Form 6-K Infosys Ltd For: Sep 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 September 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 October 12, 2015, we announced our results of operations for the quarter ended September 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 October 12, 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 October 12, 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 September 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 October 12, 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 September 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 and half-year ended September 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: October 16, 2015

David D. Kennedy

Executive Vice President - General Counsel and Chief Compliance Officer

INDEX TO EXHIBITS

Exhibit No.	Description of Document
99.1	IFRS USD Press Release
99.2	IFRS INR Press Release
99.3	Transcript of October 12, 2015 Press Conference
99.4	Transcript of October 12, 2015 television interaction
99.5	Fact Sheet regarding Registrant's Profit and Loss Account Summary for the quarters ended September 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 October 12, 2015 1:00 p.m. IST Earnings Call
99.7	Transcript of October 12, 2015 6:30 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 and half-year ended September 30, 2015

Exhibit 99.1
IFRS USD Press Release

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

Q2 revenue growth highest in last 16 quarters* - 6.0% in reported terms and 6.9% in constant currency

Q2 revenue growth 14.2% yoy in constant currency

TCV of large deals signed in Q2 at $ 983 mn

Interim dividend of 10 per share (app. $ 0.15 per ADS)

FY 16 revenue guidance retained at 10%-12% in constant currency; 6.4%-8.4% in USD terms

*Excluding acquisitions

Bangalore, India – October 12, 2015

Financial Highlights

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

Quarter ended September 30, 2015

·	Revenues were $ 2,392 million for the quarter ended September 30, 2015 QoQ growth was 6.0% in reported terms; 6.9% in constant currency terms YoY growth was 8.7% in reported terms; 14.2% in constant currency terms

·	Net profit was $ 519 million for the quarter ended September 30, 2015 QoQ growth was 9.1% YoY growth was 1.6%

·	Earnings per share (EPS) was $ 0.23 for the quarter ended September 30, 2015 QoQ growth was 9.1% YoY growth was 1.6%

·	Liquid assets including cash and cash equivalents, available-for-sale financial assets and government bonds were $4,894 million as on September 30, 2015 as compared to $4,750 million as on June 30, 2015

·	The Board of Directors declared an interim dividend of 10 per share (equivalent to app. $ 0.15 per ADS at the exchange rate of 65.59). The record date for payment of dividend is October 19, 2015.

Infosys spent $9 million in Q2, 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 Q2 Highlights

·	Per capita revenue increased by 2.6% in reported terms and 3.4% in constant currency terms

·	5 large deals signed with TCV of $ 983 mn

·	Added 82 clients; total number of clients crosses 1,000

“We are experiencing a once-in-a-generation opportunity for a services company to help businesses maximize their potential with technology. From automation and AI helping to simplify and enable existing landscapes as well as build intelligent systems that help us solve our most complex emerging problems, to education and design helping us to rethink the human experience and helping uncover our most important horizons, a great services organization can truly partner with and amplify businesses,” said Dr. Vishal Sikka, CEO and MD. “At Infosys, we are taking steps towards becoming such a services organization, and I am encouraged by our progress. While results in any one quarter are transitory snapshots of a long journey, we do see our focused execution along our strategy starting to produce encouraging results for our clients, shareholders and Infoscions.”

We had strong all-round growth during the quarter driven by recent initiatives around service differentiation, improvement in client mining and higher focus on winning large deals”, said Mr. U. B. Pravin Rao, COO. “Increase in revenue productivity was significant, volume growth was robust, client metrics and utilization improved while attrition remained stable.”

“Our relentless focus on operational efficiencies has resulted in increase in operating margins despite higher variable payouts”, said Rajiv Bansal, CFO. “The impact of significant currency volatility was effectively mitigated by our proactive hedging program.”

Outlook*

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

·	Revenues guidance as been retained. Revenues are expected to grow 10%-12% in constant currency;

·	Revenues are expected to grow 6.4%-8.4% in USD terms

*Conversion: AUD/USD – 0.70; Euro/USD – 1.12; GBP/USD – 1.52 for rest of fiscal 2016

Business Highlights

We continue to make progress on our renew-new strategy with focus on improving client relationship management, proposal quality as well as discipline around large deals, pipeline and operational efficiencies are helping. At the same time, we are seeing our clients on a shared path with us to leverage the next-generation of services, in which software, platforms and systems amplify people.

Client Wins

We signed a three-year agreement with TOMS Shoes to become its worldwide partner to maintain and develop its digital platform. The agreement will enable TOMS to streamline the management of its web-based properties and introduce automation technologies to lower overall support and development costs.

ABB (ASEA Brown Boveri), a Swiss high-tech engineering multinational operating mainly in robotics, power and automation, has entered into an agreement with us to implement its global product compliance program in ABB’s Low Voltage Products (LP) division. As a part of this agreement, we will program manage, implement, roll out and support a product compliance solution to manage compliance of LP’s products.

·	In India, the Goods and Services Tax Network (GSTN), a non-government, non-profit, private limited company has awarded Infosys an 1,380 crore (~USD 210 Million) contract to build and maintain the GSTN system for five years.

