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, 2015.

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

On July 21, 2015, we announced our results of operations for the quarter ended June 30, 2015. We issued press releases announcing our results under International Financial Reporting Standards (“IFRS”) in U.S. dollars and Indian rupees, copies of which are attached to this Form 6-K as Exhibits 99.1 and 99.2, respectively.

On July 21, 2015, 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 21, 2015, 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, 2015 and 2014 (as per IFRS); revenue by geographical segment, service offering, project type, and industry classification; information regarding our client concentration; employee information and metrics; infrastructure information; and consolidated IT services information. We have attached this fact sheet to this Form 6-K as Exhibit 99.5.

On July 21, 2015, 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 advertisements in certain Indian newspapers concerning our results of operations for the quarter ended June 30, 2015, under IFRS. A copy of the form of this advertisement is attached to this Form 6-K as Exhibit 99.8.

We have made available to the public on our web site, www.infosys.com, the following: Unaudited Condensed Financial Statements in compliance with IFRS; Audited Financial Statements in compliance with IFRS in Indian Rupees and the Auditors Report; Indian GAAP Standalone Balance Sheet, Standalone Statement of Profit and Loss, Standalone Cash Flow Statement, Notes on Accounts and Auditors Report for the quarter ended June 30, 2015. We have attached these documents to this Form 6-K as Exhibits 99.9, 99.10 and 99.11 respectively.

SIGNATURES

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

Infosys Limited

/s/ David D. Kennedy

Date: July 24, 2015

David D. Kennedy

Executive Vice President and General Counsel

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 21, 2015 Press Conference
99.4	Transcript of July 21, 2015 television interaction
99.5	Fact Sheet regarding Registrant's Profit and Loss Account Summary for the quarters ended June 30, 2015 and 2014 (as per IFRS); Revenue by Geographical Segment, Service Offering, Project Type, and Industry Classification; Information regarding Client Concentration; Employee Information and Metrics; Infrastructure Information; and Consolidated IT Services Information
99.6	Transcript of July 21, 2015 11:30 a.m. IST Earnings Call
99.7	Transcript of July 21, 2015 6:00 p.m. IST Earnings Call
99.8	Form of Advertisement placed in Indian Newspapers
99.9	Unaudited Condensed Financial Statements in compliance with IFRS
99.10	Audited Financial Statements in compliance with IFRS in Indian Rupees and the Auditors Report
99.11	Indian GAAP Standalone Balance Sheet, Standalone Statement of Profit and Loss, Standalone Cash Flow statement, Notes on Accounts and Auditors Report for the quarter ended June 30, 2015

Exhibit 99.1
IFRS USD Press Release

Infosys (NYSE : INFY) Announces Results for the Quarter ended June 30, 2015

Q1 revenue growth at 4.5% QoQ; highest in 15 quarters*

Volume growth at 5.4% QoQ, highest in 19 quarters

Gross client addition at 79

Largest client crosses $ 300 mn; added 2 clients in $ 200 mn bucket

6 large deals signed in Q1 with TCV of $ 688 mn

Quarterly annualized attrition for Infosys Limited at 14.2% compared to 23.4% in Q1 15

FY 16 revenue guidance retained at 10%-12% in constant currency; increased to 7.2%-9.2% in USD terms

*Excluding acquisitions

Bangalore, India – July 21, 2015

Financial Highlights

Consolidated results under International Financial Reporting Standards (IFRS) for the quarter ended June 30, 2015

Quarter ended June 30, 2015

·	Revenues were $ 2,256 million for the quarter ended June 30, 2015 QoQ growth was 4.5% in reported terms; 4.4% in constant currency terms YoY growth was 5.7% in reported terms; 10.9% in constant currency terms
·	Net profit was $ 476 million for the quarter ended June 30, 2015 QoQ decline was 4.5% YoY decline was 1.3%
·	Earnings per share (EPS) was $ 0.21 for the quarter ended June 30, 2015 QoQ decline was 4.5% YoY decline was 1.3%
·	Liquid assets including cash and cash equivalents, available-for-sale financial assets and government bonds were $ 4,750 million as on June 30, 2015 as compared to $ 5,214 million as on March 31, 2015
·	Infosys spent $ 7 million in Q1, towards Corporate Social Responsibility (CSR) which is primarily being carried out through the Infosys Foundation, its philanthropic arm. The Infosys Foundation is engaged in several programs aimed at alleviating hunger, promoting education, computing literacy, improving health, assisting rural development, supporting arts and helping the destitute.

Other Q1 Highlights

Volume growth of 5.4%

6 large deals signed with TCV of $ 688 mn

Added 79 clients

Utilization (excluding trainees) expanded 160 bps to 80.2%

Quarterly annualized attrition for Infosys Limited at 14.2% compared to 23.4% in Q1 15

“I am very pleased with our performance in the first quarter. Our efforts in redesigning our clients’ experience and our widespread adoption of innovation, both in grassroots and breakthroughs, are starting to bear fruit in large deal wins and in the growth of large clients”, said Dr. Vishal Sikka, CEO and MD. “While we are still early in our journey to become the leading next-generation services company, this gives us good momentum for the rest of the year.”

“The organization realignment made earlier this year for deeper client and operational focus has resulted in strong volume growth”, said Mr. U. B. Pravin Rao, COO. “We continued the roll out of employee engagement initiatives around collaboration and simplification of internal processes in order to retain the industry’s best talent.”

“We are operating within our stated margin band, balancing strategic investments and client focus with operational efficiencies”, said Rajiv Bansal, CFO. “Pricing environment is competitive which we are addressing through automation and improvement in productivity.”

Outlook*

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

·	Revenues are expected to grow 10%-12% in constant currency;
·	Revenues are expected to grow 7.2%-9.2% in USD terms

*Conversion : AUD / USD – 0.77; Euro / USD – 1.12; GBP / USD – 1.57 for rest of fiscal 2016

Business Highlights

We made significant client additions this quarter, including six large deals, each greater than USD$50 million in total contract value. We continue to focus on strengthening client relationships and delivering new and innovative solutions.

Client wins

This quarter, we signed a multi-year agreement with Deutsche Bank encompassing bespoke development, application maintenance services, digital and mobility services, package implementation, and testing services. We are now a strategic partner under Deutsche Bank’s Supplier Partnership Program.

Kim Hammonds, Global Chief Information Officer, Deutsche Bank said, “Deutsche Bank is committed to applying innovative technology to enhance its efficiency and service to clients. Working with Infosys will help the bank achieve these goals.”

We were selected as a strategic partner by Allied Irish Banks, p.l.c. (AIB), a financial services group operating predominantly in the Republic of Ireland and the U.K. As part of this engagement, Infosys will provide application development and management services, along with transformation and innovation services. We will also set up a 200-seat facility in Dublin to house the staff who will be transferred from AIB.

We have won a multi-year contract with ServiceFirst, an internal shared service of the Australian State of New South Wales organization. The total commercial value of the deal is US $76 million and will include BPO and SAP services.

This quarter, we completed the implementation of Infosys Smart Oilfield Services Solution for SAP ERP at FTS International (FTSI), the largest private well completion company in North America. This will enable the company to achieve a significant milestone in its strategic business transformation. Within 14 months, we helped FTSI implement 15 SAP modules across 20 locations for over 1,400 users, thus enabling the company to improve operating metrics and to leverage an upgraded IT platform for future growth.

FTSI Chief Information Officer and Chief HR Officer Sharon S. Stufflebeme said, “Infosys’ tremendous footprint, level of expertise in SAP deployment, ability to work with both IT and business teams as well as its oil and gas experience made it the perfect partner for us in this important milestone in our strategic business transformation.”

NBTY Inc., a global manufacturer, marketer, distributor and retailer of market-leading vitamins and nutritional supplements entered into a multi-year partnership with us. As part of this agreement, we will provide development and support services for NBTY’s IT systems including enterprise-wide application development and maintenance services.

Andrea Simone, Sr. Vice President & Global CIO, NBTY Inc. said, “We are creating a global, world-class IT architecture that will provide competitive advantage to NBTY in continuously driving profitable growth. We selected Infosys as a strategic partner to provide next-generation application services and to work with us on transformation initiatives that are expected to drive business and IT innovation.”

A global luxury fashion retailer has chosen us as its preferred global IT partner. We will drive efficiencies and value by implementing a global IT shared services model and a client offshore delivery center to support all regions.

A global mining company engaged us to streamline its finance and procurement process outsourcing, as well as end-to-end IT services management including service desk, infrastructure and application management.

A leading office equipment major selected us as its strategic partner for application development and maintenance, testing and product implementation.

Platforms

To date we have had more than 127 client engagements where the Infosys Information Platform has been used and have completed 16 pilot programs using this platform. We are encouraged by the traction we are seeing with Panaya post the acquisition, and have won 15 new deals across different industries through our joint offerings.

A European logistics company selected the Infosys Information platform to deliver near real-time data-based tracking and reporting of operational metrics and project business volumes for capacity planning.

We won a project from a global pharmaceutical company to develop a predictive equipment maintenance process based on equipment operating conditions and maintenance history information using the capabilities of the Infosys Information Platform.

Another pharmaceutical company engaged us to develop a big data and analytics technology platform architecture. The client also implemented the Infosys Information Platform to deliver on a range of operational reporting in areas such as supply chain and inventory management using data from source systems such as SAP.

Products

This quarter, the shareholders authorized the transfer of business of Finacle and Edge Services to EdgeVerve with effect from August 1, 2015 or such other date as may be decided by the Board, for a consideration of upto 3,400 crore (app. $ 550 million) and upto 220 crore (app. $ 35 million) respectively. EdgeVerve Systems is a wholly-owned subsidiary of Infosys.

EdgeVerve

EdgeVerve saw a great beginning to the year with 14 wins and 4 client go-lives.

A large consumer health and medical devices company selected ProcureEdge to power its source-to-settle transformation. ProcureEdge will be implemented worldwide by the client to bring transformation and savings across its buying organization. A large European telecom company expanded its use of AssistEdge to include over 5,000 operators in its call centres, enabling them to simplify and automate business processes by integrating multiple disparate systems; thereby reducing call handling time and improving customer service. AssistEdge is also providing analytics-based insights to help the client proactively allocate resources and take preventive steps to manage issues.

Finacle

This quarter, Finacle sustained strong business momentum with 19 wins and 12 go-lives across the globe. Wins in the quarter included Corporation Bank and Indian Overseas Bank, both of which opted for our industry leading core banking solution. Building on last quarter’s success with Qantas Credit Union, Finacle also added another client in Australia for digital transformation.

Finacle continued to expand its solutions suite with three new offerings - Finacle Assure, Finacle Youth Banking solution and Finacle SME Enable. Finacle also extended its partnership with Microsoft Corp making its suite of solutions available on Microsoft Azure cloud.

Acquisitions, Investments and Partnerships

·	This quarter, we completed the acquisition of Kallidus Inc. (d.b.a Skava) and its affiliate, a leading provider of digital experience solutions, including mobile commerce and in-store shopping experiences to large retail clients. The acquisition of Skava is part of Infosys’ strategy to help clients bring new digital experiences to their customers through IP-led technology offerings, new automation tools and unparalleled skill and expertise in these new emerging areas.
·	This quarter, the shareholders in the AGM have approved to enter into a contract to acquire the healthcare business from Infosys Public Services Inc. (IPS), a wholly-owned subsidiary of Infosys for an estimated consideration of upto 625 crores (app. $ 100 million) with effect from a day as may be decided by the Board of Directors
·	We are encouraged by the traction we are seeing with Panaya post the acquisition, and have won 15 new deals through our joint offerings.
·	We have joined the Industrial Internet Consortium (IIC), an open membership group established to improve the integration between the physical and the digital worlds and accelerate the adoption of Internet of Things. We will focus on the development of future IIC testbeds with key ecosystem partners, leveraging our expertise in predictive analytics as applied to maintenance, operations, information, service and energy. Our work on predictive analytics solutions for asset efficiency will be anchored on open-source and open-access ingredients for rapid innovation by the community.
·	We continue to enhance our capabilities in Design Thinking across the organization, and have trained more than 39,000 employees till date. We have also seen a positive response from clients with whom we have various design thinking engagements. Arif Rehman, Director, Supply Chain Operations, Cisco said, “Infosys has been a strategic partner on our journey to catalyze innovation across the Global Manufacturing Operations organization. They have been working closely with us from an organizational perspective to incorporate Design Thinking and an innovator's mindset into how our teams collaborate, ideate and prototype towards more user-centric solutions. What I appreciate the most is their ability to take a concept like innovation and contextualize it into the day to day workings of our very analytical, knowledge-centric workforce.”

Innovation Fund

This quarter, we set aside US$10 million from our global Innovation Fund for Ireland-based start-ups. Earlier this year, Infosys announced the US$500 million Innovation Fund earmarked for investments in the growth of disruptive new technologies.

Awards and Recognition

·	We were honored with the Technology Partner Award at the 11^th annual Manufacturing Leadership (ML) Awards ceremony event for playing a primary role in enabling Toyota Motor Sales (TMS), USA achieve outstanding performance in customer value.
·	This quarter we won the Key Supplier Award in recognition of specific services that we provide Avaya in information technology, research and development. We also received the Award for Best Outsource Services Supplier – surpassing over 1,200+ other Avaya suppliers who provide direct and indirect materials / services.
·	We were awarded 'IT Services Provider of the Year – Banking Financial Services and Insurance Sector' by Frost & Sullivan
·	Infosys Finacle™ was given the highest score for all six use cases in the Gartner Critical Capabilities for International Retail Core Banking assessment. The report evaluated 20 leading core banking companies for each of the use cases defined by Gartner.
·	We were identified as a ‘Leader’ in the Everest Group’s Life Sciences ITO PEAK Matrix 2015.
·	We were featured as a ‘Leader’ and ‘Star Performer’ in Everest Group’s Banking AO PEAK Matrix 2015.
·	At The Asian Banker Summit in Hong Kong, Finacle won the Outstanding Technology Implementation Award with DBS Bank, Singapore, while also bagging The Asian Banker Vendor Satisfaction Survey Gold Award for 2015.
·	We received the Global Solar EPC Award for solar installations across our campuses in India.

Beyond Business

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

During this quarter, the Infosys Foundation USA, announced a partnership with Code.org to expand access to computer science education for millions of students across the United States. The program includes professional development for teachers, curriculum development and social outreach programs. Infosys Foundation USA has also committed its support to Code.org’s annual Hour of Code initiative, a global grassroots campaign that has introduced millions of students to computer science in over 180 countries.

Infosys became the first Indian company to join RE100, a global platform for major companies committed to 100% renewable power. As part of its commitment to RE100, Infosys aims to become carbon neutral by 2018. The company is already working to reduce its per capita electricity consumption by 50 per cent from its 2007-2008 levels and source all its electricity from renewable resources by 2018.

About Infosys Ltd

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

Visit www.infosys.com to see how Infosys (NYSE : INFY), with US$ 8.71 billion in annual revenues and 179,000+ employees, is helping enterprises renew themselves while also creating new avenues to generate value.

Safe Harbor

Certain statements in this press release concerning our future growth prospects are forward-looking statements regarding our future business expectations intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, fluctuations in foreign exchange rates, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal or expiration of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2015 and our Forms 6- K for the quarters ended June 30, 2014, September 30, 2014 and December 31, 2014. 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 21, 2015, 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

+1 650 320 4126

[email protected]

Infosys Limited and subsidiaries

Unaudited Condensed Consolidated Interim Balance Sheets as of

(Dollars in millions except equity share data)

	June 30, 2015	March 31, 2015
ASSETS
Current assets
Cash and cash equivalents	4,421	4,859
Available-for-sale financial assets	116	140
Trade receivables	1,657	1,554
Unbilled revenue	464	455
Prepayments and other current assets	630	527
Derivative financial instruments	6	16
Total current assets	7,294	7,551
Non-current assets
Property, plant and equipment	1,494	1,460
Goodwill	571	495
Intangible assets	149	102
Investment in Associates	15	15
Available-for-sale financial assets	215	215
Deferred income tax assets	77	85
Income tax assets	724	654
Other non-current assets	48	38
Total non-current assets	3,293	3,064
Total assets	10,587	10,615
LIABILITIES AND EQUITY
Current liabilities
Trade payables	31	22
Derivative Financial Instruments	1	–
Current income tax liabilities	497	451
Client deposits	3	4
Unearned revenue	186	168
Employee benefit obligations	183	171
Provisions	74	77
Other current liabilities	1,087	927
Total current liabilities	2,062	1,820
Non-current liabilities
Deferred income tax liabilities	45	25
Other non-current liabilities	18	8
Total liabilities	2,125	1,853
Equity
Share capital- 5 ($0.16) par value 2,400,000,000 (1,200,000,000) equity shares authorized, issued and outstanding 2,285,610,264 (1,142,805,132), net of 11,334,400 (5,667,200) treasury shares as of June 30, 2015 (March 31, 2015), respectively	199	109
Share premium	569	659
Retained earnings	9,930	10,090
Other components of equity	(2,236)	(2,096)
Total equity attributable to equity holders of the company	8,462	8,762
Non-controlling interests	–	–
Total equity	8,462	8,762
Total liabilities and equity	10,587	10,615

Infosys Limited and subsidiaries

Unaudited Condensed Consolidated Interim Statements of Comprehensive Income

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

	Three months ended June 30, 2015	Three months ended June 30, 2014
Revenues	2,256	2,133
Cost of sales	1,434	1,344
Gross profit	822	789
Operating expenses :
Selling and marketing expenses	129	111
Administrative expenses	152	142
Total operating expenses	281	253
Operating profit	541	536
Other income, net	119	139
Share in associate's profit / (loss)	–	–
Profit before income taxes	660	675
Income tax expense	184	193
Net profit	476	482
Other comprehensive income
Items that will not be reclassified to profit or loss :
Re-measurement of the net defined benefit liability / (asset)	(1)	(3)
Items that may be reclassified subsequently to profit or loss :
Fair value changes on available-for-sale financial asset	(2)	3
Exchange differences on translation of foreign operations	(137)	(36)
Total other comprehensive income, net of tax	(140)	(36)
Total comprehensive income	336	446
Profit attributable to :
Owners of the company	476	482
Non-controlling interests	–	–
	476	482
Total comprehensive income attributable to :
Owners of the company	336	446
Non-controlling interests	–	–
	336	446
Earnings per equity share
Basic ($)	0.21	0.21
Diluted ($)	0.21	0.21
Weighted average equity shares used in computing earnings per equity share
Basic	2,285,610,264	2,285,610,264
Diluted	2,285,672,309	2,285,610,264

NOTE :

The unaudited Condensed Consolidated interim Balance sheets and Condensed Consolidated interim Statements of Comprehensive Income for the three months ended June 30, 2015 have been taken on record at the Board meeting held on July 21, 2015

A Fact Sheet providing the operating metrics of the company can be downloaded from www.infosys.com

Previous period share count and EPS has been restated due to issue of bonus shares in Dec-14 and Jun-15

Exhibit 99.2
IFRS INR Press Release

Infosys (NSE, BSE: INFY) Announces Results for the Quarter ended June 30, 2015

Q1 revenue growth at 7.0% QoQ, highest in 15 quarters *

Volume growth at 5.4% QoQ, highest in 19 quarters

Gross client addition at 79

Largest client crosses $ 300 mn; added 2 clients in $ 200 mn bucket

6 large deals signed in Q1 with TCV of $ 688 mn

Quarterly annualized attrition for Infosys Limited at 14.2% compared to 23.4% in Q1 15

FY 16 revenue guidance retained at 10%-12% in constant currency

*in USD terms excluding acquisitions

Bangalore, India – July 21, 2015

Financial Highlights

Consolidated results under International Financial Reporting Standards (IFRS) for the quarter ended June 30, 2015

Quarter ended June 30, 2015

Revenues were 14,354 crore for the quarter ended June 30, 2015
QoQ growth was 7.0%

YoY growth was 12.4%

Net profit was 3,030 crore for the quarter ended June 30, 2015
QoQ decline was 2.1%

YoY growth was 5.0%

Earnings per share (EPS) was 13.26 for the quarter ended June 30, 2015
QoQ decline was 2.1%

YoY growth was 5.0%

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

30,235 crore as on June 30, 2015 as compared to

32,585 crore as on March 31, 2015.

Infosys spent

45 crore in Q1, towards Corporate Social Responsibility (CSR) which is primarily being carried out through the Infosys Foundation, its philanthropic arm. The Infosys Foundation is engaged in several programs aimed at alleviating hunger, promoting education, computing literacy, improving health, assisting rural development, supporting arts and helping the destitute.

Other Q1 Highlights

Volume growth of 5.4%

6 large deals signed with TCV of $ 688 mn

Added 79 clients

Utilization (excluding trainees) expanded 160 bps to 80.2%

Quarterly annualized attrition for Infosys Limited at 14.2% compared to 23.4% in Q1 15

Outlook*

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

Revenues are expected to grow 10%-12% in constant currency;

Revenues are expected to grow 11.5%-13.5% in INR terms

*Conversion: 1 US$ = 63.65 for rest of the fiscal 2016

Business Highlights

Client wins

A leading office equipment major selected us as its strategic partner for application development and maintenance, testing and product implementation.

Platforms

Products

This quarter, the shareholders authorized the transfer of business of Finacle and Edge Services to EdgeVerve with effect from August 1, 2015 or such other date as may be decided by the Board, for a consideration of upto 3,400 crore and upto 220 crore, respectively. EdgeVerve Systems is a wholly-owned subsidiary of Infosys.

EdgeVerve

EdgeVerve saw a great beginning to the year with 14 wins and 4 client go-lives.

Finacle

Acquisitions, Investments and Partnerships

This quarter, we completed the acquisition of Kallidus Inc. (d.b.a Skava) and its affiliate, a leading provider of digital experience solutions, including mobile commerce and in-store shopping experiences to large retail clients. The acquisition of Skava is part of Infosys’ strategy to help clients bring new digital experiences to their customers through IP-led technology offerings, new automation tools and unparalleled skill and expertise in these new emerging areas.

This quarter, the shareholders in the AGM have approved to enter into a contract to acquire the healthcare business from Infosys Public Services Inc. (IPS), a wholly-owned subsidiary of Infosys for an estimated consideration of upto

625 crores with effect from a day as may be decide by the Board of Directors

We are encouraged by the traction we are seeing with Panaya post the acquisition, and have won 15 new deals through our joint offerings.

We have joined the Industrial Internet Consortium (IIC), an open membership group established to improve the integration between the physical and the digital worlds and accelerate the adoption of Internet of Things. We will focus on the development of future IIC testbeds with key ecosystem partners, leveraging our expertise in predictive analytics as applied to maintenance, operations, information, service and energy. Our work on predictive analytics solutions for asset efficiency will be anchored on open-source and open-access ingredients for rapid innovation by the community.

We continue to enhance our capabilities in Design Thinking across the organization, and have trained more than 39,000 employees till date. We have also seen a positive response from clients with whom we have various design thinking engagements.

Arif Rehman, Director, Supply Chain Operations, Cisco said, “Infosys has been a strategic partner on our journey to catalyze innovation across the Global Manufacturing Operations organization. They have been working closely with us from an organizational perspective to incorporate Design Thinking and an innovator's mindset into how our teams collaborate, ideate and prototype towards more user-centric solutions. What I appreciate the most is their ability to take a concept like innovation and contextualize it into the day to day workings of our very analytical, knowledge-centric workforce.”

Innovation Fund

Awards and Recognition

We were honored with the Technology Partner Award at the 11^th annual Manufacturing Leadership (ML) Awards ceremony event for playing a primary role in enabling Toyota Motor Sales (TMS), USA achieve outstanding performance in customer value.

This quarter we won the Key Supplier Award in recognition of specific services that we provide Avaya in information technology, research and development. We also received the Award for Best Outsource Services Supplier – surpassing over 1,200+ other Avaya suppliers who provide direct and indirect materials / services.

We were awarded 'IT Services Provider of the Year – Banking Financial Services and Insurance Sector' by Frost & Sullivan

Infosys Finacle™ was given the highest score for all six use cases in the Gartner Critical Capabilities for International Retail Core Banking assessment. The report evaluated 20 leading core banking companies for each of the use cases defined by Gartner.

We were identified as a ‘Leader’ in the Everest Group’s Life Sciences ITO PEAK Matrix 2015.

We were featured as a ‘Leader’ and ‘Star Performer’ in Everest Group’s Banking AO PEAK Matrix 2015.

At The Asian Banker Summit in Hong Kong, Finacle won the Outstanding Technology Implementation Award with DBS Bank, Singapore, while also bagging The Asian Banker Vendor Satisfaction Survey Gold Award for 2015.

We received the Global Solar EPC Award for solar installations across our campuses in India.

Beyond Business

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

About Infosys Ltd

Visit www.infosys.com to see how Infosys (NYSE: INFY), with US$ 8.7 billion in annual revenues and 179,000+ employees, is helping enterprises renew themselves while also creating new avenues to generate value.

Safe Harbor

Certain statements in this press release concerning our future growth prospects are forward-looking statements regarding our future business expectations intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, fluctuations in foreign exchange rates, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal or expiration of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2015 and our Forms 6 - K for the quarters ended June 30, 2014, September 30, 2014 and December 31, 2014. 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 21, 2015, 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

+1 650 320 4126

[email protected]

Infosys Limited and subsidiaries

Consolidated Balance Sheets as of

(In crore except share data)

	June 30, 2015	March 31, 2015
ASSETS
Current assets
Cash and cash equivalents	28,142	30,367
Available-for-sale financial assets	736	874
Trade receivables	10,548	9,713
Unbilled revenue	2,953	2,845
Prepayments and other current assets	4,010	3,296
Derivative financial instruments	41	101
Total current assets	46,430	47,196
Non-current assets
Property, plant and equipment	9,511	9,125
Goodwill	3,635	3,091
Intangible assets	944	638
Investment in associate	95	93
Available-for-sale financial assets	1,371	1,345
Deferred income tax assets	484	537
Income tax assets	4,612	4,089
Other non-current assets	302	238
Total non-current assets	20,954	19,156
Total assets	67,384	66,352
LIABILITIES AND EQUITY
Current liabilities
Trade payables	196	140
Derivative financial instruments	6	3
Current income tax liabilities	3,162	2,818
Client deposits	21	27
Unearned revenue	1,183	1,052
Employee benefit obligations	1,163	1,069
Provisions	474	478
Other current liabilities	6,920	5,796
Total current liabilities	13,125	11,383
Non-current liabilities
Deferred income tax liabilities	284	160
Other non-current liabilities	116	46
Total liabilities	13,525	11,589
Equity
Share capital- 5 par value 240,00,00,000 (120,00,00,000) equity shares authorized, issued and outstanding 228,56,10,264 (114,28,05,132), net of 1,13,34,400 (56,67,200) treasury shares, as of June 30, 2015 (March 31, 2015), respectively	1,144	572
Share premium	2,236	2,806
Retained earnings	49,947	50,978
Other components of equity	532	407
Total equity attributable to equity holders of the company	53,859	54,763
Non-controlling interests	-	-
Total equity	53,859	54,763
Total liabilities and equity	67,384	66,352

Infosys Limited and subsidiaries

Consolidated Statements of Comprehensive Income

(In crore except share and per equity share data)

	Three months ended June 30, 2015	Three months ended June 30, 2014
Revenues	14,354	12,770
Cost of sales	9,123	8,046
Gross profit	5,231	4,724
Operating expenses:
Selling and marketing expenses	820	666
Administrative expenses	964	847
Total operating expenses	1,784	1,513
Operating profit	3,447	3,211
Other income, net	758	829
Share of net profit/(loss) in associate	-	-
Profit before income taxes	4,205	4,040
Income tax expense	1,175	1,154
Net profit	3,030	2,886
Other comprehensive income
Items that will not be reclassified to profit or loss:
Re-measurement of the net defined benefit liability/(asset)	(7)	(20)
Items that may be reclassified subsequently to profit or loss:
Fair value changes on available-for-sale financial asset	(12)	17
Exchange differences on translation of foreign operations	144	–
Total other comprehensive income, net of tax	125	(3)
Total comprehensive income	3,155	2,883
Profit attributable to:
Owners of the company	3,030	2,886
Non-controlling interests	-	-
	3,030	2,886
Total comprehensive income attributable to:
Owners of the company	3,155	2,883
Non-controlling interests	-	-
	3,155	2,883
Earnings per equity share
Basic ()	13.26	12.63
Diluted ()	13.26	12.63
Weighted average equity shares used in computing earnings per equity share
Basic	228,56,10,264	228,56,10,264
Diluted	228,56,72,309	228,56,10,264

NOTE:

The audited Consolidated interim Balance sheets and Consolidated interim Statements of Comprehensive Income for the three months ended June 30, 2015 have been taken on record at the Board meeting held on July 21, 2015.

A Fact Sheet providing the operating metrics of the company can be downloaded from www.infosys.com

Previous period share count and EPS has been restated due to issue of bonus shares in Dec-14 and Jun-15

Exhibit 99.3

Press Conference

PRESS CONFERENCE

Q1 FY 2016 RESULTS

July 21, 2015

CORPORATE PARTICIPANTs

Vishal Sikka

Chief Executive Officer & Managing Director

Pravin Rao

Chief Operating Officer

Rajiv Bansal

Chief Financial Officer

Rajesh Krishnamurthy

Executive VP, Head – Energy, Utilities, Telecommunications

Ritika Suri

Head – Merger & Acquisition

Participants

Bibhu

Business Standard

Varun Sood

Rahul

ET Now

Vishal Sikka

We have been working hard to rethink our customer’s experience to redesign, the way that we engage with our clients, the way we write proposals, and that has resulted in the great success that we have seen in the large deals and in the growth in our top accounts. This quarter also saw the results of our deep operational focus as well as a wide spread adoption of innovation and of new technologies that is starting to show results now, both innovation at the grass roots level as well as the breakthrough innovation that we have been working on. And I feel good about these results giving us good momentum as we go into the rest of the year. We are confident in our ability to achieve our guidance of 10-12% in constant currency. We are still early in our journey towards becoming a next generation services company as I have laid out. However, this quarter gives us something to smile about and good reason to be confident. Thank you.

Moderator

We will open the floor for questions now.

Participant

Vishal a quick clarification in the Analyst Con-Call you said that the current revenue run rate has been $52,000 since the last couple of quarters, the $80,000 target is across the next 5-10 years if I am correct?

Vishal Sikka

$80,000 is our aspiration to get by 2020 and we want to get there through a combination of automation and better productivity and the use of more software and more services, more technology as we go. We did see a decline towards that because of the pressure that we see from revenue productivity per employee, and we are working on massive adoption of automation as a way to help stem that as well as the improvement in our operational efficiency and so forth.

Participant

So the current figure stands at $52,000, correct?

Rajiv Bansal

$51,700.

Participant

Has the visibility in terms of revenue per employee gone up over the last couple of quarters, and also in terms of going ahead, is that likely to increase gradually?

Vikas Sikka

Our expectation and our plan and our intent is to have it increased. We do not yet see that in a substantive way, but the first signs of that have already become visible, for example, the Infosys sales team sold 15 Panaya deals in the last quarter. The way the Panaya deals works is in upgrade projects for example, or even in testing, we replace the people-only-projects with people-plus-software, and the software comes at a higher margin, and we would reduce the number of people, so even though if the cost of the project goes down, and you become more competitive with regard to the client’s pricing expectation, we increase both our margins and our revenue per employee. So this is the formula that we want to repeat over and over again across the service lines. Another great example of this is the work that we have on the Infosys Automation Platform in bringing automation to our ongoing projects in Infrastructure Management and we saw a tremendous growth in Infrastructure Management in the last quarter of more than 7% quarter-on-quarter and in Infrastructure Management we have seen, when we rolled out the IAP to the first 10-clients, productivity improvements up to 37% and people manage to completely automate the work being done by 17% of the people using this example. So we see that will help us improve the revenue productivity per employee.

Bibhu

Dr. Sikka, this is Bibhu from Business Standard. This revenue growth is the last 15-quarters high as you mentioned, volume growth last-19 quarters high. I was just wondering about your margin profile as well as the net profit both are sequentially under pressure. Is it because of the kind of investment you are making in the Digital and other segments because as part of your Vision 2020 you have set certain ambitious target, so do you think at this pace your margin profile as well as the profitability part will inch closer to that?

Vishal Sikka

Maybe I start and then Rajiv you can add as you see it. We have three dimensions to the 2020 aspiration that I have laid out, that is $20 bn, 30% margin, and $80,000 revenue per employee. My sense is that given the adoption of software and IP-led services in our work, all three are achievable, but I think $80,000 is something that will get to quite easily, I think the 30% margin will be a more difficult thing to adopt, that is the sense that I have right now, with time this can change obviously, and, of course, the revenue growth is a result of these other two measures. So I feel like given where we are headed with the long-term moves that we are making, this is a goal that is feasible, it is certainly desirable and viable. So we are marching down that path towards that, but yes, at a high level I can tell you that I feel confident that we will get to 30% margin over that kind of a time horizon as well as a higher revenue per employee.

Bibhu

I was just going through your revenues, by project type. Since your time and material contracts revenue share seems to have gone up at the cost of fixed price, because we are talking about the kind of next-generation services where the project types will be different, maybe more tuned towards fixed price, whereas here we are just seeing the contrast, what is the reason, is it a temporary phenomena?

Rajiv Bansal

This split of revenue between time and material and fixed price would vary on a quarter-to-quarter basis and if you look at it over a period of time, our fixed price has actually gone up from 40 to about 42 to 45%, it is also a mix of revenues, a mix of client projects that you are delivering, not so much that you should look into it on a quarter-on-quarter basis, but yes, what is happening is the clients are moving more towards managed services, they want more predictability into the cost that they are committing to the different players. So you would see slowly the fixed price component of the revenues going up, but I think there is not much that you should read on a quarter-to-quarter basis.

On the earlier question of margin, I think it is very important to understand that we have given a margin band and we feel very comfortable within that margin band. As Vishal said, we have laid out our aspiration for 2020, and a lot of these things would require investments ahead of time, you cannot expect that the revenue growth and investments would happen in the same quarter, you have to invest ahead of time, and there is always a fine balance that you have to strike between the investments in the current year and how much that will add to revenue growth and how it will impact the revenue growth in the subsequent years. Our first priority is to get the revenue growth to be able to reach the industry growth levels and then exceed industry growth levels. And as we start investing into automation, new services, and renewing our existing set of services, and as the revenue productivity start going up, you will automatically see the margins go up. So if we achieve the $80,000 revenue productivity, our revenue per FTE that Vishal has laid out, I have no doubt, 30% would happen, but for that we have to make investments ahead of time, and that is the reason I think it is very important that margins are looked at from a much larger perspective, from a medium and long-term perspective rather than being looked at from a quarter-to-quarter perspective.

Bibhu

On the margin front, just I was wondering, because part of that maybe because of the wage hike implemented, and I think in the television interviews I heard you saying that visa cost also one of the reasons. So does it mean that you have applied for more number of visas this time, if it is so, then why?

Rajiv Bansal

No, it is not about the number of visas. The visa applications happen in April that is when the window opens. Typically, this is a cost that would be incurred by all IT companies in the first quarter. If you recall the Earnings Call that we had and the Press Conference that we had in April we clearly said that the first quarter we expect margins to drop between 250 to 300-basis points and that is normally how it has been for almost many, many years that I can remember. So this is in line with hoe the expense get incurred and what the impact on the margins are. So first quarter would typically see a lower margin. As the year goes by and you see the pyramid helping us keep our cost down, you achieve the margin start improving. So that is how normally the IT industry or any IT company P&L would like what is.

Participant

…….you explained, but still your press release Mr. Bansal and Mr. Sikka does not give to the reader or to us the reason why in dollar terms, there is a decline sequentially and yearly also, and also in rupee terms also it has declined. That is one. And then your net profit and yearly is declined. 1.3% in dollar terms, your revenue is in dollar terms and quarterly 4.5%, yearly 1.3% you have so many quotations which makes no sense for us at all. This is the financial results, this is the financial statement. Why you do not explain to us? What is the reason? Should we ask? Should we beg? How much you attribute to fluctuation, volatility? How much you attribute to whatever other reasons? Non-operational income or hedging?

Rajiv Bansal

Press release is meant for many-many stakeholders and definitely media is definitely one of them. Having said that, anyway, the first quarter operating margins is about 24% as against last year which is about 25%+. The reason in decline is also because of lot of mid-year initiatives that we had taken last year when our attrition was very high. So, we had taken a lot of employee initiatives in terms of mid-year hikes, promotions, which has built up the cost structures the company over quarter. So, this quarter if you look at it, we actually set expectation of the market at about 250 basis points drop in margins at the beginning of the quarter and we have done reasonably well to be able to contain the impact of 170 basis points because of the operational efficiency and the cost optimization initiatives that we took during the quarter. Having said that I think you also have to look at the volatility in the rupee though operating margins have been about 24%, the yield has started coming down, the interest rates have fallen, and they are expected to fall further. So you would see the interest income started coming down over the quarters. Also the exchange gain, last quarter we had about $23 mn of exchange gain, this quarter it is lower, it is a loss of $4 mn, primarily because the volatility that we are seeing in the cross currencies, this quarter we have seen rupee depreciate against all major global currencies by about 8% against GBP, 6% against Euro. So that kind of volatility I think does impact the forward covers that we take and the mark-to-market losses we book.

Participant

You are giving $23 mn of the gain that you had last quarter but you are not giving for this quarter the loss because of the non-operating income?

Rajiv Bansal

I did say $4 mn loss that we booked on exchange this quarter, it is there in the P&L.

Participant

Mr. Sikka, since you are giving these figures, I could not go to Chennai last time when the quarterly was there, these figures grand wise figures you are giving of so many parameters and then there is a talk about the investment aspect. Is it possible for the company to disclose how much you need to invest to get to that figure or that will be selectively no disclosure?

Vishal Sikka

The 2020 aspiration that we have laid out, we want to get there in the normal course of business with transformation of our work force and our service lines and bringing more innovation and more automation into what we do. From an M&A perspective, the general guideline, the general aspiration that we have set up is that $1.5 bn of the $20 bn would come from revenues of acquisitions that we make or investments that we have made. So you can extrapolate that into certain amount of investments that we will make from an M&A perspective. The rest would be just normal course of doing business is how we expect to see that grow.

Participant

……..

Vishal Sikka

So if you separate the $1.5 bn coming from the investment, M&A, etc., inorganic growth, the remaining $18.5 bn, our aspiration is to set that up as $2 bn would come, 10% of the total revenue would come from our new initiatives which is our Products and Platforms, Finacle, Edge, as well as new kinds of platforms and services that we offer, new complex, new applications, AI, things like that, and the remaining $16.5 would come from the renewal of our existing service lines, and that comes to a cumulative average growth rate of approximately 13%-13.5% over the next 5-years and we believe that we can achieve that. Having said that, this is not a guidance or an operational plan, this is an aspiration that we have of getting to $20 bn in revenue by 2020 at 30% margin and $80,000 revenue per employee.

Participant

On a consolidated basis, your attrition has gone up to 19.2%, previously, you used to report last 12-months. So is there a change in the structure there?

Vishal Sikka

No, the attrition for the group has actually improved by 700-basis points, 7%, and for the Infosys Limited by more than 9% year-over-year. We had an absolute loss of roughly 8,550 employees which is a little bit more number of people left our company than they did in the previous quarter, but of course, our total headcount is also larger and so on. So, in terms of the metrics itself, maybe Pravin or Rajiv can explain.

Pravin Rao

We are now looking at quarterly annualized metrics because we believe that is a better metrics in the last 12-months because the seasonality of the quarter takes into account. So going forward we will be talking only about the quarterly annualized metrics.

Participant

A couple of questions; everybody is betting big on Digital and different companies are achieving in different ways; Accenture apparently has made 45 acquisitions in the last 3-years according to a research report; TCS is talking about training 1 lakh employees on Digital. What is your own strategy going to be? Will you start reporting this as a separate segment going forward because some months back there was a report that you get over $700 mn from Digital. So just take us through that?

Vishal Sikka

Every once in a while with the growth of technology, new buzz words form and Digital is this buzz word. If you step back and look at what we do, everything that we do is Digital. The last time I looked nobody is writing software on pieces of paper or on wall or something, we are writing it in digital computer, in that sense, 100% of our revenue is Digital. But, the category, the digital itself is somewhat ill-defined, there is no standard kind of a vocabulary around that. So it is difficult to say.

When you look at rethinking the experiences of our clients who are in the physical industries like Manufacturing or Retail or CPG where parts of their physical processes, parts of their physical infrastructure are slowly becoming digital, this conversion from atoms to bit as Nicholas Negroponte talked about in his great book ‘Being Digital’, then yes there is a tremendous amount of opportunity in bringing software to these new kinds of physical spaces, physical things and so on. However, it would be interesting if we defined that as digital but then that is not how people define the digital category and so I think we just don't even fixate on this what the meaning of the work digital is, everything that we do is about digital and we are moving forward on that. But it is true that there are clearly new areas of the industries, various industries that we work on where physical infrastructure is being replaced by virtual infrastructure, by digital infrastructure and that is obviously a great opportunity whether it is in rethinking the design of physical products into software systems, whether it is replacing controls, I mean if you look at the dash board of a Mercedes S Class now it is entirely digital, there used to be knobs and buttons and needles and all that there that have all completely gone away. Even when you look at we have started to do some really exciting projects with big retail companies where we are redesigning the stores to become digital experiences with kiosks and touch screen valves and more intelligent shopping ails and shopping carts and things like that. So I think that that as a growth area is certainly a key area to expand into and yes, I mean we have also made acquisition in this area with Skava, the Kallidus, they have a great mobile platform, we made 14 sales of that in just a one month that we had Skava. So we are excited about that area and yes we will acquire in these kind of areas as Ritika is sitting right here as we go forward.

Participant

Pravin, just want to understand from you in terms of your India business that has seen a marginal decline, what is happening, are there no government contracts coming by or even the government is talking about tech but are there no big contracts that are coming up for you guys?

Vishal Sikka

When you say the word India business, our thinking is that India business would be a good idea.

Participant

Sir just a follow-up to her question, so Mr. Murthy told us in an interview that Infosys has always lost money in every government contract in India and Vishal you are almost the brand ambassador for Digital India, so I mean what will it take to look at this business again in a big way and what steps is the government really taking to repose trust?

Vishal Sikka

I think as I said, if I was to answer the question I would completely agree with Mr. Murthy, therefore I am not going to answer the question and Pravin will perhaps answer the question. Pravin?

Pravin Rao

I mean we have always had a selective strategy on India, so even on government projects we look at it on a case by case basis and wherever it makes sense we do bid for it. But we are focusing much more aggressively on the private sector and this quarter itself we had about five wins in the India business unit. As a percentage it is very small percentage of the business, government is about 80%, 85% of our India business so it will take a long time for our India strategy to reflect on the number. So that’s where we are on India.

Vishal Sikka

And just to add to Chandra's question, I think that obviously ‘Digital India’ and ‘Make in India’ are extremely important initiatives but these are very early and we are at Infosys are very committed and I am personally very committed to ensure that Digital India is an amazing success, the Prime Minister, Minister Ravi Shankar Prasad clearly believe in Digital India in a very deep way and frankly I personally believe that digital is the future of India, not only India itself is becoming an embracing digital and virtual technology but also helping the rest of the world become more digital. So I think that we have to play a leading and pioneering role in this area and Digital India has to succeed. But having said that, the practices that we see in business today are quite far behind that and as Mr. Murthy said this is something that the business climate has to improve in order to reflect that in business but we have to separate the contribution towards ‘Digital India’ and ‘Make in India’ in the greater good from the business that we do within India itself.

Participant

So Pravin is my understanding correct that in terms of the time taken to process these contracts or deliberation time that was being taken earlier that has not changed for you guys?

Pravin Rao

No, I think some of the big problems are in terms of tight, I mean rigidity on the milestone payment, there is a lot of dependency because when you bid for a India project we bid as a system integrator, there is a lot of dependency on other partners and other things happening and many times it is not in your control. But unlike a private thing where you can in a private contract you have lot more flexibility, you can negotiate and there is lot more, but here even though many times it may not be your fault sometimes you do not get the payment because it is linked to some milestone which is not yet completed and so on. So there is a conversation which we have been having with the government and even NASSCOM has also been interacting with the government in the recent past and we have given our suggestion and some of the challenges we are facing and I have said that they will look at addressing it, so we are hopeful about it. And when I said we are selective, I mean some of the projects which we have done we are very proud of because the Income Tax project that we have done continue to win major awards for government projects executed, or the one which we are doing transforming the post office is another significant one. So wherever we find opportunities which will have a significant impact between the country we will be more than open to take those projects.

Participant

Sir in terms of the kind of payment that come there are some concerns raised by your peers that there have been delayed payment because of which they have reduced the kind of exposure, exposure is minimum for you, yes, but they are gradually reducing their participation in government IT deals because of the delay of payments. Is that a concern for you right now?

Pravin Rao

Yes, as I said that’s one of the concern, delay in payment is one of the concerns, rigidity in the contract structure that in the government contract everything is fixed, you have very little levy to negotiate any terms. So as I said earlier, not only us but our peers also through NASSCOM we have approached the government, we have given them our thinking on it and our suggestions on what they can do differently. Because at the end of the day I think if they are able to relax those, bring in much more practicality then I think they can get lot more people, Indian IT services providers involved in all the things that the government is wanting to do, all the ambitious projects. So I think it will be a win-win for both the industry and the government and that is what through NASSCOM we have been talking to the government.

