ended June 30, 2016

2.1 First-time adoption of Ind-AS

These consolidated interim financial statements of Infosys Limited and its subsidiaries for the three months ended June 30, 2016 have been prepared in accordance with Ind AS. This is the Group's first set of financial statements in accordance with Ind AS. For the purposes of transition to Ind AS, the company has followed the guidance prescribed in Ind AS 101 - First Time adoption of Indian Accounting Standard, with April 1, 2015 as the transition date and IGAAP as the previous GAAP.

The transition to Ind AS has resulted in changes in the presentation of the consolidated financial statements, disclosures in the notes thereto and accounting policies and principles. The accounting policies set out in note 1 have been applied in preparing the consolidated financial statements for the three months ended June 30, 2016 and the comparative information. An explanation of how the transition from previous GAAP to Ind AS has affected the Group’s Balance sheet , Consolidated Statement of profit and loss, is set out in note 2.2.1 and 2.2.2. Exemptions on first time adoption of Ind AS availed in accordance with Ind AS 101 have been set out in note 2.1.1

2.1.1 Exemptions availed on first time adoption of Ind-AS 101

Ind-AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Group has accordingly applied the following exemptions

(a) Business Combination

The Group is allowed to choose any date in the past from which it wants to account for the business combinations under Ind AS 103, without having to restate business combinations prior to such date. Accordingly, the group has applied the standard for all acquisitions completed after April 1, 2007, which coincides with the group's date of transition to IFRS.

For all such acquisitions,

Intangible assets previously included within goodwill under IGAAP have been recognized separately in the opening Balance Sheet in accordance with Ind AS 103

deferred taxes have been recorded on intangible assets, wherever applicable

	-	goodwill has been restated in accordance with Ind AS 21, with the corresponding impact in the other comprehensive income in equity
	–	retained earnings has been adjusted to include the amortization on identified intangibles, net of taxes, that would have been recorded from the date of acquisiton till the transition date.

(b) Share-based payment transaction

The group is allowed to apply Ind AS 102 Share-based payment to equity instruments that remain unvested as of transition date. The group has elected to avail this exemption and apply the requirements of Ind AS 102 to all such grants under the 2015 plan (Formerly 2011 plan). Accordingly, these options have been measured at fair value as against intrinsic value, previously under IGAAP.

The excess of stock compensation expense measured using fair value over the cost recognized under IGAAP using intrinsic value has been adjusted in 'Share Options Outstanding Account', with the corresponding impact taken to the retained earnings as on the transition date.

(c) Designation of previously recognized financial instruments

Under Ind AS 109, at initial recognition of a financial asset, an entity may make an irrevocable election to present subsequent changes in the fair value of an investment in an equity instrument in other comprehensive income. Ind AS 101 allows such designation of previously recognized finacial assets, as 'FVOCI' on the basis of the facts and circumstances that existed at the date of transition to Ind AS.

Accordingly, the Group has designated its investments in certain equity instruments at fair value through other comprehensive income on the basis of the facts and circumstances that existed at the date of transition to Ind AS.

INFOSYS LIMITED AND SUBSIDIARIES

2.2 Reconciliations

The following reconciliations provides the effect of transition to Ind AS from IGAAP in accordance with Ind AS 101

1. Equity as at April 1, 2015, June 30, 2015 and March 31, 2016

2. Net profit for the three months ended June 30, 2015 and year ended March 31, 2016

2.2.1 Reconciliation of equity as previously reported under IGAAP to Ind AS

In crore

Particulars	Note	Opening Balance Sheet as at April 1, 2015			Balance Sheet as at June 30, 2015			Balance Sheet as at March 31, 2016
		IGAAP	Effects of transition to Ind-AS	Ind AS	IGAAP	Effects of transition to Ind-AS	Ind AS	IGAAP	Effects of transition to Ind-AS	Ind AS
ASSETS
Non-current assets
Property, plant and equipment		7,685	–	7,685	7,938	–	7,938	8,637	–	8,637
Capital work-in-progress		776	–	776	825	–	825	960	–	960
Goodwill	(a)	3,595	(504)	3,091	4,265	(630)	3,635	4,476	(712)	3,764
Other Intangible assets	(a)	66	572	638	67	877	944	67	918	985
Investment in associate		93	–	93	95	–	95	103	–	103
Financial Assets:							–
Investments	(b)	1,305	–	1,305	1,317	–	1,317	1,714	–	1,714
Loans		31	–	31	34	–	34	25	–	25
Other financial assets		173	–	173	215	–	215	286	–	286
Deferred tax assets (net)	(c)	536	–	536	482	–	482	533	3	536
Income Tax assets (net)		4,089	–	4,089	4,612	–	4,612	5,230	–	5,230
Other non–current assets		698	–	698	801	–	801	1,357	–	1,357
Total non–current assets		19,047	68	19,115	20,651	247	20,898	23,388	209	23,597
Current assets
Financial Assets:
Investments	(b)	872	2	874	736	–	736	75	–	75
Trade Receivables		9,713	–	9,713	10,548	–	10,548	11,330	–	11,330
Cash and cash equivalents		30,367	–	30,367	28,142	–	28,142	32,697	–	32,697
Loans		222	–	222	220	–	220	303	–	303
Other financial assets		4,527	–	4,527	5,136	–	5,136	5,190	–	5,190
Other Current Assets		1,541	–	1,541	1,722	–	1,722	2,158	–	2,158
Total current assets		47,242	2	47,244	46,504	–	46,504	51,753	–	51,753
Total assets		66,289	70	66,359	67,155	247	67,402	75,141	209	75,350
EQUITY AND LIABILITIES
Equity
Equity Share capital		572	–	572	1,144	–	1,144	1,144	–	1,144
Other equity	(g)	50,164	4,034	54,198	52,711	22	52,733	56,682	3,918	60,600
Total equity attributable to equity holders of the Company		50,736	4,034	54,770	53,855	22	53,877	57,826	3,918	61,744
Non–controlling interests		–	–	–	–	–	–	–	–	–
Total equity		50,736	4,034	54,770	53,855	22	53,877	57,826	3,918	61,744
Non-current liabilities
Financial Liabilities
Others financial liabilities	(d)	–	–	–	92	(23)	69	80	(11)	69
Provisions		–	–	–	–	–	–	–	–	–
Deferred tax liabilities (net)	(c)	–	159	159	–	284	284	–	252	252
Other non-current liabilities	(e)	50	(3)	47	50	(3)	47	46	–	46
Total non-current liabilities		50	156	206	142	258	400	126	241	367
Current liabilities
Financial Liabilities
Trade Payables		140	–	140	196	–	196	386	–	386
Others financial liabilities	(d)	6,028	(38)	5,990	6,959	(30)	6,929	6,309	(7)	6,302
Other current liabilities	(e)	1,961	(4)	1,957	2,367	(3)	2,364	2,633	(4)	2,629
Provisions	(f)	4,556	(4,078)	478	474	–	474	4,451	(3,939)	512
Income tax liabilities (net)		2,818	–	2,818	3,162	–	3,162	3,410	–	3,410
Total current liabilities		15,503	(4,120)	11,383	13,158	(33)	13,125	17,189	(3,950)	13,239
Total equity and liabilities		66,289	70	66,359	67,155	247	67,402	75,141	209	75,350

Explanations for Reconciliation of Balance Sheet as previously reported under IGAAP to Ind AS

(a) Goodwill and Intangible assets

Intangible assets and deferred tax assets/liabilities in relation to business combinations which were included within Goodwill under IGAAP, have been recognized separately under Ind-AS with corresponding adjustments to retained earnings and other comprehensive income for giving effect of amortisation expenses and exchange gains and losses.

(b) Investments

Tax free bonds are carried at amortised cost both under Ind AS and IGAAP. Investment in equity instruments are carried at fair value through OCI in Ind AS compared to being carried at cost under IGAAP.

(c) Deferred taxes

Deferred taxes in relation to business combinations have been recognised under Ind-AS

(d) Other financial Liabilities

Adjustments includes impact of discounting the deferred and contingent consideration payable for acquisitions under Ind AS

(e) Other liabilities

Adjustments that reflect unamortised negative past service cost arising on modification of the gratuity plan in an earlier period. Ind AS 19 - Employee Benefits requires such gains and losses to be adjusted to retained earnings.

(f) Provisions

Adjustments reflect dividend (including corporate dividend tax), declared and approved post reporting period.

(g) Other Equity

Adjustments to retained earnings and other comprehensive income has been made in accordance with Ind AS, for the above mentioned line items.

In addition, as per Ind-AS 19, actuarial gain and losses are recognized in other comprehensive income as compared to being recognized in the Statement of Profit and Loss under IGAAP.

INFOSYS LIMITED AND SUBSIDIARIES

2.2.2 Reconciliation Statement of Profit and loss as previously reported under IGAAP to Ind AS

in crore, except per equity share data

Particulars	Note	Three months ended June 30, 2015			Year ended March 31, 2016
		IGAAP	Effects of transition to Ind-AS	Ind AS	IGAAP	Effects of transition to Ind-AS	Ind AS
Revenue from operations		14,354	–	14,354	62,441	–	62,441
Other income, net		756	–	756	3,128	(5)	3,123
Total Income		15,110	–	15,110	65,569	(5)	65,564
Expenses
Employee benefit expenses	(h)	8,061	(8)	8,053	34,418	(12)	34,406
Deferred consideration pertaining to acquisition	(i)	46	14	60	110	39	149
Cost of technical sub-contractors		750	–	750	3,531	–	3,531
Travel expenses		556	–	556	2,263	–	2,263
Cost of software packages and others		312	–	312	1,274	–	1,274
Communication expenses		112	–	112	449	–	449
Consultancy and professional charges		169	–	169	779	–	779
Depreciation and amortisation expenses	(j)	282	31	313	1,266	193	1,459
Other expenses	(i)	581	1	582	2,497	14	2,511
Total expenses		10,869	38	10,907	46,587	234	46,821
PROFIT BEFORE MINORITY INTEREST / SHARE IN NET PROFIT / (LOSS) OF ASSOCIATE		4,241	(38)	4,203	18,982	(239)	18,743
Share in net profit/(loss) of associate		–	–	–	(3)	–	(3)
PROFIT BEFORE TAX		4,241	(38)	4,203	18,979	(239)	18,740
Tax expense:
Current tax	(k)	1,131	2	1,133	5,315	3	5,318
Deferred tax	(l)	49	(7)	42	(14)	(53)	(67)
PROFIT FOR THE PERIOD		3,061	(33)	3,028	13,678	(189)	13,489
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurement of the net defined benefit liability/asset	(h)	–	(7)	(7)	–	(12)	(12)
Equity instruments through other comprehensive income		–	–	–	–	–	–
		–	(7)	(7)	–	(12)	(12)
Items that will not be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations	(m)	39	105	144	81	222	303
		39	105	144	81	222	303
Total other comprehensive income, net of tax		39	98	137	81	210	291
Total comprehensive income for the period		3,100	65	3,165	13,759	21	13,780
Profit attributable to:
Owners of the company		3,061	(33)	3,028	13,678	(189)	13,489
Non–controlling interests		–	–	–	–	–	–
		3,061	(33)	3,028	13,678	(189)	13,489
Total comprehensive income attributable to:
Owners of the company		3,100	65	3,165	13,759	21	13,780
Non-controlling interests		–	–	–	–	–	–
		3,100	65	3,165	13,759	21	13,780

Explanations for Reconciliation of Profit and loss as previously reported under IGAAP to Ind AS

(h)

1. As per Ind-AS 19, acturial gain and losses are recognized in other comprehensive income and not reclassified to profit and loss in a subsequent period.