·	We were chosen by Saks Fifth Avenue, an American luxury retail store chain − owned by the Canadian retailer, Hudson's Bay Company − to implement an omni-channel solution that will help improve its digital commerce business.

We announced a strategic partnership with ATP to leverage the latest technological advances in mobility, cloud and analytics powered by the Infosys Information Platform to transform the experience of tennis fans and players the world over. We are the Global Technology Services Partner and Platinum Sponsor of the ATP World Tour, as well as the season-ending Barclays ATP World Tour Finals, for the next three years.

A global food service retailer chose us as its largest cloud and infrastructure services partner. Our solutions will improve customer experience, manage a multi-vendor ecosystem, drive change and innovation and bring a flexible IT consumption model supported by talent and robust global governance. This was a new account opening, and a large deal win for us.

A payments technology firm chose us as its sole strategic partner for its issuer processing line of business. We will now be its leading global technology services provider and partner to develop and sell joint go-to-market solutions leveraging our offerings in Finacle, Edge and IIP. In addition, we will be the system integrator for the client’s products and will be collaborating to implement its products for banks and financial institutions globally.

A leading benefits administrator for long-term care programs for U.S. federal employees engaged us to develop a member-enrollment portal based on responsive web-design methodology, delivering a new kind of user experience to employees. This portal will support administration of a new program and the Supplemental Health Benefits Program, for a federal agency.

Zero Distance

Our initiative of Zero Distance which is focused on fostering a culture of innovation and bringing innovation and value to each project and client is progressing well. There are more than 5,600 projects in the Zero Distance program and more than 1,700 of these innovations have been discussed with clients.

Enhanced Service Offerings: Launch of AiKiDo

On August 20, we announced the launch of Aikido, comprising three enhanced service offerings in Knowledge-Based IT (KBIT), Platforms, and Design Thinking.

Ki or Knowledge-Based IT – is all about the renewal of existing landscapes, capturing the knowledge and know-how in an organization and bringing new technologies and tools - AI, devops, APIs, cloud, automation - into our traditional engagements in application maintenance, testing and BPO together. http://www.infosys.com/services/aikido/

A large European Turbo-machinery company engaged us is in a complex computational geometry project requiring deep knowledge in software techniques for turbo machinery to develop critical applications for designing, rendering, and generating manufacturing data to reduce cycle and effort by 40%, and minimize errors.

We led a transformational project for a large Canadian Oil and Gas Operator to design a system for assignment of shipper nominated oil commodities to routes on client networks involving deep knowledge of mathematical models, and operations research techniques for optimal cost, quality of delivery, and operational efficiency of volumetric engines resulted in reduction of costs by 20% and increase in overall time efficiency.

Ai includes platforms and platforms as a service – amplifying people with software, platforms and services focused on open source technologies for AI, big data and automation.

The Infosys Information Platform (IIP) over 160 engagements to date with almost 20 in production. We continue to add capabilities like Natural Language Processing to IIP. For a leading Australian super market chain IIP helped derive key business insights, like Top 10 categories of products by profit and sales, hourly sales trend, category wise profit contribution margin & sales variance and location wise profit & sales variance in less than four weeks. IIP also enabled real-time prediction for out-of-stock items for a confectionary leader in less than three weeks.

We saw extensive embrace of automation to optimize operational spend and renew client technology landscapes in infrastructure management services, and other service lines such as Application Development and Maintenance, Independent Validation Services (IVS). We leveraged automation, Artificial Intelligence (AI) and machine learning, using our proprietary Infosys Automation Platform (IAP) and tools. We are starting to see material productivity improvements in our delivery org, ranging from 17-50% of effort savings.

Baxters Food Group, a global food company headquartered in Fochabers Scotland, chose us as a strategic partner to upgrade its Oracle eBusiness suite for finance, supply chain and manufacturing applications using the Panaya platform.

We are seeing strong traction and a healthy pipeline for Skava with clients across geographies. Skava migrated two large retail customers to the latest version of the Skava platform, resulting in better performance and higher client conversion.

Last quarter, EdgeVerve Systems sustained strong momentum with 39 wins and 23 go-lives for both Finacle and Edge suite of solutions. New offerings like Finacle Assure, Finacle Payments Bank and Finacle Small Finance Bank solutions, have seen good traction among our clients.

Do or Design Thinking – We have had more than 117 Design Thinking engagements with clients, and more than 54,000 employees at Infosys have been immersed in Design Thinking course.

A large bank engaged us to help improve the often stressful customer experience of buying a home. Using design thinking, we helped to focus attention on the unique needs of a mortgage customer. We quickly prototyped a mobile cross-channel application, which was approved for development. This entire process was completed in 3 weeks.

A leading high-tech customer and partner engaged us to help bring a design-thinking mindset and culture to key business functions within their company. By conducting extensive design thinking workshops, we are helping them create a common innovation vocabulary for managers and employees, training their own trainers, and accelerating their ability to apply Design Thinking principles to their most important projects and challenges.