Participant

Sir just would you add to this, the structure of IT and the way you review the projects of the government …….project that still your resource will come into picture, how best you have heard…….at what cost and what returns? Because there is no equation when it comes to returns……..to allocate some of your human resources, other resources as

Pravin Rao

We are having a separate group focusing on India business unit, that is something we started focusing on more than five years back. As I said earlier we have a track record of delivering lot of marquee projects which have impacted the way business is transacted within India and we will continue to be focused on it and as I said because of all the other challenges like everyone else in the industry we will continue to be selective.

Varun Sood

Hi Vishal, Varun Sood. Two questions, one question to Pravin. Pravin, A, if you can just help us understand what is really happening at the pricing? I did read Rajiv's comment saying pricing environment remains competitive, so are we seeing the bread and butter outsourcing deals, there is a lot of pricing pressure and that maybe getting kind of compensated with this increasing focus on digital, if at all. And also at the same time if you can give us some color what is really happening in the sector specific, like in BFSI which grew the fastest, Telecom is it just a temporary recovery, Energy is the worst behind. I just want to understand for this quarter is it just that the pent up demand or the ramp downs which happen in quarter four and we are seeing benefits now or is there something more?

The second question is to Vishal. Vishal will it be fair to say that this quarter truly marks the beginning of all the initiatives what you have put in since you took over hyper automation, design thinking, so on and so forth? Because our understanding was that it is going to take at least another two quarters until December to start seeing the true effects of hyper automation and all. Thank you.

Pravin Rao

Let me first talk about the pricing situation. See across the board one of the common things we find across industries, across client is tremendous focus on cost take out. Because of all the transformation happening in the industry clients are looking at investing in newer areas and that means that they have to figure out a way where they can repurpose their IT spend. So consequently on the IT operation side of the business if you look at application maintenance, infrastructure management, testing or BPO there is tremendous pressure on pricing. And typically clients look at RFP where they call multiple players to bid for the RFP and through that competitive situation they try to get maximum pricing benefit and there is a clear upfront expectation from the clients. So this is something structurally happening in the industry and as Vishal keeps on talking that I do not think we can resist that, that is something we need to accept but internally we need to figure out how can you be more productive, how can you be more efficient and so on and that’s where our focus on automation and other things is kicking in. And over a period of time we believe that that should help us in managing this significant pressure on pricing.

On some of the newer stuff obviously pricing is not a big consideration, it is more about your capability, your thought leadership and so on. And from a sector perspective I think BFSI had a very good growth this quarter, insurance was little bit of a larger because we had couple of client ramp downs but otherwise if you ignore insurance the BFSI had a good growth both in Americas as well as Europe, three of the six large deal wins we had was in this space so we are very optimistic about this place because looking at the volumes, looking at the pipeline we are fairly confident.

The other sector which has done extremely well, other two sectors are Manufacturing where we are seeing significant uptick in hi-tech and auto space whereas aerospace is little bit challenge. Healthcare and life sciences is another area where we have seen significant growth and a part of it also due to consumerization of healthcare and a lot of opportunities in that regard.

With regards to Telecom and Energy, I will ask my colleague Rajesh who is sitting there who heads our Energy and Telecom practice to respond to that.

Rajesh Krishnamurthy

Thanks Pravin. So I think Energy sector is definitely under pressure and I think we will continue to see that for some time because the low prices of oil is creating a severe dent in the balance sheet of large oil companies and the oil companies are now looking at initiatives similar to Fit for 50, that’s the new term which we are using in the industry to see how you can operate and still sustain business at $50 a barrel. Of course with the Iran treaty and with the increase of capacity in Kingdom of Saudi Arabia we are going to see increased pressure on oil, so that’s a sector which we are going to continue to see challenges. Discretionary projects, especially a lot of spend which used to happen on the upstream sector is under severe pressure, so that sector will continue to be challenged.

Telecom has typically been very volatile, we had very good growth this quarter in Telecom primarily because we had a few clients where there was discretionary spend, big focus on customer satisfaction and customer experience investments and we continue to do that because what is really happening is the environment is very-very competitive amongst the operators so the wallet share of the customers is decreasing so most Telecom companies are seeing marginal or very low increase in top-line and major pressure on the bottom-line. So we are going to see continued volatility in the Telecom sector as well.

Vishal Sikka

And to the other part of your question Varun, there are two parts to what we are seeing happen, it is an interesting question about whether this is a first quarter. I think that the initiatives that we have started very much since the beginning of my journey here have been producing results in small but measureable ways over the last 10-11 months or so. The results were small in the beginning, but they were clear and now we have seen that these are still early results I would say but they are beginning to gain momentum and we are starting to see that. Just as an example, I will say on our platform work where we build all our information solutions, our AI solutions, we have more than 150 engagements, more than 30 of those, I think 37 or so something like that, are exclusively building complex Artificial Intelligence systems for our clients on our platform and little bit more than 120 are around data-processing, information processing, analytics, complex analytics, predictive maintenance these kinds of applications. So that is about 150 projects that are going on just on the information, on the big data we have seven projects that are already live now. So this is not just an idea but we have more than 12 dozen engagements that are already underway and customers are already live with these systems.

Similarly on Panaya we had a great quarter. The Infosys sales team sold 15 Panaya deals. We have more than 137 engagements that are going on with Panaya right now and this helps to bring automation into our projects. Similarly our own home grown automation platform which sits on the same platform as the AI and the information platform work that I talked about, now we have finished 10 deployments of that over the course of Q1 and now in this quarter we are doing 37 additional ones, so all these things are starting. Similarly Skava we did 14 deals of Skava in just a one month that we had.

And then on the design thinking side, we have about another 110 or so engagements of design thinking which are very strategic engagements going on with clients. We have already finished something like 3 dozen or so of these engagements which help to elevate our discussion with our clients. It helps to build more confidence about our ability to innovate and it also helps us break through into completely new kinds of areas. So all of these initiatives are starting to, by the way on design thinking, thanks to our amazing education team led by Binod, we have crossed 40,000 people now who have been trained in design thinking. It’s by far the world's largest embrace of design thinking and also we have brought design thinking into our sales process, into our consulting process, into the way that we respond to RFPs and things like that.

So all of these things are building momentum steadily and nonlinearly and they are starting to show up in the results in particular in how the innovation helps us develop our grassroots into a much broader base of innovation. But in terms of the near term revenue contribution I would say that the big contributor this quarter was the result of our operational focus of bringing design thinking to the way that we do our deals, the way that we do our proposals, the way that we have brought our zero distance initiatives into bringing innovation to our clients that has led to the resultant that the top clients have grown, top 10 clients grew by 5.7% this quarter and they had declined in the previous quarter so there has been a dramatic turnaround. Similarly, the role of consulting that we changed over the course of the quarter or the way that we manage the top accounts and things of this nature. So I would say that the result is a combination of the two, the innovative strategic initiatives that we have laid out over the course of the last four quarters and the deep operational focus and the realignment of the organization that we brought to bear in this quarter. How I would distribute the two, I don't know, I would say majority was the result of the operational focus and the changes that we made. But there is clearly a sense that the strategic initiatives are starting to pay off.

Participant

Dr. Sikka, just a follow-up to Varun’s question, I think in the previous quarter in Chennai I think, we discussed about how some of the strategic initiatives that are underway in the company after you joined now we will start paying results towards second half of the year so now that we are in July, so are we expecting in a payout towards the second half and will the second half of the year will be better than the first half?

Vishal Sikka

Historically the second half of our financial year which is the October to March timeframe has performed worse compared to the first half of the financial year and we just finished half of the first half. So this year we are being particularly cautious about that and we are optimistic, cautiously optimistic, I would say that these initiatives that I talked about will continue to pick up the steam that they have. So far we have seen a very strong growth in these areas even though the numbers are still quite small, the strategic initiatives are starting to show up meaningfully in our performance and, therefore, as we go forward towards the second half of the financial year, the impact of these will become bigger and bigger. So we are cautiously optimistic, we are watching that very carefully to see that the second half of this year is not like the usual decline that we see typically in a year.

Participant

Just one follow-up about the Infosys innovation fund, you have already done couple of investments in the US and I think you have set aside half of the overall fund to invest in Indian startups. Have you started engaging with them or have you identified a team which can engage with the broader startup ecosystem in the country, a bit on that?

Vishal Sikka

Yeah we did, in fact we did an investment in this recently also including in India. But let me ask Ritika Suri who is right here to answer the question.

Ritika Suri

We just announced this morning an investment in ANSR Consulting. They are based out of India actually Bangalore. They do global in-house consulting for top companies especially retailers and banks out of the US who want to set up innovation centers. So we thought the business model that they are following of bringing in foreign companies into India which is a very attractive market right now especially given the talent and the English language barrier challenge that they have with the other constituencies like China, was a great investment so we’ve started and we are looking at opportunities as they make sense. It's a minority investment of 5% at 1.4 mn.

Participant

………has gone up by 3.1% and in Dollar terms by 1%, can you substantiate it so we can complete the sentence………Please tell us now because the constant currency which you have told is changed since last quarter. You have changed it from 62.85 to 63.50 and rest of the fiscal you have taken. What is the difference in it?

Rajiv Bansal

So the way we give guidance is we don't take a bet on what the currency is going to be in the later part of the year. So in March 31^st when we gave our guidance we took the March 31^st rate as the exchange rate for the rest of the year and we computed 6.2% to 8.2% Between March 31^st to June 30^th the US Dollar has depreciated against all the global currencies which will result in higher US Dollar revenue for the rest of the year as compared to what it would have been as of March 31^st. That is the reason 6.2% to 8.2% gets restated to 7.2% to 9.2%. In Rupee terms because the Rupee has depreciated against the Dollar from last quarter to this quarter by approximately 2.5% that is the reason the Rupee guidance has gone up.

Participant

………So will be a gain for you. The question is whether you will be revising the guidance because constant currency doesn't make sense because what exactly actually you realize is what matters to the investors.

Rajiv Bansal

So what matters to the investors from a medium to long-term perspective is a constant currency number because that shows the performance of the company. What reported numbers are basically about how much you have been able to realize but it could be also because of the currency factors. So if you do better because of currency factor that doesn't show the inherent strength of the company. The inherent strength of the company is dependent on how you perform on a constant currency basis.

Participant

So you are cautious about your guidance that way, in lieu of the volatility in the currency?

Rajiv Bansal

No, we are not cautious; we have retained our guidance that we gave in April. We just restated it for the currency fluctuations.

Participant

And does it also reflect in your reserves, your cash chest, war chest is actually coming down over the year? And this quarter you mentioned sequentially but you don't mention year and year, why is it so, because the difference is for $464 mn, $193 sequentially.

Rajiv Bansal

So the way it works is in April when we spoke about capital allocation, if you would recall, between last April to this April we have increased our dividend payout from 30% to 50% now. It was 30% last April we increased to 40%, this year we have increased to 50%. So as dividend payout increases your cash balance in the balance sheet would start coming down, so that is in line with the prudent capital allocation policy that we rolled out in April.

Rahul

Hi Rahul here from ET Now. Rajiv, if you could just give us some color on the deal pipeline. Now you have signed 6 large deals with total contract value of over $700 mn. Is this sustainable and also can you tell us which are the focus areas, would digital be a focus area in the deals? Thank you.

Pravin Rao

The deal pipeline is healthy. We are seeing it across the board except probably for Manufacturing when you look at large deals which in our mind $50 mn and above, in all the sectors we are seeing decent pipeline except Manufacturing as I said earlier. When you look at it from an area of spend, there are two or three areas, one is of course across the board people are looking at cost take-out so that’s translating into opportunities for outsourcing, vendor consolidation and so on, so that's one area of spend. There is continued spend on modernization movement to cloud, infrastructure modernization and so on. Across the industry again there is spend on digital, improving the customer experience or consumer experience. There is spend on big data and analytics, it’s also another big area of spend. So these are the broad trends we see across the industry.

Participant

…..Where you got this $300 mn client, can you name the client? .....Kindly refresh us whether this is $300 mn, since when last you got this kind of deal?

Rajiv Bansal

So we categorize our clients in different buckets of $100 mn $200 mn based on the last 12 months revenue. We don't really share the industry or the name of the clients.

Participant

Which was the geography, certainly not India.

Rajiv Bansal

All these clients are global clients. They operate across the globe so it is very difficult to say.

Participant

But which vertical?

Rajiv Bansal

Verticals is usually we don’t share.

Participant

Certainly not looks like in flagship, your BFSI?

Vishal Sikka

There is a 63% likelihood that it is an American client.

Participant

No, I'm trying to see the Vishal Sikka effect.

Participant

All the numbers are his effect.

Participant

Just wanted to clarify on one thing, you all said you all are ensuring or taking efforts to see that the second half doesn't throw up any nasty surprises but what kind of variables can you control there, is it a function of the overall demand or some deals which will get closed during that period? I mean what factors can you really control to ensure that it's not that bad?

Pravin Rao

One is, of course, in this we have seen good 6 large deal wins and we have also seen good momentum in all our top accounts, so one of the factor is we are looking at that momentum to carry forward in the second half. But more importantly I think particularly Quarter 3 because of working days, furlough and other things for the industry itself we have seen challenge. And one of the things as Vishal talked about is, we are looking at every account, we are looking at mining of accounts, we are looking at every project level, we are looking at what are incremental things we can do in each of the projects. The initiatives that we have launched what we call internally as zero distance initiative, we have already deployed it to 70% of delivery folks more than 6,000-7,000 of our projects have already embraced that thing. So as a consequence of it we are seeing lot of newer ideas coming up much beyond the scope of what we are doing currently to the client and in many cases we have gone back to the client and that has translated into incremental revenues. So these will not be your big ticket $10-$15 mn kind of opportunities but this will be $1-$2 mn kind of thing. Our expectation is in addition to the moment we are seeing through large deals and mining of top accounts if we are able to get even incremental revenue from each of our 900 other accounts we believe that it will probably have a very positive impact in the second half.

Participant

These $200 mn clients, in the $200 mn revenue buckets, they are existing clients or they are new logos that we have added during the quarter?

Rajiv Bansal

These are existing clients so this is on a LTM basis so when you look at the revenue in a LTM basis it's not that this client has just come up this quarter and given you $200 mn revenue. It may be an existing client, it may have been in a $180 mn $190 mn or whatever that number and that has crossed the $200 mn bench so that is the reason we put it under $200 mn.

Exhibit 99.4

Common TV Address

common TV address

Q1 FY 2016 RESULTS

July 21, 2015

CORPORATE PARTICIPANTs

Vishal Sikka

Chief Executive Officer & Managing Director

Rajiv Bansal

Chief Financial Officer

Pravin Rao

Chief Operating Officer

ANALYSTS

Chandra

ET Now

Kritika Saxena

CNBC TV18

Rukmini Rao

Bloomberg TV India

Poornima

CNBC Awaaz

Vishal Sikka

Hi Ladies and gentlemen.

We had a great quarter. We had the best revenues growth in the last 15 quarters and the best volume growth in the last 19 quarters. We believe that this was the result of deep client focus that we has brought to bear recently by realigning our organization and bringing a deep customer centricity to everything that we do and that has shown results in obviously in the revenues but also in the large deal wins that we have had and also in the success that we have had in the large accounts. It is a combination of the innovation agenda taking its root as well as the deep focus operationally that we have brought to bear and Pravin and Rajiv will talk about this in a bit. We have seen a combination of innovation both at the ground level at the grass roots level. We have seen tremendous success in our initiatives to bring great innovation to every single project that is going on at Infosys as well the breakthrough innovation that we have been working on that we believe are key to the future of not only our success and on our journey of becoming a next-generation services company but also I believe for the future of the industry as a whole. So we are extremely pleased. We believe that this is a great set of early results in our journey to become the leading services company of our times and while there is a long way to go ahead, this gives us a very good momentum for the remainder of the year.

Rajiv Bansal

For the quarter, we grew by 7% quarter on quarter in rupee terms and in dollar terms we grew by 4.5%. On constant currency basis based on the Q4 average rates we have grown by 4.4% and 3.6% based on March 31^st rates. We had given a guidance of 10%-12% in constant currency in April which required a hurdle rate of 2.8%-3.5% based on March 31^st rates quarter on quarter and our performance in Q1 is in line with the upper end of the guidance and we feel confident about the guidance that we have given. On the margin front, I think we have done reasonably well. We had the impact of wage hike and visas during the quarter which to some extent we have been able to curtail the impact to about 170-basis points through better operational and cost optimization efforts. I think it has been a great quarter overall and we still have a lot of work to do, but I think we have done reasonably well in the first quarter, and we feel very excited about the rest of the year.

Chandra

Hi this is Chandra here from ET Now. Vishal, you complete a year since you took charge as Infosys CEO on 1^st August. So I am sure this must be a great anniversary gift to deliver numbers such as these. So are you on track to get back to industry-leading growth next financial year or will you advance that? And despite this momentum why have you stopped short from raising your guidance in constant currency? And Rajiv, your outlook on margins in pricing going forward? Pravin, if you can just take us through the challenges that you are seeing in various geographies because Europe has weakened for two consecutive quarters now.

Vishal Sikka

Hi Chandra. We are very excited about the results in the quarter but it is one quarter on a long journey that is still in front of us. We have our eyes, our path set on the 2020 journey, on the ambition that we have laid out, our aspirations to get to $20 bn in revenue at 30% margin and most importantly, amplifying our ability and instead of this downward spiral that the industry has been on of lowering RPP, and again in this quarter, we saw not only in our results, but in the results of others this pressure towards lower RPP and so forth. We want to reverse that and by 2020 get to $80,000 per employee revenue which is what I have set as our aspiration. So it is a great step in that journey, we are very excited, we are still maintaining our guidance for the year as well as our expectations to be at the industry-leading growth by the next year. We are all set on that. Beyond that I think there are lots of pressures that we face as we execute on a particular quarter and macroeconomic conditions and individual situations in the industry and individual accounts and so forth. So you see ups and downs in the course of a quarter, but we are very confident about the path that we are on over the longer-term and I think the last quarter is a very clear step as it demonstrates in that direction.

Rajiv Bansal

On the pricing front, we have said that pricing is very-very competitive and especially on the traditional business, we are seeing a lot of competition on the pricing front. Pricing this quarter has declined sequentially by 0.7% which is in line with what our expectations at the beginning of the year was. On a year-on-year basis, the pricing has declined by 3.3% in constant currency terms which is something that we have to mitigate through better effort productivity and automation and other things that Vishal has been articulating in the last couple of calls. On the margin front, we have to balance the need for making investment because in line with our strategy and what we have laid out. At the same time we are looking at operational efficiency, looking at cost optimization. So we still feel confident with the margin band that we have given of 25% (+/-1%).

Pravin Rao

On the sectoral thing, overall we have seen broad-based growth. We have seen fantastic growth in Manufacturing, Financial Services, Healthcare and Life Sciences. Retail and Telecom have been reasonably okay. Energy is probably the only sector which still continues to be challenged and otherwise we have seen good traction and uptick in all the sectors. From a geography perspective, we saw 5.1% growth in Americas and Europe only 1.2%. But on the Europe side, we are not seeing any secular trend. We in fact went and looked back to the last 5 years and by coincidence we found out Q1 was the weakest quarter in the last five years from Europe perspective. We won six large deals this quarter totaling TCV of 688 mn out of which 2 were in Europe. We also opened 14 new accounts in Europe. So it is not really a matter of concern, it so happened, in the last five years we have seen Q1 being the weakest from a Europe perspective. And from a service line perspective we have seen fantastic growth in Cloud and Infrastructure Services of 7.2% growth, Engineering Services about 6.6% growth. If you look at Business and IT services, we have seen about 4.5% growth, Consulting and System Integration 4.8% growth. So by and large I think it has been across the board service-wise, sector wise it has been broad-based.

Kritika Saxena

Kritika Saxena from CNBC TV18. Congratulations on a good quarter sir.

My first question to Vishal, Vishal, you have signed, as Pravin said, contracts of around $688 mn in terms of the total contract value. That seems to be going up in on a quarter-on-quarter basis. From your order book and the deal pipeline that you are seeing in the next three quarters, would that gradually increase for Infosys and what is the word on the ground, if you can break up the outlook from a sectoral point of view? To Rajiv, as you said pricing has been fairly consistent. Going ahead in the next three quarters, would there be some kind of pressure because there has been a sense in the industry that pricing is under slight pressure given currency volatility, would you now have to relook at your hedging strategy? And to Pravin, attrition, yes has come down significantly over the last one year. But on an overall consolidated basis, it is slightly high. Is that purely a seasonal impact, and would we be able to go back to the 12% to 14% range that Pravin targets in the next couple of coming quarters?

Vishal Sikka

Kritika, my fundamental belief is that innovation is one of those things that is timeless, in the sense that when the times are bad, you need innovation and when the times are good, you need innovation. So I deeply believe that and we see tremendous demand for the kinds of innovative services that we have been working on. There are some challenges in the certain sectors, energy obviously, some parts of Manufacturing, some parts of retail which face tremendous disruption. But again with the right mix of offerings, we believe that we can have the ability to meet the needs of our clients and we have seen that. What we have been focusing on is redesigning the experience of our clients. In the services world, there is a very mundane and cut-and-dry way in which we engage with clients. There are RFPs, and we respond to RFPs. You have to bring a sense of strategic intent and an engagement with the clients and become a deep partner in their journey. This is what I always talked about, amplification is a much better idea than augmentation. So we have been focusing on that. The deal wins that Pravin talked about, in every one of the large deal wins we have introduced this new process. It brings a very creative deeply client-centric and empathy to the clients to the way that we approach these and we have started to see the first results of that both in terms of the deals that Pravin said $688 mn worth of large deals, our win rate has dramatically improved compared to both the quarter before as well as the year before. We are confident about that. And we are also bringing in the work that we do with existing clients, innovation into everything that we do. We have launched some great initiatives to improve the ability to innovate and bring that innovation into all ongoing projects. We have more than 8,500 master projects that are going on right now in the company and we are working to bring innovation to every single one of them and we have bunch of very inspiring, very great initiatives that we have launched that are being widely adopted inside the company. As Rajiv said earlier, the RPP drop, we wanted to counter that in the right way and that is by bringing innovation and automation into projects and automation in Infosys is not a center of excellence where we have 20-30 people working on automation and check that box off, but out of these projects, we have 1,400 projects that have already innovated using automation. So our clients are starting to see that and as a result we feel confident about that. That applies to all the sectors and all the regions even though there are macroeconomic factors impacting certain ones of these.

Rajiv Bansal

On the currency front, the currency markets are volatile and we do not expect them to change in the near-term. If you look at this quarter, the rupee depreciated against GBP about 8%, euro by 6%, CHF by another 6%. I think our hedging strategy always has been to negate the impact of translation gains or losses through a hedging policy so that the impact on our profit & loss account is negligible. I think if you look at how our hedging policy has worked over the last couple of quarters and the last couple of years has been very-very encouraging. We have been able to do it very proactively and very effectively. I think there is no reason for us at this point of time to look at a change in this policy. We continue to hedge short-term, we continue to hedge our net assets for the quarter to ensure that translation gains and losses are set off. So I think we will continue with that policy.

Pravin Rao

On the attrition front, attrition is under control; this quarter it has marginally increased but that is seasonal because normally in Q1, we see people leaving for higher studies. When you compare on a year-on-year basis on a standalone basis, our attrition has come down dramatically by 900-basis points and that is in the range of 12-14% we talked about. At a group level, it has historically been slightly higher than on a standalone basis and we expect to see maybe another 200-basis point’s improvement over the next few quarters. But we are extremely comfortable where it is and all the initiatives that we did last year on the talent front have paid off.

Rukmini Rao

Rukmini Rao from Bloomberg TV India. Vishal, want to understand from you, you still have lots of money left in your kitty that it is there for picking up start-ups. What is happening on that front is there any new start up that you could be looking at adding to Infosys’ bouquet? Rajiv, I want to ask you in terms of the margin expansion that you have seen. Is this a sustainable margin expansion that you have seen or is it just a one-off thing, and also, in terms of the volume growth that you have seen, is this going to continue? Pravin, want to understand from you, your BFSI has seen marginal decline. Is that one-off trend or what is the sector looking like currently?

Vishal Sikka

I think on cash kitty, we have the cash is around 5 bn. It has come down a little bit, but on innovation front. On the acquisition front we do want to acquire small innovative companies. We do not want to acquire yesterday’s technologies. We want to acquire the companies that will be relevant for us in the future. We are not interested in acquiring revenue or market share, we want to acquire capabilities that help us advance in our strategic agenda. We are confident in our organic ability, our incredible training ability. The more I spend time, the more I realize it is without comparison in the industry and in the world. So, we are very confident in our organic strategy which we want to complement with the select acquisitions of great companies as we see them. We have laid out an ambition over CY 2020 of $1.5 bn out of the $20 bn coming from acquisitions. If you do the math on it, you realize that $5 bn in cash, a large portion of it would go towards that and then the dividend payments that we announced last quarter of 50%. When you put all of these together, the infrastructure investment that we have to make and so forth, then this is our capital allocation and we are looking at several companies, usually small ones and we are quite excited about the way that we have gone about this.

Rajiv Bansal

On the margin front, the margin expansion that we saw last year was something that we had very carefully worked toward. We had looked at all the operational parameters that we had, what we could improve, how we could improve while also investing for the future. It is very important that when we are lagging behind the industry growth. We have clearly said that we want to reach industry growth rate in the next financial year and Vishal has articulated about $20 bn in 2020, we have to make investments and we cannot curtail the investments just to improve the margin. There is a fine balance that we are striking right now. Last year if you remember we had the utilization going up by almost 450 basis points which helped us. This quarter I think we have been able to contain the impact of wage hike and visas to some extent and we have done a good job in terms of our operational efficiencies and the cost optimization and we will continue to strike the balance. Having said that, we have given a margin band but I would also say that in case the business needs more investments, we would be more than happy to make investments as long as there are good ROI, we get returns in the long-term and the medium term. We will not shy away from making the investments that are require for the business growth to continue with the momentum that we have seen in the first quarter but at the same time we are very-very focused on ensuring that we deliver to the margin band that we have given.

Pravin Rao

On the Banking side, BFSI grew by 2.8% sequentially but in Insurance we had challenges in couple of accounts that brought the overall growth down. If we ignore the Insurance piece of it, the rest of Banking has grown comparable to overall Infosys growth. We have significant amount of traction in this space. We are extremely confident. The volumes are up and 4 of the 6 large deals which we won this quarter was in this sector. So we were extremely optimistic about this space.

Poornima

Hi, this is Poornima, this is for CNBC Awaaz. Sikka you have been talking about $20 bn by 2020, is the 2020 guidance intact? Rajiv, my question to you is what is the contribution to the top-line post the two acquisitions in the recent past? And if you can also talk about the substantial run rate when it comes to the six deals that you have won and is the volume growth of 5.4% sustainable? Thank you.

Vishal Sikka

I think the 2020 is not guidance. That is an aspiration that we have established for ourselves, it is too far away to think in an operational way. However, we are organizing ourselves to head towards that goal of $20 bn in revenue. When you break that down, I mentioned earlier $1.5 bn coming through acquisitions and the remaining $18.5 bn the sort of we are breaking it down. Again to organize our mental model around that, is $2 bn from what we call the new services which is the sale of complex custom applications that we make for clients, the work that we have been doing in platforms and products as well as Design Thinking engagements and things of this nature. The remaining $16.5 bn that leaves comes to basically about 13%-13.5% cumulative annual growth over the next five years which we are confident of getting. So we believe that the 2020 goal is certainly feasible. It would be highly desirable and viable for us to go after and we are organizing our thoughts and our work in that direction.

The key however is not so much the financial guidance as it is transforming ourselves into a company that is an innovative company which leads instead of down this path of this commoditization and this downward spiral of increasing the lower costs and so forth, it heads upwards towards the path of innovation, towards bringing more and more productivity improvements as Prof. Mashelkar used to say, “Doing more with less for more”, in our traditional business and augmenting that with innovation, with initiatives that are of deep strategic interest and relevance to our clients and working on those. We have more than 30 projects going on in Artificial Intelligence where we are solving really complex problems for our clients with AI. We have thousands of projects which are bringing automation to the mix. Our work on the Infosys Information Platform is starting to pick up great momentum. We have more than 120 engagements of that that we are doing completely Open Source Information platform with a dramatic price performance improvement over traditional platforms. We have 7 implementations of that already in production and more than 120 engagements. On Design Thinking we have more than 100 engagements going on. Our consulting team has embraced the role of Design Thinking as a key driver of strategic engagement with our client and our top 100 consultants in our integrated consulting organization now are going and working with 200 clients on these strategic areas. So this deeper transformation that we are carrying out inside the company is what is more relevant to this longer term than the aspiration although the financial aspiration we believe is certainly a feasible one.

Rajiv Bansal

On acquisition, the incremental revenue from acquisitions this quarter was only about $7 mn. We completed the acquisition of Skava and Kallidus in early June, so only one month revenue of those acquisitions have flown in to the financials. But having said that, those numbers are very small, they have actually started showing the synergy benefits into our downstream revenues, and that is very-very significant. We won about 15 deals because of Panaya this quarter. The early momentum based on the synergy benefits that we are seeing are very-very encouraging. So these are very-very strategic investments. They will not really play a big role in the standalone number that you will see but their impact on the overall growth and the acceleration of our growth would be very-very significant.

Pravin Rao

On the volume front if you look at the quality of growth this quarter, significant growth has come from our top clients and we have also won six large deals. So we are very hopeful that this will create the momentum for rest of the year. Having said that, we are still cautious because historically second half has always been a bit challenging for us. We are hopeful that with the momentum we will be able to do well, we have to wait and see.

Vishal Sikka

The innovative initiative that we have launched we expect that they will also help us out in the second half of this year. We have really brought this thing that Pravin was just saying, a culture of innovation. More than the innovative teams and the people and the new areas which are inevitably smaller, it is the bringing of the innovation to the ongoing projects that is of extreme importance and we have established that. We have created a tremendous culture of sharing. Today we are going live with Yammer. I was telling my friend, Satya, with 106,000 employees of Infosys running live on Yammer. So creating initiatives like that so that the entire organization becomes a competitive one, innovative one, is something that we believe is going to really bear the fruits in the long run.

Chandra

If you have to appraise yourself over the last year, how would you really rate yourself? Would it be - exceeds expectations, demonstrate excellence and against what KRAs or metrics would these be when you started out and where we are today?

Vishal Sikka

I think the only metric that matters is are you having fun and are people around you having fun as you achieve the results and I think on that front we are doing awesomely well. Everything else I think I will leave to others.

Kritika Saxena

Here you stressed on the need for digital over the next few years. You have been very clear that Infosys will be focusing on that. Can you break up currently what is the percentage that is coming from Digital, that’s a percentage that people usually shy away from but it has been increasing over the last few quarters? And when you look at acquisitions, is Digital going to be your key focus or will you also look at the traditional businesses that typically of course are the bread and butter business?

Vishal Sikka

You know my thinking in this area is motivated by what Nicholas Negroponte wrote 21 years ago in his great book called “Being Digital”. So Rajiv, Pravin, and I were talking about what percentage of our revenue is in Digital? I advised them and I explained to them how in my view 100% of our revenue is Digital because this entire exercise is about doing things digital. When I hear about companies doing 20% Digital and 8% Digital, I think that is absolute nonsense. All of our work is Digital, that is what this whole thing is about. We write software code, we digitize people’s processes, we build software systems. Last I looked that was all digital. So the entire transformation that we face is about being Digital and I think breaking that down somewhat misses the point.

What we do see however is traditionally physical endeavors in the industry are becoming Digital. I think that is where there is a whether it is a sharing economy, whether it is rethinking of the experiences in the physical world like in stores or in bank branches, even in transportation system and so forth, we are starting to do some very exciting projects in that area helping some of our retail clients totally re-imagine their digital experiences by rethinking the store itself and things of this nature or creating new kinds of end points. Rajiv mentioned Skava earlier. We had some great success even though we had Skava for just one month. It is a small innovative company but redesigning the mobile experiences and even experiences in kiosks and so forth. So we see tremendous opportunity there in helping our clients in traditional industries becoming more and more digital. But as far as we are concerned we are completely Digital.

Rukmini Rao

Brokerage is giving a big thumbs up to the numbers. Want to understand from you is this the turnaround point for Infosys and also are the days of worry for large investors that was the kind of buzz a couple of months ago, is that a story that we can leave and now going forward the turnaround for Infosys has happened with this quarter?

Vishal Sikka

I think that too much focus on a single quarter is not a good idea. If you look at our last four quarter where I have been involved, we had actually very good performance in Q2 and Q3 of last year. Q3 last year was great in terms of volume growth and revenue growth in many quarters and also in utilization and operational efficiency. We had a really disappointing Q4 which I view as an aberration and because we have brought in a tremendous operational focus and a tremendous focus on execution as well as on the redesigning of the experience and so forth, we have had a great quarter this time around. So there are swings that will happen but I think generally ever since we have put the focus on innovation and on automation and on operational excellence that generally that is starting to reflect in the results. We do see that this is still the beginning. For example when Pravin talked about the large deal wins we have been able to bring our redesign experience of engaging with customers in the large deal wins only to the large ones so far because that whole rethinking has not rolled out onto the entire organization yet. But that will happen over the next two or three quarters. Similarly the automation initiative, the initiatives of bringing innovation to every single project or as we have reorganized consulting and brought the top 100 consulting partners to our top 200 accounts, we will roll this out to the entire organization, to all our clients. Similarly the work on the innovative areas. So we are still early in this journey. As exciting as the quarter was and as proud as we are, I would not cast this quarter as any kind of a turning point or an inflection point or anything. It is just something that demonstrates that the work that we have been doing has paid off, it is going in the right direction, it is bearing fruit and now we go on and head on towards a 10% to 12% constant currency growth for the rest of the year.

Rajiv Bansal

I will just add one fact. All our large investors are long-term investors. So definitely a disappointing quarter brings a concern to their face and good quarter brings a smile to their face. But they invest in Infosys for a long-term story. We interact with them on every quarter basis, we have very-very deep interaction with them every quarter. They are investing in the long-term story of Infosys, they do not invest based on a quarterly performance.

Rukmini Rao

Can you give us a breakup on the margins front?

Rajiv Bansal

When you say break-up, you want…

Rukmini Rao

Rate hike, pricing.

Rajiv Bansal

Okay. So operating margins has declined by about 170 basis points on a quarter-to-quarter basis. The impact of wage hike in the quarter has been roughly about 200 basis points, the visa has been roughly about 60 basis points. So the margin should have fallen by about 260 basis points. We got a rupee benefit of about 60 basis points and we have some operational efficiency like utilization going up marginally, but we had pricing decline. All of that has given us a 30 basis points benefit. So that is how the math works out.

Moderator

Thank you gentlemen, that’s it.

Exhibit 99.5

Fact Sheet

Exhibit 99.6

Earnings Call 1

EARNINGS CALL 1

Q1 FY 2016 RESULTS

July 21, 2015

CORPORATE PARTICIPANTs

Vishal Sikka

Chief Executive Officer & Managing Director

Rajiv Bansal

Chief Financial Officer

Pravin Rao

Chief Operating Officer

Mohit Joshi

Head – Financial Services

ANALYSTS

Anantha Narayan

Credit Suisse

Ankur Rudra

CLSA

Yogesh Agarwal

HSBC

Parag Gupta

Morgan Stanley

Sandeep Shah

CIMB

Diviya Nagrajan

UBS

Sagar Rastogi

Ambit Capital

Kawaljeet Saluja

Kotak Securities

Manik Taneja

Emkay Global

Moderator

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

Sandeep Mahindroo

Hello! Everyone. Welcome to Infosys Earnings call to Discuss Q1 FY16 Financial Results. I am Sandeep from the Investor Relations team in Bangalore. Joining us today on this call is CEO and M.D. – Dr. Vishal Sikka; COO – Mr. Pravin Rao; CFO – Mr. Rajiv Bansal, along with other members of the senior management team. We will start the call with some remarks on the performance of the company by Dr. Sikka followed by comments by the leadership team. Subsequently we will open up the call for questions. Before I hand it over to the management team, I would like to remind you that anything which we say which refers to our outlook for the future is a forward-looking statement which must be read in conjunction with the risks that the company faces. A full statement and explanation of these risks is available in our filings with the SEC, which can be found on www.sec.gov. I would now like to pass it on to Dr. Vishal Sikka.

Vishal Sikka

Thank you, Sandeep. Good Morning, everyone. Thank you for joining us.

I am very pleased with our overall performance for this quarter that ended on 30^th of June 2015 after the below average performance we saw in Q4 of last year. On nearly every parameter, our results were on par or ahead of our plan.

Quarter-on-quarter our revenue was US$2.256 bn or in Indian rupees Rs.14,354 crores. This translates to a quarter-on-quarter growth of 7% in rupee terms, 4.5% in US dollar terms and 4.4% in constant currency. The overall demand environment continues to be encouraging barring a few select industry segments. Our volumes grew 5.4%. This was our best quarterly growth in revenue terms in the last 15 quarters and in the volume growth in the last 19 quarters excluding the effect of acquisitions.

I believe these results are based on our creating a deeply client-centric organization in our traditional service lines as well as in our new initiatives and in our business-enabling functions. In large deals and in top accounts, we have reimagined the client experience and created new processes to bring more discipline and more focus and this is enabling us to design our proposals based on specific value drivers for our clients. In new service lines, we are seeing widespread adoption of innovation and of new emerging technologies, both in grassroots and in breakthrough innovation and this is opening up entirely new types of conversations and engagements with our clients.

Our operating margin for the quarter was 24%, down from 25.7% of the previous quarter, primarily on account of seasonal wage increments and visa fees. Employment utilization was at 80.2% excluding trainees and 75.7% including trainees, and we see certainly some room for improvement here. We have rolled out specific initiatives during the quarter that are targeted at improving the productivity of employees and we are starting to see good adoption of these. We have created a strong operational focus throughout the organization and with every employee. While we are still early in our journey to become the leading next-generation services company, these results give us good momentum for the rest of the year.

Let me now talk about a few specific aspects of our performance. Growth came across the board in all our business segments. In Financial Services we had a record quarter under the leadership of Mohit, under Manish’s leadership in Healthcare and Life Sciences we saw that segment have one of its strongest quarters; in Manufacturing and Hi Tech under Sanjay Jalona’s leadership, key client relationships saw significant expansion; in Energy and Communications under Rajesh, we also saw good growth despite sectoral pressures; in Sandeep’s Retail, CPG unit we had a great quarter of deal conversions. Under Ravi’s leadership who took over as our global delivery head recently, he has been instrumental in growing our horizontal service lines across the board. In particular, Infrastructure Management grew by more than 7%.

Last quarter I talked about the changes we made to rethink our client-facing sales and delivery functions bringing together multiple parts of the organization and enhancing our RFP processes. All of these have begun to show results both in large deal wins and in client matrix. In large deals, improving our competitiveness to win large multiyear outsourcing engagements is important to build a solid revenue base for future growth and to establish stronger client relationships which is so critical to our business. We closed 6 deals of more than $50 mn each including 3 deals of more than $100 mn each. This includes a multi-year agreement with Deutsche Bank, covering be-spoke Development, Maintenance, Digital and Mobility, Package Implementation and Testing. Application Development and Management; Transformation and Innovation Services for Allied Irish Bank, a BPO and SAP services engagement with shared service unit of the Australian state of New South Wales. Continuing the momentum in the first few weeks of July we have won a few additional large deals.

We instituted stronger oversight of our top accounts with a more rigorous focus on pipeline development and conversion. Our top-10 clients grew by 5.7% quarter-on-quarter compared to a decline of 1.2% in the previous quarter. We added 37 net new clients and the number of $50 mn+ accounts increased to 49. We have now integrated our consulting partners into our top 200 accounts. Our intent here is to increase the focus on discovering and delivering new value to our most strategic client partnerships and we are doing this primarily using Design Thinking and engaging with the clients at a strategic level. I am hopeful that these initiatives will show a positive trend through the rest of the year.

Higher revenue per FTE is perhaps the most important measure of the success of our strategy. As I have said before, the pricing environment for traditional services continues to see downward pressure. We will work to change the trajectory of per capita revenue upwards in the coming quarters. The traction in our Finacle and Edge units and the acceleration of our deployment of automation solutions for software maintenance, Infrastructure Management, and Business Process Outsourcing is our focus. In Finacle, we won 19 deals during the quarter including those with Corporation Bank, Indian Overseas Bank and Qantas Credit Union. Our Edge suite of software-as-a-service offerings was sold to 14 new clients in the last quarter and 4 of those have already gone live. Johnson & Johnson selected ProcureEdge for its worldwide sourcing operations, BT Openreach expanded its use of our AssistEdge platform in its call centers for improving customer experience and providing analytical insights.

By the first of August we will have completed the merger of our Finacle and Edge teams into one entity to leverage synergy in product management, go-to-market and in operational processes. Our Infosys Automation Platform for infrastructure management is now live in 10 clients and is already yielding results in the form of up to 37% increase in effort productivity and up to 17% increase in human capital efficiency. Similarly, with Panaya we have seen some great traction in this last quarter. We won 15 large and joint engagements with Infosys and Panaya teams in our Retail, Manufacturing, Utilities, and Services segments coming together. We are pursuing over 137 opportunities for Panaya’s cloud suite platform and applying it to our enterprise system upgrade as well as our testing service lines and realizing superior 35% to 50% productivity gains as a result.

Let me now talk about mid-term strategies. From my one-on-one interaction with client executives in our client conference in San Francisco in last April, my sense is that our strategies and actions are resonating very well with the client’s own priorities. This has begun to show up in multiple engagements across the company. We continue to make headway with our new services. We now have more than 127 client engagements of the Infosys Information Platform with 7 already in production and 16 pilot engagements having already been completed in areas such as predictive analytics for railroads, sales effectiveness, driver telematics and customer segmentation.

As you know, we also completed the acquisition of Kallidus during this quarter and there is a growing pipeline especially in our Retail portfolio for the Kallidus mobile commerce platform. Our M&A and innovation-related investment plans continue in full steam. We have participated in a series-A investment round in ANSR Consulting, a management consulting that helps Fortune 500 companies in setting up global IT centers with Infosys as a preferred services provider partner for ANSR.

Perhaps one of the most exciting activity of the quarter was our ‘Zero Distance’ initiative to bring new value to all of our existing client projects through innovation. The program now touches 70% of our delivery engineers and more than 676 of these ideas are already being discussed with clients. We are tracking these very closely. This grassroots innovation is at the core of our strategic transformation that we have embarked upon as a company. Ideas for innovation have come in all kinds of interesting areas like knowledge-based IT and use of Artificial Intelligence, Neural Networks, early validation in Performance Testing, Test Automation using Robotics, Automation for Cloud Migration, Statistical Modeling for Marketing Campaigns and all kinds of next-generation technology work using Open Source technology and others are starting to show results.

From an employee standpoint, we continue to invest in our people. We rolled out an average wage increment of 7.5% to 8% offshore and 2.5% onsite during the quarter. Attrition remains in check. On an annualized basis attrition during Q1 was 14.2%, that is a 9.2% improvement over the last one year, the attrition in Q1 of 2015 financial was 23.4%. There was a slight uptick in absolute terms during the quarter, although this is seasonal for this time of year. Our total employee headcount for the group stands at 179,523.

Employee engagement efforts during the quarter were focused on the project manager layer, steering innovation at the project level at every project. We continue to simplify internal processes and policies to make Infosys a great place to work for every one of our employees. Employee training has always been a key priority and a fundamental value of our company. We have reinforced our curriculum and strengthened assessment. The Infosys Learning Platform which I talked about last quarter has now been rolled out to 3,000 trainees in our foundation training program. 480 employees have been trained on machine learning concept during the quarter and our Design Thinking training, the one- day immersive Design Thinking methodology, has now crossed 40,000 employees. As you can see the deeply held value of learnability that Mr. Murthy used to talk about continues to be our strong focus.

Finally, one more point on innovation: We are seeing new ideas coming from all corners of the company, reflecting a culture of learning and embracing change. One remarkable example is our facilities team, which has done some incredible work on renewable energy with a goal of making our campus self-sufficient by 2018. Under the great leadership of Ramdas, our Hyderabad campus will go completely off-grid by the end of this year.

Our first quarter performance gives me increased confidence that we can meet our earlier stated full year revenue guidance of 10%-12% in financial ‘15 constant currency terms.

I want to thank all of our leadership team across Infosys from sales and consulting to delivery and all our enabling functions. All these leaders are committed to and passionate about delivering value for our clients and to our investors.

And now my friend Rajiv who was recognized as the Best CFO by Finance Asia this quarter, and in my view he is the best CFO period, will now take you through the financial highlights before we open up to questions. Thank you.

Rajiv Bansal

Thank you, Vishal. Good Morning, everyone.

We ended the quarter with revenues of Rs.14,354 crores, quarter-on-quarter growth of 7% in rupee terms. In US dollar term we grew 4.5% on reported basis, on constant currency basis based on Q4 average rate, we grew by 4.4% and by 3.6% based on March 31, 2015 rates. If you recollect, in April we had given a guidance of 10% to 12%, which required a sequential growth rate of 2.8% to 3.5% in March 31 rates to meet the upper end of the guidance. Our performance in Q1 is in line with the required rate for the upper end.

I believe we have done reasonably well on the margins front in this quarter; we have been able to contain the impact of wage hike and visa cost on our operating margins to 170 basis points through better operational efficiencies and cost optimization efforts. As you would recall, we rolled out an average wage hike of 6.5% for employees in India and 2% for overseas employees. The net impact of all the hikes that we have done including the retrials benefits was about 7.5% for the quarter and about 2.5% for the overseas employees. We have also rolled up promotions in line with our quarterly promotion policies during the quarter. During the quarter, our utilization excluding trainees went up from 78.6% to 80.2% and onsite mix increased to 29.2%.