Adjustments reflect unamortised negative past service cost arising on modification of the gratuity plan in an earlier period. Ind AS 19 requires such gains and losses to be adjusted to retained earnings.

(i)

Adjustments reflect impact of discounting pertaining to deferred and contingent consideration payable for business combinations

(j)

Adjustment reflects impact of amortisation of intangible assets included within goodwill under the IGAAP, separately recognized under Ind-AS

(k)

Tax component on actuarial gains and losses which was transferred to other comprehensive income under Ind AS

(l)

The reduction in deferred tax expense is on account of reversal of deferred tax liabilities recorded on intangible assets acquired in business combination.

(m)

Under Ind-AS, exchange differences on translation of foreign operations are recorded in other comprehensive income.

2.2.3 Cashflow statement

There were no significant reconciliation items between cash flows prepared under IGAAP and those prepared under Ind AS.

2.3 Business combinations

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 over 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 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 retention bonus is treated as a post-acquisition employee remuneration expense as per Ind AS 103.

Post-acquisition employee remuneration expense of 31 crore has been recorded in the statement of profit and loss for the three months ended June 30, 2016.

The transaction costs of 11 crore related to the acquisition was recognised under consultancy and professional charges and employee benefit costs in the statement of profit and loss for the year ended March 31, 2016.

Finacle and Edge Services

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

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 fully 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 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.

During the three months ended June 30, 2016 contingent consideration of 40 crore was paid to the sellers of Kallidus on the acheivement of certain financial targets. The balance contingent consideration as of June 30, 2016 and March 31, 2016 is 95 crore and 132 crore, respectively, on an undiscounted basis.

The transaction costs of 12 crore related to the acquisition have been included under consultancy and professional charges and employee benefit costs in the statement of comprehensive income for the year ended March 31, 2016.

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 1,398 crore.

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. 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:

(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 consultancy and professional charges and employee benefit costs in the statement of profit and loss for the year ended March 31, 2015.

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 was treated as post acquisition employee remuneration expense as per Ind AS 103. For the three months ended June 30, 2015, a post-acquisition employee remuneration expense of 60 crore is recorded in the statement of profit and loss. The liability towards post-acquisition employee remuneration expense was settled during the year ended March 31, 2016.

2.4 PROPERTY, PLANT AND EQUIPMENT

Following are the changes in the carrying value of property, plant and equipment for the three months ended June 30, 2016:

In crore, except as otherwise stated

	Land- Freehold	Land- Leasehold	Buildings ⁽¹⁾	Plant and machinery	Office Equipment	Computer equipment	Furniture and fixtures	Vehicles	Total
Gross carrying value as of April 1, 2016	972	650	6,325	1,759	839	4,072	1,444	29	16,090
Additions	4	5	36	114	48	184	52	3	446
Deletions	–	–	–	(1)	(2)	(16)	(1)	(1)	(21)
Translation difference	–	–	–	–	–	–	(1)	–	(1)
Gross carrying value as of June 30, 2016	976	655	6,361	1,872	885	4,240	1,494	31	16,514
Accumulated depreciation as of April 1, 2016	–	(22)	(2,201)	(1,100)	(509)	(2,618)	(986)	(17)	(7,453)
Depreciation	–	(1)	(57)	(62)	(28)	(164)	(45)	(1)	(358)
Accumulated depreciation on deletions	–	–	–	1	2	15	1	1	20
Translation difference	–	–	–	–	–	–	1	–	1
Accumulated depreciation as of June 30, 2016	–	(23)	(2,258)	(1,161)	(535)	(2,767)	(1,029)	(17)	(7,790)
Carrying value as of June 30, 2016	976	632	4,103	711	350	1,473	465	14	8,724
Carrying value as of April 1, 2016	972	628	4,124	659	330	1,454	458	12	8,637

Following are the changes in the carrying value of property, plant and equipment for the three months ended June 30, 2015:

In crore, except as otherwise stated

	Land- Freehold	Land- Leasehold	Buildings ⁽¹⁾	Plant and machinery	Office Equipment	Computer equipment	Furniture and fixtures	Vehicles	Total
Gross carrying value as of April 1, 2015	931	633	5,881	1,427	676	3,347	1,179	34	14,108
Acquisitions through business combinations	–	–	–	–	1	2	1	–	4
Additions	18	–	74	64	28	303	47	1	535
Deletions	–	–	–	–	(3)	(13)	(1)	(1)	(18)
Translation difference				1	1	8	3	1	14
Gross carrying value as of June 30, 2015	949	633	5,955	1,492	703	3,647	1,229	35	14,643
Accumulated depreciation as of April 1, 2015	–	(16)	(1,982)	(881)	(412)	(2,287)	(826)	(19)	(6,423)
Acquisitions through business combinations	–	–	–	–	(1)	(1)	–	–	(2)
Depreciation	–	(1)	(53)	(50)	(22)	(114)	(40)	(1)	(281)
Accumulated depreciation on deletions	–	–	–	–	3	7	1	1	12
Translation difference	–	–	–	(1)	–	(7)	(2)	(1)	(11)
Accumulated depreciation as of June 30, 2015	–	(17)	(2,035)	(932)	(432)	(2,402)	(867)	(20)	(6,705)
Carrying value as of June 30, 2015	949	616	3,920	560	271	1,245	362	15	7,938
Carrying value as of April 1, 2015	931	617	3,899	546	264	1,060	353	15	7,685

Following are the changes in the carrying value of property, plant and equipment for the year ended March 31, 2016:

In crore, except as otherwise stated

	Land– Freehold	Land- Leasehold	Buildings ⁽¹⁾	Plant and machinery	Office Equipment	Computer equipment	Furniture and fixtures	Vehicles	Total
Gross carrying value as of April 1, 2015	931	633	5,881	1,427	676	3,347	1,179	34	14,108
Acquisitions through business combinations	–	–	–	–	1	2	1	–	4
Additions	41	17	444	333	166	1,103	265	6	2,375
Deletions	–	–	–	(1)	(6)	(396)	(8)	(12)	(423)
Translation difference	–	–	–	–	2	16	7	1	26
Gross carrying value as of March 31, 2016	972	650	6,325	1,759	839	4,072	1,444	29	16,090
Accumulated depreciation as of April 1, 2015	–	(16)	(1,982)	(881)	(412)	(2,287)	(826)	(19)	(6,423)
Acquisitions through business combinations	–	–	–	–	(1)	(1)	–	–	(2)
Depreciation	–	(6)	(219)	(220)	(100)	(553)	(161)	(5)	(1,264)
Accumulated depreciation on deletions	–	–	–	1	5	237	4	7	254
Translation difference	–	–	–	–	(1)	(14)	(3)	–	(18)
Accumulated depreciation as of March 31, 2016	–	(22)	(2,201)	(1,100)	(509)	(2,618)	(986)	(17)	(7,453)
Carrying value as of March 31, 2016	972	628	4,124	659	330	1,454	458	12	8,637
Carrying value as of April 1, 2015	931	617	3,899	546	264	1,060	353	15	7,685

Notes:

⁽¹⁾

Buildings include

250/– being the value of 5 shares of

50/- each in Mittal Towers Premises Co-operative Society Limited.

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

The aggregate depreciation has been included under depreciation and amortisation expense in the statement of profit and loss.

2.5 GOODWILL AND OTHER INTANGIBLE ASSETS

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

In crore

	As of
	June 30, 2016	March 31, 2016	April 1, 2015
Carrying value at the beginning	3,764	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	28	191	(144)
Carrying value at the end	3,792	3,764	3,091

The following table gives the break up of allocation of goodwill to operating segments as at April 1, 2015

In crore

Segment	As at
	April 1, 2015
Financial services	663
Insurance	367
Manufacturing	656
Energy, Communication and Services	318
Resources and utilities	141
Retail, Consumer packaged goods and Logistics	473
Life Sciences and Healthcare	193
Growth Markets	280
Total	3,091

During the year ended March 31, 2016, the Company reorganized some of its segments to enhance executive customer relationships, improve focus of sales investments and increase management oversight. Consequent to these internal reorganizations there were changes effected in the segments based on the “management approach” as defined in Ind AS 108, Operating Segments. Accordingly the goodwill has been allocated to the new operating segments as at March 31, 2016.

(In crore)

Segment	As of
	March 31, 2016
Financial services	851
Manufacturing	423
Retail, Consumer packaged goods and Logistics	573
Life Sciences, Healthcare and Insurance	656
Energy & Utilities, Communication and Services	789
	3,292
Operating segments without significant goodwill	472
Total	3,764

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 acquisition has been allocated to the group of CGU's which is represented by the Energy & Utilities, Communication and Services segment.

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 for a CGU / groups of CGU's over a period of five years. An average of the range of each assumption used is mentioned below. As of March 31, 2016 and April 1, 2015 the estimated recoverable amount of the CGU exceeded its carrying amount. The recoverable amount was computed based on the fair value less cost to sell being higher than value-in-use. 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 %)

	As of
	March 31, 2016	April 1, 2015
Long term growth rate	8-10	8-10
Operating margins	17-20	17-20
Discount rate	14.2	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 June 30, 2016:

In crore

	Customer related	Software related	Sub-contracting rights related	Intellectual property rights related	Land use- rights related	Brand or Trademark Related	Others	Total
Gross carrying value as of April 1, 2016	775	414	21	1	72	93	63	1,439
Additions during the period	–	–	–	–	–	–	–	–
Deletions during the period	–	–	–	–	–	–	–	–
Translation difference	9	8	–	–	–	1	1	19
Gross carrying value as of June 30, 2016	784	422	21	1	72	94	64	1,458
Accumulated amortization as of April 1, 2016	(303)	(62)	(21)	(1)	(6)	(38)	(23)	(454)
Amortization expense	(23)	(11)	–	–	–	(4)	(4)	(42)
Deletion during the period	–	–	–	–	–	–	–	–
Translation differences	(3)	(1)	–	–	–	–	–	(4)
Accumulated amortization as of June 30, 2016	(329)	(74)	(21)	(1)	(6)	(42)	(27)	(500)
Carrying value as of April 1, 2016	472	352	–	–	66	55	40	985
Carrying value as of June 30, 2016	455	348	–	–	66	52	37	958
Estimated Useful Life (in years)	3-10	8-10	–	–	50	3-10	3-5
Estimated Remaining Useful Life (in years)	1-7	7-9	–	–	45	2-9	2-5