Partnerships and Ecosystem

We continue to strengthen relationships with our existing partners such as Microsoft, SAP, Oracle, AWS, EMC, Huawei and Tableau to name a few. We also entered into new partnerships with Apigie, Software AG and NetSuite. We further extended our research collaborations with top universities like Stanford, Cornell University and Emory University on Data Science, AI and security.

Management changes

Mr. Rajiv Bansal, Executive Vice President and the Chief Financial Officer (CFO) of Infosys since October 2012, has informed the company of his intention to resign. He will be replaced by M.D. Ranganath at the close of business October 12, 2015.

Ranganath has held several leadership positions during a tenure of nearly 15 years with Infosys. He is currently Executive Vice President and Head of Strategic Operations, responsible for Strategic Planning, Risk Management, Mergers & Acquisitions and Corporate Marketing. In earlier roles at the company, he was the Chief Risk Officer for over 5 years, implementing the Enterprise Risk Management Program and leading cost optimization initiatives as Senior Vice President in the Chairman’s office. Prior to working at Infosys, he held leadership responsibilities in treasury, planning and credit functions at ICICI Limited. Ranga is a post graduate (PGDM) from the Indian Institute of Management, Ahmedabad, holds a master's degree in technology from the Indian Institute of Technology, Madras and is an Associate Member of CPA, Australia.

Commenting on the appointment, Dr. Vishal Sikka, CEO and Managing Director said, “Over the course of the last sixteen months, I have come to know Ranga as a passionate leader and a balanced leader with tremendous ability, knowledge and integrity. We welcome him as our CFO.”

Vishal Sikka CEO, commented, “I would like to thank Rajiv for his outstanding contribution to the company and for being a great partner over the past 16 months. As Infosys’ CFO, Rajiv has led our financial strategy and has been instrumental in bringing us to this point in our transformational journey. He’s a brilliant CFO and we will miss him even as we respect his decision and wish him continued success in his future endeavors.”

Rajiv said, “It has been an absolute privilege and pleasure to work at Infosys. It has been a most exciting and rewarding experience. I am proud of what we have achieved as a team and am sure that Infosys, under the leadership of Vishal, will scale new heights in the times ahead.”

Rajiv will continue as an advisor to the CEO and the Board through December 31, 2015 in order to provide a smooth transition.

RSU Plan

The Board approved the 2015 Incentive Compensation Plan, amending the existing 2011 RSU Plan. The 2011 RSU plan has been amended in accordance with the SEBI (share based employee benefits) regulations, 2014 and will be issued as the 2015 Incentive Compensation Plan. The grants made under the 2011 RSU plan will continue to be administered and implemented by the 2015 Incentive Compensation Plan. The 2015 Incentive Compensation Plan will be subject to the approval of shareholders.

The Board further approved the issuance of new shares, so as not to cumulatively exceed 2% of the shares outstanding, in order to support grants made over time under the 2015 Incentive Compensation Plan. Approval to issue such shares under the 2015 Incentive Compensation plan will be subject to the approval of shareholders.

Awards and Recognition

·	The Infosys Information Platform was recognized in Gartner’s September 2015 Magic Quadrant for Business Analytics Services Worldwide.

·	Infosys Finacle, part of EdgeVerve Systems, was named a Leader by Forrester Research, Inc. in the Forrester Wave™: Omnichannel Banking Solutions, Q3 2015 report.

·	We were positioned as a Leader and Star Performer in the 2015 Banking Application Outsourcing PEAK Matrix™ by Everest. The consulting and research firm also positioned us a Leader in capital markets for the second consecutive year.

·	We were Positioned as a Leader in Gartner’s September 2015 Magic Quadrant for Oracle Application Management Services Worldwide.

·	We were Positioned as a Leader in Gartner’s July 2015 Magic Quadrant for SAP Implementation Services Worldwide.

·	We were inducted into the Winner’s Circle in the inaugural Application Testing Services HfS Blueprint report by leading analyst firm HfS Research.

·	We were named a Leader in the Independent Testing Services – PEAK Matrix™ Assessment and Profile Compendium 2015 report by Everest Group.

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

Beyond Business

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

As of September 30, 2015, the Infosys Foundation has invested 102.9 crore on areas related to Education, Healthcare, Destitute Care and Rural Development. The key initiatives during the quarter involved an endowment of 6 crore each to Agastya International Foundation, a non-governmental organization and Vivekananda Rock Memorial & Vivekananda Kendra.

Last quarter, Infosys Foundation USA launched its inaugural Infy Maker Awards program. This initiative is part of a commitment made by the Infosys Foundation USA at the White House earlier this year during the National Week of Making, to spark the spirit of making in everyday learning. The awards celebrate young and adult Makers across the United States who demonstrate creative excellence. In addition, Infosys Foundation USA will award 50 USD$10,000 Makerspace grants to schools, libraries and other community organizations. Each grant will be in cash and in kind, and will seed dynamic Makerspaces at each grantee location. Recipients of these grants will be nominated by the student winners. Through these grants, Infosys Foundation USA expects to impact thousands of future makers http://www.infosys.org/infosys-foundation-usa/

In addition, Infosys Foundation USA also continues to fund grants to make high quality Computer Science education widely and easily accessible to all. The foundation recently convened the inaugural CrossRoads conference of the top thought leaders and practitioners in this area.