Pricing continues to be under pressure and has declined by 0.7% quarter-on-quarter on reported basis and 0.8% on constant currency basis. On a year-on-year basis, the pricing has declined by 7.3% in reported terms and 3.3% in constant currency terms.

We added 11,889 gross employees during the quarter with a net addition of 3,336 employees. We normally see a higher attrition in Q1 as employees leave during the quarter for pursuing higher studies. Our annualized attrition on standalone basis was 14.2% as against 13.4% last quarter and on consolidated basis was 19.2% as against 18.3% last quarter. However, annualized attrition on a standalone basis has declined by over 900-basis points to 14.2% when compared to Q1 of last year. Similarly, on a consolidated basis, annualized attrition of 19.2% is 700 basis point reduction compared to Q1 of last year. This highlights the positive impact of all the initiatives that we have undertaken in the last year to retain our talent.

Our cash and cash equivalents as of June 30^th was Rs.30,235 crores as compared Rs.32,585 crores on March 31^st. The decline in cash and cash equivalents is due to pay out of final dividend and pay out towards acquisition of Kallidus and impact of increase in DSO days. Our DSO for the quarter went up to 68 days, something that we are watching very closely.

Last quarter, we articulated our capital allocation philosophy with up to 50% of our net profits to be distributed as dividend and balance to be invested towards M&A and capex. With interest rates falling and expected to fall further during the year, we expect our interest income as a percentage of revenue to be significantly lower compared to last year.

During the quarter, we have seen volatile currency markets with rupee depreciating against US dollar and major global currencies. For instance, on a quarter end exchange rate, rupee has depreciated by 1.8% against dollar, 8.2% against GBP, 6.5% against CHF and 6% against Euro. This has resulted in a forex loss of Rs. 25 crores for the quarter. We had outstanding hedges of $996 mn at the end of the quarter.

Though the effective tax rate for the quarter was about 28%, we expect it to be between 29% to 30% for FY16 due to increase in statutory tax rates in India and some of our SEZ units moving from 100% tax exemption to 50% tax exemption.

On the segment Performance, North America grew by 5.1%, Europe grew by 1.2%, and Rest of the World grew by 9.7%, while India has declined by 6.2%. Amongst vertical – RCL grew by 7.3%, Manufacturing by 5.4% FSI by 2.8% and ECS by 2.6%.

We have retained the constant currency guidance of 10 to 12% for FY16 which was given in April. Due to favorable cross currency movement between March 31st and June 30th, 10%-12% in constant currency now translates to 7.2% to 9.2% in US dollar reported terms, as compared to 6.2% to 8.2% that we gave in April. This is a sequential growth of 2.3% to 3.5% CQGR from Q2 to Q4 at June 30th rates.

We continue to expect our operating margins to be in the band of 25% (+/-1%).

With that I will open the floor for the questions. Thank you.

Moderator

Thank you very much, sir. Ladies and Gentlemen, we will now begin the Question-and-Answer Session. Our first question is from Anantha Narayan of Credit Suisse. Please go ahead.

Anantha Narayan

I had a couple of questions; one is Vishal, do you think Infosys is now in a better position to have revenue predictability across quarters or do you think that still requires some work done for that?

Vishal Sikka

I think that to a large degree especially when you look at services, based on the existing momentum of the existing contracts, we continue to have visibility. Beyond that we see sectoral influences, in particular, every once in a while when there is a ramp down, the negative effect on the revenue can hit us much more quickly than the positive effects of signing deals. So there continues to be certain degree of unpredictability over the quarterly basis and we are putting in systems and those of you familiar with my background, we are going towards becoming completely real-time in how we operate so that we have much better visibility and the ability to forecast and so forth. But having said that, we have enough visibility that we are maintaining our guidance that we have provided earlier of 10% to 12% growth at constant currency for the remainder of the year.

Anantha Narayan

Second question was, was there any spill over from the March quarter into this quarter?

Rajiv Bansal

There is no spill over. Last quarter during the earnings call, we did speak about certain ramp downs and we also spoke about certain deals which could not be closed in the last quarter. So there would always be, in a dynamic business environment certain projects which will move from quarter-to-quarter depending on the client decision making cycles, but there is nothing significant in this quarter that we have seen is coming because of the decisions taken in Q4.

Moderator

Thank you. Our next question is from Ankur Rudra of CLSA. Please go ahead.

Ankur Rudra

My first question is Vishal, clearly your initiative last quarter to increase central oversight in the top accounts has borne results. The question is how much of that is sustainable, when do you think you will go into a regular period where sales by itself will be very strong, you do not have to have the central oversight. That is question #1. Secondly, if you could highlight anything on Europe, the softness was it client-specific?

Vishal Sikka

I think we have great sales performance and great sales leadership. The purpose of bringing a dedicated focus to the top-15 accounts is because there is so much opportunity there and the opportunity to bring a company-wide focus on those accounts always helps more so than in a traditional regular account. So this is not so much a reflection on sales in anyway as in our ability to bring a broader companywide focus to be able to connect the dots better for these extremely important clients and as you said, we have seen the results there and we expect to continue to see the results there. Having said that the strong focus on the top clients is something that is a phenomenon that we see obviously in the early phases of this transformation, but we will obviously continue to bring this to every one of our client and you can expect to see that and also raise the floor to bring more and more clients into this higher bucket. And you can see that our performance in the top 50 mn+ clients that we have and 100 mn+ clients, 200 mn+ clients, all improved significantly over the course of the quarter.

Ankur Rudra

The second question was on Europe. Now, the weakness in Europe was it client-specific?

Pravin Rao

In Europe from a macro perspective we are not seeing any issue. So when we look back over the last 5 years, we notice that Q1 has been the weakest quarter from a growth perspective for Europe. So in some sense it is seasonal. We won 6 large deals this quarter, out of which 2 were in Europe; we have opened 14 new accounts; we are seeing good traction in some of the verticals like Financial Services, Manufacturing, Healthcare, Retail & CPG. So, it is not a secular trend, we expect Europe to pick up in the coming quarters.

Ankur Rudra

Pravin, if I could just get one more comment from you from the employee addition in 1Q appear to be a bit weaker than last quarter. Is this more of your strategy and action in terms of automation industrialization or was it more about planning for the rest of the year?

Pravin Rao

It is more planning for rest of the year, because we have had good success in automation so far but we still have long ways to go. So, it is more from a planning perspective.

Moderator

Thank you. Our next question is from Yogesh Agarwal of HSBC. Please go ahead.

Yogesh Agarwal

Just a couple of questions if I may. Firstly, Rajiv, sub-contracting cost has been going up; it is almost all-time high now. Is it change in deal profile or some initial ramp up of large deals?

Pravin Rao

On the sub-con, it is a combination of need for ramping up on some of the deals that we have done and sometimes a mismatch in skills. Particularly whenever we win deals, initial ramp up happens in US and at that time we have to ramp up immediately and sometimes it is a function of whether people with skills and visas are available. So that is one of the reasons. And in Q2 as well, we will probably expect to see similar trends because the new set of visas will start kicking in from October.

Vishal Sikka

One more thing I want to add to Ankur’s question earlier on automation, we have seen, as Pravin said, significant growth already in automation. I mentioned examples of infrastructure management where we saw 7.2% growth over the course of the quarter which has been one of the first beneficiaries of automation. We rolled out the Infosys Automation Platform within infrastructure management service to the first 10-clients and we saw productivity improvement of up to 37% and people savings of up to 17% in those cases. So this gives us a significant hope for bringing in automation as a value driver and amplification of our capability so that we can do more projects with less number of people, so that we can bring differentiation to our projects as well as address the margin and the RPP terms that Rajiv was talking about earlier. Beyond infrastructure management we have been bringing automation to more than 1,000 projects through our zero-distance initiative and we are continuing to think with Panaya significant role of automation in the packaged services, upgrade projects and package systems and things of this nature. So we are seeing a wide spread embrace of automation across the company and the early results of that are already starting to take shape and we fully expect that as we go forward, the role that automation plays and our work will continue to increase significantly.

Rajiv Bansal

I will just like to add to what Pravin said on the subcontractors. Subcontract is more of the way we plan because when we are looking at accelerating our growth, as a part of planning process we did increase the subcontractor spend to be able to cater to the immediate requirement of the clients in terms of skill set, visas and many other things. But having said that, yes subcontractors per capita cost is much higher than employee per capita cost. That is definitely a margin that is available to us. We are focusing on working on how to bring it down over a period of time and there is a lot of initiative in terms of hiring engine, in terms of skilling, re-skilling of people. So this is something that we are confident of, we are working towards it but as we accelerate our growth you would see this cost going up slightly. But over a period of time I think we should be looking at bringing this cost down.

Yogesh Agarwal

Right, thanks Rajiv. And just one more question, maybe for Vishal, this is regarding the consulting and PI business. So this business involves all this implementation of upgraded versions from software companies, now SAP is out with S4 and many believe this is the biggest upgrade in 20 years, do you guys believe it could have a big positive impact on Infosys PI business as well going forward?

Vishal Sikka

I think that every leading package services company is working to address the needs of the next generation real-time enterprise and especially the benefits of Cloud Computing to the core business. Having been at SAP for 12 years, I am extremely proud of the work that has happened with regard to HANA and the progress that S4 HANA has shown. I believe that we at Infosys are by far the best partners of SAP when it comes to helping enterprises on their journey to S4 HANA. But as enterprises adopt S4 HANA and they move forward on their S4 HANA journeys, we believe that Infosys will be distinguished partner for that, so we will see that growth. But having said that, I think that we will see every major Enterprise platform vendor continue to bring things and we with the scale that we have as well as the ability to train that we have, will continue to be the leading partner for our partners in their journeys.

Yogesh Agarwal

So in case assuming it is successful there will be more need for services going forward than it is today with the upgrade, will that be right assumption?

Vishal Sikka

That's absolutely right assumption. I mean if you look at the nature of complex deployments, because of the mission critical nature of these ERP systems, there tends to be a large variance in the versions that they run on. So one of the reasons that we did the Panaya acquisition was to help companies adopt the newer releases more productively, faster, more efficiently and Panaya is already helping do that, as I mentioned we have more than 100 engagements of Panaya that are already going on, 15 deals that we sold in the course of the quarter, 137 conversation that we have going on with clients. So we believe that tools like Panaya can help with that upgrade and the renovation journey that companies have. When you specifically look at the situation with SAP, obviously many of the customers on older releases will want to move to the latest one. Even in the newer releases the ECC6 and so forth will want to embrace the benefits of HANA. So as they do that, obviously we will see a need for the kind of services that Infosys can provide, in particular when you look at the simplification of the upgrade process or when you look at dealing with the custom code that sits in these deployments. More broadly, beyond S4 HANA we see that the enterprise landscape at customers is a permanently heterogeneous one, it is one that has this dual pressure of on the one hand keeping up with the latest that technology can offer and on the other hand continuing to manage the costs of these landscapes. So one of the things that we have laid out which went into effect in this last quarter under the leadership of Sanjay Purohit who runs our consulting organization, it is something that we call knowledge-based IT where we want to work as we have done with our engineering clients like Boeing, we want to bring the benefits of knowledge-based IT to all Enterprise IT landscapes. And in order to help them systematically gain control of the evolution of their IT landscapes to simultaneously lower the costs of these landscapes and continue to renovate them and bring new technologies, new experiences and new applications into their landscape without having to make trade off as we have been in the past. We have started to see the first adoption of knowledge-based IT go in to this effect and our attempt is to frame individual road maps like S4 HANA or Oracle Fusion or others in the context of this knowledge-based IT which we believe is a broader and a longer-term way to think about the evolution of enterprise IT landscapes.

Moderator

Thank you. Our next question is from Parag Gupta of Morgan Stanley. Please go ahead.

Parag Gupta

Hi, good afternoon everyone. Just two questions, first one to Vishal. Vishal if you could just help us understand, you have this keen focus on revenue per employee and we have seen that somewhere around $52,000 for the last few quarters, how do you see this trending up to $80,000 I mean what takes it up and over what timeframe? And the second question is to Rajiv, on your margins you maintained a margin band, but if you were to assume, if the rupee continues to remain at the current levels of 63.5, would you still maintain that band, and if you do then where are these incremental investments going into?

Rajiv Bansal

I will take the second question first. On the margin front, yes the rupee has depreciated by about 2.5% during the quarter which has given us a benefit of about 60 basis points on the bottom-line. Having said that I think we are on a journey which requires us to make a lot of investments into our existing capabilities, into new capabilities, into employees, into technology assets, into new acquisitions. We have to make investments. There is a lot of pent up demand. We have curtailed our investments over the last couple of years when our growth rates were lower and we have to balance the need of making investments as well as on the margin front because we have to grow at good margins. So we recognize that fact and it is a fine balance that we are striking, that balance worked well last year where we were able to improve our performance on the operating margins front by almost 190 basis points. This quarter also we have been able to balance it pretty well. But I would not want to say that just because of rupee depreciating it will show up on the bottom-line as you go along or when the rupee appreciates we will just reduce our bottom-line. I think for this year 24% to 26% in our view is the right margin which balances our need to make investments and also at the same time look at the expectations from the market and also in terms of attrition and other things that we have looked at. If you look at our attrition, it has significantly come down over the years, as I said on a standalone basis by 900 basis points, that is a result of all that investment that we have done in the last one year on the employee front. So there is a lot of need to make investment, but I think 24% to 26% operating margins for this financial year is a good margin at the guidance that we have given.

Vishal Sikka

And on the RPP point, I think that probably the most important measure of the success of the journey that we have in front of us is the improvement in the revenue per FTE. RPP is the traditional measure that services companies have used and I have articulated an even broader variant of that which is revenue per FTE to account for development of technology, IP and productized services as an augmentation to the people led services. We have seen a decline on that largely due the decline in the RPP. We have seen a 3.3% Rajiv decline at constant currency decline in RPP. Also if you look back on several other quarters, be it before that, you see that this is a trend. You also see that in the performance of the other companies in our industry and we believe that this is a fundamental, structural pressure that we face in the industry and that is why I have articulated a strong need for both bringing automation to our existing work and embracing that automation and complementing that with innovation, with being more creative, more strategic in being able to build strategic solutions for our clients. We have started to see this pick up momentum and as we see the momentum pick up in the decline in RPP across the board we see a further increase in the need for automation and the need for improved productivity and so forth.

So to think about the journey from where we are today to the $80,000 revenue per employee aspiration that I have laid out for 2020, we have to look at how will we achieve that and that will come by augmenting the work, by complementing the work of people with software. If you look at our performance with Panaya this last quarter, the Infosys sales team did 15 deals of Panaya, not the Panaya sales team, they did their own sales but the Infosys sales team did 15 Panaya sales. In manufacturing we did 8 and in all segments we brought Panaya to our clients. This is very significant. It is not yet significant from a revenue perspective, but this is very significant from a strategic perspective because we alter the traditional model of pitching an upgrade project as a people only project with now people plus software. So instead of x number of people going into an upgrade project now we have a smaller number of people and the Panaya software in there. The Panaya software is at a much higher margin and the smaller number of people allows us to improve our utilization, improve our RPP, improve the differentiation to the client by lowering the price but yet at the same time increasing the margin and increasing the RPP. We see that same thing happen in IAP, we see the same thing happen in Skava and we see that pattern repeating over and over across service lines. In BPO for example we are making a massive embrace of automation, in IVS our verification service, we are seeing a tremendous adoption of automation in the way model checking is used to define test, to do automation of test itself and so forth. The key to success in this dimension is going to be how we replace the people only projects with the people plus software where the software is monetized, it comes at a higher margin, we lower the number of people per project thereby increasing their productivity which is the virtuous cycle that Prof. Mashelkar talked about, “doing more with less for more.” Our focus is on accelerating that automation in our fixed price projects in particular so that the per capita RPP improves and we are able to continue to price the deals competitively given the situation in the market.

Moderator

Thank you. Our next question is from Sandeep Shah of CIMB. Please go ahead.

Sandeep Shah

Yes, thanks and congrats on a good start. This good start to the FY16, do you believe it is more weighted towards faster decision making cycle for the industry as a whole or it is more weighted towards the Infosys initiatives in terms of an aggression towards the deal pitching and deal winning? And as we commented that the deal win ratio has been going up, do you believe there is still a further room to improve and we can expect the TCV wins to improve going forward?

Vishal Sikka

I believe that yes we do expect that there is still room for improvement and that we will continue to improve both in terms of TCV and in our ability to win the deals. It is not so much a function of how the industry is changing or the client environment is changing as a function of the initiatives that we have taken to improve our ability to win deals and improve our innovation in our existing clients. Both are starting to show result. For example we have completely redesigned the way that we engage with our clients, the way that we pitch our proposals and so forth. So every one of the large deal wins that you see that happened in Q1 had at least some element of this new process that we have put in with a new team to help articulate, to help become much more deeply client centric in how we articulate our proposals.

See one of the things that I have seen in the industry over my last roughly one year here is somewhat aloof and detached nature of the RFPs and the RFP responses and so forth, instead of an intimate strategic engagement with our clients. I want to see us go more and more towards that latter and we have started to see that effect. So I would definitely ascribe it much more to the latter than to any shortening of the cycle with our clients.

Sandeep Shah

I am saying FCF-to-PAT ratio has not been up to the mark for the last two quarters even if we exclude the inorganic payment.

Rajiv Bansal

So there are two things, one is the dividend payout this quarter of about $528 mn that we paid, we increased the dividend payout to 50% and we had to catch up for the final dividend because it was 40% till the interim dividend and when we increase it we had to for the whole year catch up had to be done, so that was one. Second is the capex, as I told you there is a lot of capex pent up needs which were there for the last couple of years and we have started spending money on infrastructure. As we are accelerating our growth we need to build new campuses, buy more land, so a lot of investments happening on that side.

On the operational side the working capital requirements of the company have gone up because of the DSO. If you look at the date of sales outstanding of the last two quarters, has gone up from 61 days to 65 days to 68 days and that has definitely put more pressure on the working capital. This in line with what we are seeing in most of our client negotiations where the clients are asking for better payment terms especially in the Manufacturing and Retail sector, that has resulted in our DSO rates start to going up, there is nothing else that I am seeing there primarily. It is primarily because of these two things. In this quarter we have also paid Rs. 475 crores of taxes because of a draft assessment that we received from Indian Tax Authorities which is under appeal but we decided to pay 50% of that amount during the last quarter under protest.

So if you add up all this stuff with acquisition, dividend payout and tax payment is going to happen depending on the needs. But on the operational side I think it is the days of sales outstanding which is one parameter that we are tracking very closely in light of the better payment terms which the client is asking for and we have to see how we manage that going forward.

Moderator

Thank you. Our next question is from Diviya Nagrajan of UBS. Please go ahead.

Diviya Nagrajan

Hi, congrats on great execution in the quarter, couple of questions. Vishal you talked a lot about automation. We have been hearing a lot of good things about the IAP but there seems to have been movement from your competitors as well, we have heard of new cognitive platforms that are coming up on the AI based automation side. What is Infosys's response to these kind of initiatives and what do you see as revenue opportunity for these kind of initiatives?

Vishal Sikka

Well I think that what you see happening in the industry is a natural course of evolution of systems towards more and more automation, towards bringing more and more intelligence into our software systems. So I am not surprised that others have started to follow in the same direction. We are seeing an embrace of automation and of Artificial Intelligence across the board both in terms of improving the productivity of existing service lines as well as in opening up completely new kinds of engagement that were never possible before.

I will just give you two examples – so I mentioned already Automation and the role that AI is playing in helping renew our service lines. For example in BPO, we are bringing automation to help improve the productivity of our employees, in IVS we are using advanced AI based techniques to help do more automated testing of software all the way from model specification, from writing the specs of the tests, to actually conducting the test, and improving the coverage of test and so forth. In Infrastructure Management, I already talked about how the role that AI and Automation plays. In the level-I and level-II type of service desk type work, Automation can help improve and automate the processes that people follow for routine kinds of things, but in more advanced help desk resolution in L2, L3 help desk situations you need much more comprehensive AI capabilities to understand language, to understand the content of servicing customer’s systems, and things of this nature.

So that is bringing AI into the existing service lines, but when you think beyond that we believe that there is a great need to build new kinds of applications that were never possible before in predictive analytics, in forecasting, in data mining and generally in bringing AI solutions to bear on problems that were not solved before. We are seeing a great adoption of that as well. We have been working with our clients on AI. Infosys Information Platform also has AI capability since the very beginning and we have already more than 30 engagements going with complex Artificial Intelligence system in helping, for example, in balancing aircraft, in doing modeling of customer behavior, in doing fraud detection, in doing predictive modeling of maintenance models for complex machines, and things of this nature. So we see that AI and AI as an amplifier of human abilities is fundamental to the future of our company and our industry. And so I think the work that you are seeing being done by the others in largely following the language and the strategies that we have laid out is I think a natural course of events.

Diviya Nagrajan

So you don’t think that Infosys has to play a catch up as far as cognitive systems are concerned?

Vishal Sikka

Catch up to what?

Diviya Nagrajan

What is a cognitive system initiative, is IAP also equally cognitive. We have been hearing of a system that can basically predict and maintain say for instance, infrastructure which you talked about pre-emptively like for instance one of the unlisted company that we keep hearing about is IPsoft which has launched a semi or cognitive platform and now they are talking about a call center cognition software as well. Is that something in the same direction as we are proceeding, and when do we see products in the market that will be branded on the Infosys IAP?

Vishal Sikka

My entire thesis around the evolution of Infosys that I have been talking about for the last one year is around the embrace of these technologies. My own background is in this as you can go and see my educational work that I have done in Artificial Intelligence over the last 25 years, I see that the work that we have been doing, when I started at Infosys we already had a bunch of AI initiatives going on. We have dramatically strengthened that. We have our Class on Artificial Intelligence that we started back in July or August of last year has now more than 2000 people that have gone through that. We have been working with our clients on AI projects. You always hear about small little efforts from others in various ways when using terms like Cognitive Systems and Cognitive Computing and things like that. While we have been working with AI systems at our clients and basically in every vertical and we are bringing that to every one of our ongoing project, so AI and automation and these things are not a center of excellence at our company where, oh! here are the 20 people who are working on this thing. It is something that we are doing at a massive scale and we have already been doing it for quite a while. So my view is in that sense different from yours. I see others in the industry following in our footsteps and so I find it awkward to answer your question that are we playing catch-up.

Divya Nagarajan

Fair enough. Just one last question, you had alluded to volatility on a quarter basis. Now we are used to seeing a certain seasonality in Infosys’ business so far. How do we reconcile the two? Are we looking at the seasonality in the broad sense remaining intact and within that there is a certain volatility or how should I read that statement?

Rajiv Bansal

This is a dynamic business. You would see volatility and with 60% of revenues coming from time and material projects depending on the number of working days as we have in each quarter, you would see volatility in the revenue growth that we publish quarter-on-quarter and that is the reason we say that you should not look at our company’s performance on a quarter-to-quarter basis but look at it from a year-on-year in a medium-to longer-term, how the company’s different parameters are panning out. Having said that, I think our H2 is always a weaker part of the year. Q3 and Q4 have traditionally been the weaker quarters for the industry as well as for the company. We have taken cognizance of that much earlier in the year this time after having learnt from the Q4 of last year. We are putting in place a lot of processes to ensure that our Q3 and Q4 are not a surprise and are in line with what we expect. There is a lot of work happening in terms of the deal wins and the order booking and what will sustain a good Q3 and Q4. Having said that, things like number of working days and the client budget cycles are beyond our control, so you would see the impact in those quarters but we are doing everything that we can do in our capacity to ensure that the second half of the year is as good as the first half.

Moderator

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

Sagar Rastogi

Thanks for taking my question. A quick follow-up actually to the previous question, so last quarter you had indicated that seasonal softness in Q3 and Q4 would be less pronounced, so that statement still stands, right? I just wanted to confirm that.

Vishal Sikka

So traditionally we have seen that the second half of the year is generally weak compared to the first half and I believe that this year we are better prepared for that. In particular many of the innovation-oriented initiatives, the automation and operational efficiency oriented initiatives will help us not see that over the course of the second half of the upcoming year. But I want to be cautious about that and see how we go in our execution as the year develops. But I do believe that many of these structural changes that we have put into place around grassroots innovation and zero distance and so forth and bringing automation in AI to our existing service plans, as well as the adoption of the new technology that we have been building, will help us have better performance in the second half of the year. That is our wish and that is our execution plan and that is our hope but we want to be cautiously optimistic about that.

Sagar Rastogi

Understood. And also Vishal you talked about improving the RFP process. So just wanted to get some more details on how you are doing this. You have talked about maybe training those people but are you also adding more headcount there, are you changing maybe the type of people who you employ in the pre-sales department, for example, just some additional color would be helpful.

Vishal Sikka

It is fundamentally about improving the quality of our proposal, improving the way that we engage with clients and we articulate the value of what we bring to the table. So we have established a dedicated team to do that. It is led by a great design thinker, Shabana. She runs this team. Our endeavor there is primarily to become much more empathetic to the client, to the understand the nature of their strategic situation, there objectives and help address that with a much more compelling value proposition, much more compelling offering that addresses those needs in a unique and an uniquely differentiated kind of a way and also in the nature of the articulation itself that we have focused on. It is not a dramatic increase in the size of the team or anything like that it is simply an improvement in the quality of how we do these things. Given the early nature of this, this is something that has impacted the large deal so far and over time our endeavor will be to make this a cultural effect that goes into every aspect of our work. Our unified consulting organization has already been working in this direction by bringing Design Thinking as a mechanism to articulate the value of what we do to our top clients, top 200 clients in this case, as well as having strategic engagements around both renewal of their existing landscape and bringing new kinds of systems to them. That is what the nature of the activity so far has been. It has helped improve our win rates; it has helped us get many of these large deals that we talked about done at a significantly better rate than we did before. Already in the month of July, we have done a few additional of these large deals. So we expect to see good results as a result of this initiative, but again as I said before, my wish for our company certainly but also for the industry is that we get away from this idea of RFPs which is fundamentally somehow seems to be about a failure to decide. I will rather go towards more client intimacy, more understanding of an amplification of clients abilities with what we can bring and then therefore we can have more strategic engagements and more strategic dialogues with clients.

Sagar Rastogi

Great. And just a quick follow-up to that and I completely understand where you are coming from, but just wanted to understand if this team that you have built led by Shabana is a separate team sort of overseeing the quality of proposals, what are you doing to sort of change the culture of the entire organization internally to get this right. Is it more training or is it basically even changing the job descriptions or roles in pre-sales?

Vishal Sikka

It is about training, it is about creating a new culture of customer centricity and the team itself doesn't take over from the work that is done by our regular sales colleagues but it is about having this team as an amplifier of the ability of our team to better articulate the value so that they become better equipped at better understanding the situation at the client and better articulate the value. It's a combination of that. So ultimately I guess you could say it comes down to better training but it is really in how we understand, how we create a solution, how we create the architecture of the solution, how we estimate the value that we provide and so forth and also in being able to articulate that. And so yeah, you could say that that is a training activity.

Moderator

Thank you. Our next question from Kawaljeet Saluja of Kotak Securities. Please go ahead.

Kawaljeet Saluja

I just have a house keeping question. Was there any one-off hardware pass through amount which was booked in revenues? And second, were there more number of billing days than usual which helped you grow in this quarter?

Rajiv Bansal

There is no one-off revenue per se that you defined. There would always be certain revenues which come based on the nature of the work that we do for the client which could get recognized in a particular quarter but have not seen anything substantial or significant this quarter which is different from the last quarter. License sale would typically get recognized if it is sold as a standalone deal in the quarter that we sell. So if you look at Finacle or our IP based businesses, they would typically have certain seasonality in terms of when we close the deal and when we deliver the licenses but nothing significant that I have seen this quarter.

On the working day impact, yes, the working days do vary quarter-on-quarter and this quarter we had two extra working days both at onsite locations and offshore locations which has helped us in delivering a better growth during the quarter. But as I said, this number of working days would vary. Typically Q1 and Q2 would have more working days and Q3 and Q4 would have lesser working days but that is something which is based on the calendars and the holiday calendars in different geographies that we operate in.

Moderator

Thank you. Our next question from Manik Taneja of Emkay Global. Please go ahead.

Manik Taneja

Just wanted your thoughts both in terms of how do you see demand from Financial Services both across US and Europe, if you could divide your comments across the two geographies that was question number one. Second question was with regards to the performance in top customers. You have done extremely well with regards to growth over there. If you could outline what has driven the stronger growth within top customers, any particular service lines that you could call out? Thank you.

Vishal Sikka

So we have had a great growth, 5.7% growth in our top 10 accounts and that is a result of the innovation work that we have been bringing to the ongoing projects at the clients as well as improving the strategic engagement with the clients. I laid that out already earlier that it is about increasing the focus on the clients, being able to better connect the dots across the organization and bringing the power of the entire organization to bear on the top clients that has produced this result. We do expect, we do want to see that continue to grow and expand to also the additional clients more at the bottom as we go down that pyramid of our clients. With regard to Financial Services we had a record quarter under the leadership of Mohit, so let me ask him to comment on where we are going.

Mohit Joshi

In Financial Services as we have maintained for several quarters that we are cautiously optimistic. I believe that our key themes of industrialization, of Digital and of helping clients meet their regulatory and compliance agenda, that message is resonating with the clients and if you see this quarter, our growth, is based on organic growth but it’s also based on new client acquisitions. Vishal spoke about a couple of deals, Deutsche Bank and Allied Irish Bank. So it’s also based on these and several other large deals. So for the remainder of the year we remain cautiously optimistic about the opportunities in the sector based obviously on the fact that the themes are resonating, the points of views are in place and we are growing our list of clients.

Manik Taneja

Sure. Essentially with regards to Financial Services on one of the media interviews you guys indicated that you are very confident about growth in Financial Services. Should we expect Financial Services to grow ahead of company?

Mohit Joshi

Yeah, like I said, we remain cautiously optimistic about the Financial Services sector. I am not a soothsayer but as of now it looks very promising indeed.

Vishal Sikka

Perhaps I can add to Mohit’s caution by saying that we fully expect to be very optimistic about our performance in the Financial Services world. But as Mohit has said we had a great quarter in Financial Services. We had some effect from Insurance and a couple of clients which we don’t believe is structural and we are excited about where this journey is headed and in particular as you see the results of banks coming in, we do believe that there is tremendous opportunity for both renovation of existing legacy landscapes. As Mohit said, as well as bringing new kinds of innovations in the Financial Services world.

Moderator

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

Sandeep Mahindroo

We would like to thank everyone for joining us on this call and we look forward to talking to you again. Thanks and have a good day.

Moderator

Thank you. Ladies and gentlemen on behalf Infosys that concludes this 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 2016 RESULTS

July 21, 2015

CORPORATE PARTICIPANTs

Vishal Sikka

Chief Executive Officer & Managing Director

Pravin Rao

Chief Operating Officer

Rajiv Bansal

Chief Financial Officer

ANALYSTS

Edward Caso

Wells Fargo

James Freidman

Susquehanna International Group

Joseph Foresi

Janney Montgomery Scott

Ravi Menon

Elara Securities

Keith Bachman

BMO Capital

Rishi Jhunjhunwala

Goldman Sachs

Dave Koning

Baird

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. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference, please signal an operator by pressing ‘*’ and then ‘0’ on your touchtone telephone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sandeep Mahindroo. Thank you and over to you sir.

Sandeep Mahindroo

Thanks, Inba. Hello everyone, and Welcome to Infosys Earnings Call to Discuss Q1 FY16 Financial Results. This is Sandeep from the Investor Relations team. Joining us today on this call is CEO and MD – Dr. Vishal Sikka, COO – Mr. Pravin Rao, CFO – Mr. Rajiv Bansal along with other members of the senior management team. We will start the call with some remarks on the performance of the company for the recently concluded quarter by Dr. Vishal Sikka followed by comments from Mr. Rajiv Bansal. Subsequently we will open up the call for questions.

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

Vishal Sikka

Thank you, Sandeep. And good afternoon, good evening and good morning, ladies and gentlemen. Thank you for joining us.

I am very pleased with our overall performance for the quarter that ended on the 30th of June 2015, following the below average performance that we saw in our Q4 of last year. On nearly every parameter our results were on par or ahead of our plan. Quarter-on-quarter our revenue was US$2.256 bn, this translates to a quarter-on-quarter growth of 4.5% in US dollar terms and 4.4% in constant currency.

The overall demand environment continues to be encouraging baring a few select industry segments. Our volumes grew by 5.4%. This was the best quarterly growth in revenue in the last 15 quarters and in volume growth in the last 19 quarters excluding the effect of acquisitions. I believe these results are based on creating a deeply client centric organization in our traditional service lines as well as in our new initiatives and in our business enabling functions. In large deals and in top accounts we have re-imagined the client experience and created new processes to bring more discipline and more focus and this is enabling us to design our proposals based on the specific value driver for our clients. In new service lines we are seeing wide spread options of innovation and emerging technologies both in the grass roots of our organization as well as in breakthrough innovation. And this is opening up entirely new types of conversations and new engagement with our clients.

Our operating margin for the quarter was 24%, down from 25.7% of the previous quarter primarily on account of seasonal wage increments and visa fees. Employee utilization was at 80.2% excluding trainees and there is certainly some room for improvement that we see here. We have rolled out many specific initiatives during the quarter that are targeted at improving the productivity of employees and we are seeing some very encouraging early adoption of these initiatives. We have created a strong operational focus throughout the organization and with every employee. While we are still early in our journey to become the leading next generation services company, this result gives us good momentum for the rest of the year.

Let me now talk specifically about few aspects of our performance. Growth came across the board in all of our business segments. In financial services we had a record quarter under the leadership of Mohit. Under Manish’s leadership our healthcare and life sciences segment saw one of its strongest quarters. In manufacturing and high tech under Sanjay Jalona key client relationships saw significant expansion. And in energy and communications under Rajesh we also saw significant growth despite the sectoral pressures. And Sandeep’s Retail CPG unit had a great quarter of deal conversions. And in delivery with Ravi who took over our global delivery services, we have seen tremendous growth in horizontal service lines, Infrastructure Management for example grew by more than 7% quarter-over-quarter.

Last quarter I talked about the changes we made to rethink our client facing sales and delivery function and bringing together multiple parts of the organization and really enhance our RFP processes. This has begun to show result in large deal wins and in client metrics. In large deals, improving our competitiveness to win large multi-year outsourcing engagements is quite important to build a solid revenue base for our future growth and to establish stronger client relationships which are so critical to our business. We closed six deals of more than $50 mn each including three deals of more than $100 mn of total contract value. These include a multi-year agreement with Deutsche Bank covering Bespoke development, maintenance, Digital and Mobility, Package Implementation and Testing Services and Application Development and Management Transformation Innovation services deal with allied Irish Banks, a BPO and SAP agreements with the shared services unit of the Australian state of New South Wales, and in the first few weeks of July as well we have won a few more additional large deals.

From an account mining perspective we instituted a strong oversight of our top accounts and a more rigorous focus on pipeline development, on conversion and on just better connecting the dots and bringing the entire power of our organization to bear on the top clients. Our top 10 clients grew by 5.7% quarter-on-quarter compared to a decline of 1.2% in the previous quarter. We added 37 net new clients and the number of $50 mn+ accounts increased to 49. We have now integrated our consulting partners in to our top 200 accounts, our intent here is to increase the focus on discovering and delivering new value to our most strategic client partnerships using design thinking methods and we are hopeful that under the leadership of Sanjay Purohit, these consulting lead initiatives will show a positive trend throughout the rest of the year.

Higher revenue per FTE is perhaps the most important measure of the success of our strategy. As I have said before the pricing environment for traditional services continues to see downward pressure. We will work to change the trajectory of per capita revenue upwards in the coming quarters. Traction in our Finacle and Edge units and the acceleration of the deployment of automation solutions for software maintenance in Infrastructure Management and in business process outsourcing services will continue to be a key part of our focus towards this objective. In Finacle under Michael’s leadership we won 15 deals during the quarter including those with Corporation Bank, Indian Overseas Bank and Federal Credit Union. Our Edge suite of software as a service offerings were sold into 14 new clients in the last quarter and four of these have already gone live. Johnson & Johnson selected ProcureEdge for its worldwide sourcing operations. BT Openreach expanded it’s use of our AssistEdge platform in its call centers for improving their customer service and providing analytical insights. And by the 1st of August we will have completed the merger of our Finacle and Edge teams into one entity to leverage synergies in product management, in go to market models and in operational efficiency.

Our Infosys automation platform for Infrastructure Management is already live in 10 client programs and is already yielding results in the form of up to 37% increase in effort productivity and 17% improvement in human portion of the services. Similarly with Panaya we have seen some great traction in this last quarter, we won 15 engagements sold by the Infosys sales team together with the Panaya team in our Retail, Manufacturing Utilities and Services segments coming together. We are now pursuing more than 137 opportunities for Panaya’s cloud suite and Panaya platform, applying it to the enterprise systems upgrade opportunity as well as going beyond enterprise system upgrades into new areas like testing and realizing 35% to 50% productivity gains in these projects the way they would have done before Panaya.

In terms of mid-term strategies, from my one on one interaction with client executives and at our client conference in San Francisco last April, my sense is that our strategies and our actions are resonating well with their own priorities and this has begun to show up in multiple engagement across the company. We continue to make headway with our new services, we now have more than 127 client engagement of the Infosys information platform under Abdul’s leadership with 7 in production and 16 in pilot engagements already finished in the areas like predictive analytics for railroads, sales agent effectiveness, customer segmentation and driver telematics.

As you know we also completed the acquisition of Kallidus during the quarter and there is a growing pipeline especially in our Retail portfolio for the Skava mobile commerce platform. Our M&A and innovation related investments under Ritika’s leadership continue in full steam. We have participated in a Series-A investment round in A&SR Consulting, a management consulting that helps Fortune500 companies in setting up global IT centers with Infosys as a preferred partner.

Perhaps one of the most exciting activities of the quarter was our zero distance initiative to bring new value to all our existing client projects through innovation. This program now touches 70% of our delivery engineers and more than 676 of these ideas have already been discussed with clients. We are tracking these very closely, this grassroots innovation, this innovation in every corner of the company is at the core of our strategic transformation that we have embarked upon as a company. Ideas for these innovations have come in all kinds of areas like knowledge based IT and neural networks, early validation in performance testing, test automation using robotics, automation for cloud migration, statistical modeling for marketing campaigns, next generation technology architectures using new open source technologies.

From an employee standpoint we continue to invest in our people. We rolled out an average wage increase of 7.5% to 8% offshore and 2.5% onsite during the quarter. Attrition remains in check. On an annualized basis attrition during Q1 was 14.2% compared to 23.4% in Q1 of 2015 that is more than 9% improvement. There was a slight uptick in absolute terms during the quarter, although this is seasonal for this time of the year. Our total employee headcount for the group stands at 179,000+ people. Employee engagement efforts during the quarter were focused on project management and at the project manager layer steering innovation at every project in the company. We continue to simplify internal processes and policies to make Infosys a great place to work for every one of our employees. Employee training has always been a top priority for us. We have reinforced our curriculum and strengthened our assessment.

The Infosys Learning Platform, an online real-time platform for educating our employees which I talked about last quarter has now been rolled out to 3000 trainees. 480 employees have already been trained on machine learning concepts during the quarter and I am happy to report that our breakthrough emersion training and design thinking has now crossed more than 40,000 employees. Mr. Murthy always talked about the value of learnability as a key core value of our company and as you can see we continue to hold a steadfast focus on this all important value.

Finally, one more point on innovation. We are seeing new ideas coming from all corners of the company, reflecting a culture of learning and embracing change. One remarkable example is in our facilities team which has done some incredible work on renewable energy with a goal of making our campuses self-sufficient by 2018.

Our Hyderabad campus, a beautiful campus, will go completely off-grid by the end of this year. Our first quarter performance gives me increased confidence that we can meet our earlier guidance that we provided for the full year of 10% to 12% growth in financial 2015 constant currency terms.

I wish to thank all the leadership team across Infosys from sales and consulting to project delivery and all our enabling functions. All these leaders are committed to and passionate about delivering value to all our clients and to our investors. And now my friend Rajiv who was recognized as the Best CFO by Finance Asia this quarter and in my view is the best CFO on the planet will now take you through the financial highlights before we open up for questions. Rajiv.

Rajiv Bansal

Thank you, Vishal, thanks for all the kind words. Hi everyone. We ended the quarter with revenue of $2.256 bn, a quarter-on-quarter growth of 4.5% on a reported basis. On constant currency basis, based on Q4 average rate, we grew by 4.4% and by 3.6% based on March 31st rates. If you recollect, in April we had given a guidance of 10% to 12% which required a sequentially growth rate of 2.8% to 3.5% at March 31^st rates to meet our lower and upper end respectively. Our performance in Q1 is in line with the required rate for the upper end. I believe we have done reasonably well on the margin front in this quarter, we have been able to contain the impact of wage hike and visa cost on our operating margins to 170 basis points through better operational efficiencies and cost optimization efforts.

As you would recall, we rolled out wage hikes for our employees effective April. We had also rolled out promotions in line with our quarterly promotion policy. During the quarter our utilization excluding trainees went up from 78.6% to 80.2%, onsite mix however increased to 29.2%.

The pricing continues to remain under pressure and has declined by 0.7% quarter-on-quarter on reported basis and 0.8% on constant currency basis. On a year-on-year basis pricing has declined by 7.3% in reported terms and 3.3% on constant currency terms.

We added 11,889 employees gross during the quarter with a net addition of 3,336 employees. We normally see a high attrition in Q1 as employees leave during the quarter for pursuing higher studies. Our annualized attrition on a standalone basis for the quarter was 14.2% as against 13.4% last quarter and on a consolidated basis was 19.2% as against 18.3% last quarter. However, annualized attrition on a standalone basis has declined by over 900 basis points to 14.2% when compared to Q1 of last year. Similarly on a consolidated basis annualized attrition of 19.2% is a 700 basis points lower compared to Q1 of last year. This highlights the positive impact of all the initiatives that we have undertaken in the last year to retain our talent.

Our cash and cash equivalent as of 30th June was $4.75 bn compared to $5.214 bn as on March 31st. The decline in cash and cash equivalent is due to a payout of final dividend and payout towards acquisition of Kallidus and impact of increase in DSO days. Our DSO for the quarter went up to 68 days, something that we are watching very closely.

Last quarter we articulated our capital allocation philosophy with up to 50% of our net profits to be distributed as dividend and balance to be invested primarily for M&A and CAPEX needs. With interest rates falling and expected to fall further during the year we expect our interest income as a percentage of revenues to significantly be lower in the current year as compared to last year.

During the quarter we have seen volatile currency markets with rupee depreciating against US dollar and all major global currencies. For instance on the quarter-end exchange rate rupee depreciated by 1.8% against US dollar, 8.2% against British Pound, 6.5% in Swiss Franc and 6% against Euro. This has resulted in a forex loss of $4 mn for the quarter. We had outstanding hedges of $996 mn at the end of the quarter.

Though the effective tax rate for the quarter was 28%, we expect it to be between 29% to 30% for FY16 due to increase in statutory tax rate in India and some of our SEZ units moving from 100% tax exemption to 50% tax exemption.

We have retained the constant currency guidance at 10% to 12% for FY16 which was given in April. Due to favorable cross currency movement between March 31st and June 30^th, 10% to 12% in constant currency now translates to 7.2% to 9.2% in US dollar reported terms compared to 6.2% to 8.2% that we gave in April. This is sequential growth rate of 2.3% to 3.5% CQGR from Q2 to Q4 at June 30th rates. We continue to expect our operating margins to be in the band of 25%, (+/-1%).

With that I will open the floor for questions.

Moderator

Thank you very much, sir. Ladies and Gentlemen, we will now begin the question-and-answer session. Our first question is from Edward Caso of Wells Fargo. Please go ahead.

Edward Caso

I sort of focused on some of the traditional business Infrastructure Management, ADM and so forth which are enjoying, strong buy but they are also the more commoditizing part of the market. Is that where you are seeing price pressure and is that what is weighing on margins here? And then maybe if you could lead that into a discussion of where you are in automation, both automation of new work you are winning and automation of existing work. Thank you.

Vishal Sikka

Thanks Edward, that’s a great question. Let me start and then Rajiv can add as necessary and Pravin can add as necessary. We do see the downward pricing pressure in commoditizing areas like infrastructure, some parts of maintenance and verification and so forth and that is why also we believe that automation needs to come in there probably before other areas, also because they are also more amenable to automation. If you look at Application Development as a category which used to be the primary category for Infosys 15+ years ago, that continues to be something that is much more human oriented and many of these infrastructure type services continue to be ones which are more amenable to automation.

Since I started my journey here at Infosys almost a year ago, we have been investing heavily in bringing automation to bear across the board and in this last quarter we saw the first tangible results of that. We rolled out our Infosys Automation Platform which is a collection of tools, AI-based technologies to help automate many of these routine mechanizable tasks. We rolled that out in Infrastructure Management to 10 clients, we had a very interesting result that came up as a result of that. These 10 clients, the category of work that was done by people was about 1,080 people and we replaced the work of the 187 out of the 1,080 people with automation, that is a saving of about 17% in terms of the number of people and a productivity improvement we saw of up to 37% in the work as a result. So what that does is you see that in Infrastructure Management going forward we will replace the work that was offered as a people only service into people plus this software. The software comes that we charge for it at a high margin, it reduces the number of people working on a given project and therefore we break out of this vicious cycle of utilization, RPP and profit margins by creating this people only model and transforming that into a people plus software model where the software is much higher margin, the number of people is less and we are able to provide the customer a more differentiated offering at a cheaper price thereby being economically attractive to the customer and meet that cycle. We want to replicate this cycle across the board in every service.