Following are the changes in the carrying value of acquired intangible assets for the three months ended June 30, 2015:

In crore

	Customer related	Software related	Sub-contracting rights related	Intellectual property rights related	Land use- rights related	Brand or Trademark Related	Others	Total
Gross carrying value as of April 1, 2015	448	261	21	11	71	49	34	895
Additions through business combinations (Refer Note 2.3)	175	130	–	–	–	14	–	319
Translation difference	17	5	–	–	1	3	1	27
Gross carrying value as of June 30, 2015	640	396	21	11	72	66	35	1,241
Accumulated amortization as of April 1, 2015	(162)	(21)	(21)	(11)	(5)	(28)	(9)	(257)
Amortization expense	(20)	(8)	–	–	–	(1)	(3)	(32)
Translation differences	(5)	–	–	–	–	(3)	–	(8)
Accumulated amortization as of June 30, 2015	(187)	(29)	(21)	(11)	(5)	(32)	(12)	(297)
Carrying value as of April 1, 2015	286	240	–	–	66	21	25	638
Carrying value as of June 30, 2015	453	367	–	–	67	34	23	944

Following are the changes in the carrying value of acquired intangible assets for the year ended March 31, 2016:

In crore

	Customer related	Software related	Sub–contracting rights related	Intellectual property rights related	Land use– rights related	Brand or Trademark Related	Others	Total
Gross carrying value as of April 1, 2015	448	261	21	11	71	49	34	895
Additions through business combinations (Refer Note 2.3)	294	130	–	–	–	41	27	492
Additions	–	2	–	–	–	–	–	2
Deletions	–	–	–	(10)	–	–	–	(10)
Translation difference	33	21	–	–	1	3	2	60
Gross carrying value as of March 31, 2016	775	414	21	1	72	93	63	1,439
Accumulated amortization as of April 1, 2015	(162)	(21)	(21)	(11)	(5)	(28)	(9)	(257)
Amortization expense	(132)	(40)	–	–	(1)	(9)	(13)	(195)
Deletions during the period	–	–	–	10	–	–	–	10
Translation differences	(9)	(1)	–	–	–	(1)	(1)	(12)
Accumulated amortization as of March 31, 2016	(303)	(62)	(21)	(1)	(6)	(38)	(23)	(454)
Carrying value as of April 1, 2015	286	240	–	–	66	21	25	638
Carrying value as of March 31, 2016	472	352	–	–	66	55	40	985
Estimated Useful Life (in years)	3-10	8-10	–	–	50	3-10	3-5
Estimated Remaining Useful Life (in years)	1-7	7-9	–	–	45	2-9	2-5

The amortization expense has been included under depreciation and amortisation expense in the consolidated statement of profit and loss.

Research and development expense recognized in net profit in the consolidated statement of profit and loss account is 184 crore and 160 crore for the three months ended June 30, 2016 and June 30, 2015 respectively

2.6 INVESTMENTS

in crore

Particulars	As at
	June 30, 2016	March 31, 2016	April 1, 2015
Non-current
Unquoted
Investments carried at fair value through other comprehensive income (refer note 2.6.1)
Preference securities	118	92	–
Equity instruments	1	1	1
Others	22	22	–
	141	115	1
Quoted
Investment carried at amortized cost (refer note 2.6.2)
Tax free bonds	1,599	1,599	1,300
Government Bonds	–	–	4
	1,599	1,599	1,304
Total non-current investments	1,740	1,714	1,305
Current
Unquoted
Investments carried at fair value through profit or loss (refer note 2.6.3)
Liquid mutual fund units	555	68	842
	555	68	842
Quoted
Investment carried at amortized cost (refer note 2.6.2)
Government Bonds	8	7	–
	8	7	–
Investments carried at fair value through profit or loss
Fixed maturity plans	–	–	32
	–	–	32
Total current investments	563	75	874
Total investments	2,303	1,789	2,179
Aggregate amount of quoted investments	1,607	1,606	1,336
Market value of quoted investments (including interest accrued)	1,766	1,703	1,376
Aggregate amount of unquoted investments (including investment in associates)	799	286	936
Aggregate amount of impairment made for non-current unquoted investments	6	6	6
Investment carried at amortized cost	1,607	1,606	1,304
Investments carried at fair value through other comprehensive income	141	115	1
Investments carried at fair value through profit or loss account	555	68	874

2.6.1 Details of Investments

The details of investments in preference, equity and other instruments at June 30, 2016 and March 31, 2016 are as follows:

in crore, unless otherwise stated

Particulars	As at
	June 30, 2016	March 31, 2016
Preference securities
Airviz Inc.	13	13
2,82,279 (2,82,279) Series A Preferred Stock, fully paid up, par value USD 0.001 each
ANSR Consulting	9	9
52,631 (52,631) Series A Preferred Stock, fully paid up, par value USD 0.001 each
Whoop Inc	20	20
16,48,352 (16,48,352) Series B Preferred Stock, fully paid up, par value USD 0.0001 each
CloudEndure Ltd.	13	13
12,79,645 (12,79,645) Preferred Series B Shares, fully paid up, par value ILS 0.01 each
Nivetti Systems Private Limited	10	10
2,28,501 (2,28,501) Preferred Stock, fully paid up, par value 1 each
Waterline Data Science, Inc	27	27
39,33,910 (39,33,910) Preferred Series B Shares, fully paid up, par value USD 0.00001 each
Trifacta Inc.	26	–
11,80,358 (Nil) Preferred Stock
Equity Instrument
OnMobile Systems Inc., USA	–	–
21,54,100 (21,54,100) common stock at USD 0.4348 each, fully paid up, par value USD 0.001 each
Merasport Technologies Private Limited	–	–
2,420 (2,420) equity shares at 8,052/- each, fully paid up, par value 10/- each
Global Innovation and Technology Alliance	1	1
15,000 (15,000) equity shares at 1,000/- each, fully paid up, par value 1,000/- each
Others
Vertex Ventures US Fund L.L.P	22	22
	141	115

2.6.2 Details of Investments in tax free bonds and government bonds

The balances held in tax free bonds as at June 30, 2016 and March 31, 2016 is as follows:

in crore, except as otherwise stated

Particulars	Face Value	As at June 30, 2016		As at March 31, 2016
		Units	Amount	Units	Amount
7.34% Indian Railway Finance Corporation Limited Bonds 19FEB2028	1,000/-	21,00,000	211	21,00,000	211
8.30% National Highways Authority of India Bonds 25JAN2027	1,000/-	5,00,000	53	5,00,000	53
7.18% Indian Railway Finance Corporation Limited Bonds 19FEB2023	1,000/-	20,00,000	201	20,00,000	201
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
8.35% National Highways Authority of India Bonds 22NOV2023	10,00,000/-	1,500	150	1,500	150
8.26% India Infrastructure Finance Company Limited Bonds 23AUG2028	10,00,000/-	1,000	100	1,000	100
8.10% Indian Railway Finance Corporation Limited Bonds 23FEB2027	1,000/-	5,00,000	53	5,00,000	53
8.54% Power Finance Corporation Limited Bonds 16NOV2028	1,000/-	5,00,000	50	5,00,000	50
8.48% India Infrastructure Finance Company Limited Bonds 05SEP2028	10,00,000/-	450	45	450	45
7.93% Rural Electrification Corporation Limited Bonds 27MAR2022	1,000/-	2,00,000	21	2,00,000	21
8.20% Power Finance Corporation Limited Bonds 2022	1,000/-	5,00,000	51	5,00,000	51
8.00% Indian Railway Finance Corporation Limited Bonds 2022	1,000/-	1,50,000	15	1,50,000	15
7.28% National Highways Authority of India Bonds 18SEP2030	10,00,000/-	2,000	200	2,000	200
7.28% Indian Railway Finance Corporation Limited 21DEC2030	1,000/-	4,22,800	42	4,22,800	42
7.35% National Highways Authority of India Bonds 11JAN2031	1,000/-	5,71,396	57	5,71,396	57
		74,52,646	1,599	74,52,646	1,599

The balances held in government bonds as at June 30, 2016 and March 31, 2016 is as follows:

in crore, except as otherwise stated

Particulars	Face Value PHP	As at June 30, 2016		As at March 31, 2016
		Units	Amount	Units	Amount
Fixed Rate Treasury Notes 1.62 PCT MAT DATE 7 SEPT 2016	100	50,000	1	50,000	1
Fixed Rate Treasury Notes 2.20 PCT MAT DATE 25 APR 2016	100	–	–	60,000	1
Fixed Rate Treasury Notes 1.00 PCT MAT DATE 25 APR 2016	100	–	–	2,00,000	3
Fixed Rate Treasury Notes 1.70 PCT MAT DATE 22 FEB 2017	100	10,000	–	10,000	–
Fixed Rate Treasury Notes MAT DATE 07 JUN 2017	100	3,40,000	5	–	–
Fixed Rate Treasury Notes 1.70 PCT PHY6972FW G18 MAT Date 22 FEB 2017	100	1,50,000	2	1,50,000	2
		5,50,000	8	4,70,000	7

2.6.3 Details of Investments in liquid mutual fund units

The balances held in liquid mutual fund units as at June 30, 2016 and March 31, 2016 is as follows:

in crore, except as otherwise stated

Particulars	As at June 30, 2016		As at March 31, 2016
	Units	Amount	Units	Amount
Reliance Money Manage Fund	–	–	32,925	7
Reliance Liquid Fund Cash Plan	28,305	7	2	–
Reliance liquid fund - treasury plan - direct daily dividend option	21,59,032	330	–	–
Birla sun life cash plus daily dividend direct plan	49,43,674	50	–	–
Kotak liquid scheme plan -– direct plan- daily dividend	3,27,762	40	–	–
SBI premier liquid fund - direct plan - daily dividend (cash)	3,70,231	37	–	–
Reliance liquid fund cash plan direct plan- daily dividend	91,717	14	–	–
ICICI Prudential Liquid - Direct Plan	3,14,545	37	16,07,064	16
Reliance Liquid Fund Treasury Plan	2,29,022	35	2,07,283	31
Birla Sun Life Cash Manager- Regular Plan	1,52,731	5	3,89,089	14
	1,20,17,019	555	2,236,363	68

2.7 LOANS

in crore

Particulars	As at
	June 30, 2016	March 31, 2016	April 1, 2015
Non Current
Unsecured, considered good
Other loans
Loans to employees	29	25	31
	29	25	31
Unsecured, considered doubtful
Loans to employees	20	19	12
	49	44	43
Less: Allowance for doubtful loans to employees	20	19	12
	29	25	31
Current
Unsecured, considered good
Other loans
Loans to employees	279	303	222
	279	303	222
Total Loans	308	328	253

2.8 OTHER FINANCIAL ASSETS

in crore

Particulars	As at
	June 30, 2016	March 31, 2016	April 1, 2015
Non Current
Security deposits ⁽¹⁾	81	78	68
Rental deposits ⁽¹⁾	166	146	47
Restricted deposits⁽¹⁾	60	62	58
	307	286	173
Current
Security deposits ⁽¹⁾	7	7	4
Rental deposits ⁽¹⁾	20	13	24
Restricted deposits ⁽¹⁾	1,300	1,238	1,100
Unbilled revenues ⁽¹⁾	3,270	3,029	2,845
Interest accrued but not due ⁽¹⁾	1,329	762	444
Foreign currency forward and options contracts ⁽²⁾	60	116	101
Others ⁽¹⁾	53	25	9
	6,039	5,190	4,527
Total Financial Assets	6,346	5,476	4,700
⁽¹⁾ Financial assets carried at amortized cost	6,286	5,360	4,599
⁽²⁾ Financial assets carried at fair value through profit or loss	60	116	101

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

Other assets primarily represent travel advances and other recoverables.