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$ 8.7 billion in annual revenues and 187,000+ employees, is helping enterprises renew themselves while also creating new avenues to generate value.

Safe Harbor

Certain statements in this press release concerning our future growth prospects are forward-looking statements regarding our future business expectations intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, fluctuations in foreign exchange rates, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal or expiration of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2015. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company's filings with the Securities and Exchange Commission and our reports to shareholders. In addition, please note that the date of this press release is October 12, 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)

	September 30, 2015	March 31, 2015
ASSETS
Current assets
Cash and cash equivalents	4,566	4,859
Available-for-sale financial assets	89	140
Trade receivables	1,585	1,554
Unbilled revenue	524	455
Prepayments and other current assets	714	527
Derivative financial instruments	4	16
Total current assets	7,482	7,551
Non-current assets
Property, plant and equipment	1,477	1,460
Goodwill	559	495
Intangible assets	140	102
Investment in Associates	15	15
Available-for-sale financial assets	245	215
Deferred income tax assets	78	85
Income tax assets	715	654
Other non-current assets	99	38
Total non-current assets	3,328	3,064
Total assets	10,810	10,615
LIABILITIES AND EQUITY
Current liabilities
Trade payables	17	22
Derivative Financial Instruments	2	–
Current income tax liabilities	476	451
Client deposits	3	4
Unearned revenue	169	168
Employee benefit obligations	183	171
Provisions	66	77
Other current liabilities	1,090	927
Total current liabilities	2,006	1,820
Non-current liabilities
Deferred income tax liabilities	42	25
Other non-current liabilities	19	8
Total liabilities	2,067	1,853
Equity
Share capital- 5 ($0.16) par value 2,400,000,000 (1,200,000,000) equity shares authorized, issued and outstanding 2,285,619,380 (1,142,805,132), net of 11,325,284 (5,667,200) treasury shares as of September 30, 2015 (March 31, 2015), respectively	199	109
Share premium	569	659
Retained earnings	10,449	10,090
Other reserves	–	–
Other components of equity	(2,474)	(2,096)
Total equity attributable to equity holders of the company	8,743	8,762
Non-controlling interests	–	–
Total equity	8,743	8,762
Total liabilities and equity	10,810	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 September 30, 2015	Three months ended September 30, 2014	Six months ended September 30, 2015	Six months ended September 30, 2014
Revenues	2,392	2,201	4,647	4,334
Cost of sales	1,488	1,353	2,922	2,697
Gross profit	904	848	1,725	1,637
Operating expenses:
Selling and marketing expenses	129	127	258	238
Administrative expenses	165	146	316	288
Total operating expenses	294	273	574	526
Operating profit	610	575	1,151	1,111
Other income, net	121	144	240	283
Share in associate's profit / (loss)	–	–	–	–
Profit before income taxes	731	719	1,391	1,394
Income tax expense	212	208	396	401
Net profit	519	511	995	993
Other comprehensive income
Items that will not be reclassified to profit or loss:
Re-measurement of the net defined benefit liability/(asset)	(1)	(1)	(2)	(4)
Items that may be reclassified subsequently to profit or loss:
Fair value changes on available-for-sale financial asset	5	5	3	8
Exchange differences on translation of foreign operations	(242)	(223)	(379)	(259)
Total other comprehensive income, net of tax	(238)	(219)	(378)	(255)
Total comprehensive income	281	292	617	738
Profit attributable to:
Owners of the company	519	511	995	993
Non-controlling interests	–	–	–	–
	519	511	995	993
Total comprehensive income attributable to:
Owners of the company	281	292	617	738
Non-controlling interests	–	–	–	–
	281	292	617	738
Earnings per equity share
Basic ($)	0.23	0.22	0.44	0.43
Diluted ($)	0.23	0.22	0.44	0.43
Weighted average equity shares used in computing earnings per equity share
Basic	2,285,614,029	2,285,610,264	2,285,612,157	2,285,610,264
Diluted	2,285,713,042	2,285,616,112	2,285,696,678	2,285,613,188

NOTE:

1.	The unaudited Condensed Consolidated interim Balance sheets and Condensed Consolidated interim Statements of Comprehensive Income for the three months and six months ended September 30, 2015 have been taken on record at the Board meeting held on October 12, 2015
2.	A Fact Sheet providing the operating metrics of the company can be downloaded from www.infosys.com
3.	Previous period share count and EPS has been restated due to issue of bonus shares in Dec-14 and Jun-15

Exhibit 99.2

IFRS INR Press Release

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

Q2 revenue growth highest in last 16 quarters* - 6.0% in USD terms and 6.9% in constant currency