In Panaya as I mentioned earlier, we had 15 sales that were done by the Infosys sales team, eight in manufacturing alone. This is a great example, the finances of it are not significant yet because 15 deals are relatively small, but the fact that our sales team has embraced this motion of selling these new solutions in these new model is a very encouraging sign for the future that we are able to replace a project that would have been a people only project in the past with a smaller number of people and with the additional Panaya software, so again you see this pattern of replacing a people only service with smaller number of people perhaps that you can charge more for with the software so that the collective economics for the customer becomes better, the margin profile for us becomes better and we are able to free up the people to do more things of the same nature or more things of a different nature. Going forward, we will see more and more of this. This quarter in our infrastructure practice we are already bringing the same practice to four dozen clients already, we have started that in Q2 now and similarly in the other areas of our service lines like in verification and in application maintenance through our zero distance initiative, I was very encouraged to see that 1,400 master projects covering about 23,000 people are now looking at ways to automate what the work that they do so that they can do more with less as Prof. Mashelkar used to say. This is in an essence the motion, key procedure that we want to repeat over and over again and bring to a much larger scale as we grow forward if we are to bring automation as a differentiator to our clients and if we are to get away from sort of this downward spiral of increasingly lowering costs, this lowered RPP, further burden of utilization and so on.

Edward Caso

As a quick follow-up, realization continues to be negative, is that loosing importance to some metric here as the automation kicks in or should we start to see a positive turn in the realization metric? Thank you.

Vishal Sikka

Yes, over a period of time that will happen Edward, not immediately but as we see the embrace of automation and the adoption of automation happen on a more widespread basis you will see that happen.

Moderator

Thank you. Our next question is from James Freidman of Susquehanna International Group

James Freidman

Hi, congratulations on these excellent numbers. Vishal on the afternoon call you had described a new intensity to sales, I think you had used the work aloof and detached in your characterization of the sales culture previously. I was just trying to get the sense of how much you have been able to reengineer the sales initiatives and clearly you have the tangible evidence here but what are some of the methodologies that you are using to try and elevate the sales culture?

Vishal Sikka

So James let me clarify that, I was not referring to, we have never had an aloof and detached sales culture ever in the history of our company over the last 34 years. The thing that I was referring to as being aloof and detached is the RFP institution that exists in the services industry. The very nature of an RFP and going through a proposal process is such that there is a somewhat of a distance to it, there is an aloofness to it, that’s what I was referring to. So one of the things is, our sales team is as passionate as ever and continues to be and it has always been the case, in fact we have had a very distinguished history of a highly high value, high integrity sales organization across our history, so I want to clarify that with no uncertain terms. Having said that, one of the things that we did in this last quarter was we did bring a tremendous focus to the way that we sell, the way that we go after the contracts and the opportunities and one of the most visible signs of that was the work that we did in redesigning our RFP process. This RFP process that I talked about, we have been thinking much more about how do we bring design thinking to the RFP process, how do we bring a much deeper sense of client centricity and empathy for the client into that RFP process, changing the narrative, deeply understanding the strategic priorities of the client and the value that we bring in our offerings and prepare that in a proposal that is much more attractive and that the clients can relate to and we already saw the first successes of that in every one of the large deals that we won in the course of the last quarter and that we have won since then. We have had at least one deep change that happened as a result of this new RFP process. I hope this answers your question.

James Freidman

Yes, thank you, and then just one follow-up. Rajiv, could you revisit your SEZ conversation, I did not quite follow what is going on there but would that implies for the tax rate going forward?

Rajiv Bansal

No, if you would know in India we have a tax exemption for all the software services export that we do from special economic zones, so the tax regulation in India says for the first five years we get 100% tax exemption and from the 6^th year onward we will get 50% tax exemption. Some of these SEZ units were set up five years back and they are moving to 50% tax exemption during the year. As a result of that, the effective tax rate is likely to go up because of this profits moving from 100% tax exemption to 50% tax exemption. In addition, there has been an increase in the statutory tax rate in India and that is another reason why the effective tax rate is likely to go up this year.

Moderator

Thank you. Our next question is from Joseph Foresi of Janney Montgomery Scott. Please go ahead.

Joseph Foresi

Hi. I guess my first question here was, could you give us some idea of what portion of your business is in some of the newer offerings like Digital versus something what you are seeing on the commoditization side?

Vishal Sikka

That is a good question Joseph. There is a tremendous sense of ambiguity in the industry around what Digital exactly means. When you look at it philosophically, when Nicholas Negroponte wrote great book “Being Digital” and look at it in that sense everything that we do is Digital, so I would say that 100% of our revenues is in Digital. But when we look at it in the sense of Digital and what it is doing to the industries that we serve, for example to Retail and how Digital is enabling a completely new set of experiences for consumers in Retail environment or how Digital is about bringing mobile devices and transforming the experience of the consumer or how Digital changes the Manufacturing industries towards becoming much more where software becomes embedded I mean if you look at the dash board of an S Class Mercedes today, the entire dash board is a Digital one, there are no knobs and switches and needles that used to be there. So in that sense there are tremendous opportunities that we see in how the physical world of our clients is becoming transformed by the Digital technology and we see a great set of opportunities there. We do a lot of business in these new areas, almost all the work that we are doing in the Digital technology space is in these kind of opportunities, almost all our Design Thinking work that we do, almost all the Analytics work that we do is in these kinds of engagements and these kinds of areas. So once the industry settles down on a better more precise and a more realistic definition of what they mean by Digital, I mean there are massively varied distributions in how companies characterize their Digital revenue and I think it is frankly in my view it is nonsense, once they have that then we will be able to more precisely articulate the parts of our business that are in those area. But let me just for now say that as the world around us becomes increasingly Digital, and increasingly driven by this transformation of the physical experiences into virtual ones we are seeing almost all of those areas we see tremendous growth in our business.

Joseph Foresi

No, I agree there needs to be a standard definition on the Digital side. But I guess my question is, as you see these projects develop in Digital, are there new incremental business, does it impact your visibility at all and how should we think about them from a margin perspective, I am just trying to get an idea of sort of how you compete versus some of the other players who are obviously claiming fairly good growth rates and large percentages of the revenue from Digital.

Vishal Sikka

The way I would characterize that is the new engagements so far from our consulting team, the way we are reorganizing and setting up our consulting is in two distinct categories. Towards the renewal of the existing businesses, we have created the theme of what we call knowledge based IT which is over arching program to help transcend and renew the existing landscapes, the IT landscapes of customers and the new area which is all about what you have been referring to as Digital which is around how do we help transform our client businesses in strategic new areas. So in Retail that means redefining the experience of the consumer, creating more omni-channel as well as rethinking the physical spaces that consumers go to, I mean if you notice in the Retail world many chains have been closing down their stores and things like that but many others are actually rethinking the physical stores as a great new kind of Digital experience and we are helping many of our Retail clients with these kind of changes or even in banks or telcos and people who have Retail presence and in hospitals, physical spaces are becoming increasingly Digital and we are seeing a great growth happening in these areas or if you look at some of the other industries around CPG where you optimize the supply chain using the completely Digital technologies where in the past there was a lot of physical presence and so forth or in Energy with Digital oil fields, everywhere we see that the new of the equation of Renew and New almost inevitably ends up being all about Digital. So the way I would put it is, the Product and Platforms business, all the IP-led services business, the Design Thinking business, almost all of the new and parts of the renew will all be about this so called Digital transformation of businesses and the rest will be about the renewal of the existing landscapes to move it to the cloud and things like that. So the key ends up being is which part of the customers business which used to be physical or analog is now becoming Digital or virtual and how do we put a bracket around that and I think that is a good way to measure what this means and in our case that would be again the good way to measure that.

Joseph Foresi

Got it. And then last question from me, sort of a quick one. On the profitability side, I understand the margin profiles for this year and sort of what you have given for the guidance for the bracket there, but as Digital becomes a larger piece of your business and you balance it versus commoditization, where do you see or how do you feel about the profitability of the business and present margin levels over a longer period of time? And you do not have to give us a number but I am just trying to get an idea of what you think is a realistic level.

Vishal Sikka

I think that for the visibility that we have operationally over the rest of this year we feel comfortable with the 25% (+/-1%) guidance that we have given. If you look beyond that, earlier in response to one of the earlier questions I mentioned that the formula that we are following is of taking a people oriented proposal which was 100% driven by people and transforming that into a lesser number of people plus software and we charge for the software as we do for Panaya or IAP or IIP or the other platforms. So that equation changes in a way that instead of 100% people at a certain rate and so forth, towards a lesser number of people plus software. It does three things, first of all it lowers the cost to the client and it helps our service become more differentiated and more attractive, because we can lower the price of the software, you have a lesser number of people so you have more room to maneuver. Second, it actually helps us improve our margin because the software is at a much larger margin and we have lowered the number of people who are in the part of the proposal. And third, it frees up the people to do more, to do more of the new kinds of things like the Digital things that you were talking about, and to do more projects of the same nature. So this cycle we want to repeat over and over again and my expectation is that if we are successful at scaling up this cycle as we have done in the early work of that in this last quarter with Panaya and with IAP and so forth then we will see the margin profile actually not come under pressure and in fact increase and that is why I have laid out our aspiration of getting to 30% margin by 2020. If we are successful at replicating and scaling up this virtual cycle of going from a people only model to people plus software model then we will be able to increase our margin profile without compromise and that is our assumption.

Moderator

Thank you. Our next question is from Ravi Menon of Elara Securities. Please go ahead.

Ravi Menon

My first question is on the high number of laterals that we have seen as a proportion of gross having over the last three quarters, do you think that this is investment in your new areas maybe in the Infosys information platform trying to extend Panaya into you are making it usable for other ERP packages as well like Oracle, getting Finacle ready for the US launch, things like that or is this also kind of a rejig of the employee pyramid with the new capabilities, new skill sets that you require in your traditional areas of business?

Pravin Rao

Pravin here, let me respond to that question. So what you are seeing is a short-term phenomenon, so we are seeing many transformation and need for investing in newer areas. So while we try to ramp up on capabilities and cross skilling people internally so there is some dependence on external hires and some of these areas are also on some of the newer technologies where you may not have too many people but over a period of time once we are able to cross-skill our people, we will see those lateral numbers coming down. We will continue to be reliant on our people, training them, reskilling them and they will be able to scale up and take on some of the new technology roles.

Ravi Menon

Thank you sir. And if I might have a follow-up from that, can you give us a rough timeframe of when you think Finacle could be launched in the US and similarly Panaya’s extension for Oracle and other platforms?

Vishal Sikka

We have already achieved, from a functionality point of view, a lot of the capabilities that we need for the US market. We already have successful clients, I mean of course we have talked about Discover Financial as a great success story that we have had with Finacle recently and we have done additional deals in the US as well and we are scaling up our presence there primarily from an implementation services perspective. So we are very confident that Finicle will be able to address certainly the Tier-III, Tier-IV banks in the US market which is a huge opportunity for us. We believe that Finacle is a great core banking platform, we believe that it is the best core banking platform on the planet and we are continuing to invest heavily in this in Michael’s leadership and we are very confident about its capabilities in the US market. As you may have seen recently many analysts voted Finacle as the Best Banking Platform in the world, we have recently ported it to the Azure cloud platform with Microsoft, we are also working with Oracle to move Finacle to the Oracle Cloud and we expect to see growth in the US in the coming quarters. One more thing before we get to the next question, the Panaya, 30% is already in the Oracle space.

Moderator

Thank you very much. Our next question is from Keith Bachman of BMO Capital. Please go ahead.

Keith Bachman

Rajiv, for you if I could, if you could talk a little bit about you mentioned operating margins continue to expect to be (+/-25%), if you could talk about some of the puts and takes relative to the quarter you just reported and particular address, how does the pricing and commoditization that you are seeing in the business impact that, if you could deal with some of the puts and takes as you roll out here over the next couple of quarters to the operating margins?

Rajiv Bansal

That’s a good question because we are seeing pricing pressures and we are seeing very-very competitive pricing environment in almost all our large deals that we are bidding for. But you also have to understand that as we embrace automation and we talk about more effort productivity, some of that would contain the impact of pricing pressure that we are seeing in the market. Second is training and retraining and reskilling of people, our subcontractor expense as a percent of revenues have actually gone up from 2.5%-3% couple of quarters back to 5%. As you would know subcontractors are a multiple of the employee cost per capita and that is another leaver which we are focusing on in terms of training and reskilling our people so that we are able to replace high cost subcontractors on the projects which would give us a margin lever. We have spoken about utilization and we would like our utilization to be 83%-84% and today we are operating at about 80% so that is another 4% lever that we have. Role ratios are very important, in the last couple of years when our growth was muted it did not give us enough opportunities to correct our role ratios because employees do expect promotions even if there is no growth, that’s an issue of the industry. The industry, the other competition was doing well and to retain the best talent that we had we rolled out promotions roughly about 25,000 promotions last year. So as we see an acceleration in our growth we believe that we will be able to achieve a much leaner and better role ratios, so there are enough leavers that we have on the margin front in the medium-to long-term. In the short-term, yes it creates a problem because when you in the middle of the quarter when you are looking at your investment needs to accelerate the growth, look at the needs of the projects in terms of staffing and the technology asset that they need. At the same time you have to work within a very narrow margin band, there is a fine balance that we have to strike on a day-to-day basis and I think over the last five quarters we have struck a good balance. Honestly, I would not want to improve the margins at the cost of investments which will lead to better growth. So every single investment is looked at from a return perspective, from a ROI perspective, and if it makes sense in the medium-to long-term we would go ahead and make the investment even that means that in the short-term or the near quarter you would see a dip in the margin. So I think our philosophy on the margin is very clear, as Vishal had articulated by 2020 we would want our margins to be about 30% operating margins, it is a long journey and in the near-term we have to balance our needs very-very carefully.

Keith Bachman

Yes, fair enough. Okay, I did want to come back to the 30% margin aspiration in 2020. If you think about the next five years, roughly a point a year so to speak but how do you get there because you have talked about adding IP as one of your key variables and Machine Learning and Automation, I would assume as you acquire more IP that you will start to bump into some of the software vendors who are also your partners would then become I would think some level of competition. How you anticipate getting to the 30% in some of the bigger pockets?

Vishal Sikka

I think that from a software vendor perspective if you look at the platform layers, more and more of the platform technologies that are relevant in the modern world continue to be Open Source. So maintenance and delivery offerings around Open Source software where we add value to existing Open Source software and any contribution that we make also goes back into Open Source and our IPs on solutions built on top of it. I think it is a model whereby we can prevent ourselves from getting in to the trap of on the one hand competing with legacy or incumbent vendors and on the other hand continuing to monetize our IP. From the perspective of Application Development and Custom Solution Development, one of the benefits of being at Infosys is that we have the tremendous scale to bring these kinds of custom or highly micro industry-oriented solutions to life in a way that a pure package system vendors cannot. And I think when I came here that was one of the most attractive things I found about Infosys is that that opportunity exists in being able to at a very massive scale bring unique IP based differentiated solutions for narrow parts of industries. For example, one of the amazing solution that we have built using AI technology is a solution to balance an aircraft and we have been working on this and it is amazing, and airplanes weight when engines are mounted on it can be balanced and we have built AI systems to do this in a much more accelerated way than was possible using previous techniques. Now this is probably 10-12 customers that use that but it has an extremely high value to those 10-12 customers and we can afford to do Point Solutions, highly niche industry specific solutions for these types of things and usually the new kinds of problems where software is making its way for the first time do not have package system vendors any way. So we believe that that strategy of being open to whatever exists in our client’s landscape, being a partner to everybody, being open to everybody and yet being able to carve a niche for ourselves by building differentiated IP based solutions is a right strategy which manages to get around these existing pitfalls that we see in the world today.

Moderator

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

Rishi Jhunjhunwala

A couple of questions, first on the sharp rebound in the growth in this quarter. Just wanted to understand a bit more on how much of that would you attribute to on-ground demand actually picking up versus we executing much better in this quarter and just trying to keep the seasonality aside we understand that typically June is a better quarter.

Vishal Sikka

Rishi, perhaps Pravin and Rajiv and any of our leaders who are sitting here can add their perspective on it, but my sense of it is that obviously better execution, a much more focus that we brought along with the changes that we put into the organization to again to focus ourselves in a very deeply client centric way is primarily the reason for the result that you have seen and some of it I would also attribute to the strategic initiative that we have put in place over the last three-four quarters which are now starting to bear fruit. But a much larger percentage of the change that I would attribute to is to the better execution and to the initiatives that we put into place. I see lots of people nodding their heads around the room so I do not think anybody wants to add anything to that.

Rishi Jhunjhunwala

Great. And second question is, over the past four to five years we have seen that consistently we have been starting the year well, however, in Q3 and Q4 the growth seems to be tapering off, and I am not talking about again the sequential seasonality but even in year-on-year growth terms it tapers off in the past few years. You mentioned in the morning that you would hope and you would work towards rectifying that growth trajectory or the trend, just trying to understand first of all what is the issue that even year-on-year growth actually tapers off and secondly what steps you can potentially take to make sure that second half deterioration does not happen as it has happened in the past years?

Vishal Sikka

We are acutely aware of this, we have looked into this, and our management team has been thinking about this over the last few weeks and the last quarter or so. For whatever sort of reasons this has been the case in the last several years and we are aware of this and we are working hard to make sure that this year is not a repeat of that, again by pipeline building and client centric focus, looking at getting better visibility into the future of projects and the opportunities of the clients and so forth. But the other reason that I am cautiously optimistic that the second half of this year will not have the same fate as the second half of the previous years, certainly relative to the previous years is that the initiative that we have put in are consistently picking up steam and while these are still small, I mean on IIP as proud as we are that we have 127 projects, on Panaya we have 137 engagements, on Design Thinking we have more than 100 engagements but together all these add up to like 400 projects out of a base line of 8,500 projects. And so as important as these are, they are still small but there is a consistent rise in the adoption of these and therefore we believe that as we get into the second half of the year more of the growth will come from these kinds of initiatives and the zero distance will have picked up more momentum by them and so forth. So that will also help in addition to the operational excellence and the deep scrutiny on this particular scourge that we have had in the past that will be okay. So as I sit here today I feel aware of this problem that we have had in the past years and cautiously optimistic that we will be able to do better this year.

Rishi Jhunjhunwala

And do you think that by nature these revenues are less seasonal than the traditional services that we do?

Vishal Sikka

I do not think so, maybe Rajiv and Pravin can add their insights into that. I come from the point of view that great solutions and great innovation is of a timeless nature and when times are bad you need innovation and when times are good you need innovation. There are some furloughs and things like that that happen in our Q3 in the Manufacturing industry and other kinds of things but we know them in advance and we know that and we should be able to with the appropriate forecasts and better planning we should be able to mitigate those. So that is sort of how at a high level I look at it but obviously an organization of 180,000 people continually goes through the same exercise every year so there must be some set of reason for that and we are working hard to make sure that this year we do not have the same fate as the previous year.

Moderator

Thank you. Our next question is from Dave Koning of Baird. Please go ahead.

Dave Koning

Yes, hey guys, great job and I just have a couple of short ones. The acquisition contribution from Panaya and Kallidus, how big were those in the quarter, maybe how much sequential growth did that drive to?

Rajiv Bansal

The incremental growth from the two acquisitions that we have done is only about 7 mn during the quarter. Skava and Kallidus deals were closed only on 3^rd of June so it is only a one month revenue and Panaya and Kallidus were small acquisitions, a very strategic acquisitions but they do not really add much to the top-line in the initial stage but they have a huge multiplier effect on the entire business of the company. So in terms of your question it is only about 7 mn incremental revenue that is factored in the revenue.

Dave Koning

Okay, great. And somebody else asked about the tax rate on the 29% to 30% this year, is that sort of what we should expect going forward now, has that all normalized?

Rajiv Bansal

It seems so because the increase in tax rate is primarily because of increase in statutory tax rate in India which I do not see it coming down unless the Government of India in the next budget decides to bring it down. And also the fact that some of the units would move from 100% tax exemption to 50% tax exemption, I would believe that this is here to stay.

Dave Koning

Okay. And then lastly just, the subcontractor apportion of expense, that ramped, I think it was the highest since then, maybe it was a little over 5% of revenue, what is driving that and maybe is that something we should expect to stay elevated?

Pravin Rao

See at times when there is a need to ramp up quickly on a particular skill, if we do not have internally we may need to deploy subcontractors and sometimes particularly in quarter one and quarter two we also at times have a very high percentage of visa utilization so we do not have too many people with visas. So that means that either we have to recruit or we have to use subcontractors in the short period of time till we are able to back fill. So what you are seeing is something because of mix of mismatch in skills as well as pressure on the visa, but over a period of time we should be able to bring it down.

Moderator

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

Sandeep Mahindroo

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

Moderator

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

Exhibit 99.8

Form of 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, 2015 prepared in compliance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.

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

Particulars	Quarter ended June 30,	Quarter ended March 31,	Quarter ended June 30,	Year ended March 31,
	2015	2015	2014	2015
Revenues	14,354	13,411	12,770	53,319
Cost of sales	9,123	8,174	8,046	32,883
Gross profit	5,231	5,237	4,724	20,436
Selling and marketing expenses	820	736	666	2,941
Administrative expenses	964	1,052	847	3,663
Operating profit	3,447	3,449	3,211	13,832
Other income, net	758	881	829	3,427
Share in associate's profit /(loss)	–	(1)	–	(1)
Profit before income taxes	4,205	4,329	4,040	17,258
Income tax expense	1,175	1,232	1,154	4,929
Net profit	3,030	3,097	2,886	12,329
Paid-up equity share capital (par value 5/- each, fully paid)	1,144	572	286	572
Share premium, retained earnings and other components of equity	54,191	54,191	47,244	54,191
Earnings per share (par value 5/- each) ⁽¹⁾
Basic	13.26	13.55	12.63	53.94
Diluted	13.26	13.55	12.63	53.94
Total public shareholding ⁽²⁾
Number of shares	160,06,77,720	80,65,15,515	38,98,49,697	80,65,15,515
Percentage of shareholding	69.69	70.23	67.89	70.23
Promoters and promoter group shareholding
Pledged / Encumbered
Number of shares	–	–	–	–
Percentage of shares (as a % of the total shareholding of promoter and promoter group)	–	–	–	–
Percentage of shares (as a % of the total share capital of the Company)	–	–	–	–
Non-encumbered
Number of shares	30,04,31,272	15,02,15,636	9,15,08,078	15,02,15,636
Percentage of shares (as a % of the total shareholding of promoter and promoter group)	100.00	100.00	100.00	100.00
Percentage of shares (as a % of the total share capital of the Company)	13.08	13.08	15.94	13.08

⁽¹⁾	Adjusted for bonus issues
⁽²⁾	Total public shareholding as defined under Clause 40A of the Listing Agreement excludes shares held by the founders and American Depository Receipt Holders and as at June 30, 2015 and March 31, 2015, also excludes treasury shares.

The audited consolidated financial statements for the quarter ended June 30, 2015 have been taken on record by the Board of Directors at its meeting held on July 21, 2015. The statutory auditors have expressed an unqualified audit opinion. The information presented above is extracted from the audited consolidated financial statements. The consolidated financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.

Changes to the Board

a)	Effective June 5, 2015, K. V. Kamath stepped down from his position as Chairman of the Board and as an Independent Director of the Company. The Board placed on record its deep sense of appreciation for the services rendered by him, during his tenure.
b)	On June 5, 2015, the Board appointed R. Seshasayee as Non-Executive Chairman of the Board with immediate effect.
c)	The Board of Directors at its meeting held on June 22, 2015 appointed A.G.S Manikantha as the Company Secretary.
d)	Effective July 21, 2015, Roopa Kudva has been appointed as the chairperson of the Audit Committee.

Investments - Current and proposed

a)	On June 2, 2015, Infosys acquired 100% of the voting interests in Kallidus Inc., U.S., 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 carried out by entering into a share purchase agreement for a cash consideration of 578 crore and a contingent consideration of up to 128 crore, the payment of which is dependent upon the achievement of certain financial targets by Kallidus over a period of three years ending on December 31, 2017.
b)	On April 24, 2015, the Board of Directors of Infosys authorized the Company to execute a Business Transfer Agreement and related documents with EgdeVerve, a wholly owned subsidiary, to transfer the business of Finacle and Edge Services, subject to securing the requisite approval from shareholders through postal ballot. Subsequently, on June 4, 2015, the shareholders have authorized the execution of a Business Transfer Agreement and related documents with EdgeVerve, with effect from August 1, 2015 or any other date as may be decided by the Board. The Company has undertaken a valuation by an independent valuer and accordingly, the business will be transferred for a consideration of up to 3,400 crore and up to 220 crore for Finacle and Edge Services, respectively. The transfer of assets and liabilities between entities under common control will be accounted for at carrying values and will not have any impact on the consolidated financial statements.
c)	On June 22, 2015, the shareholders at the Annual General Meeting, approved to enter into a contract to purchase, lease, transfer, assign or otherwise acquire the healthcare business, including the rights and properties relating thereto, from Infosys Public Services Inc. (IPS), a wholly-owned subsidiary of the Company. This is for an estimated consideration of up to 625 crore approximately to be discharged in a manner and on such terms and conditions as may be mutually agreed upon between the Board of Directors of the company and IPS with effect from a date decided by the Board.

Bonus Issue

The Company has allotted 114,84,72,332 fully-paid-up shares of face value of

5/- each during the quarter ended June 30, 2015, pursuant to the bonus issue approved by the shareholders through postal ballot. The book closure date fixed by the Board was June 17, 2015. Bonus share of one equity share for every equity share held, and a stock dividend of one American Depositary Share (ADS) for every ADS held, respectively, has been allotted. Consequently, the ratio of equity shares underlying the ADSs held by an American Depositary Receipt holder remains unchanged. Units granted under the RSU plan have been adjusted for bonus shares. The earnings per share have been adjusted for previous periods presented in accordance with IAS 33, Earnings per share.

Information on dividends for the quarter ended June 30, 2015

(in )

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

⁽¹⁾	Not adjusted for bonus issues on December 3, 2014 and June 17, 2015
⁽²⁾	Not adjusted for bonus issue on June 17, 2015

The final dividend of 29.50/- per equity share (not adjusted for bonus issue on June 17, 2015) for fiscal 2015 was approved by the shareholders at the Annual General Meeting of the Company held on June 22, 2015 and the same was paid on June 23, 2015.

Other information (Consolidated – Audited)

(in crore)

Particulars	Quarter ended June 30,	Quarter ended March 31,	Quarter ended June 30,	Year ended March 31,
	2015	2015	2014	2015
Staff costs	8,053	7,319	7,355	29,742
Items exceeding 10% of aggregate expenditure	–	–	–	–
Details of other income:
Interest income on deposits and certificates of deposit	657	696	614	2,631
Income from available-for-sale financial assets	49	51	79	261
Miscellaneous income, net	77	19	7	60
Gains/(losses) on foreign currency	(25)	115	129	475
Total	758	881	829	3,427

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,
	2015	2015	2014	2015
Revenues	12,738	11,926	11,319	47,300
Profit before exceptional item and tax	3,993	4,170	3,795	16,386
Profit on transfer of business ⁽¹⁾	–	–	–	412
Profit before tax	3,993	4,170	3,795	16,798
Profit for the period	2,897	3,024	2,720	12,164

Note:

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

⁽¹⁾

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

Information on investor complaints pursuant to Clause 41 of the Listing Agreement for the quarter ended June 30, 2015

Nature of complaints received	Opening balance	Additions	Disposal	Closing balance
Non-receipt of dividend / Annual Report	–	106	106	–

Segment reporting (IFRS Consolidated – Audited)

(in crore)

Particulars	Quarter ended June 30,	Quarter ended March 31,	Quarter ended June 30,	Year ended March 31,
	2015	2015	2014	2015
Revenue by business segment
Financial Services (FS)	3,882	3,628	3,492	14,394
Manufacturing (MFG)	3,332	3,099	2,883	12,140
Energy & utilities, Communication and Services (ECS)	2,627	2,439	2,401	10,057
Retail, Consumer packaged goods and Logistics (RCL)	2,342	2,220	2,192	8,869
Life Sciences, Healthcare and Insurance (HILIFE)	1,944	1,764	1,589	6,881
All other segments	227	261	213	978
Total	14,354	13,411	12,770	53,319
Less: Inter-segment revenue	–	–	–	–
Net revenue from operations	14,354	13,411	12,770	53,319
Segment profit before tax, depreciation and non-controlling interests:
Financial Services (FS)	1,073	1,096	999	4,262
Manufacturing (MFG)	785	751	714	3,025
Energy & utilities, Communication and Services (ECS)	783	699	726	3,049
Retail, Consumer packaged goods and Logistics (RCL)	645	668	659	2,679
Life Sciences, Healthcare and Insurance (HILIFE)	494	481	401	1,865
All other segments	(19)	37	(58)	21
Total	3,761	3,732	3,441	14,901
Less: Other unallocable expenditure	314	283	230	1,069
Add: Unallocable other income	758	881	829	3,427
Add: Share in associate's profit / (loss)	–	(1)	–	(1)
Profit before tax and non-controlling interests	4,205	4,329	4,040	17,258

Notes on segment information

Business segments

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

Segmental capital employed

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

By order of the Board

for Infosys Limited

Bangalore, India

July 21, 2015

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 three months ended June 30, 2015, prepared as per International Financial Reporting Standards (IFRS) and reported in US Dollars. A summary of the financial statements is as follows:

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

Particulars	Quarter ended June 30,	Quarter ended March 31,	Quarter ended June 30,	Year ended March 31,
	2015	2015	2014	2015
Revenues	2,256	2,159	2,133	8,711
Cost of sales	1,434	1,317	1,344	5,374
Gross profit	822	842	789	3,337
Net profit	476	498	482	2,013
Earnings per equity share
Basic	0.21	0.22	0.21	0.88
Diluted	0.21	0.22	0.21	0.88
Total assets	10,587	10,615	9,625	10,615
Cash and cash equivalents including available-for-sale financial assets (current) and certificates of deposit	4,537	4,999	4,728	4,999

Certain statements in this advertisement concerning our future growth prospects are forward-looking statements regarding our future business expectations intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, fluctuations in foreign exchange rates, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal or expiration of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2015. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and our reports to shareholders. In addition, please note that the date of this advertisement is July 21, 2015, 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 Earnings Release

Infosys Limited and Subsidiaries

Unaudited Condensed Consolidated Interim Balance Sheets as on

(Dollars in millions except equity share)

	Note	June 30, 2015	March 31, 2015
ASSETS
Current assets
Cash and cash equivalents	2.1	4,421	4,859
Available-for-sale financial assets	2.2	116	140
Trade receivables		1,657	1,554
Unbilled revenue		464	455
Prepayments and other current assets	2.4	630	527
Derivative financial instruments	2.7	6	16
Total current assets		7,294	7,551
Non-current assets
Property, plant and equipment	2.5	1,494	1,460
Goodwill	2.6	571	495
Intangible assets		149	102
Investment in associate		15	15
Available-for-sale financial assets	2.2	215	215
Deferred income tax assets		77	85
Income tax assets		724	654
Other non-current assets	2.4	48	38
Total Non-current assets		3,293	3,064
Total assets		10,587	10,615
LIABILITIES AND EQUITY
Current liabilities
Trade payables		31	22
Derivative financial instruments	2.7	1	–
Current income tax liabilities		497	451
Client deposits		3	4
Unearned revenue		186	168
Employee benefit obligations		183	171
Provisions	2.8	74	77
Other current liabilities	2.9	1,087	927
Total current liabilities		2,062	1,820
Non-current liabilities
Deferred income tax liabilities		45	25
Other non-current liabilities	2.9	18	8
Total liabilities		2,125	1,853
Equity
Share capital - 5 ($0.16) par value 2,400,000,000 (1,200,000,000) equity shares authorized, issued and outstanding 2,285,610,264 (1,142,805,132) net of 11,334,400 (5,667,200) treasury shares, as of June 30, 2015 (March 31, 2015), respectively		199	109
Share premium		569	659
Retained earnings		9,930	10,090
Other reserves		–	–
Other components of equity		(2,236)	(2,096)
Total equity attributable to equity holders of the company		8,462	8,762
Non-controlling interests		–	–
Total equity		8,462	8,762
Total liabilities and equity		10,587	10,615
Commitments and contingent liabilities	2.5, 2.8 and 2.11

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

Infosys Limited and Subsidiaries

Unaudited Condensed Consolidated Interim Statements of Comprehensive Income for the three months ended June 30,

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

	Note	2015	2014
Revenues		2,256	2,133
Cost of sales	2.15	1,434	1,344
Gross profit		822	789
Operating expenses:
Selling and marketing expenses	2.15	129	111
Administrative expenses	2.15	152	142
Total operating expenses		281	253
Operating profit		541	536
Other income, net		119	139
Share in associate's profit / (loss)		–	–
Profit before income taxes		660	675
Income tax expense	2.11	184	193
Net profit		476	482
Other comprehensive income
Items that will not be reclassified to profit or loss:
Re-measurements of the net defined benefit liability/asset		(1)	(3)
		(1)	(3)
Items that may be reclassified subsequently to profit or loss:
Fair value changes on available-for-sale financial assets	2.2 & 2.11	(2)	3
Exchange differences on translation of foreign operations		(137)	(36)
		(139)	(33)
Total other comprehensive income, net of tax		(140)	(36)
Total comprehensive income		336	446
Profit attributable to:
Owners of the company		476	482
Non-controlling interests		–	–
		476	482
Total comprehensive income attributable to:
Owners of the company		336	446
Non-controlling interests		–	–
		336	446
Earnings per equity share
Basic ($)		0.21	0.21
Diluted ($)		0.21	0.21
Weighted average equity shares used in computing earnings per equity share	2.12
Basic		2,285,610,264	2,285,610,264
Diluted		2,285,672,309	2,285,610,264

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

Infosys Limited and Subsidiaries

Unaudited Condensed Consolidated Interim Statements of Changes in Equity

(Dollars in millions except equity share data)

	Shares⁽²⁾	Share capital	Share premium	Retained earnings	Other reserves ⁽³⁾	Other components of equity	Total equity attributable to equity holders of the company
Balance as of April 1, 2014	571,402,566	64	704	8,892	–	(1,727)	7,933
Changes in equity for the three months ended June 30, 2014
Remeasurement of the net defined benefit liability/asset, net of tax effect	–	–	–	–	–	(3)	(3)
Dividends (including corporate dividend tax)	–	–	–	(479)	–	–	(479)
Fair value changes on available-for-sale financial assets, net of tax effect (Refer Note 2.2 and 2.11)	–	–	–	–	–	3	3
Net profit	–	–	–	482	–	–	482
Exchange differences on translation of foreign operations	–	–	–	–	–	(36)	(36)
Balance as of June 30, 2014	571,402,566	64	704	8,895	–	(1,763)	7,900
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)	–	–
Remeasurement of the net defined benefit liability/asset, net of tax effect	–	–	–	–	–	(1)	(1)
Dividends (including corporate dividend tax)	–	–	–	(636)	–	–	(636)
Fair value changes on available-for-sale financial assets, net of tax effect (Refer Note 2.2 and 2.11)	–	–	–	–	–	(2)	(2)
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

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 11,334,400 as of June 30, 2015 and 5,667,200 as of April 1, 2015 and 2,833,600 each as of June 30, 2014 and April 1, 2014, held by consolidated trust.

⁽³⁾

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

Infosys Limited and Subsidiaries

Unaudited Condensed Consolidated Interim Statements of Cash Flows

(Dollars in millions)

	Three months ended June 30,
	2015	2014
Operating activities:
Net Profit	476	482
Adjustments to reconcile net profit to net cash provided by operating activities :
Depreciation and amortisation	49	39
Income from available-for-sale financial assets and certificates of deposit	(8)	(16)
Income tax expense	184	193
Effect of exchange rate changes on assets and liabilities	1	–
Deferred purchase price	9	9
Provisions for doubtful trade receivable	(1)	19
Other adjustments	(2)	(1)
Changes in Working Capital
Trade receivables	(121)	(156)
Prepayments and other assets	(110)	(16)
Unbilled revenue	(17)	(26)
Trade payables	8	(9)
Client deposits	(1)	–
Unearned revenue	21	33
Other liabilities and provisions	62	28
Cash generated from operations	550	579
Income taxes paid	(205)	(114)
Net cash provided by operating activities	345	465
Investing activities:
Expenditure on property, plant and equipment, net of sale proceeds, including changes in retention money and capital creditors	(105)	(75)
Loans to employees	–	(5)
Deposits placed with corporation	(3)	(4)
Income from available-for-sale financial assets and certificates of deposit	3	12
Payment for acquisition of business, net of cash acquired	(87)	–
Investment in preference securities	(2)	–
Redemption of certificates of deposit	–	46
Investment in liquid mutual funds	(1,303)	(1,049)
Redemption of liquid mutual funds	1,321	952
Investment in fixed maturity plan securities	–	(5)
Redemption of fixed maturity plan securities	5	–
Net cash used in investing activities	(171)	(128)
Financing activities:
Payment of dividend	(528)	(409)
Payment of corporate dividend tax	–	(70)
Net cash used in financing activities	(528)	(479)
Effect of exchange rate changes on cash and cash equivalents	(84)	(25)
Net increase/(decrease) in cash and cash equivalents	(354)	(142)
Cash and cash equivalents at the beginning	4,859	4,331
Cash and cash equivalents at the end	4,421	4,164
Supplementary information:
Restricted cash balance	59	54

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

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

1. Company Overview and Significant Accounting Policies

1.1 Company overview

Infosys is a global leader in consulting, technology, outsourcing and next-generation services. Along with its subsidiaries, Infosys provides Business IT services (comprising application development and maintenance, independent validation, infrastructure management, engineering services comprising product engineering and life cycle solutions and business process management); Consulting and systems integration services (comprising consulting, enterprise solutions, systems integration and advanced technologies); Products, business platforms and solutions to accelerate intellectual property-led innovation including Finacle, our banking solution; and offerings in the areas of Analytics, Cloud, and Digital Transformation.

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

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

1.2 Basis of preparation of financial statements

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

1.3 Basis of consolidation

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

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

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

1.4 Use of estimates

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

1.5 Critical accounting estimates

a. Revenue recognition

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

b. Income taxes

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

c. Business combinations and intangible assets

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

d. Property, plant and equipment

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

e. Impairment of Goodwill

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

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

1.6 Property, plant and equipment

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

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

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

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

1.7 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.

1.8 Employee benefits

1.8.1 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.

1.8.2 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.

1.8.3 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.

1.8.4 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.

1.9 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.

1.10 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.

1.11 Recent accounting pronouncements

1.11.1 Standards issued but not yet effective

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

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

The effective date for adoption of IFRS 9 is annual periods beginning on or after January 1, 2018, though early adoption is permitted. The Group is currently evaluating the requirements of IFRS 9, and has not yet determined the impact on the consolidated financial statements.

IFRS 15 Revenue from Contract with Customers: In May 2014, the International Accounting Standards Board (IASB) issued IFRS 15, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts with customers. The standard permits the use of either the retrospective or cumulative effect transition method. The effective date for adoption of IFRS 15 is annual periods beginning on or after January 1, 2017, though early adoption is permitted. The Group has not yet selected a transition method and has not yet evaluated the impact of IFRS 15 on the consolidated financial statements.

In May 2015, the IASB has published an exposure draft ‘Effective date of IFRS 15’ to propose changing the effective date of IFRS 15 to periods beginning on or after January 1, 2018 instead of January 1, 2017.

2. Notes to the Unaudited Condensed Consolidated Interim Financial Statements

2.1 Cash and cash equivalents

Cash and cash equivalents consist of the following:

(Dollars in millions)

	As of
	June 30, 2015	March 31, 2015
Cash and bank deposits	3,882	4,192
Deposits with corporations	539	667
	4,421	4,859

Cash and cash equivalents as of June 30, 2015 and March 31, 2015 include restricted cash and bank balances of $59 million and $58 million, respectively. The restrictions are primarily on account of cash and bank balances held by irrevocable trusts controlled by the company, bank balances held as margin money deposits against guarantees and balances held in unpaid dividend bank accounts.

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

The table below provides details of cash and cash equivalents:

(Dollars in millions)

	As of
	June 30, 2015	March 31, 2015
Current accounts
ANZ Bank, Taiwan	1	1
Banamex Bank, Mexico	1	2
Bank of America, Mexico	2	4
Bank of America, USA	110	115
Bank Zachodni WBK S.A, Poland	1	1
Barclays Bank, UK	2	2
Bank Leumi, USA	1	1
Bank Leumi, USA (Israeli Sheqel account)	1	2
China Merchants Bank, China	1	1
Citibank N.A, China	2	3
Citibank NA, China (U.S. Dollar account)	26	4
Citibank N.A, Costa Rica	–	1
Citibank N.A., Czech Republic	1	1
Citibank N.A., Australia	9	4
Citibank N.A., Brazil	3	4
Citibank N.A., Dubai	1	–
Citibank N.A., India	1	1
Citibank N.A., Japan	4	3
Citibank N.A., New Zealand	1	1
Citibank N.A., Singapore	2	–
Citibank N.A., South Africa	–	1
CitiBank N.A., USA	1	–
CitiBank N.A., EEFC (U.S. Dollar account)	3	–
Commerzbank, Germany	5	3
Deutsche Bank, India	4	1
Deutsche Bank, Philippines	1	1
Deutsche Bank, Philippines (U.S. Dollar account)	–	1
Deutsche Bank, Poland	1	3
Deutsche Bank, EEFC (Australian Dollar account)	4	–
Deutsche Bank, EEFC (Euro account)	1	1
Deutsche Bank, EEFC (Swiss Franc account)	3	1
Deutsche Bank, EEFC (U.S. Dollar account)	3	1
Deutsche Bank, EEFC (United Kingdom Pound Sterling account)	1	1
Deutsche Bank, Belgium	3	2
Deutsche Bank, Czech Republic	2	1
Deutsche Bank, Czech Republic (Euro account)	1	–
Deutsche Bank, Czech Republic (U.S. Dollar account)	1	3
Deutsche Bank, France	2	–
Deutsche Bank, Germany	3	1
Deutsche Bank, Netherlands	3	–
Deutsche Bank, Singapore	3	1
Deutsche Bank, Spain	1	–
Deutsche Bank, Switzerland	1	–
Deutsche Bank, United Kingdom	5	4
HSBC Bank, Brazil	1	1
HSBC Bank, Hong Kong	9	7
ICICI Bank, India	7	5
ICICI Bank, EEFC (U.S. Dollar account)	3	2
ICICI Bank-Unpaid dividend account	1	–
ING Bank, Belgium	1	–
Nordbanken, Sweden	3	1
Punjab National Bank, India	–	1
Royal Bank of Scotland, China	9	7
Royal Bank of Scotland, China (U.S. Dollar account)	1	7
Royal Bank of Canada, Canada	2	3
Silicon Valley Bank, USA	6	11
Silicon Valley Bank, (Euro account)	7	3
Silicon Valley Bank, (United Kingdom Pound Sterling account)	2	1
Union Bank of Switzerland AG	2	2
Union Bank of Switzerland AG, (Euro Account)	3	1
Wells Fargo Bank N.A., USA	5	6
Westpac, Australia	1	1
	285	236
Deposit accounts
Allahabad Bank	31	32
Andhra Bank	22	27
Axis Bank	207	239
Bank of Baroda	376	383
Bank of India	405	431
Canara Bank	369	501
Central Bank of India	220	221
Citibank	8	–
Corporation Bank	201	204
Deutsche Bank, Poland	24	19
Development Bank of Singapore	–	6
HDFC Bank Ltd.	321	336
ICICI Bank	433	507
IDBI Bank	134	137
Indian Overseas Bank	96	104
Indusind Bank	9	12
ING Vysya Bank	16	16
Kotak Mahindra Bank	1	1
National Australia Bank Limited	5	14
Oriental Bank of Commerce	241	253
Punjab National Bank	96	95
South Indian Bank	4	4
State Bank of India	9	9
Syndicate Bank	64	65
Union Bank of India	168	168
Vijaya Bank	42	75
Yes Bank	95	97
	3,597	3,956
Deposits with corporations
HDFC Limited, India	539	667
	539	667
Total	4,421	4,859

2.2 Available-for-sale financial assets

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

Cost and fair value of these investments are as follows:

(Dollars in millions)

	As of
	June 30, 2015	March 31, 2015
Current
Mutual fund units:
Liquid mutual fund units
Cost and fair value	116	135
Fixed Maturity Plan Securities
Cost	–	5
Gross unrealized holding gains	–	–
Fair value	–	5
	116	140
Non-current
Quoted debt securities:
Cost	216	216
Gross unrealized holding gains/(losses)	(3)	(1)
Fair value	213	215
Unquoted equity and preference securities:
Cost	2	–
Gross unrealized holding gains	–	–
Fair value	2	–
	215	215
Total available-for-sale financial assets	331	355

Mutual fund units:

Liquid mutual funds:

The fair value of liquid mutual funds as of June 30, 2015 and March 31, 2015 was $116 million and $135 million, respectively. The fair value is based on quoted prices.

Fixed maturity plan securities:

During the three months ended June 30, 2015, the company redeemed fixed maturity plans securities of $5 million. On redemption, the unrealised gain of less than $1 million pertaining to these securities has been reclassified from other comprehensive income to profit or loss.