2.9 TRADE RECEIVABLES

in crore

Particulars	June 30, 2016	March 31, 2016	April 1, 2015
Current
Unsecured
Considered good	11,893	11,330	9,713
Considered doubtful	194	289	366
	12,087	11,619	10,079
Less: Allowances for credit loss	194	289	366
	11,893	11,330	9,713

2.10 CASH AND CASH EQUIVALENTS

in crore

Particulars	As at
	June 30, 2016	March 31, 2016	April 1, 2015
Balances with banks
In current and deposit accounts	26,103	27,420	26,195
Cash on hand	–	–	–
Others
Deposits with financial institutions	4,947	5,277	4,172
	31,050	32,697	30,367
Balances with banks in unpaid dividend accounts	6	5	3
Deposit with more than 12 months maturity	439	404	311
Balances with banks held as margin money deposits against guarantees	358	342	185

Cash and cash equivalents as of June 30, 2016, March 31, 2016 and April 1, 2015 include restricted cash and bank balances of 512 crore, 492 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 accounts.

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

in crore

Particulars	As at
	June 30, 2016	March 31, 2016
Current accounts
ANZ Bank, Taiwan	17	13
Axis Bank account, India	1	1
Banamex Bank, Mexico	5	5
Banamex Bank, Mexico (U.S. Dollar account)	3	3
Bank of America, Mexico	17	21
Bank of America, USA	753	681
Bank Zachodni WBK S.A, Poland	6	3
Bank of Tokyo-Mitsubishi UFJ, Ltd., Japan	1	1
Barclays Bank, UK	1	19
Bank Leumi, Israel (US Dollar account)	7	17
Bank Leumi, Israel (Israeli Sheqel account)	10	10
BNP Paribas Bank, Norway	3	–
China Merchants Bank, China	7	8
Citibank N.A, China	46	65
Citibank N.A., China (U.S. Dollar account)	101	72
Citibank N.A., Costa Rica	1	2
Citibank N.A., Australia	95	72
Citibank N.A., Brazil	14	5
Citibank N.A., Dubai	7	1
Citibank N.A., India	4	1
Citibank N.A., Japan	22	15
Citibank N.A., New Zealand	13	6
Citibank N.A., Portugal	2	2
Citibank N.A., Singapore	2	3
Citibank N.A., South Africa	5	5
CitiBank N.A., South Africa (Euro account)	1	1
Citibank N.A., Philippines, (U.S. Dollar account)	1	1
CitiBank N.A., USA	55	60
Commerzbank, Germany	17	19
Crédit Industriel et Commercial Bank, France	1	4
Deutsche Bank, India	32	8
Deutsche Bank, Philippines	10	13
Deutsche Bank, Philippines (U.S. Dollar account)	7	1
Deutsche Bank, Poland	9	5
Deutsche Bank, Poland (Euro account)	4	–
Deutsche Bank, EEFC (Australian Dollar account)	1	2
Deutsche Bank, EEFC (Euro account)	37	32
Deutsche Bank, EEFC (Swiss Franc account)	13	5
Deutsche Bank, EEFC (U.S. Dollar account)	61	96
Deutsche Bank, EEFC (United Kingdom Pound Sterling account)	11	9
Deutsche Bank, Belgium	31	59
Deutsche Bank, Malaysia	2	9
Deutsche Bank, Czech Republic	36	14
Deutsche Bank, Czech Republic (Euro account)	–	1
Deutsche Bank, Czech Republic (U.S. Dollar account)	11	28
Deutsche Bank, France	28	10
Deutsche Bank, Germany	45	17
Deutsche Bank, Netherlands	11	6
Deutsche Bank, Russia	–	2
Deutsche Bank, Russia (U.S. Dollar account)	3	1
Deutsche Bank, Singapore	7	4
Deutsche Bank, Spain	–	1
Deutsche Bank, Switzerland	6	1
Deutsche Bank, United Kingdom	31	170
HSBC Bank, Brazil	3	5
HSBC Bank, Hong Kong	3	1
ICICI Bank, India	37	72
ICICI Bank, EEFC (U.S. Dollar account)	9	10
ING Bank, Belgium	5	3
Nordbanken, Sweden	78	15
Punjab National Bank, India	23	4
Raiffeisen Bank, Czech Republic	5	5
Raiffeisen Bank, Romania	6	4
Royal Bank of Canada, Canada	118	78
Santander Bank, Argentina	4	–
State Bank of India, India	13	8
Silicon Valley Bank, USA	1	5
Silicon Valley Bank, (Euro account)	54	65
Silicon Valley Bank, (United Kingdom Pound Sterling account)	8	19
Union Bank of Switzerland AG	17	15
Union Bank of Switzerland AG, (Euro account)	17	12
Union Bank of Switzerland AG, (Australian Dollar account)	1	2
Union Bank of Switzerland AG, (U.S. Dollar account)	2	28
Union Bank of Switzerland AG, (United Kingdom Pound Sterling account)	–	4
Wells Fargo Bank N.A., USA	29	23
Westpac, Australia	1	6
	2,048	1,994

in crore

Particulars	As at
	June 30, 2016	March 31, 2016
Deposit accounts
Andhra Bank	908	948
Axis Bank	889	1,340
Bank of India	39	77
Canara Bank	2,115	2,115
Central Bank of India	1,518	1,538
Citibank	106	125
Corporation Bank	1,285	1,285
Deutsche Bank, Poland	246	237
HDFC Bank Ltd.	2,586	2,650
ICICI Bank	4,156	4,049
IDBI Bank	1,900	1,900
Indian Overseas Bank	1,250	1,250
Indusind Bank	250	250
Jammu & Kashmir Bank	25	25
Kotak Mahindra Bank Limited	362	537
National Australia Bank Limited	–	1
Oriental Bank of Commerce	1,967	1,967
Punjab National Bank	–	18
South Indian Bank	23	23
State Bank of India	2,311	2,310
Syndicate Bank	916	1,266
Union Bank of India	120	140
Vijaya Bank	304	304
Yes Bank	415	724
	23,691	25,079
Unpaid dividend accounts
Axis Bank - Unpaid Dividend Account	2	2
HDFC Bank - Unpaid Dividend account	1	1
ICICI bank - Unpaid Dividend account	3	2
	6	5
Margin money deposits against guarantees
Canara Bank	159	132
Citibank	3	3
ICICI Bank	157	150
State Bank of India	39	57
	358	342
Deposits with financial institutions
HDFC Limited	4,947	5,277
	4,947	5,277
Total cash and cash equivalents	31,050	32,697

2.11 OTHER ASSETS

in crore

Particulars	As at
	June 30, 2016	March 31, 2016	April 1, 2015
Non Current
Capital advances	1,078	933	664
Advances other than capital advances
Prepaid gratuity (refer note 2.22.1)	12	4	27
Deferred Contract Cost	325	333	–
Prepaid expenses	78	87	7
	1,493	1,357	698
Current
Advances other than capital advances
Payment to vendors for supply of goods	113	110	79
Others
Withholding and other tax receivables	1,859	1,799	1,364
Prepaid expenses	421	201	98
Deferred Contract Cost	56	48	–
	2,449	2,158	1,541
Total Other Assets	3,942	3,515	2,239

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

2.12 FINANCIAL INSTRUMENTS

Financial instruments by category

The carrying value and fair value of financial instruments by categories as of June 30, 2016 were as follows:

(In crore)

	Amortised cost	Financial assets/ liabilities at fair value through profit or loss		Financial assets/liabilities at fair value through OCI		Total carrying value	Total fair value
		Designated upon initial recognition	Mandatory	Equity instruments designated upon initial recognition	Mandatory
Assets:
Cash and cash equivalents (Refer Note 2.10)	31,050	–	–	–	–	31,050	31,050
Investments (Refer Note 2.6)
Equity, preference and other securities	–	–	–	141	–	141	141
Tax free bonds and government bonds	1,607	–	–	–	–	1,607	1,766 *
Liquid mutual fund units	–	–	555	–	–	555	555
Trade receivables (Refer Note 2.9)	11,893	–	–	–	–	11,893	11,893
Loans (Refer Note 2.7)	308	–	–	–	–	308	308
Other financials assets (Refer Note 2.8)	6,286	–	60	–	–	6,346	6,346
Total	51,144	–	615	141	–	51,900	52,059
Liabilities:
Trade payables	262	–	–	–	–	262	262
Other financial liabilities (Refer Note 2.14)	4,978	–	88	–	–	5,066	5,066
Total	5,240	–	88	–	–	5,328	5,328

The carrying value and fair value of financial instruments by categories as of March 31, 2016 were as follows:

(In crore)

	Amortised cost	Financial assets/ liabilities at fair value through profit or loss		Financial assets/liabilities at fair value through OCI		Total carrying value	Total fair value
		Designated upon initial recognition	Mandatory	Equity instruments designated upon initial recognition	Mandatory
Assets:
Cash and cash equivalents (Refer Note 2.10)	32,697	–	–	–	–	32,697	32,697
Investments (Refer Note 2.6)
Equity, preference and other securities	–	–	–	115	–	115	115
Tax free bonds and government bonds	1,606	–	–	–	–	1,606	1,703 *
Liquid mutual fund units	–	–	68	–	–	68	68
Trade receivables (Refer Note 2.9)	11,330	–	–	–	–	11,330	11,330
Loans (Refer Note 2.7)	328	–	–	–	–	328	328
Other financials assets (Refer Note 2.8)	5,360	–	116	–	–	5,476	5,476
Total	51,321	–	184	115	–	51,620	51,717
Liabilities:
Trade payables	386	–	–	–	–	386	386
Other financial liabilities (Refer Note 2.14)	4,908	–	122	–	–	5,030	5,030
Total	5,294	–	122	–	–	5,416	5,416

The carrying value and fair value of financial instruments by categories as of April 1, 2015 were as follows:

(In crore)