Q2 revenue growth 8.9% in INR terms

Q2 revenue growth 14.2% yoy in constant currency

TCV of large deals signed in Q2 at $ 983 mn

Interim dividend of 10 per share

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

* in USD, excluding acquisitions

Bangalore, India – October 12, 2015

Financial Highlights

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

Quarter ended September 30, 2015

·	Revenues were 15,635 crore for the quarter ended September 30, 2015 QoQ growth was 8.9% YoY growth was 17.2%

·	Net profit was 3,398 crore for the quarter ended September 30, 2015 QoQ growth was 12.1% YoY growth was 9.8%

·	Earnings per share (EPS) was 14.87 for the quarter ended September 30, 2015 QoQ growth was 12.1% YoY growth was 9.8%

·	Liquid assets including cash and cash equivalents, available-for-sale financial assets and government bonds were 32,099 crore as on September 30, 2015 as compared to 30,235 crore as on June 30, 2015

·	The Board of Directors declared an interim dividend of 10 per share. The record date for payment of dividend is October 19, 2015

Infosys spent

59 crore in Q2, 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 Q2 Highlights

·	Per capita revenue increased 2.6% in reported terms and 3.4% in constant currency terms

·	5 large deals signed with TCV of $ 983 mn

·	Added 82 clients; total number of clients crosses 1,000

Outlook*

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

Revenue guidance has been retained. Revenues are expected to grow 10%-12% in constant currency;

Revenues are expected to grow 13.1%-15.1% in INR terms

* Conversion: 1 US$ = 65.59 for rest of the fiscal 2016

Business Highlights

Client Wins

In India, the Goods and Services Tax Network (GSTN), a non-government, non-profit, private limited company has awarded Infosys an

1,380 crore (~USD 210 Million) contract to build and maintain the GSTN system for five years.

We were chosen by Saks Fifth Avenue, an American luxury retail store chain − owned by the Canadian retailer, Hudson's Bay Company − to implement an omni-channel solution that will help improve its digital commerce business.

Zero Distance

Enhanced Service Offerings: Launch of AiKiDo

On August 20, we announced the launch of Aikido, comprising three enhanced service offerings in Knowledge-Based IT (KBIT), Platforms, and Design Thinking.

Ai includes platforms and platforms as a service – amplifying people with software, platforms and services focused on open source technologies for AI, big data and automation.

Do or Design Thinking – We have had more than 117 Design Thinking engagements with clients, and more than 54,000 employees at Infosys have been immersed in Design Thinking course.

Partnerships and Ecosystem

We continue to strengthen relationships with our existing partners such as AWS, Microsoft, Oracle, IBM, SAP, EMC, Huawei and Tableau, to name a few. We also entered into new partnerships with GE, NetSuite and Software AG. We further extended our research collaborations with top universities like Stanford University, Cornell University and Emory University on Data Science, AI and security.

Management changes

Rajiv will continue as an advisor to the CEO and the Board through December 31, 2015 in order to provide a smooth transition.

RSU Plan

Awards and Recognition

·	The Infosys Information Platform was recognized in Gartner’s September 2015 Magic Quadrant for Business Analytics Services Worldwide.

·	Infosys Finacle, part of EdgeVerve Systems, was named a Leader by Forrester Research, Inc. in the Forrester Wave™: Omnichannel Banking Solutions, Q3 2015 report.

·	We were positioned as a Leader and Star Performer in the 2015 Banking Application Outsourcing PEAK Matrix™ by Everest. The consulting and research firm also positioned us a Leader in capital markets for the second consecutive year.

·	We were Positioned as a Leader in Gartner’s September 2015 Magic Quadrant for Oracle Application Management Services Worldwide.

·	We were Positioned as a Leader in Gartner’s July 2015 Magic Quadrant for SAP Implementation Services Worldwide.

·	We were inducted into the Winner’s Circle in the inaugural Application Testing Services HfS Blueprint report by leading analyst firm HfS Research.

·	We were named a Leader in the Independent Testing Services – PEAK Matrix™ Assessment and Profile Compendium 2015 report by Everest Group.

Beyond Business

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

About Infosys Ltd

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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)

	September 30, 2015	March 31, 2015
ASSETS
Current assets
Cash and cash equivalents	29,946	30,367
Available-for-sale financial assets	582	874
Trade receivables	10,397	9,713
Unbilled revenue	3,441	2,845
Prepayments and other current assets	4,684	3,296
Derivative financial instruments	29	101
Total current assets	49,079	47,196
Non-current assets
Property, plant and equipment	9,686	9,125
Goodwill	3,668	3,091
Intangible assets	917	638
Investment in associate	96	93
Available-for-sale financial assets	1,609	1,345
Deferred income tax assets	511	537
Income tax assets	4,693	4,089
Other non-current assets	647	238
Total non-current assets	21,827	19,156
Total assets	70,906	66,352
LIABILITIES AND EQUITY
Current liabilities
Trade payables	110	140
Derivative financial instruments	18	3
Current income tax liabilities	3,118	2,818
Client deposits	22	27
Unearned revenue	1,107	1,052
Employee benefit obligations	1,199	1,069
Provisions	435	478
Other current liabilities	7,148	5,796
Total current liabilities	13,157	11,383
Non-current liabilities
Deferred income tax liabilities	277	160
Other non-current liabilities	127	46
Total liabilities	13,561	11,589
Equity
Share capital- 5 par value 240,00,00,000 (120,00,00,000) equity shares authorized, issued and outstanding 228,56,19,380 (114,28,05,132), net of 1,13,25,284 (56,67,200) treasury shares, as of September 30, 2015 (March 31, 2015), respectively	1,144	572
Share premium	2,238	2,806
Retained earnings	53,346	50,978
Other reserves	–	–
Other components of equity	617	407
Total equity attributable to equity holders of the company	57,345	54,763
Non-controlling interests	–	–
Total equity	57,345	54,763
Total liabilities and equity	70,906	66,352