The fair value of fixed maturity plan securities as of March 31, 2015 is $5 million. The fair value is based on quotes reflected in actual transactions in similar instruments as available on March 31, 2015. The net unrealized gain of less than $1 million, net of taxes of less than $1 million has been recognized in other comprehensive income for the three months ended June 30, 2014 (Refer to note 2.11).

Quoted debt securities:

The fair value of quoted debt securities as on June 30, 2015 and March 31, 2015 was $213 million and $215 million, respectively. The net unrealized loss of $2 million, net of taxes of less than $1 million, has been recognized in other comprehensive income for the three months ended June 30, 2015. The net unrealized gain of $3 million, net of taxes has been recognized in other comprehensive income for the three months ended June 30, 2014 (Refer note 2.11).The fair value is based on the quoted prices and market observable inputs.

2.3 Business combination

Panaya

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

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

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

(Dollars in millions)

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

Includes cash and cash equivalents acquired of $19 million.

The goodwill is not tax deductible.

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

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

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

EdgeVerve System Limited

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

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

Finacle and Edge Services

On April 24, 2015, the Board of Directors of Infosys has authorized the Company to execute a Business Transfer Agreement and related documents with EgdeVerve, a wholly owned subsidiary, to transfer the business of Finacle and Edge Services, subject to securing the requisite approval from shareholders through postal ballot. Subsequently, on June 4, 2015, the shareholders have authorized execution of Business Transfer Agreement and related documents with EdgeVerve, with effect from August 1, 2015 or any other date as may be decided by the Board. The company has undertaken independent valuation by an independent valuer and accordingly the business will be transferred for a consideration of upto $550 million and upto $35 million for Finacle and Edge Services, respectively. The transfer of assets and liabilities between entities under common control will be accounted for at carrying values and will not have any impact on the consolidated financial statements.

Infosys Public Services

On June 22, 2015, the shareholders in the Annual General Meeting, have approved to enter into a contract to purchase, lease, transfer, assign or otherwise acquire the whole part of the healthcare business, including the rights and properties relating thereto, from Infosys Public Services Inc. (IPS), a wholly-owned subsidiary of the Company. This is for an estimated consideration of up to $100 million approximately to be discharged in a manner and on such terms and conditions as may be mutually agreed upon between the Board of Directors of the company and IPS with effect from a date as may be decided by the Board of directors.

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 unparalleled 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 are expected to be 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. The key inputs used in determination of the fair value of contingent consideration are the discount rate of 14% and the probabilities of achievement of the financial targets.

The transaction costs of $2 million related to the acquisition have been included under administrative expenses in the statement of comprehensive income for the three months ended June 30, 2015.

2.4 Prepayments and other assets

Prepayments and other assets consist of the following:

(Dollars in millions)

	As of
	June 30, 2015	March 31, 2015
Current
Rental deposits	4	4
Security deposits	–	1
Loans and advances to employees	35	35
Prepaid expenses ⁽¹⁾	36	16
Interest accrued and not due	131	63
Withholding taxes ⁽¹⁾	224	218
Deposit with corporation	174	176
Advance payments to vendors for supply of goods ⁽¹⁾	10	13
Other assets	16	1
	630	527
Non-Current
Loans and advances to employees	6	5
Security deposits	11	11
Deposit with corporation	11	9
Prepaid gratuity ⁽¹⁾	3	4
Prepaid expenses ⁽¹⁾	5	1
Rental Deposits	12	8
	48	38
	678	565
Financial assets in prepayments and other assets	400	313

⁽¹⁾

Nonfinancial assets

Withholding taxes primarily consist of input tax credits. Other assets primarily represent travel advances and other recoverables.

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

2.5 Property, plant and equipment

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

(Dollars in millions)

	Land	Buildings	Plant and machinery	Computer equipment	Furniture and Ufixtures	Vehicles	Capital work-in-progress	Total
Gross carrying value as of April 1, 2015	250	940	337	535	189	6	230	2,487
Additions	3	12	14	48	7	–	21	105
Deletions	–	–	–	(2)	–	–	–	(2)
Translation difference	(5)	(16)	(6)	(8)	(3)	(1)	(4)	(43)
Gross carrying value as of June 30, 2015	248	936	345	573	193	5	247	2,547
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)
Carrying value as of April 1, 2015	247	623	130	170	57	3	230	1,460
Carrying value as of June 30, 2015	245	616	131	196	57	2	247	1,494

Following are the changes in the carrying value of property, plant and equipment for the three months ended June 30, 2014:

(Dollars in millions)

	Land	Buildings	Plant and machinery	Computer equipment	Furniture and fixtures	Vehicles	Capital work-in-progress	Total
Gross carrying value as of April 1, 2014	190	839	284	444	170	6	305	2,238
Additions	27	10	7	19	2	–	14	79
Deletions	–	–	(1)	(2)	(2)	–	–	(5)
Translation difference	(1)	(4)	(2)	(1)	(1)	(1)	–	(10)
Gross carrying value as of June 30, 2014	216	845	288	460	169	5	319	2,302
Accumulated depreciation as of April 1, 2014	–	(300)	(175)	(328)	(117)	(2)	–	(922)
Depreciation	–	(7)	(11)	(13)	(5)	–	–	(36)
Accumulated depreciation on deletions	–	–	1	2	2	–	–	5
Translation difference	–	2	2	–	1	–	–	5
Accumulated depreciation as of June 30, 2014	–	(305)	(183)	(339)	(119)	(2)	–	(948)
Carrying value as of April 1, 2014	190	539	109	116	53	4	305	1,316
Carrying value as of June 30, 2014	216	540	105	121	50	3	319	1,354

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

(Dollars in millions)

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

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

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

Carrying value of land includes $97 million and $99 million as of June 30, 2015 and March 31, 2015, respectively, towards deposits paid under certain lease-cum-sale agreements to acquire land, including agreements where the company has an option to purchase or renew the properties on expiry of the lease period.

The contractual commitments for capital expenditure were $217 million and $252 million as of June 30, 2015 and March 31, 2015, respectively.

2.6 Goodwill

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

(Dollars in millions)

	As of
	June 30, 2015	March 31, 2015
Carrying value at the beginning	495	360
Goodwill on Panaya acquisition (Refer note 2.3)	–	174
Goodwill on Kallidus d.b.a Skava acquisition (Refer note 2.3)	71	–
Translation differences	5	(39)
Carrying value at the end	571	495

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

Effective this quarter, the company reorganized its business to support its objective of delivery innovation. Consequent to the internal reorganization there were changes effected in the segments based on the “management approach” as defined in IFRS 8, Operating Segments. (Refer Note 2.19). Accordingly the goodwill has been allocated to the new operating segments as at June 30, 2015.

(Dollars in millions)

Segment	As of
	June 30, 2015
Financial services	128
Manufacturing	127
Retail, Consumer packaged goods and Logistics	89
Life Sciences, Healthcare and Insurance	100
Energy & utilities, Communication and Services	101
	545
Operating segments without significant goodwill	26
Total	571

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

(Dollars in millions)

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

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

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

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

2.7 Financial instruments

Financial instruments by category

The carrying value and fair value of financial instruments by categories as of June 30, 2015 were as follows:

(Dollars in millions)

	Loans and receivables	Financial assets/liabilities at fair value through profit and loss	Available for sale	Trade and other payables	Total carrying value/fair value
Assets:
Cash and cash equivalents (Refer to Note 2.1)	4,421	–	–	–	4,421
Available-for-sale financial assets (Refer to Note 2.2)	–	–	331	–	331
Trade receivables	1,657	–	–	–	1,657
Unbilled revenue	464	–	–	–	464
Prepayments and other assets (Refer to Note 2.4)	400	–	–	–	400
Derivative financial instruments	–	6	–	–	6
Total	6,942	6	331	–	7,279
Liabilities:
Trade payables	–	–	–	31	31
Derivative financial instruments	–	1	–	–	1
Client deposits	–	–	–	3	3
Employee benefit obligation	–	–	–	183	183
Other liabilities including contingent consideration (Refer note 2.9)	–	16	–	896	912
Total	–	17	–	1,113	1,130

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

(Dollars in millions)

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

Fair value hierarchy

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

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

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

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of June 30, 2015:

(Dollars in millions)

	As of June 30, 2015	Fair value measurement at end of the reporting period using
		Level 1	Level 2	Level 3
Assets
Available-for-sale financial asset - Investments in liquid mutual fund units (Refer to Note 2.2)	116	116	–	–
Available-for-sale financial asset - Investments in quoted debt securities (Refer to Note 2.2)	213	63	150	–
Available-for-sale financial asset - Investments in preference securities (Refer to Note 2.2)	2	–	–	2
Derivative financial instruments - gain on outstanding foreign exchange forward and option contracts	6	–	6	–
Liabilities				–
Derivative financial instruments - loss on outstanding foreign exchange forward and option contracts	1	–	1	–
Liability towards contingent consideration (Refer note 2.3)	16	–	–	16

During the three months ended June 30, 2015, quoted debt securities of $35 million were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs.

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

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

(Dollars in millions)

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

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

(Dollars in millions)

	Three months ended June 30
	2015	2014
Interest income on deposits and certificates of deposit	103	103
Income from available-for-sale financial assets	8	13
	111	116

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 or a financial institution. These derivative financial instruments are valued based on quoted prices for similar assets and liabilities in active markets or inputs that are directly or indirectly observable in the marketplace. The following table gives details in respect of outstanding foreign exchange forward and options contracts:

(In millions)

	As of
	June 30, 2015	March 31, 2015
Forward contracts
In U.S. dollars	705	716
In Euro	66	67
In United Kingdom Pound Sterling	63	73
In Australian dollars	90	98
In Canadian dollars	12	12
In Singapore dollars	25	25

The Group recognized a net loss on derivative financial instruments of $12 million and a net gain of $13 million for the three months ended June 30, 2015 and June 30, 2014, respectively, which is included under other income.

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

(Dollars in millions)

	As of
	June 30, 2015	March 31, 2015
Not later than one month	241	237
Later than one month and not later than three months	448	605
Later than three months and not later than one year	286	155
	975	997

Financial risk management

Financial risk factors

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

Market risk

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

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

(Dollars in millions)

	As of
	June 30, 2015	March 31, 2015
Aggregate amount of outstanding forward and option contracts	975	997
Gain on outstanding forward and option contracts	6	16
Loss on outstanding forward and option contracts	1	–

The following table analyses foreign currency risk from financial instruments as of June 30, 2015:

(Dollars in millions)

	U.S. dollars	Euro	United Kingdom Pound Sterling	Australian dollars	Other currencies	Total
Cash and cash equivalents	172	21	9	25	83	310
Trade receivables	1,127	150	101	95	100	1,573
Unbilled revenue	282	59	22	15	44	422
Other assets	17	6	4	2	12	41
Trade payables	(10)	(1)	(2)	(1)	(10)	(24)
Client deposits	(2)	–	–	–	(1)	(3)
Accrued expenses	(125)	(23)	(16)	(4)	(31)	(199)
Employee benefit obligation	(74)	(12)	(4)	(23)	(19)	(132)
Other liabilities	(112)	(19)	(6)	(3)	(117)	(257)
Net assets / (liabilities)	1,275	181	108	106	61	1,731

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

(Dollars in millions)

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

For the three months ended June 30, 2015 and June 30, 2014, every percentage point depreciation / appreciation in the exchange rate between the Indian rupee and the U.S. dollar has affected the company's incremental operating margins by approximately 0.49% and 0.51%, respectively.

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

Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to $1,657 million and $1,554 million as of June 30, 2015 and March 31, 2015, respectively and unbilled revenue amounting to $464 million and $455 million as of June 30, 2015 and March 31, 2015, respectively. Trade receivables and unbilled revenue are typically unsecured and are derived from revenue earned from customers primarily located in the United States. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Group grants credit terms in the normal course of business.

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

(In %)

	Three months ended June 30,
	2015	2014
Revenue from top customer	3.7	3.4
Revenue from top five customers	14.0	13.7

Financial assets that are neither past due nor impaired

Cash and cash equivalents and available-for-sale financial assets and investments in certificates of deposit are neither past due nor impaired. Cash and cash equivalents include deposits with banks and corporations with high credit-ratings assigned by international and domestic credit-rating agencies. Available-for-sale financial assets include investment in liquid mutual fund units, quoted debt securities and unquoted equity and preference securities. Certificates of deposit represent funds deposited at a bank or other eligible financial institution for a specified time period. Investment in quoted debt securities represents the investments made in debt securities issued by government and quasi government organizations. Of the total trade receivables, $1,109 million and $1,174 million as of June 30, 2015 and March 31, 2015, were neither past due nor impaired.

There is no other class of financial assets that is not past due but impaired except for trade receivables of $3 million and $4 million as of June 30, 2015 and March 31, 2015, respectively.

Financial assets that are past due but not impaired

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

(Dollars in millions)

Period (in days)	As of June 30, 2015	As of March 31, 2015
Less than 30	325	263
31-60	113	55
61-90	55	14
More than 90	55	48
	548	380

The reversal of provision for doubtful trade receivables for the three months ended June 30, 2015 is $1 million.

The provision for doubtful trade receivables for the three months ended June 30, 2014 is $19 million.

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

(Dollars in millions)

	Three months ended June 30,		Year ended March 31,
	2015	2014	2015
Balance at the beginning	59	36	36
Translation differences	–	–	(4)
Provisions for doubtful trade receivable	(1)	19	29
Trade receivables written off	–	–	(2)
Balance at the end	58	55	59

Liquidity risk

As of June 30, 2015, the Group had a working capital of $5,232 million including cash and cash equivalents of $4,421 million and current available-for-sale financial assets of $116 million. As of March 31, 2015, the Group had a working capital of $5,731 million including cash and cash equivalents of $4,859 million and current available-for-sale financial assets of $140 million.

As of June 30, 2015 and March 31, 2015, the outstanding employee benefit obligations were $183 million and $171 million, respectively, which have been substantially funded. Further, as of June 30, 2015 and March 31, 2015, the Group had no outstanding bank borrowings. Accordingly, no liquidity risk is perceived.

The table below provides details regarding the contractual maturities of significant financial liabilities as of June 30, 2015:

(Dollars in millions)

Particulars	Less than 1 year	1-2 years	2-4 years	4-7 years	Total
Trade payables	31	–	–	–	31
Client deposits	3	–	–	–	3
Other liabilities (excluding liability towards acquisition - Refer Note 2.9)	805	–	–	–	805
Liability towards acquisitions on an undiscounted basis (including contingent consideration) - Refer Note 2.9	101	7	7	–	115

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

(Dollars in millions)

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

As of June 30, 2015 and March 31, 2015, the Group had outstanding financial guarantees of $7 million each, respectively towards leased premises. These financial guarantees can be invoked upon breach of any term of the lease agreement. To the Group’s knowledge there has been no breach of any term of the lease agreement as of June 30, 2015 and March 31, 2015.

Offsetting of financial assets and financial liabilities:

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

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

(Dollars in millions)

	As of		As of
	June 30, 2015		March 31, 2015
	Derivative financial asset	Derivative financial liability	Derivative financial asset	Derivative financial liability
Gross amount of recognised financial asset/liability	7	(2)	17	(1)
Amount set off	(1)	1	(1)	1
Net amount presented in balance sheet	6	(1)	16	–

2.8 Provisions

Provisions comprise the following:

(Dollars in millions)

	As of
	June 30, 2015	March 31, 2015
Provision for post sales client support and other provisions	74	77
	74	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, 2015
Balance at the beginning	77
Translation differences	–
Provision recognized/(reversed)	4
Provision utilized	(7)
Balance at the end	74

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, 2015 and March 31, 2015, claims against the company, not acknowledged as debts, net of amounts paid (excluding demands from Indian income tax authorities- Refer to Note 2.11) amounted to $40 million (257 crore) and $42 million (261 crore), respectively.

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

2.9 Other liabilities

Other liabilities comprise the following:

(Dollars in millions)

	As of
	June 30, 2015	March 31, 2015
Current
Accrued compensation to employees	303	337
Accrued expenses	345	318
Withholding taxes payable ⁽¹⁾	186	145
Retainage	9	8
Liabilities of controlled trusts	27	28
Accrued gratuity	–	1
Tax on Dividend	108	–
Liability towards acquisition of business	91	78
Liability towards contingent consideration (Refer note 2.3)	5
Others	13	12
	1,087	927
Non-Current
Liability towards contingent consideration (Refer note 2.3)	11	–
Deferred income - government grant on land use rights⁽¹⁾	7	8
	18	8
	1,105	935
Financial liabilities included in other liabilities	912	782
Financial liability towards acquisitions on an undiscounted basis (including contingent consideration) - Refer note 2.3	115	84

⁽¹⁾

Non financial liabilities

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

2.10 Employees' Stock Option Plans (ESOP)

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

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

The activity in the 2011 Plan during the three months ended June 30, 2015 is set out below:

Particulars	Three months ended June 30, 2015
	Shares arising out of options	Weighted average exercise price ($)
2011 Plan:
Outstanding at the beginning*	108,268	0.08
Granted	124,061	0.08
Forfeited and expired	–	–
Exercised	–	–
Outstanding at the end	232,329	0.08
Exercisable at the end	–	–

adjusted for bonus issues (Refer note 2.17)

The weighted average remaining contractual life of RSUs outstanding as of June 30, 2015 under the 2011 Plan was 2.59 years.

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, 2015 and June 30, 2014, the company recorded an employee compensation expense of less than $1 million and Nil, respectively in the statement of comprehensive income.

2.11 Income taxes

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

(Dollars in millions)

	Three months ended June 30,
	2015	2014
Current taxes
Domestic taxes	142	156
Foreign taxes	36	41
	178	197
Deferred taxes
Domestic taxes	7	(3)
Foreign taxes	(1)	(1)
	6	(4)
Income tax expense	184	193

Income tax expense for the three months ended June 30, 2015 and June 30, 2014 includes reversals (net of provisions) of $13 million and $3 million, respectively, pertaining to earlier periods.

Entire deferred income tax for the three months ended June 30, 2015 and June 30, 2014 relates to origination and reversal of temporary differences.

A deferred tax asset of less than $1 million and a reversal of deferred tax liability of less than $1 million relating to available-for-sale financial assets has been recognized in other comprehensive income for the three months ended June 30, 2015.

A reversal of deferred tax asset of $2 million relating to available-for-sale financial assets has been recognized in other comprehensive income for the three months ended June 30, 2014.

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

(Dollars in millions)

	Three months ended June 30,
	2015	2014
Profit before income taxes	660	675
Enacted tax rates in India	34.61%	33.99%
Computed expected tax expense	229	229
Tax effect due to non-taxable income for Indian tax purposes	(62)	(65)
Overseas taxes	23	30
Tax reversals, overseas and domestic	(13)	(3)
Effect of differential overseas tax rates	(1)	(1)
Effect of exempt non operating income	(3)	(5)
Effect of unrecognized deferred tax assets	2	3
Effect of non-deductible expenses	11	6
Additional deduction on research and development expense	(2)	(2)
Others	–	1
Income tax expense	184	193

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

During the three months ended June 30, 2015 and June 30, 2014, the company has claimed weighted tax deduction on eligible research and development expenditures based on the approval received from Department of Scientific and Industrial Research (DSIR) on November 23, 2011 which has been renewed effective April 2014. The weighted tax deduction is equal to 200% of such expenditures incurred.

The foreign tax expense is due to income taxes payable overseas, principally in the United States. In India, the company has benefited from certain tax incentives that the Government of India had provided to the export of software from the specifically designated units registered under the Software Technology Parks Scheme (STP) in India and the company continues to benefit from certain tax incentives for the units registered under the Special Economic Zones Act, 2005 (SEZ). However, the income tax incentives provided by the Government of India for STP units have expired, and all the STP units are now taxable. SEZ units which began providing services on or after April 1, 2005 are eligible for a deduction of 100 percent of profits or gains derived from the export of services for the first five years from the financial year in which the unit commenced the provision of services and 50 percent of such profits or gains for a further five years. Certain tax benefits are also available for a further period of five years subject to the unit meeting defined conditions.

As of June 30, 2015, claims against the group not acknowledged as debts from the Indian Income tax authorities net of amount paid to statutory authorities of $543 million (3,453 crore) amounted to $1 million (7 crore).

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

Payment of $543 million (3,453 crore) includes demands from the Indian Income tax authorities of $506 million (3,221 crore), including interest of $149 million (951 crore) upon completion of their tax assessment for fiscal 2007, fiscal 2008, fiscal 2009 and fiscal 2010.

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

2.12 Earnings per equity share

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

	Three months ended June 30,
	2015	2014
Basic earnings per equity share - weighted average number of equity shares outstanding⁽¹⁾⁽²⁾	2,285,610,264	2,285,610,264
Effect of dilutive common equivalent shares	62,045	–
Diluted earnings per equity share - weighted average number of equity shares and common equivalent shares outstanding	2,285,672,309	2,285,610,264

⁽¹⁾

Excludes treasury shares

⁽²⁾

adjusted for bonus issues. Refer Note 2.17

For the three months ended June 30, 2015 and June 30, 2014, there were no outstanding options to purchase equity shares which had an anti-dilutive effect.

2.13 Related party transactions

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

Transactions with key management personnel

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

(Dollars in millions)

	2015	2014
Salaries and other employee benefits to whole-time directors and executive officers⁽¹⁾	4	2
Commission and other benefits to non-executive/ independent directors	–	–
Total	4	2

⁽¹⁾

Includes stock compensation expense of less than $1 million for three months ended June 30, 2015.

2.14 Segment Reporting

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

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

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

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

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

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

2.14.1 Business Segments

Three months ended June 30, 2015 and June 30, 2014

(Dollars in millions)

	FS	MFG	ECS	RCL	HILIFE	All other segments	Total
Revenues	610	524	412	368	306	36	2,256
	583	482	400	366	266	36	2,133
Identifiable operating expenses	301	273	190	177	154	30	1,125
	286	249	185	170	136	37	1,063
Allocated expenses	141	128	99	90	74	9	541
	130	113	95	86	63	8	495
Segment profit	168	123	123	101	78	(3)	590
	167	120	120	110	67	(9)	575
Unallocable expenses							49
							39
Operating profit							541
							536
Other income, net							119
							139
Share in associate's profit / (loss)							–
							–
Profit before Income taxes							660
							675
Income tax expense							184
							193
Net profit							476
							482
Depreciation and amortisation							49
							39
Non-cash expenses other than depreciation and amortisation							–
							–

2.14.2 Geographic Segments

Three months ended June 30, 2015 and June 30, 2014

(Dollars in millions)

	North America	Europe	India	Rest of the World	Total
Revenues	1,426	506	50	274	2,256
	1,297	522	51	263	2,133
Identifiable operating expenses	721	253	37	114	1,125
	631	266	42	124	1,063
Allocated expenses	346	122	10	63	541
	305	122	10	58	495
Segment profit	359	131	3	97	590
	361	134	(1)	81	575
Unallocable expenses					49
					39
Operating profit					541
					536
Other income, net					119
					139
Share in associate's profit / (loss)					–
					–
Profit before Income taxes					660
					675
Income Tax expense					184
					193
Net profit					476
					482
Depreciation and amortisation					49
					39
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, 2015 and June 30, 2014.

2.15 Break-up of expenses

Cost of sales

(Dollars in millions)

	Three months ended June 30,
	2015	2014
Employee benefit costs	1,123	1,091
Deferred purchase price pertaining to acquisition	9	9
Depreciation and amortisation	49	39
Travelling costs	64	58
Cost of technical sub-contractors	118	75
Cost of software packages for own use	29	38
Third party items bought for service delivery to clients	18	9
Operating lease payments	8	9
Communication costs	7	7
Repairs and maintenance	8	6
Provision for post-sales client support	(1)	1
Other expenses	2	2
Total	1,434	1,344

Sales and marketing expenses

(Dollars in millions)

	Three months ended June 30,
	2015	2014
Employee benefit costs	98	93
Travelling costs	13	9
Branding and marketing	12	5
Operating lease payments	2	1
Consultancy and professional charges	2	1
Communication costs	1	–
Other expenses	1	2
Total	129	111

Administrative expenses

(Dollars in millions)

	Three months ended June 30,
	2015	2014
Employee benefit costs	45	45
Consultancy and professional charges	24	7
Repairs and maintenance	28	19
Power and fuel	8	9
Communication costs	10	12
Travelling costs	11	7
Rates and taxes	5	4
Operating lease payments	3	3
Insurance charges	2	2
Provisions for doubtful trade receivable	(1)	19
Contributions towards Corporate Social Responsibility	7	8
Other expenses	10	7
Total	152	142

2.16 Dividends

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

The amount of per share dividend recognized as distributions to equity shareholders for the three month ended June 30, 2015 and June 30, 2014 was 29.50/- ($0.47 per equity share) (not adjusted for June 17, 2015 bonus issue) and 43/- ($0.72 per equity share) (not adjusted for bonus issues), respectively.

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. 1,13,34,400 and 56,67,200 shares were held by controlled trust, as of June 30, 2015 and March 31, 2015, respectively.

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

Exhibit 99.10

IFRS INR Earnings Release

Independent Auditors’ Report

To the Board of Directors of Infosys Limited

We have audited the accompanying consolidated interim financial statements of Infosys Limited (“the Company”) and its subsidiaries (collectively referred to as ‘the Group’), which comprise the consolidated balance sheet as at June 30, 2015, the consolidated statement of comprehensive income, 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 Consolidated Interim Financial Statements

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

Auditor’s Responsibility

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

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

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

Independent Auditors’ Report (continued)

Opinion

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

(a)

in the case of the consolidated balance sheet, of the consolidated interim financial position of the Group as at June 30, 2015;

(b)

in the case of the 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 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 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 21, 2015

Infosys Limited and subsidiaries

(In crore except equity share data)

Consolidated Balance Sheets as of	Note	June 30, 2015	March 31, 2015
ASSETS
Current assets
Cash and cash equivalents	2.1	28,142	30,367
Available-for-sale financial assets	2.2	736	874
Trade receivables		10,548	9,713
Unbilled revenue		2,953	2,845
Prepayments and other current assets	2.4	4,010	3,296
Derivative financial instruments	2.7	41	101
Total current assets		46,430	47,196
Non-current assets
Property, plant and equipment	2.5	9,511	9,125
Goodwill	2.6	3,635	3,091
Intangible assets	2.6	944	638
Investment in associate	2.18	95	93
Available-for-sale financial assets	2.2	1,371	1,345
Deferred income tax assets	2.16	484	537
Income tax assets	2.16	4,612	4,089
Other non-current assets	2.4	302	238
Total non-current assets		20,954	19,156
Total assets		67,384	66,352
LIABILITIES AND EQUITY
Current liabilities
Trade payables		196	140
Derivative financial instruments	2.7	6	3
Current income tax liabilities	2.16	3,162	2,818
Client deposits		21	27
Unearned revenue		1,183	1,052
Employee benefit obligations		1,163	1,069
Provisions	2.8	474	478
Other current liabilities	2.9	6,920	5,796
Total current liabilities		13,125	11,383
Non-current liabilities
Deferred income tax liabilities	2.16	284	160
Other non-current liabilities	2.9	116	46
Total liabilities		13,525	11,589
Equity
Share capital- 5 par value 240,00,00,000 (120,00,00,000) equity shares authorized, issued and outstanding 228,56,10,264 (114,28,05,132) net of 1,13,34,400 (56,67,200) treasury shares as of June 30, 2015 (March 31, 2015) respectively		1,144	572
Share premium		2,236	2,806
Retained earnings		49,947	50,978
Other reserves		–	–
Other components of equity		532	407
Total equity attributable to equity holders of the Company		53,859	54,763
Non-controlling interests		–	–
Total equity		53,859	54,763
Total liabilities and equity		67,384	66,352

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

As per our report of even date attached

for B S R & Co. LLP

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
Partner Membership No. 205385	Chairman	Chief Executive Officer and Managing Director

Bangalore	Rajiv Bansal	A.G.S Manikantha
July 21, 2015	Chief Financial Officer	Company Secretary

Infosys Limited and subsidiaries

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

Consolidated Statements of Comprehensive Income	Note	Three months ended June 30,
		2015	2014
Revenues		14,354	12,770
Cost of sales	2.10	9,123	8,046
Gross profit		5,231	4,724
Operating expenses:
Selling and marketing expenses	2.10	820	666
Administrative expenses	2.10	964	847
Total operating expenses		1,784	1,513
Operating profit		3,447	3,211
Other income, net	2.13	758	829
Share in associate's profit / (loss)		–	–
Profit before income taxes		4,205	4,040
Income tax expense	2.16	1,175	1,154
Net profit		3,030	2,886
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurement of the net defined benefit liability/asset	2.11 & 2.16	(7)	(20)
		(7)	(20)
Items that may be reclassified subsequently to profit or loss
Fair value changes on available-for-sale financial asset	2.2 & 2.16	(12)	17
Exchange differences on translation of foreign operations		144	–
		132	17
Total other comprehensive income, net of tax		125	(3)
Total comprehensive income		3,155	2,883
Profit attributable to:
Owners of the company		3,030	2,886
Non-controlling interests		–	–
		3,030	2,886
Total comprehensive income attributable to:
Owners of the company		3,155	2,883
Non-controlling interests		–	–
		3,155	2,883
Earnings per equity share
Basic ()		13.26	12.63
Diluted ()		13.26	12.63
Weighted average equity shares used in computing earnings per equity share	2.17
Basic		228,56,10,264	228,56,10,264
Diluted		228,56,72,309	228,56,10,264

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 Number:101248W/W-100022

Supreet Sachdev	R.Seshasayee	Dr. Vishal Sikka
Partner Membership No. 205385	Chairman	Chief Executive Officer and Managing Director

Bangalore	Rajiv Bansal	A.G.S Manikantha
July 21, 2015	Chief Financial Officer	Company Secretary

Infosys Limited and subsidiaries

Consolidated Statements of Changes in Equity

(In crore except equity share data)

	Shares⁽²⁾	Share capital	Share premium	Retained earnings	Other reserves	Other components of equity	Total equity attributable to equity holders of the Company
Balance as of April 1, 2014	57,14,02,566	286	3,090	43,584	–	570	47,530
Changes in equity for the three months ended June 30, 2014
Remeasurement of the net defined benefit liability/asset, net of tax effect ( refer note 2.11 and 2.16)	–	–	–	–	–	(20)	(20)
Dividends (including corporate dividend tax)	–	–	–	(2,877)	–	–	(2,877)
Fair value changes on available-for-sale financial assets, net of tax effect (refer note 2.2 and 2.16)	–	–	–	–	–	17	17
Net profit	–	–	–	2,886	–	–	2,886
Exchange differences on translation of foreign operations	–	–	–	–	–	–	–
Balance as of June 30, 2014	57,14,02,566	286	3,090	43,593	–	567	47,536
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 2.12)	114,28,05,132	572	–	–	–	–	572
Amounts utilised for bonus issue (refer note 2.12)⁽¹⁾	–	–	(572)	–	–	–	(572)
Transferred to other reserves (refer note 2.12)	–	–	–	(135)	135	–	–
Transferred from other reserves (refer note 2.12)	–	–	–	135	(135)	–	–
Employee stock compensation expense (refer to note 2.15)	–	–	2	–	–	–	2
Remeasurement of the net defined benefit liability/asset, net of tax effect (refer note 2.11 and 2.16)	–	–	–	–	–	(7)	(7)
Dividends (including corporate dividend tax)	–	–	–	(4,061)	–	–	(4,061)
Fair value changes on available-for-sale financial assets, net of tax effect (refer note 2.2 and 2.16)	–	–	–	–	–	(12)	(12)
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

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

⁽¹⁾

net of treasury shares

⁽²⁾

excludes treasury shares of 1,13,34,400 as of June 30, 2015 and 56,67,200 as of April 1, 2015 and 28,33,600 each as of June 30, 2014 and April 1, 2014, held by consolidated trust.

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
Partner Membership No. 205385	Chairman	Chief Executive Officer and Managing Director

Bangalore	Rajiv Bansal	A.G.S Manikantha
July 21, 2015	Chief Financial Officer	Company Secretary

Infosys Limited and subsidiaries

(In crore)

Consolidated Statements of Cash Flows	Note	Three months ended June 30,
		2015	2014
Operating activities:
Net profit		3,030	2,886
Adjustments to reconcile net profit to net cash provided by operating activities:
Depreciation and amortization	2.5 and 2.6	313	230
Income tax expense	2.16	1,175	1,154
Income on available-for-sale financial assets and certificates of deposits		(49)	(98)
Effect of exchange rate changes on assets and liabilities		7	2
Deferred purchase price		60	56
Provision for doubtful account receivables		(4)	114
Other adjustments		(10)	(5)
Changes in working capital
Trade receivables		(775)	(935)
Prepayments and other assets		(702)	(96)
Unbilled revenue		(108)	(154)
Trade payables		53	(52)
Client deposits		(6)	(1)
Unearned revenue		131	200
Other liabilities and provisions		392	164
Cash generated from operations		3,507	3,465
Income taxes paid	2.16	(1,305)	(682)
Net cash provided by operating activities		2,202	2,783
Investing activities:
Expenditure on property, plant and equipment net of sale proceeds, including changes in retention money and capital creditors	2.5 and 2.9	(669)	(444)
Loans to employees		(1)	(34)
Deposits placed with corporation		(19)	(27)
Income on available-for-sale financial assets and certificates of deposit		21	70
Payment for acquisition of business, net of cash acquired	2.3	(549)	–
Investment in preference securities		(13)	–
Redemption of certificates of deposit		–	276
Investment in liquid mutual fund units		(8,304)	(6,279)
Redemption of liquid mutual fund units		8,415	5,702
Investment in fixed maturity plan securities		–	(30)
Redemption of fixed maturity plan securities		33	–
Net cash used in investing activities		(1,086)	(766)
Financing activities:
Payment of dividends		(3,366)	(2,454)
Payment of corporate dividends tax		–	(420)
Net cash used in financing activities		(3,366)	(2,874)
Effect of exchange rate changes on cash and cash equivalents		25	(34)
Net decrease in cash and cash equivalents		(2,250)	(857)
Cash and cash equivalents at the beginning	2.1	30,367	25,950
Cash and cash equivalents at the end	2.1	28,142	25,059
Supplementary information:
Restricted cash balance	2.1	375	327

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 Number:101248W/W-100022

Supreet Sachdev	R.Seshasayee	Dr. Vishal Sikka
Partner Membership No. 205385	Chairman	Chief Executive Officer and Managing Director

Bangalore	Rajiv Bansal	A.G.S Manikantha
July 21, 2015	Chief Financial Officer	Company Secretary

Notes to the Consolidated Interim Financial Statements

1. Company Overview and Significant Accounting Policies

1.1 Company overview

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

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

The Group's consolidated financial statements are authorized for issue by the company's Board of Directors on July 21, 2015.

1.2 Basis of preparation of financial statements

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

1.3 Basis of consolidation

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

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

1.4 Use of estimates

1.5 Critical accounting estimates

a. Revenue recognition

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

b. Income taxes

c. Business combinations and intangible assets

d. Property, plant and equipment

e. Impairment of Goodwill

1.6 Revenue recognition

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

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

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

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

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

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

The company presents revenues net of value-added taxes in its statement of comprehensive income.

1.7 Property, plant and equipment

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

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

1.8 Business combinations

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

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

1.9 Goodwill

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

1.10 Intangible assets

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

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

1.11 Financial instruments

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

a. Non-derivative financial instruments

(i) Loans and receivables

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

(ii) Available-for-sale financial assets

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

(iii) Trade and other payables

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

b. Derivative financial instruments

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

This category has two sub-categories wherein, financial assets or financial liabilities are held for trading or are designated as such upon initial recognition. A financial asset is classified as held for trading if it is acquired principally for the purpose of selling in the short term. Derivatives are categorized as held for trading unless they are designated as hedges.

The group holds derivative financial instruments such as foreign exchange forward and option contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank or a financial institution. Although the group believes that these financial instruments constitute hedges from an economic perspective, they do not qualify for hedge accounting under IAS 39, Financial Instruments: Recognition and Measurement. Any derivative that is either not designated a hedge, or is so designated but is ineffective as per IAS 39, is categorized as a financial asset, at fair value through profit or loss.

Derivatives 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, 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.

c. Share capital and treasury shares

Ordinary Shares

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

Treasury Shares

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

1.12 Impairment

a. Financial assets

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

(i) Loans and receivables

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

(ii) Available-for-sale financial assets

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

b. Non-financial assets

(i) Goodwill

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

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

(ii) Intangible assets and property, plant and equipment

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

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

c. Reversal of impairment loss

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

1.13 Fair value of financial instruments

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

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

1.14 Provisions

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

a. Post sales client support

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

b. Onerous contracts

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

1.15 Foreign currency

Functional currency

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

Transactions and translations

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

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

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

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

1.16 Earnings per equity share

1.17 Income taxes

Income tax expense comprises current and deferred income tax. Income tax expense is recognized in net profit in the statement of comprehensive income except to the extent that it relates to items recognized directly in equity, in which case it is recognized in other comprehensive income. Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

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

1.18 Employee benefits

1.18.1 Gratuity

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.

1.18.2 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.

1.18.3 Provident fund

1.18.4 Compensated absences

1.19 Share-based compensation

1.20 Dividends

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

1.21 Operating profit

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

1.22 Other income

Other income is comprised primarily of interest income, dividend income and exchange gain/loss on forward and options contracts and on translation of other assets and liabilities. Interest income is recognized using the effective interest method. Dividend income is recognized when the right to receive payment is established.

1.23 Leases

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

1.24 Government grants

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

1.25 Recent accounting pronouncements

1.25.1 Standards issued but not yet effective

In May 2015, the IASB published an exposure draft ‘Effective date of IFRS 15’ to propose changing the effective date of IFRS 15 to periods beginning on or after January 1, 2018 instead of January 1, 2017.

2. Notes to the consolidated financial statements

2.1 Cash and cash equivalents

Cash and cash equivalents consist of the following:

(In crore)

	As of
	June 30, 2015	March 31, 2015
Cash and bank deposits	24,711	26,195
Deposits with corporation	3,431	4,172
	28,142	30,367

Cash and cash equivalents as of June 30, 2015 and March 31, 2015 include restricted cash and bank balances of 375 crore and 364 crore, respectively. The restrictions are primarily on account of cash and bank balances held by irrevocable trusts controlled by the Company, bank balances held as margin money deposits against guarantees and balances held in unpaid dividend bank accounts.

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

The table below provides details of cash and cash equivalents:

(In crore)

	As of
	June 30, 2015	March 31, 2015
Current Accounts
ANZ Bank, Taiwan	4	4
Banamex Bank, Mexico	4	10
Banamex Bank, Mexico (U.S. Dollar account)	1	1
Bank of America, Mexico	15	26
Bank of America, USA	701	716
Bank of Austria, Austria	1	–
Bank of Baroda, Mauritius	1	–
Bank Zachodni WBK S.A, Poland	4	4
Bank of Tokyo-Mitsubishi UFJ, Ltd., Japan	1	1
Barclays Bank, UK	12	10
Bank Leumi, USA	8	7
Bank Leumi, USA (Israeli Sheqel account)	3	15
Bank Leumi, USA (Euro account)	2	3
BNP Paribas Bank, Norway	1	–
China Merchants Bank, China	5	4
Citibank N.A, China	15	20
Citibank NA, China (U.S. Dollar account)	163	24
Citibank N.A, Costa Rica	1	5
Citibank N.A., Czech Republic	6	6
Citibank N.A., Australia	57	25
Citibank N.A., Brazil	22	27
Citibank N.A., Dubai	5	1
Citibank N.A., India	6	7
Citibank N.A., Japan	26	20
Citibank N.A., New Zealand	6	6
Citibank N.A., Portugal	1	–
Citibank N.A., Singapore	10	2
Citibank N.A., South Africa	2	3
Citibank N.A., Philippines, (U.S. Dollar account)	1	1
CitiBank N.A., USA	6	–
CitiBank N.A., EEFC (U.S. Dollar account)	20	2
Commerzbank, Germany	33	19
Crédit Industriel et Commercial Bank, France	–	1
Deutsche Bank, India	23	5
Deutsche Bank, Philippines	7	3
Deutsche Bank, Philippines (U.S. Dollar account)	1	3
Deutsche Bank, Poland	8	19
Deutsche Bank, Poland (Euro Account)	1	1
Deutsche Bank, EEFC (Australian Dollar account)	27	–
Deutsche Bank, EEFC (Euro account)	5	3
Deutsche Bank, EEFC (Swiss Franc account)	21	5
Deutsche Bank, EEFC (U.S. Dollar account)	20	8
Deutsche Bank, EEFC (United Kingdom Pound Sterling account)	4	5
Deutsche Bank, Belgium	16	13
Deutsche Bank, Czech Republic	11	6
Deutsche Bank, Czech Republic (Euro account)	4	2
Deutsche Bank, Czech Republic (U.S. Dollar account)	9	20
Deutsche Bank, France	10	2
Deutsche Bank, Germany	16	8
Deutsche Bank, Netherlands	21	2
Deutsche Bank, Singapore	19	5
Deutsche Bank, Spain	2	1
Deutsche Bank, Switzerland	3	–
Deutsche Bank, United Kingdom	34	25
HDFC Bank-Unpaid dividend account	1	1
HSBC Bank, Brazil	6	3
HSBC Bank, Hong Kong	58	44
ICICI Bank, India	46	30
ICICI Bank, EEFC (Euro account)	1	–
ICICI Bank, EEFC (U.S. Dollar account)	18	14
ICICI Bank, EEFC (United Kingdom Pound Sterling account)	1	–
ICICI Bank-Unpaid dividend account	7	2
ING Bank, Belgium	3	–
Nordbanken, Sweden	21	3
Punjab National Bank, India	1	7
Royal Bank of Scotland, China	59	45
Royal Bank of Scotland, China (U.S. Dollar account)	4	47
Royal Bank of Canada, Canada	12	16
Santander Bank, Argentina	1	2
Santander Bank, Spain	–	1
State Bank of India, India	1	2
Silicon Valley Bank, USA	40	66
Silicon Valley Bank, (Euro account)	47	16
Silicon Valley Bank, (United Kingdom Pound Sterling account)	11	5
Union Bank of Switzerland AG	12	12
Union Bank of Switzerland AG (U.S. Dollar Account)	2	2
Union Bank of Switzerland AG, (UK Pound Sterling account)	2	1
Union Bank of Switzerland AG, (Euro Account)	17	4
Union Bank of Switzerland AG, (HKD Account)	1	–
UTI Bank, India	1	–
Wells Fargo Bank N.A., USA	32	38
Westpac, Australia	8	6
	1,818	1,473
Deposit Accounts
Allahabad Bank	200	200
Andhra Bank	137	171
Axis Bank	1,315	1,495
Bank of Baroda	2,394	2,394
Bank of India	2,575	2,691
Canara Bank	2,347	3,134
Central Bank of India	1,403	1,383
Citibank	49	–
Corporation Bank	1,277	1,277
Deutsche Bank, Poland	153	121
Development Bank of Singapore	–	35
HDFC Bank Ltd.	2,041	2,097
ICICI Bank	2,758	3,166
IDBI Bank	856	856
Indian Overseas Bank	613	651
Indusind Bank	59	75
ING Vysya Bank	100	100
Kotak Mahindra Bank	5	5
National Australia Bank Limited	34	87
National Bank of Mexico	3	–
Oriental Bank of Commerce	1,532	1,580
Punjab National Bank	610	592
South Indian Bank	27	27
State Bank of India	56	57
Syndicate Bank	407	407
Union Bank of India	1,071	1,051
Vijaya Bank	267	466
Yes Bank	604	604
	22,893	24,722
Deposits with corporation
HDFC Limited	3,431	4,172
	3,431	4,172
Total	28,142	30,367

2.2 Available-for-sale financial assets

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

Cost and fair value of the above investments are as follows:

(In crore)

	As of
	June 30, 2015	March 31, 2015
Current
Mutual fund units:
Liquid mutual funds
Cost and fair value	736	842
Fixed maturity plan securities
Cost	–	30
Gross unrealised holding gains	–	2
Fair value	–	32
	736	874
Non-current
Quoted debt securities:
Cost	1,377	1,352
Gross unrealised holding gain/ (loss)	(20)	(8)
Fair value	1,357	1,344
Unquoted equity and preference securities:
Cost	14	1
Gross unrealised holding gains	–	–
Fair value	14	1
	1,371	1,345
Total available-for-sale financial assets	2,107	2,219

Mutual fund units:

Liquid mutual funds

The fair value of liquid mutual funds as of June 30, 2015 and March 31, 2015 is 736 crore and 842 crore, respectively. The fair value is based on quoted price.

Fixed maturity plan securities:

During the three months ended June 30, 2015, the company redeemed fixed maturity plans securities of 30 crore. On redemption, the unrealised gain of 2 crore pertaining to these securities has been reclassified from other comprehensive income to profit or loss.

The fair value of fixed maturity plan securities as of March 31, 2015 is 32 crore. The fair value is based on quotes reflected in actual transactions in similar instruments as available on March 31, 2015. The net unrealized gain of 3 crore, net of taxes less than 1 crore has been recognized in other comprehensive income for the three months ended June 30, 2014 (Refer to note 2.16).

Quoted debt securities:

The fair value of quoted debt securities as of June 30, 2015 and March 31, 2015 is 1,357 crore and 1,344 crore, respectively. The net unrealised loss of 11 crore, net of taxes of 1 crore, has been recognized in other comprehensive income for the three months ended June 30, 2015. The net unrealized gain of 13 crore, net of taxes has been recognized in other comprehensive income for the three months ended June 30, 2014 (Refer to note 2.16). The fair value is based on quoted prices and market observable inputs.