	Amortised cost	Financial assets/ liabilities at fair value through profit or loss		Financial assets/liabilities at fair value through OCI		Total carrying value	Total fair value
		Designated upon initial recognition	Mandatory	Equity instruments designated upon initial recognition	Mandatory
Assets:
Cash and cash equivalents (Refer Note 2.10)	30,367	–	–	–	–	30,367	30,367
Investments (Refer Note 2.6)
Equity , preference and other securities	–	–	–	1	–	1	1
Tax free bonds and government bonds	1,304	–	–	–	–	1,304	1,344 *
Liquid mutual fund units	–	–	842	–	–	842	842
Fixed maturity plans	–	–	32	–	–	32	32
Trade receivables (Refer Note 2.9)	9,713	–	–	–	–	9,713	9,713
Loans (Refer Note 2.7)	253	–	–	–	–	253	253
Other financials assets (Refer Note 2.8)	4,599	–	101	–	–	4,700	4,700
Total	46,236	–	975	1	–	47,212	47,252
Liabilities:
Trade payables	140	–	–	–	–	140	140
Other financial liabilities (Refer Note 2.14)	4,911	–	3	–	–	4,914	4,914
Total	5,051	–	3	–	–	5,054	5,054

* Changes in fair values including interest accrued

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 June 30, 2016:

(In crore)

	As of June 30, 2016	Fair value measurement at end of the reporting period/year using
		Level 1	Level 2	Level 3
Assets
Investments in liquid mutual fund units (Refer Note 2.6)	555	555	–	–
Investments in tax free bonds (Refer Note 2.6)	1,758	269	1,489	–
Investments in government bonds (Refer Note 2.6)	8	8	–	–
Investments in equity instruments (Refer Note 2.6)	1	–	–	1
Investments in preference securities (Refer Note 2.6)	118	–	–	118
Others (Refer Note 2.6)	22	–	–	22
Derivative financial instruments - foreign currency forward and option contracts (Refer Note 2.8)	–	60	–	–
Liabilities
Derivative financial instruments - foreign currency forward and option contracts (Refer Note 2.14)	–	7	–	–
Liability towards contingent consideration (Refer note 2.14)*	81	–	–	81

* Discounted $14 million (approximately 95 crore) at 13.4%

During the three months ended June 30, 2016, tax free bonds of 115 crore were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of March 31, 2016:

(In crore)

	As of March 31, 2016	Fair value measurement at end of the reporting period/year using
		Level 1	Level 2	Level 3
Assets
Investments in liquid mutual fund units (Refer Note 2.6)	68	68	–	–
Investments in bonds (Refer Note 2.6)	1,696	369	1,327	–
Investments in government bonds (Refer Note 2.6)	7	7	–	–
Investments in equity instruments (Refer Note 2.6)	1	–	–	1
Investments in preference securities (Refer Note 2.6)	92	–	–	92
Others (Refer Note 2.6)	22	–	–	22
Derivative financial instruments - foreign currency forward and option contracts (Refer Note 2.8)	116	–	116	–
Liabilities
Derivative financial instruments - foreign currency forward and option contracts (Refer Note 2.14)	5	–	5	–
Liability towards contingent consideration (Refer note 2.14)*	117	–	–	117

*Discounted $20 million (approximately 132 crore) at 13.7%

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of April 1, 2015:

(In crore)

	As of April 1, 2015	Fair value measurement at end of the reporting period/year using
		Level 1	Level 2	Level 3
Assets
Investments in liquid mutual fund units (Refer Note 2.6)	842	842	–	–
Investments in fixed maturity plan securities (Refer Note 2.6)	32	–	32	–
Investments in bonds (Refer Note 2.6)	1,340	604	736	–
Investments in government bonds (Refer Note 2.6)	4	4	–	–
Investments in equity instruments (Refer Note 2.6)	1	–	–	1
Derivative financial instruments - foreign currency forward and option contracts (Refer Note 2.8)	101	–	101	–
Liabilities
Derivative financial instruments - foreign currency forward and option contracts (Refer Note 2.14)	3	–	3	–

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 movement in contingent consideration as of June 30, 2016 from March 31, 2016 is on account of settlement of contingent consideration of 40 crores and change in discount rate and passage of time.

Financial risk management

Financial risk factors

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 Indian 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 analyzes foreign currency risk from financial instruments as of June 30, 2016:

(In crore)

	U.S. dollars	Euro	United Kingdom Pound Sterling	Australian dollars	Other currencies	Total
Cash and cash equivalents	1,134	198	44	167	751	2,294
Trade receivables	7,995	1,330	718	604	753	11,400
Other financial assets (including loans)	2,205	462	271	115	346	3,399
Trade payables	(43)	(24)	(18)	(5)	(123)	(213)
Other financial liabilities	(2410)	(425)	(202)	(243)	(564)	(3,844)
Net assets / (liabilities)	8,881	1,541	813	638	1,163	13,036

The following table analyzes foreign exchange risk from financial instruments as of March 31, 2016:

(In crore)

	U.S. dollars	Euro	United Kingdom Pound Sterling	Australian dollars	Other currencies	Total
Cash and cash equivalents	1,124	167	202	171	601	2,265
Trade receivables	7,558	1,280	721	598	696	10,853
Other financial assets (including loans)	1,967	405	216	124	337	3,049
Trade payables	(126)	(75)	(73)	(4)	(76)	(354)
Other financial liabilities	(2430)	(369)	(197)	(243)	(558)	(3,797)
Net assets / (liabilities)	8,093	1,408	869	646	1,000	12,016

Derivative financial instruments

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

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

	As of		As of
	June 30, 2016		March 31, 2016
	In million	In crore	In million	In crore
Forward contracts
In U.S. dollars	543	3,667	510	3,379
In Euro	94	703	100	750
In United Kingdom Pound Sterling	30	275	65	623
In Australian dollars	60	302	55	281
In Canadian dollars	20	105	–	–
In Singapore dollars	–	–	–	–
In Swiss Franc	25	176	25	173
Option Contracts
In U.S. dollars	135	912	125	828
In GBP	50	455	–	–
Total forwards and options		6,595		6,034

(In crore)

	As of
	June 30, 2016	March 31, 2016
Not later than one month	1,328	1,577
Later than one month and not later than three months	3,871	3,420
Later than three months and not later than one year	1,396	1,037
	6,595	6,034

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

(In crore)

	As of		As of
	June 30, 2016		March 31, 2016
	Derivative financial asset	Derivative financial liability	Derivative financial asset	Derivative financial liability
Gross amount of recognized financial asset/liability	80	(27)	124	(13)
Amount set off	(20)	20	(8)	8
Net amount presented in balance sheet	60	(7)	116	(5)

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 11,893 crore and 11,330 crore as of June 30, 2016 and March 31, 2016, respectively and unbilled revenue amounting to 3,270 crore and 3,029 crore as of June 30, 2016 and March 31, 2016, 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 has always been managed by the group 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. On account of adoption of Ind AS 109, the group uses expected credit loss model to assess the impairment loss or gain. The group uses a provision matrix to compute the expected credit loss allowance for trade receivables and unbilled revenues. The provision matrix takes into account available external and internal credit risk factors such as credit default swap quotes, credit ratings from international credit rating agencies and the Group's historical experience for customers.

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

(In %)

	Three months ended June 30,
	2016	2015
Revenue from top customer	3.6	3.7
Revenue from top five customers	13.7	14.0

Credit risk exposure

The allowance for lifetime expected credit loss on customer balances for the three months ended June 30, 2016 was 15 crore. The reversal of allowance for lifetime expected credit loss on customer balances for the three months ended June 30, 2015 was 4 crore.

(In crore)

	Three months ended June 30,
	2016	2015
Balance at the beginning	289	366
Impairment loss recognized / (reversed) (refer note 2.20)	15	(4)
Amounts written off	–	–
Translation differences	1	5
Balance at the end	305	367

The Company’s credit period generally ranges from 30-60 days.

(In crore except otherwise stated)

	As of
	June 30, 2016	March 31, 2016
Trade receivables	11,893	11,330
Unbilled revenues	3,270	3,029
Days Sales Outstanding- DSO (days)	66	66

Liquidity risk

As of June 30, 2016, the Group had a working capital of 37,524 crore including cash and cash equivalents of 31,050 crore and current investments of 563 crore. As of March 31, 2016, the Group had a working capital of 38,514 crore including cash and cash equivalents of 32,697 crore and current investments of 75 crore.

The table below provides details regarding the contractual maturities of significant financial liabilities as of June 30, 2016:

(In crore)

Particulars	Less than 1 year	1-2 years	2-4 years	4-7 years	Total
Trade payables	262	–	–	–	262
Other financial liabilities (excluding liability towards acquisition) (Refer Note 2.14)	4,926	37	15	–	4,978
Liability towards acquisitions on an undiscounted basis (including contingent consideration) -Refer Note 2.14	47	48	–	–	95

The table below provides details regarding the contractual maturities of significant financial liabilities as of March 31, 2016:

(In crore)

Particulars	Less than 1 year	1-2 years	2-4 years	4-7 years	Total
Trade payables	386	–	–	–	386
Other financial liabilities (excluding liability towards acquisition) (Refer Note 2.14)	4,875	25	9	–	4,909
Liability towards acquisitions on an undiscounted basis (including contingent consideration) -Refer Note 2.14	86	46	–	–	132

2.13 EQUITY

SHARE CAPITAL

in crore, except as otherwise stated

Particulars	As at
	June 30, 2016	March 31, 2016	April 1, 2015
Authorized
Equity shares, 5/- par value
240,00,00,000 (240,00,00,000⁽³⁾) equity shares	1,200	1,200	600
Issued, Subscribed and Paid-Up
Equity shares, 5/- par value ⁽¹⁾	1,144	1,144	572
228,56,33,494 (228,56,21,088⁽³⁾) equity shares fully paid-up⁽²⁾
	1,144	1,144	572

Forfeited shares amounted to 1,500/- (1,500/-)

⁽¹⁾ Refer note 2.23 for details of basic and diluted shares

⁽²⁾ Net of treasury shares 113,11,170 (113,23,576)

⁽³⁾ Represents number of shares as of March 31, 2016

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. The remittance of dividends outside India is governed by Indian law on foreign exchange and is subject to applicable distribution taxes.

In the period of five years immediately preceding June 30, 2016:

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

The Board of Directors, in its meeting on April 15, 2016, proposed a final dividend of 14.25/- per equity share and the same was approved by the shareholders at the Annual General Meeting held on June 18, 2016. The amount was recognized as distributions to equity shareholders during the three month ended June 30, 2016 and the total appropriation was 3,923 crore (excluding dividend on treasury shares), including corporate dividend tax. (Refer note 2.2.1 for impact on transition to Ind AS)

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company in proportion to the number of equity shares held by the shareholders, after distribution of all preferential amounts. However, no such preferential amounts exist currently, other than the amounts held by irrevocable controlled trusts. For irrevocable controlled trusts, the corpus would be settled in favour of the beneficiaries.