Infosys Limited and subsidiaries

Consolidated Statements of Comprehensive Income

(In crore except share and per equity share data)

	Three months ended September 30, 2015	Three months ended September 30, 2014	Six months ended September 30, 2015	Six months ended September 30, 2014
Revenues	15,635	13,342	29,989	26,112
Cost of sales	9,724	8,201	18,847	16,247
Gross profit	5,911	5,141	11,142	9,865
Operating expenses:
Selling and marketing expenses	843	769	1,663	1,435
Administrative expenses	1,075	889	2,038	1,736
Total operating expenses	1,918	1,658	3,701	3,171
Operating profit	3,993	3,483	7,441	6,694
Other income, net	793	877	1,551	1,706
Share in associate’s profit/(loss)	(1)	–	(1)	–
Profit before income taxes	4,785	4,360	8,991	8,400
Income tax expense	1,387	1,264	2,562	2,418
Net profit	3,398	3,096	6,429	5,982
Other comprehensive income
Items that will not be reclassified to profit or loss:
Re-measurement of the net defined benefit liability/(asset)	(7)	(3)	(14)	(23)
Items that may be reclassified subsequently to profit or loss:
Fair value changes on available-for-sale financial asset	30	28	18	45
Exchange differences on translation of foreign operations	62	(76)	206	(76)
Total other comprehensive income, net of tax	85	(51)	210	(54)
Total comprehensive income	3,483	3,045	6,639	5,928
Profit attributable to:
Owners of the company	3,398	3,096	6,429	5,982
Non-controlling interests	–	–	–	–
	3,398	3,096	6,429	5,982
Total comprehensive income attributable to:
Owners of the company	3,483	3,045	6,639	5,928
Non-controlling interests	–	–	–	–
	3,483	3,045	6,639	5,928
Earnings per equity share
Basic ()	14.87	13.55	28.13	26.17
Diluted ()	14.87	13.55	28.13	26.17
Weighted average equity shares used in computing earnings per equity share
Basic	228,56,14,029	228,56,10,264	228,56,12,157	228,56,10,264
Diluted	228,57,13,042	228,56,16,112	228,56,96,678	228,56,13,188

NOTE:

1.	The audited Consolidated interim Balance sheets and Consolidated interim Statements of Comprehensive Income for the three months and six months ended September 30, 2015 have been taken on record at the Board meeting held on October 12, 2015.
2.	A Fact Sheet providing the operating metrics of the company can be downloaded from www.infosys.com
3.	Previous period share count and EPS has been restated due to issue of bonus shares in Dec-14 and Jun-15

Exhibit 99.3

Press Conference

PRESS CONFERENCE

Q2 FY 2016 RESULTS

October 12, 2015

CORPORATE PARTICIPANTs

Vishal Sikka

Chief Executive Officer & Managing Director

Pravin Rao

Chief Operating Officer

Rajiv Bansal

Chief Financial Officer

Ranganath D. Mavinakere

Chief Financial Officer (Designate)

Sandeep Dadlani

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

Ritika Suri

Head – Mergers, Acquisitions and Investments

PRESS

Kritika

CNBC TV18

Varun Sood

Mint

Balaji

Rahul

ET Now

Pravin

New Indian express

Venkatesh

Business Line

Dipu

Derek

Reuters

Moderator

Good Afternoon, Everyone. Thank you for joining us today. We will start today’s press conference with an address by Dr. Sikka on the company’s performance over the last quarter and then we will open up the floor for a Q&A.

Vishal Sikka

Welcome Everyone. We are very pleased with our results in our Q2 which was the quarter ending September 30. All aspects of the company did extraordinarily well and we saw 6.9% constant currency growth, we saw improvement of margin to 25.5%. This was the best revenue growth performance in the last 16 quarters and we are very happy about that, all aspects of the company did exceptionally well, all segments as well as all service lines. We are maintaining our guidance, we have not revised our guidance, and I want to say that very unequivocally, we are keeping our guidance to a 10-12% constant currency growth year-on-year which is what we have said since the beginning of the financial year. So it continues to be the same.