2.3 Business combinations

Lodestone

On October 22, 2012, Infosys acquired 100% of the voting interests in Lodestone Holding AG, a global management consultancy firm headquartered in Zurich. The business acquisition was conducted by entering into a share purchase agreement for a cash consideration of 1,187 crore and an additional consideration of upto 608 crore, which the company refers to as deferred purchase price, estimated on the date of acquisition, payable to the selling shareholders of Lodestone Holding AG who are continuously employed or otherwise engaged by the Group during the three year period following the date of the acquisition.

This transaction is treated as post acquisition employee remuneration expense as per IFRS 3R. For the three months ended June 30, 2015 and June 30, 2014, a post-acquisition employee remuneration expense of 60 crore and 56 crore respectively, is recorded in cost of sales in the statement of comprehensive income. As of June 30, 2015 and March 31, 2015, the liability towards deferred purchase price amounted to 580 crore and 487 crore, respectively.

Panaya

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

(In crore)

Component	Acquiree's carrying amount	Fair value adjustments	Purchase price allocated
Property, plant and equipment	9	–	9
Net current assets ⁽¹⁾	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

⁽¹⁾

Includes cash and cash equivalents acquired of 116 crore.

The goodwill is not tax deductible.

The gross amount of trade receivables acquired and its fair value is 58 crore and the amounts have been largely collected.

The fair value of total cash consideration as at the acquisition date was 1,398 crore.

The transaction costs of 22 crore related to the acquisition have been included under administrative expenses in the statement of comprehensive income for the year ended March 31, 2015.

EdgeVerve Systems Limited

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

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

Finacle and Edge Services

On April 24, 2015, the Board of Directors of Infosys has authorized the Company to execute a Business Transfer Agreement and related documents with EgdeVerve, a wholly owned subsidiary, to transfer the business of Finacle and Edge Services, subject to securing the requisite approval from shareholders through postal ballot. Subsequently, on June 4, 2015, the shareholders have authorized the execution of Business Transfer Agreement and related documnets with EdgeVerve, with effect from August 1, 2015 or any other date as may be decided by the Board. The company has undertaken independent valuation by an independent valuer and accordingly the business will be transferred for a consideration of upto 3,400 crore and upto 220 crore for Finacle and Edge Services, respectively. The transfer of assets and liabilities between entities under common control will be accounted for at carrying values and will not have any impact on the consolidated financial statements.

Infosys Public Services

On June 22, 2015, the shareholders in the Annual General Meeting, have approved to enter into a contract to purchase, lease, transfer, assign or otherwise acquire the whole part of the healthcare business, including the rights and properties relating thereto, from Infosys Public Services Inc. (IPS), a wholly-owned subsidiary of the Company. This is for an estimated consideration of up to 625 crore approximately to be discharged in a manner and on such terms and conditions as may be mutually agreed upon between the Board of Directors of the company and IPS with effect from a date as may be decided by the Board of directors.

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 578 crore and a contingent consideration of up to 128 crore.

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⁽¹⁾	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

⁽¹⁾

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 are expected to be 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 transaction costs of 12 crore related to the acquisition have been included under administrative expenses in the statement of comprehensive income for the three months ended June 30, 2015.

2.4 Prepayments and other assets

Prepayments and other assets consist of the following:

(In crore)

	As of
	June 30, 2015	March 31, 2015
Current
Rental deposits	24	24
Security deposits	3	4
Loans and advances to employees	220	222
Prepaid expenses⁽¹⁾	231	98
Interest accrued and not due	835	396
Withholding taxes⁽¹⁾	1,428	1,364
Advance payments to vendors for supply of goods⁽¹⁾	63	79
Deposit with corporations	1,107	1,100
Other assets	99	9
	4,010	3,296
Non-current
Loans and advances to employees	34	31
Deposit with corporation	70	58
Rental deposits	73	47
Security deposits	72	68
Prepaid expenses⁽¹⁾	34	7
Prepaid gratuity⁽¹⁾	19	27
	302	238
	4,312	3,534
Financial assets in prepayments and other assets	2,537	1,959

⁽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.

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

2.5 Property, plant and equipment

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

(In crore)

	Land	Buildings	Plant and machinery	Computer equipment	Furniture and fixtures	Vehicles	Capital work-in-progress	Total
Gross carrying value as of April 1, 2015	1,562	5,881	2,104	3,347	1,179	34	1,440	15,547
Acquisitions through business combination (Refer note 2.3)	–	–	1	2	1	–	–	4
Additions	18	74	92	303	47	1	133	668
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	1,573	16,218
Accumulated depreciation as of April 1, 2015	(16)	(1,982)	(1,293)	(2,287)	(825)	(19)	–	(6,422)
Accumulated Depreciation on acquired assets (Refer note 2.3)	–	–	(1)	(1)	–	–	–	(2)
Depreciation	(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)
Carrying value as of April 1, 2015	1,546	3,899	811	1,060	354	15	1,440	9,125
Carrying value as of June 30, 2015	1,563	3,920	831	1,245	364	15	1,573	9,511

Following are the changes in the carrying value of property, plant and equipment for the three months ended June 30, 2014:

(In crore)

	Land	Buildings	Plant and machinery	Computer equipment	Furniture and fixtures	Vehicles	Capital work-in-progress	Total
Gross carrying value as of April 1, 2014	1,140	5,026	1,702	2,659	1,017	36	1,832	13,412
Additions	159	60	40	113	14	1	85	472
Deletions	–	–	(8)	(7)	(12)	(3)	–	(30)
Translation difference	–	–	(1)	1	–	–	–	–
Gross carrying value as of June 30, 2014	1,299	5,086	1,733	2,766	1,019	34	1,917	13,854
Accumulated depreciation as of April 1, 2014	–	(1,794)	(1,048)	(1,965)	(700)	(18)	–	(5,525)
Depreciation	–	(44)	(60)	(76)	(31)	(1)	–	(212)
Accumulated depreciation on deletions	–	–	8	7	12	2	–	29
Translation difference	–	–	–	–	1	(1)	–	–
Accumulated depreciation as of June 30, 2014	–	(1,838)	(1,100)	(2,034)	(718)	(18)	–	(5,708)
Carrying value as of April 1, 2014	1,140	3,232	654	694	317	18	1,832	7,887
Carrying value as of June 30, 2014	1,299	3,248	633	732	301	16	1,917	8,146

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

(In crore)

	Land	Buildings	Plant and machinery	Computer equipment	Furniture and fixtures	Vehicles	Capital work-in-progress	Total
Gross carrying value as of April 1, 2014	1,140	5,026	1,702	2,659	1,017	36	1,832	13,412
Acquisitions through business combination (Refer note 2.3)	–	–	–	13	9	–	–	22
Additions	422	855	421	765	182	6	85	2,736
Deletions	–	–	(17)	(82)	(20)	(6)	(477)	(602)
Translation difference	–	–	(2)	(8)	(9)	(2)	–	(21)
Gross carrying value as of March 31, 2015	1,562	5,881	2,104	3,347	1,179	34	1,440	15,547
Accumulated depreciation as of April 1, 2014	–	(1,794)	(1,048)	(1,965)	(700)	(18)	–	(5,525)
Accumulated Depreciation on acquired assets (Refer note 2.3)	–	–	–	(9)	(4)	–	–	(13)
Depreciation	(16)	(188)	(262)	(387)	(144)	(6)	–	(1,003)
Accumulated depreciation on deletions	–	–	15	70	18	4	–	107
Translation difference	–	–	2	4	5	1	–	12
Accumulated depreciation as of March 31, 2015	(16)	(1,982)	(1,293)	(2,287)	(825)	(19)	–	(6,422)
Carrying value as of April 1, 2014	1,140	3,232	654	694	317	18	1,832	7,887
Carrying value as of March 31, 2015	1,546	3,899	811	1,060	354	15	1,440	9,125

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

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

Carrying value of land includes 615 crore and 617 crore as of June 30, 2015 and March 31, 2015, respectively, towards deposits paid under certain lease-cum-sale agreements to acquire land including agreements where the Company has an option to purchase or renew the properties on expiry of the lease period. The contractual commitments for capital expenditure were 1,383 crore and 1,574 crore, as of June 30, 2015 and March 31, 2015, respectively.

2.6 Goodwill and intangible assets

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

(In crore)

	As of
	June 30, 2015	March 31, 2015
Carrying value at the beginning	3,091	2,157
Goodwill on Panaya acquisition	–	1,078
Goodwill on Kallidus d.b.a Skava acquisition (Refer note 2.3)	452	–
Translation differences	92	(144)
Carrying value at the end	3,635	3,091

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

(In crore)

Segment	As of
	June 30, 2015
Financial services	815
Manufacturing	807
Retail, Consumer packaged goods and Logistics	567
Life Sciences, Healthcare and Insurance	635
Energy & utilities, Communication and Services	643
	3,467
Operating segments without significant goodwill	168
Total	3,635

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

(In crore)

Segment	As of
	March 31, 2015
Financial services	663
Insurance	367
Manufacturing	656
Energy, Communication and services	318
Resources & utilities	141
Retail, Consumer packaged goods and logistics	473
Life Sciences and Healthcare	193
Growth Markets	280
Total	3,091

(in %)

	March 31, 2015
Long term growth rate	8-10
Operating margins	17-20
Discount rate	13.9

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

Following are the changes in the carrying value of acquired intangible assets for the three months ended June 30, 2015:

(In crore)

	Customer related	Software related	Sub-contracting rights related	Intellectual property rights related	Land use- rights related	Marketing Related	Others	Total
Gross carrying value as of April 1, 2015	448	261	21	11	71	49	34	895
Additions through business combination (Refer note 2.3)	175	130	–	–	–	14	–	319
Deletion	–	–	–	–	–	–	–	–
Translation differences	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)
Deletion	–	–	–	–	–	–	–	–
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 three months ended June 30, 2014:

(In crore)

	Customer related	Software related	Sub-contracting rights related	Intellectual property rights related	Land use- rights related	Marketing related	Others	Total
Gross carrying value as of April 1, 2014	381	35	21	11	68	28	9	553
Additions	–	–	–	–	–	–	–	–
Translation differences	–	–	–	–	–	–	–	–
Gross carrying value as of June 30, 2014	381	35	21	11	68	28	9	553
Accumulated amortization as of April 1, 2014	(125)	(26)	(19)	(11)	(3)	(20)	(7)	(211)
Amortization expense	(11)	(1)	(2)	–	–	(3)	(1)	(18)
Translation differences	–	1	–	–	(1)	–	–	–
Accumulated amortization as of June 30, 2014	(136)	(26)	(21)	(11)	(4)	(23)	(8)	(229)
Carrying value as of April 1, 2014	256	9	2	–	65	8	2	342
Carrying value as of June 30, 2014	245	9	–	–	64	5	1	324

Following are the changes in the carrying value of acquired intangible assets for the year ended March 31, 2015:

(In crore)

	Customer related	Software related	Sub-contracting rights related	Intellectual property rights related	Land use- rights related	Marketing Related	Others	Total
Gross carrying value as of April 1, 2014	381	35	21	11	68	28	9	553
Additions through business combination (Refer note 2.3)	82	243	–	–	–	22	26	373
Deletion	–	(17)	–	–	–	–	–	(17)
Translation differences	(15)	–	–	–	3	(1)	(1)	(14)
Gross carrying value as of March 31, 2015	448	261	21	11	71	49	34	895
Accumulated amortization as of April 1, 2014	(125)	(26)	(19)	(11)	(3)	(20)	(7)	(211)
Additions through business combination (Refer note 2.3)	–	–	–	–	–	(1)	–	(1)
Amortization expense	(41)	(12)	(2)	–	(1)	(8)	(2)	(66)
Deletion	–	17	–	–	–	–	–	17
Translation differences	4	–	–	–	(1)	1	–	4
Accumulated amortization as of March 31, 2015	(162)	(21)	(21)	(11)	(5)	(28)	(9)	(257)
Carrying value as of April 1, 2014	256	9	2	–	65	8	2	342
Carrying value as of March 31, 2015	286	240	–	–	66	21	25	638

The estimated useful lives and remaining useful life of intangible assets as of June 30, 2015 are as follows:

(in years)

Intangible asset	Asset acquisition/ Business combination	Useful life	Remaining Useful life
Land use rights	Asset acquisition	50	46
Customer contracts and relationships	McCamish	9	3
Customer contracts and relationships	Portland	10	7
Customer contracts and relationships	Seabury and Smith	5	2
Customer relationships	Lodestone	10	7
Technology	Panaya	10	10
Trade name	Panaya	10	10
Customer contracts and relationships	Panaya	3	3
Non-compete agreements	Panaya	3	3
Technology	Kallidus d.b.a Skava	8	8
Customer contracts	Kallidus d.b.a Skava	1	1
Customer relationships	Kallidus d.b.a Skava	8	8
Trade name	Kallidus d.b.a Skava	3	3

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

Research and development expense recognized in net profit in the consolidated statement of comprehensive income, for the three months ended June 30, 2015 and June 30, 2014 was 160 crore and 165 crore, respectively.

2.7 Financial instruments

Financial instruments by category

The carrying value and fair value of financial instruments by categories as of June 30, 2015 were as follows:

(In crore)

	Loans and receivables	Financial assets/ liabilities at fair value through profit and loss	Available for sale	Trade and other payables	Total carrying value/fair value
Assets:
Cash and cash equivalents (Refer Note 2.1)	28,142	–	–	–	28,142
Available-for-sale financial assets (Refer Note 2.2)	–	–	2,107	–	2,107
Trade receivables	10,548	–	–	–	10,548
Unbilled revenue	2,953	–	–	–	2,953
Prepayments and other assets (Refer Note 2.4)	2,537	–	–	–	2,537
Derivative financial instruments	–	41	–	–	41
Total	44,180	41	2,107	–	46,328
Liabilities:
Trade payables	–	–	–	196	196
Derivative financial instruments	–	6	–	–	6
Client deposits	–	–	–	21	21
Employee benefit obligations	–	–	–	1,163	1,163
Other liabilities including contingent consideration (Refer Note 2.9)	–	101	–	5,707	5,808
Total	–	107	–	7,087	7,194

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

(In crore)

	Loans and receivables	Financial assets/ liabilities at fair value through profit and loss	Available for sale	Trade and other payables	Total carrying value/fair value
Assets:
Cash and cash equivalents (Refer Note 2.1)	30,367	–	–	–	30,367
Available-for-sale financial assets (Refer Note 2.2)	–	–	2,219	–	2,219
Trade receivables	9,713	–	–	–	9,713
Unbilled revenue	2,845	–	–	–	2,845
Prepayments and other assets (Refer Note 2.4)	1,959	–	–	–	1,959
Derivative financial instruments	–	101	–	–	101
Total	44,884	101	2,219	–	47,204
Liabilities:
Trade payables	–	–	–	140	140
Derivative financial instruments	–	3	–	–	3
Client deposits	–	–	–	27	27
Employee benefit obligations	–	–	–	1,069	1,069
Other liabilities (Refer Note 2.9)	–	–	–	4,891	4,891
Total	–	3	–	6,127	6,130

Fair value hierarchy

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

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

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

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of June 30, 2015:

(In crore)

	As of June 30, 2015	Fair value measurement at end of the reporting period/year using
		Level 1	Level 2	Level 3
Assets
Available-for-sale financial asset - Investments in liquid mutual fund units (Refer Note 2.2)	736	736	–	–
Available-for-sale financial asset - Investments in quoted debt securities (Refer Note 2.2)	1,357	404	953	–
Available-for-sale financial asset - Investments in preference securities (Refer Note 2.2)	13	–	–	13
Derivative financial instruments - gain on outstanding foreign exchange forward and option contracts	41	–	41	–
Liabilities
Derivative financial instruments - loss on outstanding foreign exchange forward and option contracts	6	–	6	–
Liability towards contingent consideration (Refer note 2.9)	101	–	–	101

During the three months ended June 30, 2015, quoted debt securities of 220 crore were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs.

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

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

(In crore)

	As of March 31, 2015	Fair value measurement at end of the reporting period/year using
		Level 1	Level 2	Level 3
Assets
Available- for- sale financial asset- Investments in liquid mutual fund units (Refer Note 2.2)	842	842	–	–
Available- for- sale financial asset- Investments in fixed maturity plan securities (Refer Note 2.2)	32	–	32	–
Available- for- sale financial asset- Investments in quoted debt securities (Refer Note 2.2)	1,344	608	736	–
Derivative financial instruments- gain on outstanding foreign exchange forward and option contracts	101	–	101	–
Liabilities
Derivative financial instruments- loss on outstanding foreign exchange forward and option contracts	3	–	3	–

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

(In crore)

	Three months ended June 30
	2015	2014
Interest income on deposits and certificates of deposit (Refer Note 2.13)	657	614
Income from available-for-sale financial assets (Refer Note 2.13)	49	79
	706	693

Derivative financial instruments

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

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

	As of
	June 30, 2015		March 31, 2015
	In million	In crore	In million	In crore
Forward contracts
In U.S. dollars	705	4,487	716	4,475
In Euro	66	470	67	447
In United Kingdom Pound Sterling	63	627	73	671
In Australian dollars	90	440	98	466
In Canadian dollars	12	62	12	59
In Singapore dollars	25	118	25	114
Total forwards		6,204		6,232

The Group recognized a net loss on derivative financial instruments of 74 crore during the three months ended June 30, 2015 as against a net gain on derivative financial instruments of 76 crore during the three months ended June 30, 2014, which are included in other income.

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

(In crore)

	As of
	June 30, 2015	March 31, 2015
Not later than one month	1,535	1,484
Later than one month and not later than three months	2,849	3,781
Later than three months and not later than one year	1,820	967
	6,204	6,232

Financial risk management

Financial risk factors

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

Market risk

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

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

(In crore)

	As of
	June 30, 2015	March 31, 2015
Aggregate amount of outstanding forward and option contracts	6,204	6,232
Gain on outstanding forward and option contracts	41	101
Loss on outstanding forward and option contracts	6	3

The following table analyzes foreign currency risk from financial instruments as of June 30, 2015:

(In crore)

	U.S. dollars	Euro	United Kingdom Pound Sterling	Australian dollars	Other currencies	Total
Cash and cash equivalents	1,095	132	57	161	526	1,971
Trade receivables	7,170	956	645	605	634	10,010
Unbilled revenue	1,798	372	138	97	281	2,686
Other assets	107	35	26	11	74	253
Trade payables	(63)	(9)	(15)	(3)	(66)	(156)
Client deposits	(15)	–	–	–	(5)	(20)
Accrued expenses	(793)	(148)	(99)	(27)	(196)	(1,263)
Employee benefit obligations	(468)	(79)	(28)	(144)	(122)	(841)
Other liabilities	(709)	(119)	(38)	(21)	(749)	(1,636)
Net assets / (liabilities)	8,122	1,140	686	679	377	11,004

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

(In crore)

	U.S. dollars	Euro	United Kingdom Pound Sterling	Australian dollars	Other currencies	Total
Cash and cash equivalents	994	59	41	119	413	1,626
Trade receivables	6,719	1,040	540	469	600	9,368
Unbilled revenue	1,714	330	126	100	250	2,520
Other assets	81	28	19	9	61	198
Trade payables	(59)	(14)	–	(2)	(56)	(131)
Client deposits	(20)	–	(1)	–	(6)	(27)
Accrued expenses	(749)	(143)	(78)	(25)	(165)	(1,160)
Employee benefit obligations	(436)	(59)	(37)	(130)	(105)	(767)
Other liabilities	(761)	(116)	(23)	(22)	(637)	(1,559)
Net assets / (liabilities)	7,483	1,125	587	518	355	10,068

For the three months ended June 30, 2015 and June 30, 2014, every percentage point depreciation / appreciation in the exchange rate between the Indian rupee and U.S. dollar, has affected the Company's incremental operating margins by approximately 0.49% and 0.51%, respectively.

Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to 10,548 crore and 9,713 crore as of June 30, 2015 and March 31, 2015, respectively and unbilled revenue amounting to 2,953 crore and 2,845 crore as of June 30, 2015 and March 31, 2015, respectively. Trade receivables and unbilled revenue are typically unsecured and are derived from revenue earned from customers primarily located in the United States. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Group grants credit terms in the normal course of business.

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

(In %)

	Three months ended June 30
	2015	2014
Revenue from top customer	3.7	3.4
Revenue from top five customers	14.0	13.7

Financial assets that are neither past due nor impaired

Cash and cash equivalents, available-for-sale financial assets and investment in certificates of deposit are neither past due nor impaired. Cash and cash equivalents include deposits with banks and corporations with high credit-ratings assigned by international and domestic credit-rating agencies. Available-for-sale financial assets include investment in liquid mutual fund units, quoted debt securities and unquoted equity and preference securities. Certificates of deposit represent funds deposited at a bank or other eligible financial institution for a specified time period. Investment in quoted debt securities represents the investments made in debt securities issued by government and quasi government organizations. Of the total trade receivables, 7,057 crore and 7,336 crore as of June 30, 2015 and March 31, 2015, respectively, were neither past due nor impaired.

There is no other class of financial assets that is not past due but impaired except for trade receivables of 20 crore and 23 crore as of June 30, 2015 and March 31, 2015, respectively.

Financial assets that are past due but not impaired

The Group’s credit period generally ranges from 30-60 days. The age analysis of the trade receivables have been considered from the due date. The age wise break up of trade receivables, net of allowances of 347 crore and 343 crore as of June 30, 2015 and March 31, 2015, respectively, that are past due, is given below:

(In crore)

Period (in days)	As of
	June 30, 2015	March 31, 2015
Less than 30	2,066	1,641
31-60	721	345
61-90	351	89
More than 90	353	302
	3,491	2,377

The reversal of provision for doubtful trade receivable for the three months ended June 30, 2015 was 4 crore. The provision for doubtful trade receivable for the three months ended June 30, 2014 was 115 crore.

(In crore)

	Three months ended June 30,		Year ended March 31,
	2015	2014	2015
Balance at the beginning	366	214	214
Translation differences	5	1	(7)
Provisions for doubtful accounts receivable (refer note 2.10)	(4)	115	171
Trade receivables written off	–	(1)	(12)
Balance at the end	367	329	366

Liquidity risk

As of June 30, 2015, the Group had a working capital of 33,305 crore including cash and cash equivalents of 28,142 crore and current available-for-sale financial assets of 736 crore. As of March 31, 2015, the Group had a working capital of 35,813 crore including cash and cash equivalents of 30,367 crore and current available-for-sale financial assets of 874 crore.

As of June 30, 2015 and March 31, 2015, the outstanding employee benefit obligations were 1,163 crore and 1,069 crore, respectively, which have been substantially funded. Further, as of June 30, 2015 and March 31, 2015, the Group had no outstanding bank borrowings. Accordingly, no liquidity risk is perceived.

The table below provides details regarding the contractual maturities of significant financial liabilities as of June 30, 2015:

(In crore)

Particulars	Less than 1 year	1-2 years	2-4 years	4-7 years	Total
Trade payables	196	–	–	–	196
Client deposits	21	–	–	–	21
Other liabilities (excluding liability towards acquisition) (Refer Note 2.9)	5,125	2	1	–	5,128
Liability towards acquisitions on an undiscounted basis (including contingent consideration) -Refer Note 2.9	643	45	45	–	733

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

(In crore)

Particulars	Less than 1 year	1-2 years	2-4 years	4-7 years	Total
Trade payables	140	–	–	–	140
Client deposits	27	–	–	–	27
Other liabilities (excluding liabilities towards acquisition ) (Refer Note 2.9)	4,404	–	–	–	4,404
Liability towards acquisitions on an undiscounted basis (Refer Note 2.9)	525	–	–	–	525

As of June 30, 2015 and March 31, 2015, the group had outstanding financial guarantees of 42 crore and 43 crore, respectively, towards leased premises. These financial guarantees can be invoked upon breach of any term of the lease agreement. To the group’s knowledge there has been no breach of any term of the lease agreement as of June 30, 2015 and March 31, 2015.

Offsetting of financial assets and financial liabilities:

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

(In crore)

	As of
	June 30, 2015		March 31, 2015
	Derivative financial asset	Derivative financial liability	Derivative financial asset	Derivative financial liability
Gross amount of recognised financial asset/liability	48	(13)	105	(7)
Amount set off	(7)	7	(4)	4
Net amount presented in balance sheet	41	(6)	101	(3)

2.8 Provisions

Provisions comprise the following:

(In crore)

	As of
	June 30, 2015	March 31, 2015
Provision for post sales client support and other provisions	474	478
	474	478

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

(In crore)

	Three months ended June 30, 2015
Balance at the beginning	478
Provision recognized/ (reversed)	28
Provision utilized	(44)
Translation difference	12
Balance at the end	474

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, 2015 and March 31, 2015, claims against the company, not acknowledged as debts, net of amounts paid (excluding demands from Indian Income tax authorities- Refer note 2.16) amounted to 257 crore and 261 crore, respectively.

2.9 Other liabilities

Other liabilities comprise the following :

(In crore)

	As of
	June 30, 2015	March 31, 2015
Current
Accrued compensation to employees	1,929	2,106
Accrued expenses	2,196	1,984
Withholding taxes payable⁽¹⁾	1,180	904
Retainage	54	53
Liabilities of controlled trusts	174	177
Deferred income - government grant on land use rights⁽¹⁾ (Refer Note 2.6)	1	1
Accrued gratuity	1	7
Liability towards acquisition of business (Refer note 2.3)	580	487
Liability towards contingent consideration (Refer note 2.3)	34
Tax on dividend	690	–
Others	81	77
	6,920	5,796
Non-current
Liability towards contingent consideration (Refer note 2.3)	67	–
Incentive accruals	2	–
Deferred income - government grant on land use rights⁽¹⁾(Refer Note 2.6)	47	46
	116	46
	7,036	5,842
Financial liabilities included in other liabilities	5,808	4,891
Financial liability towards acquisitions on an undiscounted basis (including contingent consideration) - Refer note 2.3	733	525

⁽¹⁾

Non financial liabilities

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

2.10 Expenses by nature

(In crore)

	Three month ended June 30,
	2015	2014
Employee benefit costs (Refer Note 2.11.4)	8,053	7,355
Deferred purchase price pertaining to acquisition (Refer Note 2.3)	60	56
Depreciation and amortization charges (Refer Note 2.5 and 2.6)	313	230
Travelling costs	556	445
Consultancy and professional charges	169	46
Cost of Software packages for own use	199	225
Third party items bought for service delivery to clients	113	57
Communication costs	112	115
Cost of technical sub-contractors	750	448
Power and fuel	53	55
Repairs and maintenance	231	149
Rates and taxes	31	25
Insurance charges	15	13
Commission to non-whole time directors	2	2
Branding and marketing expenses	76	28
Provision for post-sales client support	(9)	6
Provision for doubtful account receivables (Refer Note 2.7)	(4)	115
Contribution towards Corporate Social Responsibility	45	48
Operating lease payments (Refer Note 2.14)	81	81
Others	61	60
Total cost of sales, selling and marketing expenses and administrative expenses	10,907	9,559

2.10.1 Break-up of expenses

Cost of sales

(In crore)

	Three months ended June 30,
	2015	2014
Employee benefit costs	7,144	6,530
Deferred purchase price pertaining to acquisition (Refer Note 2.3)	60	56
Depreciation and amortization	313	230
Travelling costs	401	347
Cost of Software packages for own use	187	225
Third party items bought for service delivery to clients	113	57
Cost of technical sub-contractors	749	448
Operating lease payments	54	55
Communication costs	48	40
Repairs and maintenance	54	37
Provision for post-sales client support	(9)	6
Others	9	15
Total	9,123	8,046

Selling and marketing expenses

(In crore)

	Three months ended June 30,
	2015	2014
Employee benefit costs	625	557
Travelling costs	84	53
Branding and marketing	74	28
Operating lease payments	10	10
Communication costs	4	5
Consultancy and professional charges	13	3
Others	10	10
Total	820	666

Administrative expenses

(In crore)

	Three months ended June 30,
	2015	2014
Employee benefit costs	284	268
Consultancy and professional charges	151	43
Repairs and maintenance	177	112
Power and fuel	53	55
Communication costs	60	70
Travelling costs	71	45
Provision for doubtful accounts receivable	(4)	115
Rates and taxes	31	25
Insurance charges	15	13
Operating lease payments	17	16
Commission to non-whole time directors	2	2
Contribution towards Corporate Social Responsibility	45	48
Others	62	35
Total	964	847

2.11 Employee benefits

2.11.1 Gratuity

The following tables set out the funded status of the gratuity plans and the amounts recognized in the Group's financial statements as of June 30, 2015 and March 31, 2015:

(In crore)

	As of
	June 30, 2015	March 31, 2015
Change in benefit obligations
Benefit obligations at the beginning	816	707
Service cost	29	95
Interest expense	16	60
Addition through business combination	1	–
Remeasurements - Actuarial (gains)/ losses	11	70
Benefits paid	(20)	(116)
Benefit obligations at the end	853	816
Change in plan assets
Fair value of plan assets at the beginning	836	717
Interest income	16	67
Remeasurements- Return on plan assets excluding amounts included in interest income	2	6
Contributions	37	162
Benefits paid	(20)	(116)
Fair value of plan assets at the end	871	836
Funded status	18	20
Prepaid gratuity benefit	19	27
Accrued gratuity	(1)	(7)

Amount for the three months ended June 30, 2015 and June 30, 2014 recognised in net profit in the statement of comprehensive income:

(In crore)

	Three months ended June 30,
	2015	2014
Service cost	29	24
Net interest on the net defined benefit liability/asset	–	(1)
Net gratuity cost	29	23

Amount for the three months ended June 30, 2015 and June 30, 2014 recognised in statement of other comprehensive income:

(In crore)

	Three months ended June 30,
	2015	2014
Remeasurements of the net defined benefit liability/ (asset)
Actuarial (gains) / losses	11	31
(Return) / loss on plan assets excluding amounts included in the net interest on the net defined benefit liability/(asset)	(2)	(3)
	9	28

(In crore)

	Three months ended June 30,
	2015	2014
(Gain)/loss from change in demographic assumptions	–	–
(Gain)/loss from change in financial assumptions	(14)	15
	(14)	15

Amounts recognised in statement of comprehensive income has been apportioned between cost of sales, selling and marketing expenses and administrative expenses on the basis of direct employee cost as follows:

(In crore)

	Three months ended June 30,
	2015	2014
Cost of sales	26	21
Selling and marketing expenses	2	1
Administrative expenses	1	1
	29	23

The weighted-average assumptions used to determine benefit obligations as of June 30, 2015 and March 31, 2015 are set out below:

	As of
	June 30, 2015	March 31, 2015
Discount rate	8.1%	7.8%
Weighted average rate of increase in compensation levels	8.0%	8.0%

The weighted-average assumptions used to determine net periodic benefit cost for the three months ended June 30, 2015 and June 30, 2014 are set out below:

	Three months ended June 30,
	2015	2014
Discount rate	7.8%	8.0%
Weighted average rate of increase in compensation levels	8.0%	7.3%
Weighted average duration of defined benefit obligation	6.5 years	9 years

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

The Company contributes all ascertained liabilities towards gratuity to the Infosys Limited Employees' Gratuity Fund Trust. In case of Infosys BPO and EdgeVerve, contributions are made to the Infosys BPO Employees' Gratuity Fund Trust and EdgeVerve Systems Limited Employees Gratuity Fund Trust, respectively. Trustees administer contributions made to the trust. As of June 30, 2015 and March 31, 2015, the plan assets have been primarily invested in insurer managed funds.

Actual return on assets for the three months June 30, 2015 and June 30, 2014 were 18 crore and 20 crore, respectively.

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

As of June 30, 2015, every percentage point increase / decrease in discount rate will affect our gratuity benefit obligation by approximately 43 crore.

As of June 30, 2015, every percentage point increase / decrease in weighted average rate of increase in compensation levels will affect our gratuity benefit obligation by approximately 36 crore.

The Group expects to contribute 71 crore to the gratuity trusts during the remainder of fiscal 2016.

Maturity profile of defined benefit obligation:

(in crore)

Within 1 year	136
1-2 year	140
2-3 year	148
3-4 year	156
4-5 year	167
5-10 years	844

Sensitivity for significant actuarial assumptions is computed by varying one actuarial assumption used for the valuation of the defined benefit obligation by one percentage, keeping all other actuarial assumptions constant.

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

2.11.2 Superannuation

The Company contributed 58 crore and 53 crore to the superannuation plan during the three months ended June 30, 2015 and June 30, 2014, respectively.

Superannuation contributions have been apportioned between cost of sales, selling and marketing expenses and administrative expenses on the basis of direct employee cost as follows:

(In crore)

	Three months ended June 30,
	2015	2014
Cost of sales	51	47
Selling and marketing expenses	5	4
Administrative expenses	2	2
	58	53

2.11.3 Provident fund

Infosys has an obligation to fund any shortfall on the yield of the trust’s investments over the administered interest rates on an annual basis. These administered rates are determined annually predominantly considering the social rather than economic factors and in most cases the actual return earned by the Company has been higher in the past years. The actuary has provided a valuation for provident fund liabilities on the basis of guidance issued by Actuarial Society of India and based on the below provided assumptions there is no shortfall as at June 30, 2015 and March 31, 2015, respectively.

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

(In crore)

	As of
	June 30, 2015	March 31, 2015
Plan assets at period end, at fair value	3,232	2,912
Present value of benefit obligation at period end	3,232	2,912
Asset recognized in balance sheet	–	–

The plan assets have been primarily invested in government securities.

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

	As of
	June 30, 2015	March 31, 2015
Government of India (GOI) bond yield	8.10%	7.80%
Remaining term to maturity of portfolio	7.2 years	7 years
Expected guaranteed interest rate - First year:	8.75%	8.75%
- Thereafter:	8.60%	8.60%

The Group contributed 101 crore and 79 crore to the provident fund during the three months ended June 30, 2015 and June 30, 2014, respectively.

Provident fund contributions have been apportioned between cost of sales, selling and marketing expenses and administrative expenses on the basis of direct employee cost as follows:

(In crore)

	Three months ended June 30,
	2015	2014
Cost of sales	89	70
Selling and marketing expenses	8	6
Administrative expenses	4	3
	101	79

2.11.4 Employee benefit costs include:

(In crore)

	Three months ended June 30,
	2015	2014
Salaries and bonus*	7,865	7,200
Defined contribution plans	73	62
Defined benefit plans	115	93
	8,053	7,355

^* Includes stock compensation expense of 2 crore for the three months ended June 30, 2015.

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

The employee benefit cost is recognized in the following line items in the statement of comprehensive income:

(In crore)

	Three months ended June 30,
	2015	2014
Cost of sales	7,144	6,530
Selling and marketing expenses	625	557
Administrative expenses	284	268
	8,053	7,355

2.12 Equity

Share capital and share premium

The Company has allotted 114,84,72,332 fully paid-up shares of face value 5/- each during the quarter ended June 30, 2015, pursuant to bonus issue approved by the shareholders through postal ballot. The book closure date fixed by the Board was June 17, 2015. Bonus share of one equity share for every equity share held, and a stock dividend of one American Depositary Share (ADS) for every ADS held, respectively, has been allotted. Consequently, the ratio of equity shares underlying the ADSs held by an American Depositary Receipt holder remains unchanged. Options granted under the restricted stock unit plan have been adjusted for bonus shares. 11,334,400 and 56,67,200 shares were held by controlled trust as of June 30, 2015 and March 31, 2015, respectively.

The amount received on exercise 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.

Retained earnings

Retained earnings represent the amount of accumulated earnings of the Group.

Other Reserves

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

Other components of equity

Other components of equity consist of currency translation, fair value changes on available-for-sale financial assets and remeasurement of net defined benefit liability/asset.

The Company’s objective when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value. In order to maintain or achieve an optimal capital structure, the Company may adjust the amount of dividend payment, return capital to shareholders, issue new shares or buy back issued shares. As of June 30, 2015, the Company has only one class of equity shares and has no debt. Consequent to the above capital structure there are no externally imposed capital requirements.

The rights of equity shareholders are set out below.

2.12.1 Voting

Each holder of equity shares is entitled to one vote per share. The equity shares represented by American Depositary Shares (ADS) carry similar rights to voting and dividends as the other equity shares. Each ADS represents one underlying equity share.

2.12.2 Dividends

The Company declares and pays dividends in Indian rupees. The remittance of dividends outside India is governed by Indian law on foreign exchange and is subject to applicable distribution taxes.

The amount of per share dividend recognized as distributions to equity shareholders for the three month ended June 30, 2015 and June 30, 2014 was 29.50/-(not adjusted for June 17, 2015 bonus issue) and 43/- (not adjusted for bonus issues), respectively.

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

2.12.3 Liquidation

In the event of liquidation of the Company, the holders of shares shall be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently, other than the amounts held by irrevocable controlled trusts. The amount distributed will be in proportion to the number of equity shares held by the shareholders. For irrevocable controlled trusts, the corpus would be settled in favour of the beneficiaries.

2.12.4 Share options

There are no voting, dividend or liquidation rights to the holders of options issued under the Company's share option plans.

2.13 Other income

Other income consists of the following:

(In crore)

	Three months ended June 30,
	2015	2014
Interest income on deposits and certificates of deposit	657	614
Exchange gains/ (losses) on forward and options contracts	(74)	76
Exchange gains/ (losses) on translation of other assets and liabilities	49	53
Income from available-for-sale financial assets	49	79
Others	77	7
	758	829

2.14 Operating leases

The Group has various operating leases, mainly for office buildings, that are renewable on a periodic basis. Rental expense for operating leases for each of the three months ended June 30, 2015 and June 30, 2014 was 81 crore.

The schedule of future minimum rental payments in respect of non-cancellable operating leases is set out below:

(In crore)

	As of
	June 30, 2015	March 31, 2015
Within one year of the balance sheet date	261	168
Due in a period between one year and five years	630	395
Due after five years	304	168

A majority of the Group’s operating lease arrangements extend up to a maximum of ten years from their respective dates of inception, and relates to rented overseas premises. Some of these lease agreements have a price escalation clause.

2.15 Employees' Stock Option Plans (ESOP)

2011 RSU Plan (the 2011 Plan): The Company has a 2011 RSU Plan which provides for the grant of restricted stock units (RSUs) to eligible employees of the Company. The Board of Directors recommended establishment of the 2011 Plan to the shareholders on August 30, 2011 and the shareholders approved the recommendation of the Board of Directors on October 17, 2011 through a postal ballot. The maximum aggregate number of shares that may be awarded under the Plan is 1,13,34,400 shares (currently held by the Infosys Limited Employees' Welfare Trust and adjusted for bonus shares issued) and the plan shall continue in effect for a term of 10 years from the date of initial grant under the plan. The RSUs will be issued at par value of the equity share. The 2011 Plan is administered by the Management Development and Compensation Committee ( the Committee) now known as the Nomination and Remuneration Committee (the Committee) and through the Infosys Limited Employees' Welfare Trust ( the trust). The Committee is comprised of independent members of the Board of Directors.

During the year ended March 31, 2015, the company made a grant of 1,08,268 restricted stock units ( adjusted for bonus issue) 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, granted 1,24,061 RSUs to Dr. Vishal Sikka. The RSUs will vest over a period of four years from the date of the grant in the proportions specified in the award agreement. The RSUs will vest subject to achievement of certain key performance indicators as set forth in the award agreement for each applicable year of the vesting tranche and continued employment through each vesting date.

The activity in the 2011 Plan during the three months ended June 30, 2015:

Particulars	Three months ended June 30, 2015
	Shares arising out of options	Weighted average exercise price
2011 Plan:
Outstanding at the beginning*	1,08,268	5
Granted	1,24,061	5
Forfeited and expired	–	–
Exercised	–	–
Outstanding at the end	2,32,329	5
Exercisable at the end	–	–

* Adjusted for bonus issues. (Refer note 2.12)

The weighted average remaining contractual life of RSUs outstanding as of June 30, 2015 under the 2011 Plan was 2.59 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, 2015 and June 30, 2014, the company recorded an employee compensation expense of 2 crore and Nil, respectively in the statement of comprehensive income.

2.16 Income taxes

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

(In crore)

	Three months ended June 30,
	2015	2014
Current taxes
Domestic taxes	901	929
Overseas taxes	232	247
	1,133	1,176
Deferred taxes
Domestic taxes	45	(18)
Overseas taxes	(3)	(4)
	42	(22)
Income tax expense	1,175	1,154

Income tax expense for the three months ended June 30, 2015 and June 30, 2014 includes reversals (net of provisions) of 83 crore and 19 crore, respectively, pertaining to earlier periods.

Entire deferred income tax for the three months ended June 30, 2015 and June 30, 2014 relates to origination and reversal of temporary differences.

A deferred tax asset of 1 crore and a reversal of deferred tax liability of 1 crore relating to available-for-sale financial assets has been recognized in other comprehensive income for the three months ended June 30, 2015. A reversal of deferred tax asset of 12 crore for the three months ended June 30, 2014, relating to available-for-sale financial assets has been recognized in other comprehensive income.

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

(In crore)

	Three months ended June 30,
	2015	2014
Profit before income taxes	4,205	4,040
Enacted tax rates in India	34.61%	33.99%
Computed expected tax expense	1,455	1,373
Tax effect due to non-taxable income for Indian tax purposes	(394)	(387)
Overseas taxes	149	176
Tax reversals, overseas and domestic	(83)	(19)
Effect of exempt income	(18)	(28)
Effect of unrecognized deferred tax assets	10	20
Effect of differential overseas tax rates	(6)	(6)
Effect of non-deductible expenses	75	35
Additional deduction on research and development expense	(14)	(15)
Others	1	5
Income tax expense	1,175	1,154

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

Infosys is subject to a 15% Branch Profit Tax (BPT) in the U.S. to the extent its U.S. branch's net profit during the year is greater than the increase in the net assets of the U.S. branch during the year, computed in accordance with the Internal Revenue Code. As of March 31, 2015, Infosys' U.S. branch net assets amounted to approximately 4,068 crore. As of June 30, 2015, the Company has provided for branch profit tax of 321 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 5 crore movement on account of exchange rate during the three months ended June 30, 2015.

Deferred income tax liabilities have not been recognized on temporary differences amounting to 3,505 crore and 3,291 crore as of June 30, 2015 and March 31, 2015, respectively, associated with investments in subsidiaries and branches as it is probable that the temporary differences will not reverse in the foreseeable future.

The following table provides the details of income tax assets and income tax liabilities as of June 30, 2015 and March 31, 2015:

(In crore)

	As at
	June 30, 2015	March 31, 2015
Income tax assets	4,612	4,089
Current income tax liabilities	3,162	2,818
Net current income tax asset/ (liability) at the end	1,450	1,271

The gross movement in the current income tax asset/ (liability) for the three months ended June 30, 2015 and June 30, 2014 is as follows:

(In crore)

	Three months ended June 30,
	2015	2014
Net current income tax asset/ (liability) at the beginning	1,271	(665)
Translation differences	5	10
Income tax paid	1,305	682
Current income tax expense (Refer Note 2.16)	(1,133)	(1,176)
Income tax on other comprehensive income	2	8
Net current income tax asset/ (liability) at the end	1,450	(1,141)

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

(In crore)

	As of
	June 30, 2015	March 31, 2015
Deferred income tax assets
Property, plant and equipment	210	241
Computer software	50	51
Accrued compensation to employees	33	48
Trade receivables	115	111
Compensated absences	310	299
Available-for-sale financial asset	2	1
Post sales client support	74	74
Others	28	31
Total deferred income tax assets	822	856
Deferred income tax liabilities
Intangible asset	(284)	(159)
Temporary difference related to branch profits	(321)	(316)
Property, plant and equipment	(2)	–
Available-for-sale financial asset	–	(1)
Others	(15)	(3)
Total deferred income tax liabilities	(622)	(479)
Deferred income tax assets after set off	484	537
Deferred income tax liabilities after set off	(284)	(160)

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

The deferred income tax assets and deferred income tax liabilities recoverable within and after 12 months are as follows:

(In crore)

	As of
	June 30, 2015	March 31, 2015
Deferred income tax assets to be recovered after 12 months	289	354
Deferred income tax assets to be recovered within 12 months	533	502
Total deferred income tax assets	822	856
Deferred income tax liabilities to be settled after 12 months	(452)	(374)
Deferred income tax liabilities to be settled within 12 months	(170)	(105)
Total deferred income tax liabilities	(622)	(479)

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

The gross movement in the deferred income tax account for the three months period ended June 30, 2015 and June 30, 2014, is as follows:

(In crore)

	Three months ended June 30,
	2015	2014
Net deferred income tax asset at the beginning	377	592
Addition through business combination (Refer note 2.3)	(128)	–
Translation differences	(9)	(7)
Credits / (charge) relating to temporary differences (Refer Note 2.16)	(42)	22
Temporary difference on available-for-sale financial asset	2	(12)
Net deferred income tax asset at the end	200	595

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. The credits relating to temporary differences during the period ended June 30, 2014 are primarily on account compensated absences, trade receivables and accumulated losses.

As of June 30, 2015 and March 31, 2015, claims against the group not acknowledged as debts from the Indian Income tax authorities (net of amount paid to statutory authorities of 3,453 crore and 3,568 crore) amounted to 7 crore and 3 crore, respectively.

Payment of 3,453 crore includes demands from the Indian Income tax authorities of 3,221 crore (3,337 crore), including interest of 951 crore (964 crore) upon completion of their tax review for fiscal 2007, fiscal 2008, fiscal 2009 and fiscal 2010.