The details of shareholder holding more than 5% shares as at June 30, 2016 and March 31, 2016 are set out below :

Name of the shareholder	As at June 30, 2016		As at March 31, 2016
	Number of shares	% held	Number of shares	% held
Deutsche Bank Trust Company Americas (Depository of ADR's - legal ownership)	38,53,17,937	16.78	38,53,17,937	16.78
Life Insurance Corporation of India	12,86,15,818	5.60	13,22,74,300	5.76

The reconciliation of the number of shares outstanding and the amount of share capital as at June 30, 2016 and March 31, 2016 is set out below:

in crore, except as stated otherwise

Particulars	As at June 30, 2016		As at March 31, 2016
	Number of shares	Amount	Number of shares	Amount
Number of shares at the beginning of the period	2,28,56,21,088	1,144	1,14,28,05,132	572
Add: Bonus shares issued (including bonus on treasury shares)	–	–	1,14,84,72,332	574
Add: Shares issued on exercise of employee stock options	12,406	–	10,824	–
Less: Increase in treasury shares consequent to bonus issue	–	–	56,67,200	2
Number of shares at the end of the period	2,28,56,33,494	1,144	2,28,56,21,088	1,144

Employee Stock Option Plan (ESOP):

2015 Stock Incentive Compensation Plan (the 2015 Plan):

SEBI issued the Securities and Exchange Board of India (Share based Employee Benefits) Regulations, 2014 (‘SEBI Regulations’) which replaced the SEBI ESOP Guidelines, 1999. The 2011 Plan (as explained below) was required to be amended and restated in accordance with the SEBI Regulations. Consequently, to effect this change and to further introduce stock options/ADR’s and other stock incentives, the Company put forth the 2015 Stock Incentive Compensation Plan (the 2015 Plan) for approval to the shareholders of the Company. Pursuant to the approval by the shareholders through postal ballot which ended on March 31, 2016, the Board of Directors have been authorised to introduce, offer, issue and allot share-based incentives to eligible employees of the Company and its subsidiaries under the 2015 Plan. The maximum number of shares under the 2015 plan shall not exceed 2,40,38,883 equity shares (this includes 11,223,576 equity shares which were held by the Trust towards the 2011 Plan as at March 31, 2016). 1,70,38,883 equity shares will be issued as RSUs at par value and 70,00,000 equity shares will be issued as stock options at market price. These instruments will vest over a period of 4 years and the Company expects to grant the instruments under the 2015 Plan over the period of 4 to 7 years. As of June 30, 2016, 11,211,170 shares are held by the trust towards 2015 Plan.

2011 RSU Plan (the 2011 Plan) now called the 2015 Stock Incentive Compensation Plan (the 2015 Plan):

The Company had a 2011 RSU Plan which provided for the grant of restricted stock units (RSUs) to eligible employees of the Company. The Board of Directors recommended the 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 was 1,13,34,400 and the plan was expected to continue in effect for a term of 10 years from the date of initial grant under the plan. 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 Officer and Managing Director. The Board in its meeting held on June 22, 2015, on recommendation of Nomination and Remuneration Committee, further granted 1,24,061 RSUs to Dr. Vishal Sikka. These RSUs are vesting 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. Further the Company has earmarked 1,00,000 equity shares for welfare activities of the employees, approved by the shareholders vide postal ballot which ended on March 31, 2016. The equity shares as of March 31, 2016 held under this plan, i.e. 1,12,23,576 equity shares (this includes the aggregate number of equity shares that may be awarded under the 2011 Plan as reduced by 10,824 equity shares already exercised by Dr. Vishal Sikka and 1,00,000 equity shares which have been earmarked for welfare activities of the employees) have been subsumed under the 2015 Plan.

The activity in the 2015 Plan (formerly 2011 Plan) during the three months ended June 30, 2016 and June 30, 2015 is set out below:

Particulars	Three month ended June 30, 2016		Three month ended June 30, 2015
	Shares arising out of options	Weighted average exercise price	Shares arising out of options	Weighted average exercise price
2015 Plan (formerly 2011 Plan):
Outstanding at the beginning*	221,505	5	108,268	5
Granted	–	–	124,061	5
Forfeited and expired	–	–	–	–
Exercised	12,406	5	–	5
Outstanding at the end	209,099	5	232,329	5
Exercisable at the end	–	–	–	–

*adjusted for bonus issue

Pursuant to the approval from the shareholders through postal ballot on March 31, 2016, Dr. Vishal Sikka is eligible to receive an annual grant of $2,000,000 of fair value in RSUs which vest over time, subject to continued service, and an annual grant $5,000,000 in performance based equity and stock options, subject to achievement of performance targets set by the Board or its committee, which vest overtime. Though the above RSUs and performance based equity and stock options have not been granted as of June 30, 2016, in accordance with Ind AS 102 Share-based Payment, the company has recorded an employee stock compensation expense of 7 crore during the three months ended June 30, 2016 for the same.

The weighted average remaining contractual life of RSUs outstanding as of June 30, 2016 and March 31, 2016 under the 2015 Plan was 1.84 years and 1.98 years respectively.

The weighted average share price of options exercised under the 2015 Plan on the date of exercise was 1,206/-

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

Particulars	For options granted in
	Fiscal 2016	Fiscal 2015
Grant date	22-Jun-15	21-Aug-14
Weighted average share price ()	1,024	3,549
Exercise price ()	5.00	5.00
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

During the three months ended June 30, 2016 and June 30, 2015, the company recorded an employee stock compensation expense of 9 crore and 2 crore in the consolidated statement of profit and loss towards CEO compensation

2.14 OTHER FINANCIAL LIABILITIES

in crore

Particulars	As at
	June 30, 2016	March 31, 2016	April 1, 2015
Non-current
Others
Accrued compensation to employees ⁽¹⁾	51	33	–
Payable for acquisition of business (refer note 2.3) ⁽²⁾
Contingent consideration	38	36	–
	89	69	–
Current
Unpaid dividends ⁽¹⁾	6	5	3
Others
Accrued compensation to employees ⁽¹⁾	2,245	2,265	2,106
Accrued expenses ⁽¹⁾	2,325	2,189	1,984
Retention monies ⁽¹⁾	77	80	53
Payable for acquisition of business
Deferred consideration (refer note 2.3) ⁽¹⁾	–	–	487
Contingent consideration (refer note 2.3) ⁽²⁾	43	81	–
Client deposits ⁽¹⁾	26	28	27
Payable by controlled trusts ⁽¹⁾	157	167	177
Accrued gratuity (refer note 2.22.1)	1	–	7
Compensated absences	1,420	1,341	1,069
Foreign currency forward and options contracts ⁽²⁾	7	5	3
Capital creditors ⁽¹⁾	39	81	43
Other payables ⁽¹⁾	52	60	31
	6,398	6,302	5,990
Total Financial Liabilities	6,487	6,371	5,990
⁽¹⁾ Financial liability carried at amortized cost	4,978	4,908	4,911
⁽²⁾ Financial liability carried at fair value through profit and loss	88	122	3
Contingent consideration on undiscounted basis	95	132	–

2.15 OTHER LIABILITIES

in crore

Particulars	As at
	June 30, 2016	March 31, 2016	April 1, 2015
Non-current
Others
Deferred income - government grant on land use rights	46	46	47
	46	46	47
Current
Unearned revenue	1,539	1,332	1,052
Other
Withholding and other taxes payable	1,237	1,296	904
Tax on dividend	666	–	–
Deferred rent	1	–	–
Deferred income - government grant on land use rights	1	1	1
	3,444	2,629	1,957

2.16 PROVISIONS

in crore

Particulars	As at
	June 30, 2016	March 31, 2016	April 1, 2015
Current
Others
Post-sales client support and warranties and others	536	512	478
Total	536	512	478

Provision for post-sales client support and warranties and others

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

in crore

Particulars	Three months ended
	June 30, 2016
Balance at the beginning	512
Provision recognized/(reversed)	36
Provision utilized	(21)
Exchange difference	9
Balance at the end	536

Provision for post-sales client support and warranties and other provisions are expected to be utilized over a period of 6 months to 1 year.

2.17 INCOME TAXES

Income tax expense in the consolidated statement of Profit and loss comprises:

In crore

	Three months ended June 30,
	2016	2015
Current taxes	1,467	1,133
Deferred taxes	(105)	42
Income tax expense	1,362	1,175

Entire deferred income tax for the three months ended June 30, 2016 and June 30, 2015 relates to origination and reversal of temporary differences.

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 June 30,
	2016	2015
Profit before income taxes	4,798	4,203
Enacted tax rates in India	34.61%	34.61%
Computed expected tax expense	1,661	1,455
Tax effect due to non-taxable income for Indian tax purposes	(484)	(394)
Overseas taxes	190	149
Tax provision (reversals), overseas and domestic	8	(83)
Effect of exempt non-operating income	(28)	(18)
Effect of unrecognized deferred tax assets	(3)	10
Effect of differential overseas tax rates	2	(6)
Effect of non-deductible expenses	32	75
Additional deduction on research and development expense	(14)	(14)
Others	(2)	1
Income tax expense	1,362	1,175

The applicable Indian statutory tax rates for fiscal 2017 and fiscal 2016 is 34.61%.

The following table provides the details of income tax assets and income tax liabilities as of June 30, 2016, March 31, 2016 and April 1, 2015:

In crore

	As at
	June 30, 2016	March 31, 2016	April 1, 2015
Income tax assets	5,211	5,230	4,089
Current income tax liabilities	4,109	3,410	2,818
Net current income tax asset/ (liability) at the end	1,102	1,820	1,271

The gross movement in the current income tax asset/ (liability) for the three months ended June 30, 2016 and June 30, 2015 is as follows:

In crore

	Three months ended,
	June 30, 2016	June 30, 2015
Net current income tax asset/ (liability) at the beginning	1,820	1,271
Translation differences	–	5
Income tax paid	744	1,305
Current income tax expense (Refer Note 2.17)	(1,467)	(1,133)
Income tax on other comprehensive income	5	2
Net current income tax asset/ (liability) at the end	1,102	1,450

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

In crore

	June 30, 2016	March 31, 2016	April 1, 2015
Deferred income tax assets
Property, plant and equipment	159	178	241
Computer software	50	50	51
Accrued compensation to employees	76	68	48
Trade receivables	102	89	111
Compensated absences	410	389	299
Post sales client support	87	77	74
Intangibles	5	4	–
Others	111	55	31
Total deferred income tax assets	1000	910	855
Deferred income tax liabilities
Intangible asset	(258)	(252)	(159)
Temporary difference related to branch profits	(341)	(334)	(316)
Others	(23)	(40)	(3)
Total deferred income tax liabilities	(622)	(626)	(478)
Deferred income tax assets after set off	626	536	536
Deferred income tax liabilities after set off	(248)	(252)	(159)

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
	June 30, 2016	March 31, 2016
Deferred income tax assets to be recovered after 12 months	448	409
Deferred income tax assets to be recovered within 12 months	552	501
Total deferred income tax assets	1,000	910
Deferred income tax liabilities to be settled after 12 months	(432)	(446)
Deferred income tax liabilities to be settled within 12 months	(190)	(180)
Total deferred income tax liabilities	(622)	(626)

In assessing the reliability 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 ended June 30, 2016 and June 30, 2015, is as follows:

In crore

	Three months ended,
	June 30, 2016	June 30, 2015
Net deferred income tax asset at the beginning	284	377
Addition through business combination (Refer note 2.3)	–	(128)
Translation differences	(11)	(9)
Credits / (charge) relating to temporary differences (Refer Note 2.17 above)	105	(42)
Temporary differences on other comprehensive income	–	2
Net deferred income tax asset at the end	378	200

The credits relating to temporary differences during the three months ended June 30, 2016 are primarily on account of trade receivables, accrued compensation to employees, compensated absences and post sales client support partially offset by property, plant and equipments. The charge relating to temporary differences during the three month ended June 30, 2015 are primarily on account of property, plant and equipment, accrued compensation to employees partially offset by trade receivables and compensated absences.