Beyond anything else the quarterly growth is a reflection on our execution along our strategy which is of complementing the operational excellence on key areas with execution along our Renew and New strategy. Along the Renew direction, we have seen tremendous adoption of Zero Distance. Earlier today we did a Zero Distance session with almost 20,000 people from our delivery organization and that has seen tremendous adoption. 5680 projects impacting more than 80% of our delivery organization that is more than close to 80,000 people are now innovating. So we create a culture of innovation. And then on the ‘Aikido’ we see continued great adoption, great momentum on our software and the platforms which is the ‘Ai’ of Aikido. On IIP, Information Platform, AI platform we have more than 160 engagements now, 38 went productive over the course of Q2. On IAP, the Automation platform, we have again close to 60 engagements, we saw a significant reduction in effort. Already this is still early and so this is a small piece of the improvement that we see from a material point of view, but it is beginning to become noticeable and something that is extremely important for us for the future. And on the Skava and Panaya we saw great adoption, actually Skava had better than expected revenue growth. Panaya, we saw 57 additional deals that came in. So both of these are contributing to the software and software plus people strategy as we talk about. And on Edge and Finacle now which has been merged together, we are excited about the ongoing growth in both of those product lines. So on the whole, a very good quarter, a good validation of our work, we have to work hard in the second half of the quarter to buck the traditional trend of bad revenue performance historically that has happened and we are committed to doing that.

And on the management side, Rajiv, our friend and partner, has decided to leave Infosys after 16-years here. It has been really fun to work with Rajiv and we will miss him, we will miss his brilliance. But as sad as I am to see Rajeev leave, I am very happy that Ranga is taking over as our new CFO starting tomorrow morning, and Ranga and I have worked very closely together over the course of the last 16-months. So we are very excited that Ranga is going to our new CFO.

And Krish Shankar is joining us next week as our new Global Head of HR. He brings tremendous experience in HR from leading companies like Unilever and Airtel. So we are very excited about that. With that we can take some questions.

Kritika

Vishal, a quick question on the overall outlook with respect to vertical. Kritika here from CNBC. Retail as you said is volatile, Pravin also indicated that Energy is something that will take some time to recover. What is the outlook and how are you planning to mitigate the risk? And in terms of the next two quarters specifically, how is Banking, Financial Services, Insurance and Manufacturing looking right now?

Vishal Sikka

Generally speaking as I work with clients and engage with clients across the world I see that the need for innovation, the need for next generation work is a permanent one, there is no shortage of that. There are some key changes happening that are near term like the ones that you mentioned in Retail, in Energy, in Telecom and Insurance and so forth. So we have to constantly be vigilant to that. Historically, Q3 always had some headwinds with the furloughs and holidays and things like that, that traditionally show up. Generally, the industry has a weak second half and our company has had a track record of doing that. So based on the visibility that we have right now we are maintaining our guidance. Obviously, we’ll work very hard to make sure that we buck the trend this time around. And may be Pravin can give a little bit of a color on the industry point of view.

Pravin Rao

From industry point of view when you look at Banking or BFSI we have had a good two quarters on the back of wins over the last few quarters; however, when you look at a sub-segment level we are seeing challenges in the Insurance sector. That is one. Also at least in Q3 we are also anticipating more than usual cost pressure from banking side. So we expect some amount of softness in the overall Financial Services. Then when we look at Retail, again, good growth in Q2, but Q3 is historically, holiday season is the best season for retailers and there is some amount of volatility associated with that seasonality because if there is good demand then there will be an uptick in spend, otherwise there could be aggressive discounting which may result in cut in some of the projects and so on. So typically Q3 is a little bit volatile quarter from Retail perspective.

When you look at Manufacturing we are seeing good traction in Hi-Tech, we are seeing good traction in Auto; however, on the other hand we are seeing softness in Aero segment and also in Industrial Manufacturing particularly with companies which are associated with Oil and Gas or Mining, we are seeing some softness. Also from Q3 perspective, Manufacturing is one where you see typically highest impact from a furlough perspective. Energy continues to be challenged and we are seeing a fresh wave of cost pressures in the Energy segment on the back of volatile oil prices. So that will probably continue for a few more quarters. Telecom also remains bit challenged both on the top line and bottom line and the telecom providers are looking at alternate ways to drive growth.

Life Sciences is looking good, Healthcare is looking good. So net-net I think by and large overall Q1 and Q2 has been a good half for us across segments and verticals, but getting into second half we see some softness in a couple of verticals and continued softness in a couple of other segments.

Kritika

Also, a question on the revenue per employee. You have a very ambitious target for 2020, but currently where are we standing at and what is the further upside that can we expect it, whoever can answer that?