2.17 Earnings per equity share

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

	Three months ended June 30,
	2015	2014
Basic earnings per equity share - weighted average number of equity shares outstanding⁽¹⁾⁽²⁾	228,56,10,264	228,56,10,264
Effect of dilutive common equivalent shares - share options outstanding	62,045	–
Diluted earnings per equity share - weighted average number of equity shares and common equivalent shares outstanding	228,56,72,309	228,56,10,264

⁽¹⁾

Excludes treasury shares

⁽²⁾

adjusted for bonus issues. Refer Note 2.12

For the three months ended June 30, 2015 and June 30, 2014, there were no outstanding options to purchase equity shares which had an anti-dilutive effect.

2.18 Related party transactions

List of subsidiaries:

Particulars	Country	Holding as of
		June 30, 2015	March 31, 2015
Infosys BPO Limited (Infosys BPO)	India	99.98%	99.98%
Infosys Technologies (China) Co. Limited (Infosys China)	China	100%	100%
Infosys Technologies S. de R. L. de C. V. (Infosys Mexico)	Mexico	100%	100%
Infosys Technologies (Sweden) AB. (Infosys Sweden)	Sweden	100%	100%
Infosys Technologies (Shanghai) Company Limited (Infosys Shanghai)	China	100%	100%
Infosys Tecnologia DO Brasil LTDA. (Infosys Brasil)	Brazil	100%	100%
Infosys Public Services, Inc. USA (Infosys Public Services)	U.S.	100%	100%
Infosys Americas Inc., (Infosys Americas)	U.S.	100%	100%
Infosys BPO s. r. o ⁽¹⁾	Czech Republic	99.98%	99.98%
Infosys BPO (Poland) Sp Z.o.o ⁽¹⁾	Poland	99.98%	99.98%
Infosys BPO S.DE R.L. DE.C.V ⁽¹⁾⁽⁸⁾	Mexico	–	–
Infosys McCamish Systems LLC ⁽¹⁾	U.S.	99.98%	99.98%
Portland Group Pty Ltd⁽¹⁾	Australia	99.98%	99.98%
Portland Procurement Services Pty Ltd⁽⁵⁾	Australia	–	–
Infosys Technologies (Australia) Pty. Limited (Infosys Australia) ⁽²⁾	Australia	100%	100%
EdgeVerve Systems Limited (EdgeVerve) ⁽⁷⁾	India	100%	100%
Lodestone Holding AG (Infosys Lodestone) (Refer to Note 2.3)	Switzerland	100%	100%
Lodestone Management Consultants Inc. ⁽³⁾	U.S.	100%	100%
Lodestone Management Consultants Pty Limited ⁽³⁾	Australia	100%	100%
Lodestone Management Consultants AG ⁽³⁾	Switzerland	100%	100%
Lodestone Augmentis AG ⁽²⁾⁽⁶⁾	Switzerland	100%	100%
Hafner Bauer & Ödman GmbH ⁽³⁾	Switzerland	100%	100%
Lodestone Management Consultants (Belgium) S.A. ⁽⁴⁾	Belgium	99.90%	99.90%
Lodestone Management Consultants GmbH ⁽³⁾	Germany	100%	100%
Lodestone Management Consultants Pte Ltd. ⁽³⁾	Singapore	100%	100%
Lodestone Management Consultants SAS ⁽³⁾	France	100%	100%
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%
Lodestone Management Consultants Ltd. ⁽³⁾	UK	100%	100%
Lodestone Management Consultants B.V. ⁽³⁾	Netherlands	100%	100%
Lodestone Management Consultants Ltda. ⁽⁴⁾	Brazil	99.99%	99.99%
Lodestone Management Consultants Sp. z.o.o. ⁽³⁾	Poland	100%	100%
Lodestone Management Consultants Portugal, Unipessoal, Lda. ⁽³⁾	Portugal	100%	100%
S.C. Lodestone Management Consultants S.R.L. ⁽³⁾	Romania	100%	100%
Lodestone Management Consultants S.R.L. ⁽³⁾	Argentina	100%	100%
Infosys Canada Public Services Ltd.⁽⁹⁾	Canada	–	–
Infosys Nova Holdings LLC. (Infosys Nova) ⁽¹⁰⁾	U.S.	100%	100%
Panaya Inc. (Panaya)⁽¹¹⁾	U.S.	100%	100%
Panaya Ltd.⁽¹²⁾	Israel	100%	100%
Panaya Gmbh⁽¹²⁾	Germany	100%	100%
Panaya Pty Ltd.⁽¹²⁾	Australia	–	–
Panaya Japan Co. Ltd.⁽¹²⁾	Japan	100%	100%
Skava Systems Pvt Ltd (Skava Systems)⁽¹³⁾	U.S.	100%	–
Kallidus Inc.(Kallidus)⁽¹⁴⁾	India	100%	–

⁽¹⁾

Wholly owned subsidiary of Infosys BPO.

⁽²⁾

Under liquidation

⁽³⁾

Wholly owned subsidiary of Lodestone Holding AG

⁽⁴⁾

Majority owned and controlled subsidiary of Lodestone Holding AG

⁽⁵⁾

Wholly owned subsidiary of Portland Group Pty Ltd. Liquidated effective May 14, 2014

⁽⁶⁾

Wholly owned subsidiary of Lodestone Management Consultants AG

⁽⁷⁾

Incorporated effective February 14, 2014. (Refer note 2.3)

⁽⁸⁾

Incorporated effective February 14, 2014.

⁽⁹⁾

Wholly owned subsidiary of Infosys Public Services, Inc. Incorporated effective December 19, 2014

⁽¹⁰⁾

Incorporated effective January 23, 2015

⁽¹¹⁾

On March 5, 2015, Infosys acquired 100% of the voting interest in Panaya Inc. (Refer note 2.3)

⁽¹²⁾

Wholly owned subsidiary of Panaya Inc.

⁽¹³⁾

On June 2, 2015, Infosys acquired 100% of the voting interest in Skava Systems Private Limited (Refer note 2.3)

⁽¹⁴⁾

On June 2, 2015, Infosys acquired 100% of the voting interest in Kallidus (Refer note 2.3)

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

List of Associates:

Name of Associates

Country

Holding as at

June 30, 2015

March 31, 2015

DWA Nova LLC⁽¹⁾

U.S.

20%

⁽¹⁾

Associate of Infosys Nova Holdings LLC. During the year ended March 31, 2015, the group acquired 20% of the equity interests in DWA Nova LLC for a cash consideration of 94 crore. The Company has made this investment to form a new company along with Dream Works Animation (DWA). The new company, DWA Nova LLC, will develop and commercialize image generation technology in order to provide end-to-end digital manufacturing capabilities for companies involved in the design, manufacturing, marketing or distribution of physical consumer products.

List of other related parties:

Particulars	Country	Nature of relationship
Infosys Limited Employees' Gratuity Fund Trust	India	Post-employment benefit plan of Infosys
Infosys Limited Employees' Provident Fund Trust	India	Post-employment benefit plan of Infosys
Infosys Limited Employees' Superannuation Fund Trust	India	Post-employment benefit plan of Infosys
Infosys BPO Limited Employees’ Superannuation Fund Trust	India	Post-employment benefit plan of Infosys BPO
Infosys BPO Limited Employees’ Gratuity Fund Trust	India	Post-employment benefit plan of Infosys BPO
EdgeVerve Systems Limited Employees' Gratuity Fund Trust	India	Post-employment benefit plan of EdgeVerve
EdgeVerve Systems Limited Employees' Superannuation Fund Trust	India	Post-employment benefit plan of EdgeVerve
Infosys Limited Employees’ Welfare Trust	India	Controlled trust
Infosys Science Foundation	India	Controlled trust

Refer Note 2.11 for information on transactions with post-employment benefit plans mentioned above.

Transactions with key management personnel

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

(In crore)

	Three months ended June 30,
	2015	2014
Salaries and other employee benefits to whole-time directors and executive officers ⁽¹⁾	22	11
Commission and other benefits to non-executive/independent directors	2	3
Total	24	14

⁽¹⁾ Includes stock compensation expense of 2 crore for three months ended June 30, 2015.

2.19 Segment reporting

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

2.19.1 Business segments

Three months ended June 30, 2015 and June 30, 2014

(In crore)

Particulars	FS	MFG	ECS	RCL	HILIFE	All other segments	Total
Revenues	3,882	3,332	2,627	2,342	1,944	227	14,354
	3,492	2,883	2,401	2,192	1,589	213	12,770
Identifiable operating expenses	1,913	1,738	1,206	1,129	978	191	7,155
	1,711	1,489	1,110	1,017	814	221	6,362
Allocated expenses	896	809	638	568	472	55	3,438
	782	680	565	516	374	50	2,967
Segment profit	1,073	785	783	645	494	(19)	3,761
	999	714	726	659	401	(58)	3,441
Unallocable expenses							314
							230
Operating profit							3,447
							3,211
Other income, net							758
							829
Share in Associate's profit / (loss)							–
							–
Profit before income taxes							4,205
							4,040
Income tax expense							1,175
							1,154
Net profit							3,030
							2,886
Depreciation and amortization							313
							230
Non-cash expenses other than depreciation and amortization							1
							–

2.19.2 Geographic segments

Three months ended June 30, 2015 and June 30, 2014

(In crore)

Particulars	North America	Europe	India	Rest of the World	Total
Revenues	9,074	3,219	319	1,742	14,354
	7,764	3,121	308	1,577	12,770
Identifiable operating expenses	4,589	1,609	236	721	7,155
	3,775	1,592	249	746	6,362
Allocated expenses	2,201	777	64	396	3,438
	1,824	731	63	349	2,967
Segment profit	2,284	833	19	625	3,761
	2,165	798	(4)	482	3,441
Unallocable expenses					314
					230
Operating profit					3,447
					3,211
Other income, net					758
					829
Share in Associate's profit / (loss)					–
					–
Profit before income taxes					4,205
					4,040
Income tax expense					1,175
					1,154
Net profit					3,030
					2,886
Depreciation and amortization					313
					230
Non-cash expenses other than depreciation and amortization					1
					–

2.19.3 Significant clients

No client individually accounted for more than 10% of the revenues in the three months ended June 30, 2015 and June 30, 2014.

Auditor’s Report on Quarterly Consolidated Financial Results of Infosys Limited Pursuant to the Clause 41 of the Listing Agreement

The Board of Directors of Infosys Limited

We have audited the quarterly consolidated financial results of Infosys Limited (‘the Company’) and its subsidiaries (collectively referred to as ‘the Group’) for the quarter ended June 30, 2015, attached herewith, being submitted by the Company pursuant to the requirement of Clause 41 of the Listing Agreement, except for the disclosures regarding ‘Public Shareholding’ and ‘Promoter and Promoter Group Shareholding’ which have been traced from disclosures made by the Management and have not been audited by us. These quarterly consolidated financial results have been prepared from consolidated interim financial statements, which are the responsibility of the Company’s management. Our responsibility is to express an opinion on these quarterly consolidated financial results based on our audit of such consolidated interim financial statements, which have been prepared in accordance with the recognition and measurement principles laid down in the International Accounting Standard (IAS) 34, Interim Financial Reporting, as issued by International Accounting Standards Board.

We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial results are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts disclosed as financial results. An audit also includes assessing the accounting principles used and significant estimates made by management. We believe that our audit provides a reasonable basis for our opinion.

In our opinion and to the best of our information and according to the explanations given to us, these quarterly consolidated financial results:

(i)

include the quarterly financial results of the following entities:

(a)

Infosys Limited;

(b)

Infosys BPO Limited;

(c)

Infosys BPO s.r.o;

(d)

Infosys Technologia Do Brasil LTDA;

(e)

Infosys Technologies (Australia) Pty Limited;

(f)

Infosys Technologies (China) Co. Limited;

(g)

Infosys McCamish Systems, LLC;

(h)

Infosys Public Services, Inc.;

(i)

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

(j)

Infosys Technologies (Sweden) AB;

(k)

Infosys BPO Poland Sp z.o.o.;

(l)

Infosys Technologies (Shanghai) Company Limited;

(m)

Infosys Americas Inc.;

(n)

Portland Group Pty Ltd;

(o)

Edgeverve Systems Limited;

(p)

Lodestone Holding AG;

(q)

Lodestone Management Consultants Inc.;

(r)

Lodestone Management Consultants Pty Limited;

(s)

Lodestone Management Consultants AG;

(t)

Lodestone Augmentis AG;

(u)

Hafner Bauer & Ödman GmbH;

(v)

Lodestone Management Consultants (Belgium) S.A.;

(w)

Lodestone Management Consultants GmbH (Germany);

(x)

Lodestone Management Consultants Ltd.;

(y)

Lodestone Management Consultants B.V.;

(aa)

Lodestone Management Consultants Ltda.;

(ab)

Lodestone Management Consultants Sp. z.o.o.;

(ac)

Lodestone Management Consultants Portugal, Unipessoal, Lda.;

(ad)

S.C. Lodestone Management Consultants S.R.L.;

(ae)

Lodestone Management Consultants Pte Ltd.;

(af)

Lodestone Management Consultants SAS;

(ag)

Lodestone Management Consultants s.r.o.;

(ah)

Lodestone Management Consultants Co., Ltd. (China);

(ai)

Lodestone Management Consultants GmbH (Austria);

(aj)

Lodestone Management Consultants S. R. L.;

(ak)

Infosys BPO, S de R.L. de C.V.;

(al)

Infosys Technologies Limited Employees’ Welfare Trust;

(am)

Infosys Science Foundation;

(an)

Infosys Canada Public Services Ltd.

(ao)

Panaya Inc.;

(ap)

Panaya Ltd.;

(aq)

Panaya Gmbh;

(ar)

Panaya Pty Ltd.

(as)

Panaya Japan Co. Ltd.;

(at)

Infosys Nova Holdings LLC.;

(au)

DWA Nova LLC.;

(av)

Kallidus Inc.; and

(aw)

Skava Systems Private Limited

(ii)

have been presented in accordance with the requirements of Clause 41 of the Listing Agreement in this regard; and

(iii)

give a true and fair view of the consolidated net profit and other financial information for the quarter ended June 30, 2015.

Further, we also report that we have, on the basis of the books of account and other records and information and explanations given to us by the management, also verified the consolidated number of shares as well as percentage of shareholdings in respect of aggregate amount of public shareholdings, as furnished by the Company in terms of Clause 35 of the Listing Agreement and found the same to be correct.

for B S R & Co. LLP
Chartered Accountants
Firm’s registration number: 101248W/ W-100022

Supreet Sachdev
Partner
Membership number: 205385

Bangalore

21 July 2015

Exhibit 99.11

Indian GAAP Standalone

Independent Auditor’s Report

To the Board of Directors of Infosys Limited

Report on the Interim Financial Statements

We have audited the accompanying interim financial statements of Infosys Limited (“the Company”), which comprise the balance sheet as at 30 June 2015, the statement of profit and loss and the cash flow statement for the quarter then ended and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Interim Financial Statements

The Company’s Board of Directors is responsible for the preparation and presentation of these interim financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with Accounting Standards (AS) 25, Interim Financial Reporting as specified under section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the interim financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

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

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

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

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the interim financial statements give a true and fair view in conformity with AS 25, Interim Financial Reporting:

(i)

in the case of the balance sheet, of the state of affairs of the Company as at 30 June 2015;

(ii)

in the case of the statement of profit and loss, of the profit for the quarter ended on that date; and

(iii)

in the case of the cash flow statement, of the cash flows 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
21 July 2015

INFOSYS LIMITED

In crore

Balance Sheet as at	Note	June 30, 2015	March 31, 2015
EQUITY AND LIABILITIES
SHAREHOLDERS' FUNDS
Share capital	2.1	1,148	574
Reserves and surplus	2.2	49,819	47,494
		50,967	48,068
NON-CURRENT LIABILITIES
Deferred tax liabilities (net)	2.3	–	–
Other long-term liabilities	2.4	120	30
		120	30
CURRENT LIABILITIES
Trade payables	2.5	151	124
Other current liabilities	2.6	6,032	5,546
Short-term provisions	2.7	5,029	8,045
		11,212	13,715
		62,299	61,813
ASSETS
NON-CURRENT ASSETS
Fixed assets
Tangible assets	2.8	7,603	7,347
Capital work-in-progress		818	769
		8,421	8,116
Non-current investments	2.10	7,018	6,108
Deferred tax assets (net)	2.3	381	433
Long-term loans and advances	2.11	4,931	4,378
Other non-current assets	2.12	17	26
		20,768	19,061
CURRENT ASSETS
Current investments	2.10	602	749
Trade receivables	2.13	9,200	8,627
Cash and cash equivalents	2.14	25,231	27,722
Short-term loans and advances	2.15	6,498	5,654
		41,531	42,752
		62,299	61,813
SIGNIFICANT ACCOUNTING POLICIES	1

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
Partner Membership No. 205385	Chairman	Chief Executive Officer and Managing Director

Bangalore	Rajiv Bansal	A.G.S Manikantha
July 21, 2015	Chief Financial Officer	Company Secretary

INFOSYS LIMITED

In crore, except equity share and per equity share data

Statement of Profit and Loss for the	Note	Quarter ended June 30,
		2015	2014
Income from software services and products	2.16	12,738	11,319
Other income	2.17	719	790
Total revenue		13,457	12,109
Expenses
Employee benefit expenses	2.18	6,817	6,234
Deferred consideration pertaining to acquisition	2.10.1	46	57
Cost of technical sub-contractors	2.18	965	617
Travel expenses	2.18	432	340
Cost of software packages and others	2.18	291	268
Communication expenses	2.18	80	92
Professional charges		132	47
Depreciation and amortisation expense	2.8	252	192
Other expenses	2.18	449	467
Total expenses		9,464	8,314
PROFIT BEFORE TAX		3,993	3,795
Tax expense:
Current tax	2.19	1,050	1,088
Deferred taxs	2.19	46	(13)
PROFIT FOR THE PERIOD		2,897	2,720
EARNINGS PER EQUITY SHARE
Equity shares of par value 5/- each
Basic		12.61	11.90
Diluted		12.61	11.90
Number of shares used in computing earnings per share	2.32
Basic		229,69,44,664	228,56,10,264
Diluted		229,69,44,664	228,56,10,264
SIGNIFICANT ACCOUNTING POLICIES	1

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
Partner Membership No. 205385	Chairman	Chief Executive Officer and Managing Director

Bangalore	Rajiv Bansal	A.G.S Manikantha
July 21, 2015	Chief Financial Officer	Company Secretary

INFOSYS LIMITED

In crore

Cash Flow Statement for the	Note	Quarter ended June 30,
		2015	2014
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax		3,993	3,795
Adjustments to reconcile profit before tax to cash generated by operating activities
Depreciation and amortisation expense		252	192
Provision for bad and doubtful debts		(19)	105
Deferred purchase price		46	57
Interest and dividend income		(662)	(657)
Stock compensation expense		2	–
Other adjustments		10	(17)
Effect of exchange differences on translation of assets and liabilities		5	(3)
Changes in assets and liabilities
Trade receivables		(554)	(987)
Loans and advances and other assets		(398)	(190)
Liabilities and provisions		498	347
		3,173	2,642
Income taxes paid		(1,241)	(632)
NET CASH GENERATED BY OPERATING ACTIVITIES		1,932	2,010
CASH FLOWS FROM INVESTING ACTIVITIES
Payment towards capital expenditure		(586)	(416)
Proceeds on sale of fixed assets		1	–
Investment in subsidiaries		(191)	–
Payment towards acquisition (refer note 2.10.5)		(578)	–
Investment in Preferred stock		(13)	–
Investment in liquid mutual fund units		(8,234)	(5,950)
Disposal of liquid mutual fund units		8,381	5,447
Redemption of certificates of deposit		–	275
Interest and dividend received		223	599
NET CASH USED IN INVESTING ACTIVITIES		(997)	(45)
CASH FLOWS FROM FINANCING ACTIVITIES
Loan given to subsidiaries		(48)	–
Loan repaid by subsidiary		5	–
Dividends paid		(3,383)	(2,454)
Dividend tax paid		–	(420)
NET CASH USED IN FINANCING ACTIVITIES		(3,426)	(2,874)
Effect of exchange differences on translation of foreign currency cash and cash equivalents		–	2
NET DECREASE IN CASH AND CASH EQUIVALENTS		(2,491)	(907)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD		27,722	24,100
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD		25,231	23,193
SIGNIFICANT ACCOUNTING POLICIES	1

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
Partner Membership No. 205385	Chairman	Chief Executive Officer and Managing Director

Bangalore	Rajiv Bansal	A.G.S Manikantha
July 21, 2015	Chief Financial Officer	Company Secretary

Significant accounting policies

Company overview

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

1 Significant accounting policies

1.1 Basis of preparation of financial statements

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 (‘Act’) read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

1.2 Use of estimates

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Examples of such estimates include computation of percentage of completion which requires the Company to estimate the efforts or costs expended to date as a proportion of the total efforts or costs to be expended, provisions for doubtful debts, future obligations under employee retirement benefit plans, income taxes, post-sales customer support and the useful lives of fixed tangible assets and intangible assets.

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

1.3 Revenue recognition

Revenue is primarily derived from software development and related services and from the licensing of software products. Arrangements with customers for software development and related services are either on a fixed-price, fixed-timeframe or on a time-and-material basis.

Revenue on time-and-material contracts are recognized as the related services are performed and revenue from the end of the last billing to the Balance Sheet date is recognized as unbilled revenues. Revenue from fixed-price and fixed-timeframe contracts, where there is no uncertainty as to measurement or collectability of consideration, is recognized based upon the percentage of completion method. When there is uncertainty as to measurement or ultimate collectability revenue recognition is postponed until such uncertainty is resolved. Cost and earnings in excess of billings are classified as unbilled revenue while billings in excess of cost and earnings is classified as unearned revenue. Provision for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the current estimates.

Annual Technical Services revenue and revenue from fixed-price maintenance contracts are recognized ratably over the period in which services are rendered. Revenue from the sale of user licenses for software applications is recognized on transfer of the title in the user license, except in case of multiple element contracts, which require significant implementation services, where revenue for the entire arrangement is recognized over the implementation period based upon the percentage-of-completion method. Revenue from client training, support and other services arising due to the sale of software products is recognized as the related services are performed.

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

The Company presents revenues net of indirect taxes in its statement of profit and loss.

Profit on sale of investments is recorded on transfer of title from the Company and is determined as the difference between the sale price and carrying value of the investment. Lease rentals are recognized ratably on a straight line basis over the lease term. Interest is recognized using the time-proportion method, based on rates implicit in the transaction. Dividend income is recognized when the Company's right to receive dividend is established.

1.4 Provisions and contingent liabilities

A provision is recognized if, as a result of a past event, the Company has a present legal obligation that is reasonably estimable and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

1.5 Post-sales client support and warranties

The Company provides its clients with a fixed-period warranty for corrections of errors and support on all its fixed-price, fixed-timeframe contracts. Costs associated with such support services are accrued at the time when related revenues are recorded and included in statement of profit and loss. The Company estimates such costs based on historical experience and the estimates are reviewed annually for any material changes in assumptions.

1.6 Onerous contracts

Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable costs of meeting the future obligations under the contract. The provision is measured at lower of the expected cost of terminating the contract and the expected net cost of fulfilling the contract.

1.7 Tangible assets and capital work-in-progress

Tangible assets are stated at cost, less accumulated depreciation and impairment, if any. Direct costs are capitalized until such assets are ready for use. Capital work-in-progress comprises of the cost of fixed assets that are not yet ready for their intended use at the reporting date.

1.8 Intangible assets

Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment.

1.9 Depreciation and amortization

Depreciation on tangible assets is provided on the straight-line method over the useful lives of assets estimated by the Management. Depreciation for assets purchased / sold during a period is proportionately charged. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, commencing from the date the asset is available to the Company for its use. The Management estimates the useful lives for the other fixed assets as follows:

Buildings ⁽¹⁾	22-25 years
Plant and Machinery⁽¹⁾	5 years
Office equipment	5 years
Computer equipment ⁽¹⁾	3-5 years
Furniture and fixtures ⁽¹⁾	5 years
Vehicles ⁽¹⁾	5 years

⁽¹⁾

For these class of assets, based on internal assessment and independent technical evaluation carried out by external valuers the management believes that the useful lives as given above best represent the period over which management expects to use these assets. Hence the useful lives for these assets is different from the useful lives as prescribed under Part C of Schedule II of the Companies Act 2013.

Depreciation and amortization methods, useful lives and residual values are reviewed periodically, including at each financial year end. (Refer note 2.8)

1.10 Impairment

The Management periodically assesses using, external and internal sources, whether there is an indication that an asset may be impaired. An impairment loss is recognized wherever the carrying value of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset's net selling price and value in use, which means the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. An impairment loss for an asset is reversed if, and only if, the reversal can be related objectively to an event occurring after the impairment loss was recognized. The carrying amount of an asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

1.11 Retirement benefits to employees

a Gratuity

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

Liabilities with regard to the Gratuity Plan are determined by actuarial valuation, performed by an independent actuary, at each Balance Sheet date using the projected unit credit method. The Company fully contributes all ascertained liabilities to the Infosys Limited Employees' Gratuity Fund Trust (the Trust). Trustees administer contributions made to the Trust and contributions are invested in a scheme with Life Insurance Corporation of India as permitted by law of India. The Company recognizes the net obligation of the gratuity plan in the Balance Sheet as an asset or liability, respectively in accordance with Accounting Standard (AS) 15, 'Employee Benefits'. The Company's overall expected long-term rate-of-return on assets has been determined based on consideration of available market information, current provisions of Indian law specifying the instruments in which investments can be made, and historical returns. The discount rate is based on the Government securities yield. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the statement of profit and loss in the period in which they arise.

b Superannuation

Certain employees are also participants in the superannuation plan ('the Plan') which is a defined contribution plan. The Company has no obligations to the Plan beyond its monthly contributions which are periodically contributed to a trust fund, the corpus of which is invested with the Life Insurance Corporation of India.

c Provident fund

Eligible employees receive benefits from a provident fund, which is a defined benefit plan. Both the eligible employee and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employee’s salary. The Company contributes a portion to the Infosys Limited Employees’ Provident Fund Trust. The trust invests in specific designated instruments as permitted by Indian law. The remaining portion is contributed to the government administered pension fund. The rate at which the annual interest is payable to the beneficiaries by the trust is being administered by the government. The Company has an obligation to make good the shortfall, if any, between the return from the investments of the trust and the notified interest rate.

d Compensated absences

The employees of the Company are entitled to compensated absences which are both accumulating and non-accumulating in nature. The expected cost of accumulating compensated absences is determined by actuarial valuation using projected unit credit method on the additional amount expected to be paid/availed as a result of the unused entitlement that has accumulated at the Balance Sheet date. Expense on non-accumulating compensated absences is recognized in the period in which the absences occur.

1.12 Share-based payments

The company accounts for equity settled stock options as per the accounting treatment prescribed by Securities and Exchange Board of India (share based employee benefits) Regulations, 2014 and the Guidance Note on Employee Share-based Payments issued by the Institute of Chartered Accountants of India using the intrinsic value method.

1.13 Foreign currency transactions

Foreign-currency denominated monetary assets and liabilities are translated at exchange rates in effect at the Balance Sheet date. The gains or losses resulting from such translations are included in the Statement of profit and loss. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction.

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

1.14 Forward and options contracts in foreign currencies

The Company uses foreign exchange forward and options contracts to hedge its exposure to movements in foreign exchange rates. The use of these foreign exchange forward and options contracts reduce the risk or cost to the Company and the Company does not use those for trading or speculation purposes.

Effective April 1, 2008, the Company adopted AS 30, 'Financial Instruments: Recognition and Measurement', to the extent that the adoption did not conflict with existing accounting standards and other authoritative pronouncements of the Company Law and other regulatory requirements.

Forward and options contracts are fair valued at each reporting date. The resultant gain or loss from these transactions are recognized in the statement of profit and loss. The Company records the gain or loss on effective hedges, if any, in the foreign currency fluctuation reserve until the transactions are complete. On completion, the gain or loss is transferred to the statement of profit and loss of that period. To designate a forward or options contract as an effective hedge, the Management objectively evaluates and evidences with appropriate supporting documents at the inception of each contract and subsequently whether the contract is effective in achieving offsetting cash flows attributable to the hedged risk. In the absence of a designation as effective hedge, a gain or loss is recognized in the statement of profit and loss. Currently hedges undertaken by the Company are all ineffective in nature and the resultant gain or loss consequent to fair valuation is recognized in the statement of profit and loss at each reporting date.

1.15 Income taxes

Income taxes are accrued in the same period that the related revenue and expenses arise. A provision is made for income tax, based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable. Minimum alternate tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of tax credit against future income tax liability, is recognized as an asset in the Balance Sheet if there is convincing evidence that the Company will pay normal tax after the tax holiday period and the resultant asset can be measured reliably. The Company offsets, on a year on year basis, the current tax assets and liabilities, where it has a legally enforceable right and where it intends to settle such assets and liabilities on a net basis.

The differences that result between the profit considered for income taxes and the profit as per the financial statements are identified, and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount of timing difference. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on enacted or substantively enacted regulations. Deferred tax assets in situation where unabsorbed depreciation and carry forward business loss exists, are recognized only if there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax asset can be realized. Deferred tax assets, other than in situation of unabsorbed depreciation and carry forward business loss, are recognized only if there is reasonable certainty that they will be realized. Deferred tax assets are reviewed for the appropriateness of their respective carrying values at each reporting date. Deferred tax assets and deferred tax liabilities have been offset wherever the Company has a legally enforceable right to set off current tax assets against current tax liabilities and where the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority. The income tax provision for the interim period is made based on the best estimate of the annual average tax rate expected to be applicable for the full financial year. Tax benefits of deductions earned on exercise of employee share options in excess of compensation charged to statement of profit and loss are credited to the securities premium reserve.

1.16 Earnings per share

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The diluted potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value which is the average market value of the outstanding shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

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

1.17 Investments

Trade investments are the investments made to enhance the Company’s business interests. Investments are either classified as current or long-term based on Management’s intention. Current investments are carried at the lower of cost and fair value of each investment individually. Cost for overseas investments comprises the Indian Rupee value of the consideration paid for the investment translated at the exchange rate prevalent at the date of investment. Long term investments are carried at cost less provisions recorded to recognize any decline, other than temporary, in the carrying value of each investment.

1.18 Cash and cash equivalents

Cash and cash equivalents comprise cash and cash on deposit with banks and corporations. The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.

1.19 Cash flow statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

1.20 Leases

Lease under which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Such assets acquired are capitalized at fair value of the asset or present value of the minimum lease payments at the inception of the lease, whichever is lower. Lease payments under operating leases are recognised as an expense on a straight line basis in the statement of profit and loss over the lease term.

2 NOTES TO ACCOUNTS FOR THE QUARTER ENDED JUNE 30, 2015

Amounts in the financial statements are presented in crore, except for per share data and as otherwise stated. All exact amounts are stated with the suffix “/-”. One crore equals 10 million.

The previous period figures have been regrouped/reclassified, wherever necessary to conform to the current period presentation.

2.1 SHARE CAPITAL

in crore, except as otherwise stated

Particulars	As at
	June 30, 2015	March 31, 2015
Authorized
Equity shares, 5/- par value
240,00,00,000 (120,00,00,000) equity shares	1,200	600
Issued, Subscribed and Paid-Up
Equity shares, 5/- par value ⁽¹⁾	1,148	574
229,69,44,664 (114,84,72,332) equity shares fully paid-up
	1,148	574

Forfeited shares amounted to 1,500/- (1,500/-)

⁽¹⁾

Refer note 2.32 for details of basic and diluted shares

Effective January 1, 2015, Infosys Limited Employees' Welfare Trust ('The Trust') has been deconsolidated consequent to SEBI (Share Based Employee Benefits) Regulations, 2014 issued on October 28, 2014.

The Company has only one class of shares referred to as equity shares having a par value of 5/-. Each holder of equity shares is entitled to one vote per share.

The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the period of five years immediately preceding June 30, 2015:

The Company has allotted 57,42,36,166 fully paid up equity shares of face value 5/- each during the quarter ended December 31, 2014 pursuant to a bonus issue approved by the shareholders through a postal ballot. The record date fixed by the Board of Directors was December 3, 2014.

For both the bonus issues, bonus share of one equity share for every equity share held, and a stock dividend of one American Depositary Share (ADS) for every ADS held, respectively, has been allotted. Consequently, the ratio of equity shares underlying the ADSs held by an American Depositary Receipt holder remains unchanged. Options granted under the restricted stock unit plan have been adjusted for bonus shares.

During the year ended March 31, 2015, the amount of dividend per share recognised as distribution to equity shareholder includes 29.50/- per share of final dividend (not adjusted for bonus shares on June 17, 2015) and 30/- per share of interim dividend (not adjusted for bonus shares of June 17, 2015 and December 3, 2014). The total dividend appropriation for the year ended March 31, 2015 amounted to 6,145 crore including corporate dividend tax of 1,034 crore.

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

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company in proportion to the number of equity shares held by the shareholders, after distribution of all preferential amounts.

The details of shareholder holding more than 5% shares as at June 30, 2015 and March 31, 2015 are set out below :

Name of the shareholder	As at June 30, 2015		As at March 31, 2015
	No. of shares	% held	No. of shares	% held
Deutsche Bank Trust Company Americas (Depository of ADR's - legal ownership)	38,45,01,272	16.74	18,60,73,981	16.20
Life Insurance Corporation of India	127,144,076	5.54	55,274,758	4.81

The reconciliation of the number of shares outstanding and the amount of share capital as at June 30, 2015 and March 31, 2015 is set out below:

Particulars	As at June 30, 2015		As at March 31, 2015
	Number of shares	Amount ( crore)	Number of shares	Amount ( crore)
Number of shares at the beginning of the period	114,84,72,332	574	57,14,02,566	286
Add: Bonus shares issued (Including bonus on treasury shares)	114,84,72,332	574	57,42,36,166	287
Add: Treasury shares on account of deconsolidation of trust	–	–	28,33,600	1
Number of shares at the end of the period	229,69,44,664	1,148	114,84,72,332	574

Stock Option Plan:

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

During the year ended March 31, 2015, the company made a grant of 1,08,268 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, granted 1,24,061 RSUs to Dr. Vishal Sikka. The RSUs will vest over a period of four years from the date of the grant in the proportions specified in the award agreement. The RSUs will vest subject to achievement of certain key performance indicators as set forth in the award agreement for each applicable year of the vesting tranche and continued employment through each vesting date.

In accordance with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014, the excess of the closing market price on the grant date of the RSUs over the exercise price is amortised on a straight-line basis over the vesting period.

The activity in the 2011 Plan during the quarter ended June 30, 2015 is set out below:

Particulars	Quarter ended June 30, 2015
	Shares arising out of options	Weighted average exercise price ()
2011 Plan:
Outstanding at the beginning*	1,08,268	5
Granted	1,24,061	5
Forfeited and expired	–	–
Exercised	–	–
Outstanding at the end	2,32,329	5
Exercisable at the end	–	–

adjusted for bonus issues

The weighted average remaining contractual life of RSUs outstanding as of June 30, 2015 under the 2011 Plan was 2.59 years.

The differential on stock compensation expense if the ‘fair value’ of the RSU's on the date of the grant were considered instead of the ‘intrinsic value’ during the quarter ended June 30, 2015 is less than 1 crore. Consequently, there is no impact on earnings per share.

The fair value for the above impact analysis is estimated on the date of grant using the Black-Scholes-Merton model with the following assumptions:

Options granted during	Fiscal 2016	Fiscal 2015
Grant date	22-Jun-15	21-Aug-14
Weighted average share price ()*	1,024	3,549
Exercise price ()	5	5
Expected volatility (%)	28 - 36	30 - 37
Expected life of the option (years)	1 - 4	1 - 4
Expected dividends (%)	2.43	1.84
Risk-free interest rate (%)	7 - 8	8 - 9
Weighted average fair value as on grant date ()*	948	3,355

Data for Fiscal 2015 is not adjusted for bonus issues

During the three months ended June 30, 2015 and June 30, 2014, the company recorded an employee compensation expense of 2 crore and Nil, respectively.

2.2 RESERVES AND SURPLUS

in crore

Particulars	As at
	June 30, 2015	March 31, 2015
Capital reserve - Opening balance	54	54
Add: Transferred from Surplus	–	–
	54	54
Securities premium reserve - Opening balance	2,778	3,069
Less: Deconsolidation of trust (Refer note 2.1)	–	4
Less: Amount utilized for issuance of bonus shares (Refer note 2.1)	574	287
	2,204	2,778
Stock Options Outstanding- Opening balance (Refer note 2.1)	2	–
Additions during the period	2	2
	4	2
General reserve - Opening balance	9,508	8,291
Add: Transferred from Surplus	–	1,217
	9,508	9,508
Special Economic Zone Re-investment Reserve- Opening balance ⁽¹⁾	–	–
Add: Transferred from Surplus	135	–
Less: Transferred to Surplus on utilization	135	–
Special Economic Zone Re-investment Reserve- Closing balance	–	–
Surplus - Opening balance	35,152	30,392
Add: Net profit after tax transferred from Statement of Profit and Loss	2,897	12,164
Less: Deconsolidation of trust, net (Refer note 2.1)	–	42
Add: Transfer from Special Economic Zone Re-investment Reserve	135	–
Amount available for appropriation	38,184	42,514
Appropriations:
Interim dividend	–	1,723
Final dividend	–	3,388
Total dividend	–	5,111
Dividend tax	–	1,034
Amount transferred to general reserve	–	1,217
Amount transferred to Special Economic Zone Re-investment Reserve	135	–
Surplus- Closing Balance	38,049	35,152
	49,819	47,494

⁽¹⁾

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

2.3 DEFERRED TAXES

in crore

Particulars	As at
	June 30, 2015	March 31, 2015
Deferred tax assets
Fixed assets	177	210
Trade receivables	97	100
Unavailed leave	290	280
Computer software	50	51
Accrued compensation to employees	24	29
Post sales client support	71	72
Others	7	7
	716	749
Deferred tax liabilities
Branch profit tax	321	316
Others	14	–
	335	316
Deferred tax assets after set-off	381	433
Deferred tax liabilities after set-off	–	–

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

As at June 30, 2015 and March 31, 2015, the Company has provided for branch profit tax of 321 crore and 316 crore, respectively, for its overseas branches, as the Company estimates that these branch profits would be distributed in the foreseeable future. The change in provision for branch profit tax includes 5 crore movement on account of exchange rate during the quarter ended June 30, 2015.

2.4 OTHER LONG-TERM LIABILITIES

in crore

Particulars	As at
	June 30, 2015	March 31, 2015
Others
Gratuity obligation - unamortised amount relating to plan amendment (refer note 2.29)	3	3
Payable for acquisition of business (refer note 2.10.5)	90	–
Rental deposits received from subsidiary (refer note 2.26)	27	27
	120	30

2.5 TRADE PAYABLES

in crore

Particulars	As at
	June 30, 2015	March 31, 2015
Trade payables	151	124
	151	124
Includes dues to subsidiaries (refer note 2.26)	112	102

2.6 OTHER CURRENT LIABILITIES

in crore

Particulars	As at
	June 30, 2015	March 31, 2015
Accrued salaries and benefits
Salaries and benefits	998	1,144
Bonus and incentives	545	575
Other liabilities
Provision for expenses⁽¹⁾	1,738	1,582
Retention monies	52	50
Withholding and other taxes payable	1,029	733
Gratuity obligation - unamortised amount relating to plan amendment, current (refer note 2.29)	3	4
Other payables⁽²⁾	57	79
Advances received from clients	10	20
Unearned revenue	945	831
Unpaid dividends	8	3
Mark-to-market forward and options contracts	4	–
Payable for acquisition of business (refer note 2.10.1 and 2.10.5)	643	525
	6,032	5,546
⁽¹⁾ Includes dues to subsidiaries (refer note 2.26)	13	36
⁽²⁾ Includes dues to subsidiaries (refer note 2.26)	20	33

2.7 SHORT-TERM PROVISIONS

in crore

Particulars	As at
	June 30, 2015	March 31, 2015
Provision for employee benefits
Unavailed leave	969	907
Others
Proposed dividend	–	3,388
Provision for
Tax on dividend	690	690
Income taxes (net of advance tax and Tax Deducted at Source)	2,972	2,678
Post-sales client support and warranties and other provisions	398	382
	5,029	8,045

Provision for post-sales client support and warranties and other provisions

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

in crore

Particulars	Quarter ended		Year ended
	June 30, 2015	June 30, 2014	March 31, 2015
Balance at the beginning	382	325	325
Provision recognized/(reversed)	20	4	134
Provision utilised	(10)	(21)	(78)
Exchange difference during the period	6	(1)	1
Balance at the end	398	307	382

Provision for post-sales client support and other provisions are expected to be utilized over a period of 6 months to 1 year.

2.8 FIXED ASSETS

Following are the changes in the carrying value of fixed assets for the quarter ended June 30, 2015:

in crore, except as otherwise stated

Tangible assets

Intangible assets

Total

Particulars

Land-Freehold

Land- Leasehold

Buildings⁽¹⁾⁽²⁾

Plant and Machinery ⁽²⁾

Office equipment ⁽²⁾

Computer equipment ⁽²⁾

Furniture and fixtures ⁽²⁾

Vehicles

Total

Intellectual property rights

Total

Original cost

As at April 1, 2015

929

621

5,733

1,361

525

2,812

832

12,827

12,869

Additions/Adjustments during the period

–

281

509

–

509

Deductions/ Retirement during the period

–

(4)

(1)

–

(5)

–

(5)

As at June 30, 2015

947

621

5,807

1,425

551

3,089

876

13,331

13,373

Depreciation and amortization

As at April 1, 2015

–

1,937

838

280

1,852

549

5,480

5,522

For the period

–

101

252

–

252

Deductions/Adjustments during the period

–

(3)

(1)

–

(4)

–

(4)

As at June 30, 2015

–

1,988

885

300

1,950

579

5,728

5,770

Net book value

As at June 30, 2015

947

604

3,819

540

251

1,139

297

7,603

–

7,603

Notes:	⁽¹⁾	Buildings include 250/- being the value of 5 shares of 50/- each in Mittal Towers Premises Co-operative Society Limited.
	⁽²⁾	Includes certain assets provided on cancellable operating lease to subsidiaries.

Following are the changes in the carrying value of fixed assets for the quarter ended June 30, 2014:

in crore, except as otherwise stated

Tangible assets

Intangible assets

Total

Particulars

Land-Freehold

Land- Leasehold

Buildings⁽¹⁾⁽²⁾

Plant and Machinery ⁽²⁾

Office equipment ⁽²⁾

Computer equipment ^{(2) (3)}

Furniture and fixtures ⁽²⁾

Vehicles

Total

Intellectual property rights

Total

Original cost

As at April 1, 2014

781

349

4,878

1,090

393

2,178

679

10,361

10,420

Additions/Adjustments during the period

103

107

–

377

–

377

Deductions/ Retirement during the period

–

(5)

–

(5)

–

(5)

As at June 30, 2014

835

452

4,939

1,106

415

2,280

693

10,733

10,792

Depreciation and amortization

As at April 1, 2014

–

1,754

671

215

1,554

441

4,642

4,688

For the period

–

188

192

Deductions/Adjustments during the period

–

(5)

–

(5)

–

(5)

As at June 30, 2014

–

1,797

709

229

1,618

464

4,825

4,875

Net book value

As at June 30, 2014

835

452

3,142

397

186

662

229

5,908

5,917

Notes:	⁽¹⁾	Buildings include 250/- being the value of 5 shares of 50/- each in Mittal Towers Premises Co-operative Society Limited.
	⁽²⁾	Includes certain assets provided on cancellable operating lease to Infosys BPO, subsidiary
	⁽³⁾	The opening balance as of April 1, 2014 includes computer equipment having gross book value of 1 crore (net book value Nil) transferred from Infosys Consulting India Limited

Following are the changes in the carrying value of fixed assets for the year ended March 31, 2015:

in crore, except as otherwise stated

	Tangible assets									Intangible assets		Total
Particulars	Land-Freehold	Land- Leasehold	Buildings⁽¹⁾⁽²⁾	Plant and Machinery ⁽²⁾	Office equipment ⁽²⁾	Computer equipment ^{(2) (3)}	Furniture and fixtures ⁽²⁾	Vehicles	Total	Intellectual property rights	Total
Original cost
As at April 1, 2014	781	349	4,878	1,090	393	2,178	679	13	10,361	59	59	10,420
Additions/Adjustments during the year	148	272	855	274	134	694	160	3	2,540	–	–	2,540
Deductions/ Retirement during the year	–	–	–	(3)	(2)	(60)	(7)	(2)	(74)	(17)	(17)	(91)
As at March 31, 2015	929	621	5,733	1,361	525	2,812	832	14	12,827	42	42	12,869
Depreciation and amortization
As at April 1, 2014	–	–	1,754	671	215	1,554	441	7	4,642	46	46	4,688
For the period	–	16	183	169	67	350	113	2	900	13	13	913
Deductions/Adjustments during the year	–	–	–	(2)	(2)	(52)	(5)	(1)	(62)	(17)	(17)	(79)
As at March 31, 2015	–	16	1,937	838	280	1,852	549	8	5,480	42	42	5,522
Net book value
As at March 31, 2015	929	605	3,796	523	245	960	283	6	7,347	–	–	7,347

Notes:	⁽¹⁾	Buildings include 250/- being the value of 5 shares of 50/- each in Mittal Towers Premises Co-operative Society Limited.
	⁽²⁾	Includes certain assets provided on cancellable operating lease to subsidiaries
	⁽³⁾	During the year ended March 31, 2015, computer equipment having net book value of 8 crore was transferred to EdgeVerve Systems Limited (Refer note 2.10.2)

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

The Company has entered into lease-cum-sale agreements to acquire certain properties. In accordance with the terms of some of these agreements, the Company has the option to purchase or renew the properties on expiry of the lease period.