2.18 REVENUE FROM OPERATIONS

in crore

Particulars	Three months ended June 30,
	2016	2015
Income from software services	16,279	13,891
Income from software products	503	463
	16,782	14,354

2.19 OTHER INCOME

in crore

Particulars	Three months ended June 30,
	2016	2015
Interest received on financial assets:
Bonds and government bonds	31	26
Deposit with Bank and others	620	657
Dividend received on investment carried at Fair Value through Profit or Loss
Liquid mutual fund units	19	23
Exchange gains/ (losses) on foreign currency forward and options contracts	47	(74)
Exchange gains/ (losses) on translation of other assets and liabilities	9	47
Others	27	77
	753	756

2.20 EXPENSES

in crore

Particulars	Three months ended June 30,
	2016	2015
Employee benefit expenses
Salaries including bonus	9,043	7,848
Contribution to provident and other funds	173	167
Share based payments to employees (Refer note 2.13)	9	2
Staff welfare	57	36
	9,282	8,053
Cost of software packages and others
For own use	183	199
Third party items bought for service delivery to clients	93	113
	276	312
Other expenses
Repairs and maintenance	322	222
Power and fuel	64	53
Brand and marketing	116	76
Operating lease payments	109	81
Rates and taxes	40	31
Consumables	9	9
Insurance	14	15
Provision for post-sales client support and warranties	21	(9)
Commission to non-whole time directors	3	2
Impairment loss recognized / (reversed) on financial assets	15	(4)
Auditor's remuneration
Statutory audit fees	2	1
Taxation matters	–	–
Other services	–	–
Reimbursement of expenses	–	–
Bank charges and commission	11	3
Contributions towards Corporate Social responsibility	48	45
Others	51	57
	825	582

2.21 LEASES

The lease rentals charged during the period as as under:

in crore

Particulars	Three months ended June 30,
	2016	2015
Lease rentals recognized during the period	109	81

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

in crore

	As at
Future minimum lease payable	June 30, 2016	March 31, 2016	April 1, 2015
Not later than 1 year	384	372	168
Later than 1 year and not later than 5 years	840	873	395
Later than 5 years	433	442	168

2.22 EMPLOYEE BENEFITS

2.22.1 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 June 30, 2016 and March 31, 2016:

(In crore)

Particulars	As of
	June 30, 2016	March 31, 2016
Change in benefit obligations
Benefit obligations at the beginning	944	816
Service cost	32	118
Interest expense	18	61
Addition through business combination	–	1
Remeasurements - Actuarial (gains)/ losses	25	23
Curtailment gain	(3)	–
Benefits paid	(22)	(75)
Benefit obligations at the end	994	944
Change in plan assets
Fair value of plan assets at the beginning	947	836
Interest income	18	66
Remeasurements- Return on plan assets excluding amounts included in interest income	3	9
Contributions	59	111
Benefits paid	(22)	(75)
Fair value of plan assets at the end	1,005	947
Funded status	11	3
Prepaid gratuity benefit	12	4
Accrued gratuity	(1)	(1)

Amount for the three months ended June 30, 2016 and June 30, 2015 recognized in the statement of profit and loss under employee benefit expense:

(In crore)

Particulars	Three months ended June 30,
	2016	2015
Service cost	32	29
Net interest on the net defined benefit liability/asset	–	–
Curtailment gain	(3)	–
Net gratuity cost	29	29

Amount for the three months ended June 30, 2016 and June 30, 2015 recognized in the statement of other comprehensive income:

(In crore)

Particulars	Three months ended June 30,
	2016	2015
Remeasurements of the net defined benefit liability/ (asset)
Actuarial (gains) / losses	25	11
(Return) / loss on plan assets excluding amounts included in the net interest on the net defined benefit liability/(asset)	(3)	(2)
	22	9

(In crore)

Particulars	Three months ended June 30,
	2016	2015
(Gain)/loss from change in demographic assumptions	–	–
(Gain)/loss from change in financial assumptions	11	(14)
	11	(14)

The weighted-average assumptions used to determine benefit obligations as of June 30, 2016 and March 31, 2016 are set out below:

(In crore)

Particulars	As of
	June 30, 2016	March 31, 2016	April 1, 2015
Discount rate	7.6%	7.8%	7.8%
Weighted average rate of increase in compensation levels	8.0%	8.0%	8.0%

The weighted-average assumptions used to determine net periodic benefit cost for the three months ended June 30, 2016 and June 30, 2015 are set out below:

Particulars	Three months ended June 30,
	2016	2015
Discount rate	7.8%	7.8%
Weighted average rate of increase in compensation levels	8.0%	8.0%
Weighted average duration of defined benefit obligation	6.4 years	6.5 years

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

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

As of June 30, 2016, every percentage point increase / decrease in discount rate will affect our gratuity benefit obligation by approximately 49 crore.

As of June 30, 2016, every percentage point increase / decrease in weighted average rate of increase in compensation levels will affect our gratuity benefit obligation by approximately 41 crore.

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 June 30, 2016 and March 31, 2016, the plan assets have been primarily invested in insurer managed funds.

Actual return on assets for the three months ended June 30, 2016 and June 30, 2015 were 21 crore and 18 crore, respectively.

The Group expects to contribute 65 crore to the gratuity trusts during the remainder of fiscal 2017.

Maturity profile of defined benefit obligation:

(In crore)

Within 1 year	148
1-2 year	153
2-3 year	159
3-4 year	170
4-5 year	185
5-10 years	915

2.22.2 Superannuation

The Company contributed 41 crore and 58 crore to the superannuation plan during the three months ended June 30, 2016 and June 30, 2015, respectively and the same has been recognized in the Statement of profit and loss account under the head employee benefit expense.

2.22.3 Provident fund

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

(in crore)

Particulars	As of
	June 30, 2016	March 31, 2016		April 1, 2015
Plan assets at period end, at fair value	3,882	3,808		2,912
Present value of benefit obligation at period end	3,882	3,808		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:

Particulars		As of
	June 30, 2016	March 31, 2016	April 1, 2015
Government of India (GOI) bond yield	7.60%	7.80%	7.80%
Remaining term to maturity of portfolio	7 years	7 years	7 years
Expected guaranteed interest rate - First year:	8.75%	8.75%	8.75%
- Thereafter:	8.60%	8.60%	8.60%

The Group contributed 113 crore and 101 crore to the provident fund during the three months ended June 30, 2016 and June 30, 2015, respectively and the same has been recognized in the Statement of profit and loss account under the head employee benefit expense.

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

2.22.4 Employee benefit costs include:

(in crore)

Particulars	Three months ended June 30,
	2016	2015
Salaries and bonus*	9,099	7,865
Defined contribution plans	61	73
Defined benefit plans	122	115
	9,282	8,053

Includes stock compensation expense of 9 crore and 2 crore for the three months ended June 30, 2016 and June 30, 2015, respectively. Refer note 2.13

2.23 RECONCILIATION OF BASIC AND DILUTED SHARES USED IN COMPUTING EARNINGS PER SHARE

Particulars	Three months ended
	June 30, 2016	June 30, 2015
Basic earnings per equity share - weighted average number of equity shares outstanding	228,56,22,329	228,56,10,264
Effect of dilutive common equivalent shares - share options outstanding	145,793	62,045
Diluted earnings per equity share - weighted average number of equity shares and common equivalent shares outstanding	228,57,68,122	228,56,72,309

2.24 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

in crore

Particulars	As at
Contingent liabilities :	June 30, 2016	March 31, 2016	April 1, 2015
Claims against the Company, not acknowledged as debts⁽¹⁾	287	284	264
[Net of amount paid to statutory authorities 4,411 crore (4,409 crore)]
Commitments :
Estimated amount of contracts remaining to be executed on capital contracts and not provided for	1,431	1,486	1,574
(net of advances and deposits)
Other Commitment*	80	79	–

* Uncalled capital of $12 million pertaining to investment in Vertex Ventures US Fund L.L.P

⁽¹⁾

Claims against the company not acknowledged as debts as on June 30, 2016 include demand from the Indian Income tax authorities for payment of tax of

4,135 crore (

4,135 crore), including interest of

1,224 crore (

1,224 crore) upon completion of their tax assessment for fiscal 2007, fiscal 2008, fiscal 2009, fiscal 2010 and fiscal 2011. These demands were paid to statutory tax authorities . The company has filed an appeal with the income tax appellate authorities.

2.25 RELATED PARTY TRANSACTIONS

List of related parties:

Name of subsidiaries	Country	Holdings as at
		June 30, 2016	March 31, 2016
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 Poland, Sp z.o.o (formerly Infosys BPO Poland, Sp z.o.o)⁽¹⁾	Poland	99.98%	99.98%
Infosys BPO S.DE.R.L.DE.C.V^(1)(13)	Mexico	–	–
Infosys McCamish Systems LLC ⁽¹⁾	U.S.	99.98%	99.98%
Portland Group Pty Ltd⁽¹⁾	Australia	99.98%	99.98%
Infosys BPO Americas LLC.^(1)(12)	U.S.	–	–
Infosys Technologies (Australia) Pty. Limited (Infosys Australia) ⁽²⁾	Australia	100%	100%
EdgeVerve Systems Limited (EdgeVerve)	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%
Infosys Management Consulting Pty Limited (formerly 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⁾⁽⁵⁾	Switzerland	100%	100%
Lodestone GmbH (formerly 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%
Infy Consulting Company Ltd. (formerly Lodestone Management Consultants Ltd.) ⁽³⁾	U.K.	100%	100%
Infy Consulting B.V. (Lodestone Management Consultants B.V.) ⁽³⁾	Netherlands	100%	100%
Infosys Consulting Ltda. (formerly Lodestone Management Consultants Ltda.) ⁽⁴⁾	Brazil	99.99%	99.99%
Infosys Consulting Sp. z.o.o (formerly 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.⁽⁶⁾	Canada	–	–
Infosys Nova Holdings LLC. (Infosys Nova)	U.S.	100%	100%
Panaya Inc. (Panaya)	U.S.	100%	100%
Panaya Ltd.⁽⁷⁾	Israel	100%	100%
Panaya GmbH ⁽⁷⁾	Germany	100%	100%
Panaya Pty Ltd.⁽⁷⁾	Australia	–	–
Panaya Japan Co. Ltd.⁽⁷⁾	Japan	100%	100%
Skava Systems Pvt. Ltd. (Skava Systems) ⁽⁸⁾	India	100%	100%
Kallidus Inc. (Kallidus) ⁽⁹⁾	U.S.	100%	100%
Noah Consulting LLC (Noah) ⁽¹⁰⁾	U.S.	100%	100%
Noah Information Management Consulting Inc. (Noah Canada) ⁽¹¹⁾	Canada	100%	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 Infosys Consulting AG (formerly Lodestone Management Consultants AG)

⁽⁶⁾

Wholly owned subsidiary of Infosys Public Services, Inc.

⁽⁷⁾

Wholly owned subsidiary of Panaya Inc^.

⁽⁸⁾

On June 2, 2015, Infosys acquired 100% of the voting interest in Skava Systems

⁽⁹⁾

On June 2, 2015, Infosys acquired 100% of the voting interest in Kallidus Inc.

⁽¹⁰⁾

On November 16, 2015, Infosys acquired 100% of the membership interests in Noah

⁽¹¹⁾

Wholly owned subsidiary of Noah

⁽¹²⁾

Incorporated effective November 20, 2015

⁽¹³⁾

Liquidated effective March 15, 2016

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

Name of Associates	Country	Holdings as at
		June 30, 2016	March 31, 2016
DWA Nova LLC⁽¹⁾	U.S.	16%	16%

⁽¹⁾ Associate of Infosys Nova Holding LLC

List of other related party

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 Benefits Trust	India	Controlled trust
Infosys Science Foundation	India	Controlled trust

Refer Notes 2.22 for information on transactions with post-employment benefit plans mentioned above.

List of key management personnel

Whole time directors

U B Pravin Rao

Dr. Vishal Sikka

Non-whole-time directors

K.V.Kamath ( resigned effective June 5, 2015)

Prof. Jeffrey S. Lehman

R. Seshasayee

Ravi Venkatesan

Kiran Mazumdar Shaw

Carol M. Browner (resigned effective November 23, 2015)

Prof. John W. Etchemendy

Roopa Kudva

Dr. Punita Kumar-Sinha (appointed effective January 14, 2016)

Executive Officers

M. D. Ranganath, Chief Financial Officer (effective October 12, 2015)

David D. Kennedy, Executive Vice President, General Counsel and Chief Compliance Officer

Rajiv Bansal, Chief Financial Officer (till October 12, 2015)

Company Secretary

A.G.S. Manikantha (appointed effective June 22, 2015)

Related party transactions:

Transaction with key management personnel:

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

in crore

Particulars	Three months ended June 30,
	2016	2015
Salaries and other employee benefits to whole-time directors and members of executive officers ⁽¹⁾	21	22
Commission and other benefits to non-executive/independent directors	3	2
Total	24	24

⁽¹⁾

Includes stock compensation expense of 9 crore and 2 crore for the three months ended June 30, 2016 and June 30, 2015, towards CEO compensation. Refer note 2.13

2.26 SEGMENT REPORTING

Ind AS 108 establishes standards for the way that public business enterprises report information about operating segments and related disclosures about products and services, geographic areas, and major customers. The group's operations predominantly relate to providing end-to-end business solutions to enable clients to enhance business performance. Based on the "management approach" as defined in Ind AS 108, the Chief Operating Decision Marker (CODM) evaluates the group'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 group are primarily enterprises in Financial Services (FS), enterprises in Manufacturing (MFG), enterprises in Retail, Consumer packaged goods and Logistics (RCL), enterprises in the Energy & utilities, Communication and Services (ECS), enterprises in Hi-tech (Hi-tech), 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 because of the similarity of the economic characteristics. All other segments represents the operating segments of businesses in India, Japan and China and IPS. 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. Revenue for “all other segments” represents revenue generated by IPS and revenue generated from customers located in India, Japan and China. Allocated expenses of segments include expenses incurred for rendering services from the group's offshore software development centres and on-site expenses, which are categorized in relation to the associated 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 group.

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

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.

Business Segments

Three months ended June 30, 2016 and June 30, 2015:

in crore

Particulars	FS	MFG	ECS	RCL	HILIFE	Hi-Tech	All other segments	Total
Revenue from operations	4,551	1,844	3,719	2,861	2,004	1,322	481	16,782
	3,882	1,616	3,166	2,342	1,870	1,151	327	14,354
Identifiable operating expenses	2,238	949	1,757	1,370	1,000	683	344	8,341
	1,913	878	1,445	1,124	938	602	255	7,155
Allocated expenses	1,046	444	896	689	482	318	116	3,991
	896	392	769	569	454	279	79	3,438
Segmental profit	1,267	451	1,066	802	522	321	21	4,450
	1,073	346	952	649	478	270	(7)	3,761
Unallocable expenses								403
								314
Other income								753
								756
Share in net profit/(loss) of associate								(2)
								–
Profit before tax								4,798
								4,203
Tax expense								1,362
								1,175
Profit for the period								3,436
								3,028
Depreciation and amortization								400
								313
Non-cash expenses other than depreciation and amortization								3
								1

Geographic Segments

Three months ended June 30, 2016 and June 30, 2015:

in crore

Particulars	North America	Europe	India	Rest of the World	Total
Revenue from operations	10,400	3,868	457	2,057	16,782
	9,074	3,219	319	1,742	14,354
Identifiable operating expenses	5,336	1,845	247	913	8,341
	4,589	1,609	236	721	7,155
Allocated expenses	2,503	928	95	465	3,991
	2,201	777	64	396	3,438
Segmental operating income	2,561	1,095	115	679	4,450
	2,284	833	19	625	3,761
Unallocable expenses					403
					314
Other income, net					753
					756
Share in net profit/(loss) of associate					(2)
					–
Profit before tax					4,798
					4,203
Tax expense					1,362
					1,175
Profit for the period					3,436
					3,028
Depreciation and amortization					400
					313
Non-cash expenses other than depreciation and amortization					3
					1

Significant clients

No client individually accounted for more than 10% of the revenues for the three months ended June 30, 2016 and June 30, 2015

2.27 FUNCTION WISE CLASSIFICATION OF CONSOLIDATED STATEMENT OF PROFIT AND LOSS

in crore

Particulars	Three months ended June 30
	2016	2015
Revenue from operations	16,782	14,354
Cost of Sales	10,681	9,123
GROSS PROFIT	6,101	5,231
Operating expenses
Selling and marketing expenses	920	820
General and administration expenses	1,134	964
Total operating expenses	2,054	1,784
OPERATING PROFIT	4,047	3,447
Other income	753	756
PROFIT BEFORE MINORITY INTEREST / SHARE IN NET PROFIT / (LOSS) OF ASSOCIATE	4,800	4,203
	(2)	–
PROFIT BEFORE TAX	4,798	4,203
Tax expense:
Current tax	1,467	1,133
Deferred tax	(105)	42
	3,436	3,028
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurement of the net defined benefit liability/asset	(17)	(7)
Equity instruments through other comprehensive income	–	–
	(17)	(7)
Items that will be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations	38	144
	38	144

Total other comprehensive income, net of tax	21	137
Total comprehensive income for the period	3,457	3,165
Profit attributable to:
Owners of the company	3,436	3,028
Non-controlling interests	–	–
	3,436	3,028
Total comprehensive income attributable to:
Owners of the company	3,457	3,165
Non-controlling interests	–	–
	3,457	3,165

As per our report of even date attached

for B S R & Co. LLP

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

Chartered Accountants

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

Supreet Sachdev	R. Seshasayee	Dr. Vishal Sikka	U. B. Pravin Rao
Partner	Chairman	Chief Executive Officer and Managing Director	Chief Operating Officer and Whole-time Director
Membership No. 205385
Bangalore	Roopa Kudva	M. D. Ranganath	A.G.S. Manikantha
July 15, 2016	Director	Chief Financial Officer	Company Secretary

Auditor’s Report on Quarterly Consolidated Financial 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 subsidiaries (collectively referred to as ‘the Group’) for the quarter ended 30 June 2016, 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 consolidated quarterly 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 Indian Accounting Standard (Ind AS) for Interim Financial Reporting (Ind AS) 34, 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 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 consolidated financial results:

(i)

include the quarterly financial results of the following entities:

(a)

Infosys Limited;

(b)

Infosys BPO Limited;

(c)

Infosys (Czech Republic) Limited 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 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 Conulting Holding AG;

(q)

Lodestone Management Consultants Inc.;

(r)

Lodestone Management Consulting Pty Limited;

(s)

Infosys Consulting AG;

(t)

Lodestone Augmentis AG;

(u)

Lodestone GmbH;

(v)

Lodestone Management Consultants (Belgium) S.A.;

(w)

Infosys Consulting GmbH ;

(x)

Infy Consulting Company Ltd.;

(y)

Infy Consulting B.V.;

(z)

Infosys Consulting Ltda.;

(aa)

Infosys Consulting Sp. z.o.o.;

(ab)

Lodestone Management Consultants Portugal, Unipessoal, Lda.;

(ac)

S.C. Infosys Consulting S.R.L.;

(ad)

Infosys Consulting Pte Ltd.;

(ae)

Infosys Consulting SAS;

(af)

Infosys Consulting s.r.o.;

(ag)

Lodestone Management Consultants Co., Ltd. (China);

(ah)

Lodestone Management Consultants GmbH (Austria);

(ai)

Infosys Consulting S. R. L.;

(aj)

Infosys BPO, S de R.L. de C.V.;

(ak)

Infosys Limited Employees’ Welfare Trust;

(al)

Infosys Science Foundation;

(am)

Panaya Inc.;

(an)

Panaya Ltd.;

(ao)

Panaya Gmbh;

(ap)

Panaya Pty Ltd.

(aq)

Panaya Japan Co. Ltd.;

(ar)

Infosys Nova Holdings LLC.;

(as)

DWA Nova LLC.;

(at)

Kallidus Inc.;

(au)

Skava Systems Private Limited;

(av)

Noah Consulting LLC;

(aw)

Noah Information Management Consulting, Inc;

(ax)

Infosys Employee Welfare Trust; and

(ay)

Infosys BPO Americas LLC.

(ii)

(iii)

give a true and fair view of the consolidated financial performance including other comprehensive income and other financial information for the quarter ended 30 June 2016.

for B S R & Co. LLP
Chartered Accountants
Firm’s registration number: 101248W/ W-100022

Supreet Sachdev
Partner
Membership number: 205385

Bangalore
July 15, 2016

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

Create E-mail Alert Related Categories

SEC Filings

Sign up for StreetInsider Free!

Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!

Form 6-K Infosys Ltd For: Jun 30

You May Also Be Interested In

Create E-mail Alert Related Categories

Sign up for StreetInsider Free!

Free News Feed