Tangible assets provided on operating lease to subsidiaries as at June 30, 2015 and March 31, 2015 are as follows:

in crore

Particulars	Cost	Accumulated depreciation	Net book value
Buildings	98	35	63
	98	35	63
Plant and equipment	8	2	6
	12	3	9
Furniture and fixtures	11	3	8
	11	2	9
Office equipment	11	2	9
	6	1	5

The aggregate depreciation charged on the above assets during the quarter ended June 30, 2015 amounted to 2 crore (less than 1 crore for the quarter ended June 30, 2014).

The rental income from subsidiaries for the quarter ended June 30, 2015 amounted to 8 crore (4 crore for the quarter ended June 30, 2014).

2.9 LEASES

Obligations on long-term, non-cancellable operating leases

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

in crore

Particulars	Quarter ended June 30,
	2015	2014
Lease rentals recognized during the period	41	42

in crore

	As at
Lease obligations payable	June 30, 2015	March 31, 2015
Within one year of the balance sheet date	123	101
Due in a period between one year and five years	337	284
Due after five years	214	158

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

2.10 INVESTMENTS

in crore, except as otherwise stated

Particulars	As at
	June 30, 2015	March 31, 2015
Non-current investments
Long term investments - at cost
Trade (unquoted)
Investments in equity instruments of subsidiaries
Infosys BPO Limited
3,38,22,319 (3,38,22,319) equity shares of 10/- each, fully paid	659	659
Infosys Technologies (China) Co. Limited	169	169
Infosys Technologies (Australia) Pty Limited
1,01,08,869 (1,01,08,869) equity shares of AUD 0.11 par value, fully paid	66	66
Infosys Technologies, S. de R.L. de C.V., Mexico
17,49,99,990 (17,49,99,990) equity shares of MXN 1 par value, fully paid up	65	65
Infosys Technologies (Sweden) AB
1,000 (1,000) equity shares of SEK 100 par value, fully paid	–	–
Infosys Technologia do Brasil Ltda
5,91,24,348 (5,91,24,348) shares of BRL 1.00 par value, fully paid	149	149
Infosys Technologies (Shanghai) Company Limited	579	388
Infosys Public Services, Inc.
3,50,00,000 (3,50,00,000) shares of USD 0.50 par value, fully paid	99	99
Lodestone Holding AG (refer note 2.10.1)
23,350 (23,350) - Class A shares of CHF 1,000 each and 29,400	1,323	1,323
(29,400) - Class B Shares of CHF 100 each, fully paid up
Infosys Americas Inc.
10,000 (10,000) shares of USD 10 per share, fully paid up	1	1
EdgeVerve Systems Limited (refer note 2.10.2)
46,18,39,994 (46,18,39,994) equity shares of 10/- each, fully paid	462	462
Panaya Inc. (refer note 2.10.3)
2 (2) shares of USD 0.01 per share, fully paid up	1,398	1,398
Infosys Nova Holdings LLC (refer note 2.10.4)	94	94
Kallidus Inc. (refer note 2.10.5)
10,21,35,416 (Nil) shares	647	–
Skava Systems Private Limited (refer note 2.10.5)
25,000 (Nil) shares of 10 per share, fully paid up	59	–
	5,770	4,873
Others (unquoted) (refer note 2.10.6)
Investments in preferred stock	13	–
Investments in equity instruments	7	7
Less: Provision for investments	6	6
	14	1
Others (quoted)
Investments in tax free bonds (refer note 2.10.7)	1,234	1,234
Investments in government bonds (refer note 2.10.7)	–	–
	1,234	1,234
Total non-current investments	7,018	6,108
Current investments – at the lower of cost and fair value
Other current investments
Unquoted
Liquid mutual fund units (refer note 2.10.8)	602	749
	602	749
Total current investments	602	749
Total investments	7,620	6,857
Aggregate amount of quoted investments excluding interest accrued but not due of 70 crore as at June 30, 2015 (46 crore as at March 31, 2015) included under Note 2.15 Short term Loans and advances	1,234	1,234
Market value of quoted investments	1,282	1,269
Aggregate amount of unquoted investments	6,392	5,629
Aggregate amount of provision made for non-current unquoted investments	6	6

Profit on sale of investment is less than 1 crore for the quarter ended June 30, 2015.

2.10.1 Investment in Lodestone Holding AG

On October 22, 2012, Infosys acquired 100% of the outstanding share capital of Lodestone Holding AG, a global management consultancy firm headquartered in Zurich, Switzerland. The acquisition was executed through a share purchase agreement for an upfront cash consideration of 1,187 crore and a deferred consideration of upto 608 crore.

The deferred consideration is payable to the selling shareholders of Lodestone on the third anniversary of the acquisition date and is contingent upon their continued employment for a period of three years. The investment in Lodestone has been recorded at the acquisition cost and the deferred consideration is being recognised on a proportionate basis over a period of three years from the date of acquisition. An amount of 46 crore and 57 crore, representing the proportionate charge of the deferred consideration has been recognised as an expense during the quarter ended June 30, 2015 and June 30, 2014, respectively.

2.10.2 Investment in EdgeVerve Systems Limited

On February 14, 2014, a wholly owned subsidiary EdgeVerve Systems Limited (EdgeVerve) was incorporated. EdgeVerve was created to focus on developing and selling products and platforms. The company has undertaken an enterprise valuation by an independent valuer and accordingly the business has been transferred for a consideration of 421 crore with effect from July 1, 2014. Net assets amounting to 9 crore have also been transferred and accordingly a gain of 412 crore has been recorded as an exceptional item. The consideration has been settled through the issue of fully paid up equity shares in EdgeVerve.

2.10.3 Investment in Panaya Inc.

2.10.4 Investment in DWA Nova LLC

During the year ended March 31, 2015, Infosys Nova Holdings LLC acquired 20% of the equity interests in DWA Nova LLC for a cash consideration of 94 crore. The company has made this investment to form a new company along with Dream Works Animation (DWA). The new company, DWA Nova LLC, will develop and commercialize image generation technology in order to provide end-to-end digital manufacturing capabilities for companies involved in the design, manufacturing, marketing or distribution of physical consumer products.

2.10.5 Investment in Kallidus Inc. & Skava Systems Pvt. Ltd.

On June 2, 2015, Infosys acquired 100% of the voting interests in Kallidus Inc., (d.b.a Skava) (Kallidus), a leading provider of digital experience solutions, including mobile commerce and in-store shopping experiences to large retail clients and 100% of the voting interests of Skava Systems Private Limited, India, an affiliate of Kallidus. The business acquisition was conducted by entering into a share purchase agreement for cash consideration of 578 crore and a contingent consideration of upto 128 crore, the payment of which is dependent upon the achievement of certain financial targets by Kallidus over a period of 3 years ending on December 31, 2017.

2.10.6 Details of Investments

The details of non-current other investments in preferred stock and equity instruments as at June 30, 2015 and March 31, 2015 are as follows:

in crore

Particulars	As at
	June 30, 2015	March 31, 2015
Preferred Stock
Airviz Inc.
2,82,279 Series A Preferred Stock, fully paid up, par value USD 0.001 each	13	–
Equity Instruments
OnMobile Systems Inc., USA
21,54,100 (21,54,100) common stock, fully paid up, par value USD 0.001 each	4	4
Merasport Technologies Private Limited
2,420 (2,420) equity shares, fully paid up, par value 10/- each	2	2
Global Innovation and Technology Alliance
10,000 (10,000) equity shares, fully paid up, par value 1,000/- each	1	1
	20	7
Less: Provision for investment	6	6
	14	1

2.10.7 Details of Investments in tax free bonds

The balances held in tax free bonds as at June 30, 2015 and March 31, 2015 is as follows:

in crore

Particulars	Face Value	As at June 30, 2015		As at March 31, 2015
		Units	Amount	Units	Amount
7.18% Indian Railway Finance Corporation Limited Bonds 19FEB2023	1,000/-	2,000,000	201	2,000,000	201
7.34% Indian Railway Finance Corporation Limited Bonds 19FEB2028	1,000/-	2,100,000	211	2,100,000	211
7.93% Rural Electrification Corporation Limited Bonds 27MAR2022	1,000/-	200,000	21	200,000	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/-	500,000	53	500,000	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/-	500,000	50	500,000	50
8.10% Indian Railway Finance Corporation Limited Bonds 23FEB2027	1,000/-	500,000	53	500,000	53
		58,06,450	1,234	58,06,450	1,234

The balances held in government bonds as at June 30, 2015 and March 31, 2015 is as follows:

in crore

Particulars	Face Value	As at June 30, 2015		As at March 31, 2015
		Units	Amount	Units	Amount
FIXED RATE TREASURY NOTES 7.00 PCT PIBD0716A488 MAT DATE 27 JAN 2016	140	10,000	–	10,000	–
		10,000	–	10,000	–

2.10.8 Details of Investments in liquid mutual fund units

The balances held in liquid mutual fund units as at June 30, 2015 is as follows:

in crore

Particulars	Units	Amount
ICICI Liquid Plan - Direct Plan Daily Dividend	1,50,42,100	151
Tata Liquid fund - Direct Plan Daily Dividend	8,07,660	90
Franklin India Treasury Management Account - Super Institutional Plan - Direct	8,99,706	90
Birla Sun Life Cash Plus Daily Dividend Reinvestment - Direct	1,54,24,706	154
JP Morgan India -Liquid Fund - Direct Plan Daily Dividend Reinvestment	1,70,32,919	17
Reliance Liquid Fund - Treasury Plan - Direct Plan Daily Dividend Option	654,243	100
	4,98,61,334	602

The balances held in liquid mutual fund units as at March 31, 2015 is as follows:

in crore

Particulars	Units	Amount
IDFC Cash Fund - Direct Plan Daily Dividend	29,30,197	293
Reliance Liquid Fund - Treasury Plan - Direct Plan Daily Dividend Option	9,81,551	150
SBI Premier Liquid Fund - Direct Plan Daily Dividend	9,97,094	100
ICICI Liquid Plan - Direct Plan Daily Dividend	2,05,44,807	206
	2,54,53,649	749

2.10.9 Proposed Investments

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, subject to securing the requisite approval from shareholders through postal ballot. Subsequently, on June 4, 2015, the shareholders have authorised execution of Business Transfer Agreement and other related documents with EdgeVerve, with effect from August 1, 2015 or any other date as may be decided by the Board. The company has undertaken independent valuation by an independent valuer and accordingly the business will be transferred for a consideration of upto 3,400 crore and upto 220 crore for Finacle and Edge Services, respectively.

Infosys Public Services (IPS)

On June 22, 2015 the shareholders in the Annual General Meeting, have approved to enter into a contract to purchase, lease, transfer, assign or otherwise acquire the whole part of the healthcare business, including the rights and properties relating thereto, from Infosys Public Services Inc. (IPS), a wholly owned subsidiary of the Company. This is for an estimated consideration of up to 625 crore approximately to be discharged in a manner and on such terms and conditions as may be mutually agreed upon between the Board of Directors of the company and IPS with effect from a date as may be decided by the Board of directors.

2.11 LONG-TERM LOANS AND ADVANCES

in crore

Particulars	As at
	June 30, 2015	March 31, 2015
Unsecured, considered good
Capital advances	338	316
Security deposits	68	65
Rental deposits ⁽¹⁾	60	45
Other loans and advances
Advance income taxes (net of provisions)	4,427	3,941
Prepaid expenses	34	7
Loans and advances to employees	4	4
	4,931	4,378
Unsecured, considered doubtful
Loans and advances to employees	10	10
	4,941	4,388
Less: Provision for doubtful loans and advances to employees	10	10
	4,931	4,378
⁽¹⁾ Includes deposits with subsidiaries (refer note 2.26)	21	21

2.12 OTHER NON-CURRENT ASSETS

in crore

Particulars	As at
	June 30, 2015	March 31, 2015
Others
Advance to gratuity trust (refer note 2.29)	17	26
	17	26

2.13 TRADE RECEIVABLES ⁽¹⁾

in crore

Particulars	As at
	June 30, 2015	March 31, 2015
Debts outstanding for a period exceeding six months
Unsecured
Considered doubtful	223	162
Less: Provision for doubtful debts	223	162
	–	–
Other debts
Unsecured
Considered good⁽²⁾	9,200	8,627
Considered doubtful	84	160
	9,284	8,787
Less: Provision for doubtful debts	84	160
	9,200	8,627
	9,200	8,627
⁽¹⁾Includes dues from companies where directors are interested	2	6
⁽²⁾ Includes dues from subsidiaries (refer note 2.26)	274	309

2.14 CASH AND CASH EQUIVALENTS

in crore

Particulars	As at
	June 30, 2015	March 31, 2015
Cash on hand	–	–
Balances with banks
In current and deposit accounts	21,994	23,722
Others
Deposits with financial institution	3,237	4,000
	25,231	27,722
Balances with banks in unpaid dividend accounts	8	3
Deposit accounts with more than 12 months maturity	181	182
Balances with banks held as margin money deposits against guarantees	193	185

Cash and cash equivalents as of June 30, 2015 and March 31, 2015 include restricted cash and bank balances of 201 crore and 188 crore, respectively. The restrictions are primarily on account of cash and bank balances held as margin money deposits against guarantees and unpaid dividends.

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

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

in crore

Particulars	As at
	June 30, 2015	March 31, 2015
In current accounts
ANZ Bank, Taiwan	4	4
Bank of America, USA	598	498
Bank of Baroda, Mauritius	1	–
BNP Paribas Bank, Norway	1	–
Citibank N.A., Australia	19	10
Citibank N.A., India	6	6
Citibank N.A., Dubai	5	1
Citibank N.A., EEFC (U.S. Dollar account)	1	2
Citibank N.A., Japan	26	20
Citibank N.A., New Zealand	3	3
Citibank N.A., South Africa	2	2
Deutsche Bank, Philippines	2	2
Deutsche Bank, India	23	4
Deutsche Bank, EEFC (Euro account)	–	2
Deutsche Bank, EEFC (GBP account)	2	5
Deutsche Bank, EEFC (AUD account)	27	–
Deutsche Bank, EEFC (U.S. Dollar account)	12	7
Deutsche Bank, EEFC (Swiss Franc account)	2	4
Deutsche Bank, Belgium	16	13
Deutsche Bank, France	10	2
Deutsche Bank, Germany	16	8
Deutsche Bank, Netherlands	18	1
Deutsche Bank, Singapore	19	5
Deutsche Bank, Spain	2	1
Deutsche Bank, Switzerland	3	–
Deutsche Bank, UK	33	24
HSBC, Hong Kong	58	44
ICICI Bank, India	31	18
ICICI Bank, EEFC (U.S. Dollar account)	7	9
Nordbanken, Sweden	9	1
Punjab National Bank, India	1	7
Royal Bank of Canada, Canada	7	11
State Bank of India, India	1	1
	965	715
In deposit accounts
Allahabad Bank	200	200
Andhra Bank	97	97
Axis Bank	1,165	1,415
Bank of Baroda	2,314	2,314
Bank of India	2,537	2,691
Canara Bank	2,075	2,841
Central Bank of India	1,303	1,303
Corporation Bank	1,197	1,197
Development Bank of Singapore	–	35
HDFC Bank	1,897	2,017
ICICI Bank	2,608	3,059
IDBI Bank	706	706
Indusind Bank	59	75
ING Vysya Bank	100	100
Indian Overseas Bank	573	573
Oriental Bank of Commerce	1,500	1,500
Punjab National Bank	512	512
Syndicate Bank	327	327
Union Bank of India	971	971
Vijaya Bank	187	386
Yes Bank	500	500
	20,828	22,819
In unpaid dividend accounts
HDFC Bank - Unpaid dividend account	1	1
ICICI bank - Unpaid dividend account	7	2
	8	3
In margin money deposits against guarantees
Canara Bank	136	128
State Bank of India	57	57
	193	185
Deposits with financial institution
HDFC Limited	3,237	4,000
	3,237	4,000
Total cash and cash equivalents as per Balance Sheet	25,231	27,722

2.15 SHORT-TERM LOANS AND ADVANCES

in crore

Particulars	As at
	June 30, 2015	March 31, 2015
Unsecured, considered good
Loans to subsidiaries (refer note 2.26)	67	24
Others
Advances
Prepaid expenses⁽³⁾	210	71
For supply of goods and rendering of services	47	60
Withholding and other taxes receivable	1,322	1,253
Others⁽¹⁾	128	49
	1,774	1,457
Restricted deposits (refer note 2.33)	1,045	1,039
Unbilled revenues⁽²⁾	2,562	2,423
Interest accrued but not due	872	433
Loans and advances to employees
Housing and other loans	53	53
Salary advances	143	148
Security deposits	1	1
Mark-to-market forward and options contracts	39	94
Rental deposits	9	6
	6,498	5,654
⁽¹⁾ Includes dues from subsidiaries (refer note 2.26)	39	43
⁽²⁾ Includes dues from subsidiaries (refer note 2.26)	15	6
⁽³⁾ Includes dues from subsidiaries (refer note 2.26)	7	–

2.16 INCOME FROM SOFTWARE SERVICES AND PRODUCTS

in crore

Particulars	Quarter ended June 30,
	2015	2014
Income from software services	12,260	10,921
Income from software products	478	398
	12,738	11,319

2.17 OTHER INCOME

in crore

Particulars	Quarter ended June 30,
	2015	2014
Interest received on deposits with banks and others	640	608
Dividend received on investment in mutual fund units	22	49
Miscellaneous income, net	82	6
Gains / (losses) on foreign currency, net	(25)	127
	719	790

2.18 EXPENSES

in crore

Particulars	Quarter ended June 30,
	2015	2014
Employee benefit expenses
Salaries and bonus including overseas staff expenses	6,648	6,081
Contribution to provident and other funds	149	140
Employee compensation expense (Refer note 2.1)	2	–
Staff welfare	18	13
	6,817	6,234
Cost of technical sub-contractors
Technical sub-contractors - subsidiaries	398	326
Technical sub-contractors - others	567	291
	965	617
Travel expenses
Overseas travel expenses	395	308
Travelling and conveyance	37	32
	432	340
Cost of software packages and others
For own use	183	213
Third party items bought for service delivery to clients	108	55
	291	268
Communication expenses
Telephone charges	54	65
Communication expenses	26	27
	80	92
Other expenses
Office maintenance	106	75
Power and fuel	46	47
Brand building	57	14
Rent	41	42
Rates and taxes, excluding taxes on income	26	23
Repairs to building	30	11
Repairs to plant and machinery	17	11
Computer maintenance	35	32
Consumables	7	5
Insurance charges	11	10
Provision for post-sales client support and warranties	5	4
Commission to non-whole time directors	2	2
Provision for bad and doubtful debts and advances	(19)	106
Auditor's remuneration
Statutory audit fees	–	–
Other services	–	–
Reimbursement of expenses	–	–
Bank charges and commission	2	1
Contributions towards Corporate Social Responsibility	43	48
Others	40	36
	449	467

2.19 TAX EXPENSE

in crore

Particulars	Quarter ended June 30,
	2015	2014
Current tax
Income tax	1,050	1,088
Deferred tax	46	(13)
	1,096	1,075

During the quarter ended June 30, 2015 and June 30, 2014, the company had reversal (net of provisions) of 88 crore and 24 crore, respectively, pertaining to tax relating to prior years.

Income taxes

The provision for taxation includes tax liabilities in India on the company’s global income as reduced by exempt incomes and any tax liabilities arising overseas on income sourced from those countries as per Indian Income Tax Act, 1961. Infosys' operations are conducted through Software Technology Parks('STPs') and Special Economic Zones ('SEZs'). Income from STPs were tax exempt for the first 10 years from the fiscal year in which the unit commences software development, or March 31, 2011 which ever is earlier. Income from SEZs Unit is fully tax exempt for the first 5 years, 50% exempt for the next 5 years and 50% exempt for another 5 years subject to fulfilling certain conditions.

2.20 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

in crore

Particulars	As at
	June 30, 2015	March 31, 2015
Contingent liabilities :
Outstanding guarantees and counter guarantees to various banks, in respect of the guarantees given by those banks in favour of various government authorities and others	19	22
Claims against the Company, not acknowledged as debts⁽¹⁾	168	167
[Net of amount paid to statutory authorities 3,456 crore (3,572 crore)]
Commitments :
Estimated amount of unexecuted capital contracts	1,115	1,272
(net of advances and deposits)

⁽¹⁾

Claims against the company not acknowledged as debts include demand from the Indian Income tax authorities for payment of additional tax of 3,221 crore (3,337 crore), including interest of 951 crore (964 crore) upon completion of their tax review for fiscal 2007, fiscal 2008, fiscal 2009 and fiscal 2010.

2.21 DERIVATIVE INSTRUMENTS

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

	As at
	June 30, 2015		March 31, 2015
	in million	in crore	in million	in crore
Forward contracts outstanding
In USD	654	4,163	664	4,150
In Euro	59	420	59	396
In GBP	58	584	68	632
In AUD	85	416	95	452
In CAD	12	62	12	59
In SGD	25	118	25	114
		5,763		5,803

As of June 30, 2015 and March 31, 2015, there were no net foreign currency exposures that are not hedged by a derivative instrument or otherwise.

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

in crore

Particulars	As at
	June 30, 2015	March 31, 2015
Not later than one month	1,411	1,382
Later than one month and not later than three months	2,722	3,608
Later than three months and not later than one year	1,630	813
	5,763	5,803

The Company recognized a loss of 71 crore and gain of 72 crore on derivative instruments during the quarter ended June 30, 2015 and June 30, 2014, respectively, which is included in other income.

2.22 QUANTITATIVE DETAILS

The Company is primarily engaged in the development and maintenance of computer software. The production and sale of such software cannot be expressed in any generic unit. Hence, it is not possible to give the quantitative details of sales and certain information as required under paragraphs 5 (viii)(c) of general instructions for preparation of the statement of profit and loss as per Schedule III to the Companies Act, 2013.

2.23 IMPORTS (VALUED ON THE COST, INSURANCE AND FREIGHT BASIS)

in crore

Particulars	Quarter ended June 30,
	2015	2014
Capital goods	107	69
	107	69

2.24 ACTIVITY IN FOREIGN CURRENCY

in crore

Particulars	Quarter ended June 30,
	2015	2014
Earnings in foreign currency
Income from software services and products	12,453	11,052
Interest received from banks and others	1	1
	12,454	11,053
Expenditure in foreign currency
Overseas travel expenses (including visa charges)	467	369
Professional charges	109	23
Technical sub-contractors - subsidiaries	323	278
Overseas salaries and incentives	4,442	3,861
Other expenditure incurred overseas for software development	1,128	546
	6,469	5,077
Net earnings in foreign currency	5,985	5,976

2.25 DIVIDENDS REMITTED IN FOREIGN CURRENCIES

The Company remits the equivalent of the dividends payable to equity shareholders and holders of ADS. For ADS holders the dividend is remitted in Indian rupees to the depository bank, which is the registered shareholder on record for all owners of the Company’s ADSs. The depositary bank purchases the foreign currencies and remits dividends to the ADS holders.

The particulars of dividends remitted are as follows:

in crore

Particulars	Number of Non-resident share holders	Number of shares to which the dividends relate	Quarter ended June 30, 2015	Quarter ended June 30, 2014
Final dividend for fiscal 2015	2	19,22,58,436	567	–
Final dividend for fiscal 2014	2	9,30,32,691	–	400

2.26 RELATED PARTY TRANSACTIONS

List of related parties:

Name of subsidiaries	Country	Holding as at
		June 30, 2015	March 31, 2015
Infosys BPO Limited (Infosys BPO)	India	99.98%	99.98%
Infosys Technologies (China) Co. Limited (Infosys China)	China	100%	100%
Infosys Technologies S. de R. L. de C. V. (Infosys Mexico)	Mexico	100%	100%
Infosys Technologies (Sweden) AB. (Infosys Sweden)	Sweden	100%	100%
Infosys Technologies (Shanghai) Company Limited (Infosys Shanghai)	China	100%	100%
Infosys Tecnologia DO Brasil LTDA. (Infosys Brasil)	Brazil	100%	100%
Infosys Public Services, Inc. USA (Infosys Public Services)	U.S.	100%	100%
Infosys Americas Inc., (Infosys Americas)	U.S.	100%	100%
Infosys BPO s. r. o ⁽¹⁾	Czech Republic	99.98%	99.98%
Infosys BPO (Poland) Sp Z.o.o ⁽¹⁾	Poland	99.98%	99.98%
Infosys BPO S.DE R.L. DE.C.V ⁽¹⁾⁽⁸⁾	Mexico	–	–
Infosys McCamish Systems LLC ⁽¹⁾	U.S.	99.98%	99.98%
Portland Group Pty Ltd⁽¹⁾	Australia	99.98%	99.98%
Portland Procurement Services Pty Ltd⁽⁵⁾	Australia	–	–
Infosys Technologies (Australia) Pty. Limited (Infosys Australia) ⁽²⁾	Australia	100%	100%
EdgeVerve Systems Limited (EdgeVerve) ⁽⁷⁾	India	100%	100%
Lodestone Holding AG (Infosys Lodestone)	Switzerland	100%	100%
Lodestone Management Consultants Inc. ⁽³⁾	U.S.	100%	100%
Lodestone Management Consultants Pty Limited⁽³⁾	Australia	100%	100%
Lodestone Management Consultants AG ⁽³⁾	Switzerland	100%	100%
Lodestone Augmentis AG ⁽²⁾⁽⁶⁾	Switzerland	100%	100%
Hafner Bauer & Ödman GmbH ⁽³⁾	Switzerland	100%	100%
Lodestone Management Consultants (Belgium) S.A. ⁽⁴⁾	Belgium	99.90%	99.90%
Lodestone Management Consultants GmbH ⁽³⁾	Germany	100%	100%
Lodestone Management Consultants Pte Ltd. ⁽³⁾	Singapore	100%	100%
Lodestone Management Consultants SAS ⁽³⁾	France	100%	100%
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%
Lodestone Management Consultants Ltd. ⁽³⁾	UK	100%	100%
Lodestone Management Consultants B.V. ⁽³⁾	Netherlands	100%	100%
Lodestone Management Consultants Ltda. ⁽⁴⁾	Brazil	99.99%	99.99%
Lodestone Management Consultants Sp. z.o.o. ⁽³⁾	Poland	100%	100%
Lodestone Management Consultants Portugal, Unipessoal, Lda. ⁽³⁾	Portugal	100%	100%
S.C. Lodestone Management Consultants S.R.L. ⁽³⁾	Romania	100%	100%
Lodestone Management Consultants S.R.L. ⁽³⁾	Argentina	100%	100%
Infosys Canada Public Services Ltd.⁽⁹⁾	Canada	–	–
Infosys Nova Holdings LLC. (Infosys Nova)⁽¹⁰⁾	U.S.	100%	100%
Panaya Inc. (Panaya) ⁽¹¹⁾	U.S.	100%	100%
Panaya Ltd.⁽¹²⁾	Israel	100%	100%
Panaya Gmbh⁽¹²⁾	Germany	100%	100%
Panaya Pty Ltd.⁽¹²⁾	Australia	–	–
Panaya Japan Co. Ltd.⁽¹²⁾	Japan	100%	100%
Skava Systems Pvt. Ltd. (Skava Systems)⁽¹³⁾	India	100%	–
Kallidus Inc. (Kallidus)⁽¹⁴⁾	U.S.	100%	–

⁽¹⁾	Wholly owned subsidiaries of Infosys BPO.
⁽²⁾	Under liquidation
⁽³⁾	Wholly owned subsidiaries of Lodestone Holding AG
⁽⁴⁾	Majority owned and controlled subsidiaries of Lodestone Holding AG
⁽⁵⁾	Wholly owned subsidiary of Portland Group Pty Ltd. Liquidated effective May 14, 2014.
⁽⁶⁾	Wholly owned subsidiary of Lodestone Management Consultant AG
⁽⁷⁾	Incorporated effective February 14, 2014 (Refer note 2.10.2)
⁽⁸⁾	Incorporated effective February 14, 2014
⁽⁹⁾	Wholly owned subsidiary of Infosys Public Services, Inc. Incorporated effective December 19, 2014
⁽¹⁰⁾	Incorporated effective January 23, 2015
⁽¹¹⁾	On March 5, 2015, Infosys acquired 100% of the voting interest in Panaya Inc. (Refer note 2.10.3)
⁽¹²⁾	Wholly owned subsidiary of Panaya Inc^.
⁽¹³	On June 2, 2015, Infosys acquired 100% of the voting interest in Skava Systems (Refer note 2.10.5)
⁽¹⁴⁾	On June 2, 2015, Infosys acquired 100% of the voting interest in Kallidus (Refer note 2.10.5)

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

Name of Associates	Country	Holding as at
		June 30, 2015	March 31, 2015
DWA Nova LLC⁽¹⁾	U.S.	20%	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

Refer Notes 2.29 and 2.30 for information on transactions with post-employment benefit plans mentioned above.

List of key management personnel

Whole time directors

S. D. Shibulal (resigned effective July 31, 2014)

Srinath Batni (resigned effective July 31, 2014)

B. G. Srinivas (resigned effective June 10, 2014)

U. B. Pravin Rao

Dr. Vishal Sikka (appointed effective June 14, 2014)

Non-whole-time directors

N. R. Narayana Murthy (resigned effective October 10, 2014)

S. Gopalakrishnan (resigned effective October 10, 2014)

K. V. Kamath (resigned effective June 5, 2015)

Dr. Omkar Goswami (retired effective December 31, 2014)

Prof. Jeffrey S. Lehman

R. Seshasayee

Ann M. Fudge (retired effective June 14, 2014)

Ravi Venkatesan

Kiran Mazumdar Shaw

Carol M. Browner (appointed effective April 29, 2014)

Prof. John W. Etchemendy (appointed effective December 4, 2014)

Roopa Kudva (appointed effective February 4, 2015)

Executive Officers

Rajiv Bansal, Chief Financial Officer

Srikantan Moorthy, Group Head of Human Resource Development (till March 31, 2015)

Parvatheesam K, Company Secretary (resigned effective January 10, 2015)

David D. Kennedy, Executive Vice President, General Counsel and Chief Compliance Officer (effective November 1, 2014)

Company Secretary

A.G.S. Manikantha, (appointed effective June 22, 2015)

The details of amounts due to or due from related parties as at June 30, 2015 and March 31, 2015 are as follows:

in crore

Particulars	As at
	June 30, 2015	March 31, 2015
Trade Receivables
Infosys China	20	16
Infosys Mexico	3	1
Infosys Brasil	8	5
Infosys BPO	2	1
Lodestone Management Consultants Ltd.	26	26
EdgeVerve	–	14
Infosys Public Services	215	246
	274	309
Loans
Lodestone Management Consultants Ltd.	1	6
Infosys Sweden	12	–
Kallidus	10	–
EdgeVerve	44	18
	67	24
Other receivables
Infosys BPO	4	1
Infosys Public Services	9	4
EdgeVerve	2	14
Panaya	7	–
Lodestone Management Consultants SAS	4	3
Lodestone Management Consultants GmbH	1	1
Lodestone Management Consultants Ltd.	19	20
	46	43
Unbilled revenues
Infosys Sweden	7	–
EdgeVerve	8	–
Lodestone Management Consultants SAS	–	1
McCamish Systems LLC	–	5
	15	6
Trade payables
Infosys China	11	10
Infosys BPO s. r. o	1	–
Portland Group Pty Ltd	–	1
Infosys Mexico	1	1
Infosys Sweden	6	5
Lodestone Management Consultants Pty Limited	11	10
Lodestone Management Consultants Pte Ltd.	12	8
Lodestone Management Consultants Ltd.	69	65
Infosys Brasil	1	2
	112	102
Other payables
Infosys BPO	–	16
McCamish Systems LLC	–	2
Lodestone Management Consultants AG	2	1
Lodestone Management Consultants Ltd.	1	1
EdgeVerve	–	9
Panaya	1	–
Panaya Ltd.	7	–
Skava Systems	5	–
Infosys Public Services	4	4
	20	33
Provision for expenses
Infosys BPO	(1)	(1)
Infosys Public Services	3	–
EdgeVerve	11	37
	13	36
Rental Deposit given for shared services
Infosys BPO	21	21
Rental Deposit taken for shared services
Infosys BPO	27	27

The details of the related parties transactions entered into by the Company, in addition to the lease commitments described in note 2.9, for the quarter ended June 30, 2015 and June 30, 2014 are as follows:

in crore

Particulars	Quarter ended June 30,
	2015	2014
Capital transactions:
Financing transactions
Infosys Shanghai	191	–
	191	–
Loans (net of repayment)
Lodestone Management Consultants Ltd.	(5)	–
Infosys Sweden	12	–
Kallidus	10	–
EdgeVerve	26	–
	43	–
Revenue transactions:
Purchase of services
Infosys China	31	36
Lodestone Management Consultants Pty Limited	29	33
Lodestone Management Consultants Ltd.	174	181
Lodestone Management Consultants Pte Ltd.	31	8
Portland Group Pty Ltd	1	2
Infosys BPO s.r.o	3	2
Infosys BPO	73	49
Infosys Sweden	19	12
Infosys Mexico	3	2
EdgeVerve	29	–
Infosys Public Services	3	–
Panaya Ltd.	1	–
Infosys Brasil	1	1
	398	326
Purchase of shared services including facilities and personnel
Infosys BPO	2	18
	2	18
Interest income
EdgeVerve	1	–
Infosys Brasil	–	1
	1	1
Sale of services
Infosys China	3	3
Infosys Mexico	7	2
Lodestone Management Consultants Ltd.	4	6
Infosys Brasil	2	1
Infosys BPO	18	22
McCamish Systems LLC	1	1
Infosys Sweden	7	–
EdgeVerve	17	–
Infosys Public Services	214	169
	273	204
Sale of shared services including facilities and personnel
EdgeVerve	3	–
Infosys BPO	5	9
	8	9

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

in crore

Particulars	Quarter ended June 30,
	2015	2014
Salaries and other employee benefits to whole-time directors and executive officers ⁽¹⁾	22	11
Commission and other benefits to non-executive/independent directors	2	2
Total	24	13

⁽¹⁾

Includes stock compensation expense of 2 crore for the quarter ended June 30, 2015.

2.27 RESEARCH AND DEVELOPMENT EXPENDITURE

in crore

Particulars	Quarter ended June 30,
	2015	2014
Expenditure at Department of Scientific and Industrial Research (DSIR) approved R&D centers (eligible for weighted deduction)⁽¹⁾
Capital Expenditure	–	–
Revenue Expenditure	40	44
Other R&D Expenditure
Capital Expenditure	1	–
Revenue Expenditure	94	117
Total R&D Expenditure
Capital Expenditure	1	–
Revenue Expenditure	134	161

⁽¹⁾

During the quarter ended June 30, 2015, and June 30, 2014, the company has claimed weighted tax deduction on eligible research and development expenditures based on the approval received from Department of Scientific and Industrial Research (DSIR) on November 23, 2011 which has been renewed effective April 2014. The weighted tax deduction is equal to 200% of such expenditure incurred.

The eligible R&D revenue and capital expenditure are 40 crore and Nil for the quarter ended June 30, 2015 and 44 crore and Nil towards revenue and capital expenditure for the quarter ended June 30, 2014.

2.28 SEGMENT REPORTING

The Company's operations predominantly relate to providing end-to-end business solutions to enable clients to enhance business performance. Effective April 1, 2015, the Company reorganized its segments to support its objective of delivery innovation. This structure will help deliver services that will reflect the way technology is consumed in layers by the client’s enterprise. However the reorganization did not have any impact in the reportable segments as per AS 17 'Segment reporting'. Segment information has been presented both along industry classes and geographic segmentation of customers, industry being the primary segment. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments, and are as set out in the significant accounting policies.

Industry segments for the Company are primarily enterprises in Financial Services and Insurance (FSI), enterprises in Manufacturing (MFG), enterprises in the Energy & utilities, Communication and Services (ECS),enterprises in Retail, Consumer packaged goods and Logistics (RCL) and enterprises in Life Sciences and Healthcare (LSH). Geographic segmentation is based on business sourced from that geographic region and delivered from both on-site and off-shore locations. North America comprises the United States of America, Canada and Mexico; Europe includes continental Europe (both the east and the west), Ireland and the United Kingdom; and the Rest of the World comprising all other places except those mentioned above and India.

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

Fixed assets used in the Company’s business or liabilities contracted have not been identified to any of the reportable segments, as the fixed assets and services are used interchangeably between segments. Accordingly, no disclosure relating to total segment assets and liabilities are made. Geographical information on revenue and industry revenue information is collated based on individual customers invoiced or in relation to which the revenue is otherwise recognized.

Industry Segments

Quarter ended June 30, 2015 and June 30, 2014:

in crore

Particulars	FSI	MFG	ECS	RCL	LSH	Total
Income from software services and products	4,353	2,847	2,501	2,197	840	12,738
	3,896	2,439	2,289	2,062	633	11,319
Identifiable operating expenses	2,212	1,486	1,276	1,082	441	6,497
	1,948	1,239	1,196	981	357	5,721
Allocated expenses	906	614	540	474	181	2,715
	807	524	491	443	136	2,401
Segmental operating income	1,235	747	685	641	218	3,526
	1,141	676	602	638	140	3,197
Unallocable expenses						252
						192
Other income, net						719
						790
Profit before tax						3,993
						3,795
Tax expense						1,096
						1,075
Profit after taxes						2,897
						2,720

Geographic Segments

Quarter ended June 30, 2015 and June 30, 2014:

in crore

Particulars	North America	Europe	India	Rest of the World	Total
Income from software services and products	8,355	2,613	329	1,441	12,738
	7,181	2,491	302	1,345	11,319
Identifiable operating expenses	4,322	1,331	233	611	6,497
	3,556	1,295	237	633	5,721
Allocated expenses	1,802	561	61	291	2,715
	1,540	532	57	272	2,401
Segmental operating income	2,231	721	35	539	3,526
	2,085	664	8	440	3,197
Unallocable expenses					252
					192
Other income, net					719
					790
Profit before tax					3,993
					3,795
Tax expense					1,096
					1,075
Profit after taxes					2,897
					2,720

2.29 GRATUITY PLAN

The following table set out the status of the Gratuity Plan as required under AS 15.

Reconciliation of opening and closing balances of the present value of the defined benefit obligation and plan assets :

in crore

Particulars	As at
	June 30, 2015	March 31, 2015
Obligations at year/period beginning	755	668
Service cost	27	89
Interest cost	14	56
Transfer of obligation*	1	(5)
Actuarial (gain)/loss	13	58
Benefits paid	(18)	(111)
Obligations at year/period end	792	755
Defined benefit obligation liability as at the balance sheet date is fully funded by the Company.
Change in plan assets
Plan assets at year/period beginning, at fair value	781	677
Expected return on plan assets	18	65
Transfer of assets*	(6)	–
Actuarial gain/(loss)	(1)	5
Contributions	35	145
Benefits paid	(18)	(111)
Plan assets at year/period end, at fair value	809	781
Reconciliation of present value of the obligation and the fair value of the plan assets:
Fair value of plan assets at the end of the year/ period	809	781
Present value of the defined benefit obligations at the end of the year/ period	792	755
Re-imbursement (obligation)/asset*	–	(6)
Asset recognized in the balance sheet	17	20
Assumptions
Interest rate	8.10%	7.80%
Estimated rate of return on plan assets	9.50%	9.50%
Weighted expected rate of salary increase	8.00%	8.00%

between group companies

in crore

Particulars	As at
	June 30, 2015	March 31, 2015	March 31, 2014	March 31, 2013	March 31, 2012
Obligations at year/ period end	792	755	668	612	569
Plan assets at year/ period end, at fair value	809	781	677	643	582
Funded Status	17	26	9	31	13
Experience adjustments:
(Gain)/loss:
Experience adjustments on plan liabilities	26	4	14	(49)	13
Experience adjustments on plan assets	1	(5)	3	–	–

Net gratuity cost for the quarter ended June 30, 2015 and June 30, 2014 comprises of the following components:

in crore

Particulars	Quarter ended June 30,
	2015	2014
Gratuity cost for the period
Service cost	27	22
Interest cost	14	15
Expected return on plan assets	(18)	(16)
Actuarial (gain)/loss	14	28
Plan amendment amortization	(1)	–
Net gratuity cost	36	49
Actual return on plan assets	17	19

As at June 30, 2015 and March 31, 2015, the plan assets have been primarily invested in insurer managed funds. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market. The Company expects to contribute 60 crore to the gratuity trust during the remainder of fiscal 2016.

Effective July 1, 2007, the Company revised the employee death benefits provided under the gratuity plan, and included all eligible employees under a consolidated term insurance cover. Accordingly, the obligations under the gratuity plan reduced by 37 crore, which is being amortized on a straight line basis to the statement of profit and loss over 10 years representing the average future service period of the employees. The unamortized liability as at June 30, 2015 and March 31, 2015 amounts to 6 crore and 7 crore, respectively and disclosed under 'Other long-term liabilities' and 'other current liabilities'.

2.30 PROVIDENT FUND

The Company contributed 86 crore during the quarter ended June 30, 2015 ( 69 crore during the quarter ended June 30, 2014).

The Guidance on Implementing AS 15, Employee Benefits (revised 2005) issued by Accounting Standards Board (ASB) states that benefits involving employer established provident funds, which require interest shortfalls to be recompensed are to be considered as defined benefit plans. The actuary has provided a valuation for provident fund liabilities on the basis of guidance issued by Actuarial Society of India during the quarter ended December 31, 2011 and based on the below provided assumptions there is no shortfall as at June 30, 2015, March 31, 2015, 2014, 2013 and 2012, respectively.

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

in crore

Particulars	As at
	June 30, 2015	March 31, 2015	March 31, 2014	March 31, 2013	March 31, 2012
Plan assets at period end, at fair value	3,232	2,912	2,817	2,399	1,816
Present value of benefit obligation at period end	3,232	2,912	2,817	2,399	1,816
Asset recognized in balance sheet	–	–	–	–	–

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

Particulars	As at
	June 30, 2015	March 31, 2015
Government of India (GOI) bond yield	8.10%	7.80%
Remaining term of maturity of portfolio	7.2 years	7 years
Expected guaranteed interest rate - First year	8.75%	8.75%
- Thereafter	8.60%	8.60%

2.31 SUPERANNUATION

The Company contributed 57 crore to the Superannuation trust during the quarter ended June 30, 2015 (52 crore during the quarter ended June 30, 2014).

2.32 RECONCILIATION OF BASIC AND DILUTED SHARES USED IN COMPUTING EARNINGS PER SHARE

Particulars	Quarter ended June 30,
	2015	2014
Number of shares considered as basic weighted average shares outstanding ^{(1) (2)}	229,69,44,664	228,56,10,264
Effect of dilutive common equivalent shares	–	–
Number of shares considered as weighted average shares and potential shares outstanding	229,69,44,664	228,56,10,264

⁽¹⁾

adjusted for bonus issues. (refer Note 2.1)

⁽²⁾

balance during the quarter ended June 30, 2014 was net of treasury shares

2.33 RESTRICTED DEPOSITS

Restricted deposits as at June 30, 2015 comprises 1,045 crore (1,039 crore as at March 31, 2015) deposited with financial institutions to settle employee-related obligations as and when they arise during the normal course of business.

2.34 FUNCTION WISE CLASSIFICATION OF STATEMENT OF PROFIT AND LOSS

In crore

Particulars	Quarter ended June 30,
	2015	2014
Income from software services and products	12,738	11,319
Software development expenses	7,769	6,849
GROSS PROFIT	4,969	4,470
Selling and marketing expenses	691	578
General and administration expenses	752	695
	1,443	1,273
OPERATING PROFIT BEFORE DEPRECIATION	3,526	3,197
Depreciation and amortization	252	192
OPERATING PROFIT	3,274	3,005
Other income	719	790
PROFIT BEFORE TAX	3,993	3,795
Tax expense:
Current tax	1,050	1,088
Deferred tax	46	(13)
PROFIT FOR THE PERIOD	2,897	2,720

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
Partner	Chairman	Chief Executive Officer and Managing Director
Membership No. 205385
Bangalore	Rajiv Bansal	A.G.S Manikantha
July 21, 2015	Chief Financial Officer	Company Secretary

Auditors’ Report on Quarterly Financial Results of Infosys Limited Pursuant to the Clause 41 of the Listing Agreement

The Board of Directors of Infosys Limited

We have audited the quarterly financial results of Infosys Limited (‘the Company’) for the quarter ended June 30, 2015, attached herewith, being submitted by the Company pursuant to the requirement of Clause 41 of the Listing Agreement, except for the disclosures regarding ‘Public Shareholding’ and ‘Promoter and Promoter Group Shareholding’, which have been traced from disclosures made by the Management and have not been audited by us. These 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 financial statements, which have been prepared in accordance with the recognition and measurement principles laid down in Accounting Standard (AS) 25, Interim Financial Reporting, specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 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 financial results:

(i)

are presented in accordance with the requirements of Clause 41 of the Listing Agreement in this regard; and

(ii)

give a true and fair view of the net profit and other financial information for the quarter ended June 30, 2015.

Further, we also report that we have, on the basis of the books of account and other records and information and explanations given to us by the management, also verified the number of shares as well as percentage of shareholdings in respect of aggregate amount of public shareholdings, as furnished by the Company in terms of Clause 35 of the Listing Agreement and found the same to be correct.

for B S R & Co. LLP
Chartered Accountants
Firm’s registration number: 101248W/ W-100022

Supreet Sachdev
Partner
Membership number: 205385

Bangalore
July 21, 2015

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