Vishal Sikka

Our goal is to go from approximately between the $51,000-52,000 revenue per employee that we have had currently to get to $80,000 per employee by 2020. This can only happen on the basis of amplifying people with software, with bringing more innovation around that and then the integration of people and software together creating value, whether it is in fixed price projects or value based outcomes or new kinds of engagements. So that is how we will get to the $80,000 revenue per employee ambition that we have. But currently, on the traditional services there is an ongoing downward pricing pressure which we need to deal with and the way we are dealing with it is through the use of automation, of course, there are many other operational levers like the onsite/offshore mix that we have and the way that we deal with utilization and things of this nature. But really the fundamental way to improve this over the long term is to bring the power of automation into the projects. So as I mentioned earlier we have taken significant steps towards this now; we have a few hundred projects that are now going on where we consistently have demonstrated the augmentation of people with software and how that lowers the number of people per project, improves the margin for us as well as improves the attractiveness of the offering for the client and it improves our bandwidth to be able to do more of those projects. So that is how we will get to the improved revenue per employee by bringing more and more of this type of innovation in.

Varun Sood

Hi! Vishal, Varun Sood, Mint. Two questions; firstly, almost a year back you had said that we have been emphasizing a lot on automating a lot of tasks which we had done, use AI, the first benefits of these would start reflecting at least from the second half of this year that is fiscal 2015-’16. So, are we seeing any of those benefits and would it be fair to say that because of those benefits October-December this year would be a lot better than October-December of fiscal 2014? That is the first question. And the second question is, as you are automating a lot of stuff using AI, it is also leading to a lot of cannibalization of revenues, the work, the traditional model, where the billing was done on per employee is now fast being done where you are sacrificing a lot of revenues, but at the same time you are also using a lot of new initiatives like Design Thinking, opening new streams of revenues. The question is has that new stream of revenue started coming into Infosys, and if it is then, can you please put a number because it is almost now five quarters. What kind of incremental revenues have we started seeing because of the New and Renew strategy?

Vishal Sikka

Yes, we are seeing the beginning of the impact of automation. Let me repeat some of these numbers so we have some more precise information to base this on; so when we look at ‘Aikido’ the ‘Ai’ part of it that is the platform-related work that we do, that is the software work that we do. This is the basis of the ‘Ai’ work that you talked about, Varun. On Infosys Information Platform we have more than 160 engagements. Out of those as I mentioned 38 went into production and we are constantly innovating in this area and this is a new economics, we just launched a test trial system for IIP on the Amazon Web Services on the Amazon Cloud and so forth. So this is a new stream that has emerged. If you look at the Infosys Automation Platform, we have 66 engagements that we did in Q2 across 57 clients. So these 66 engagements again are an example of how we can bring automation to an existing traditional service. We had significant saving as a result of that, let me go about some of those numbers: 17 to 50% effort savings as a result of that and from this automation we released in the first half 364 people in BPO, 300 people from Infrastructure Management and 348 people from ADM and from IVS, that is the Verification Service.

We have a delivery organization of more than 100,000 people. But as you can see the numbers are starting to add up and as we go forward the numbers will become bigger and bigger. We have a goal to increase this number to 2,000 by the end of the financial year. So that is starting to have a big impact. Unlike the IIP example, this is where Automation is helping us on the traditional projects. And then on Panaya and Skava I mentioned 53 new clients on Panaya from Sandeep’s area and Sandeep is sitting right here, I want to share one example and this is one out of hundreds of example, this is a logistics company that Sandeep’s team did this project with. A $370,000 project for 18-months, the testing effort was reduced by 40% because of Panaya and out of that $100,000 is a Panaya license which is at more than 90% margin or so. So this is an example. Each of the 53 new clients on Panaya, the new clients that we have won is an example of a deal of this nature. So these are all starting to add up.

Now when you look at Q3 still this is whatever 105,000 employees in delivery and 8,500 projects which dominates our revenue and our financial performance. So the effect of traditional Q3 effects and so forth still continues to dominate the effect of these new initiatives. As important and as encouraging as these initiatives are, this is still very early in the journey. So we are making great progress and yet we are still influenced by the traditional influences that show up in our industry and so as a result of that this is. May be Pravin you can add something with your perspective. So I am very optimistic because of the results that we see and clear tangible benefits that we are starting to achieve, but we have to keep in mind that this is still quite early in this journey and for this to become the material part or the majority of the company is going to take a long time. And as you know when I talked about the $20 bn revenue aspiration for 2020 and 30% margin and $80,000 revenue per employee, the breakdown of that is we expect to get $1.5 bn in revenue through our inorganic work and $2 bn, 10% of the revenue coming from these completely new services like the Design Services and so forth or like the new IIP-based complex applications and things of this nature. So that is sort of how this will go. The rest of the automation and AI and all this will benefit the remaining $16.5 bn in revenue that we expect to get in the year 2020.

Pravin Rao

I think it is difficult to quantify, I mean, I can definitely say that there is a lot of impact that’s happening with all the things that we are doing but many of them translates into better wins, translates into higher wins and so on. For instance, if you look at the number of large deals we have won, the win rate have significantly improved and a big percentage of the large deals is in the Infrastructure side and there IIP plays a big role in terms of increasing our competitiveness. But if you ask me to quantify the impact of IIP on this and carve it out, it becomes a very difficult thing. Similarly when you look at Panaya and all, because of the significant productivity improvement it is bringing in, then our chances of qualifying, becoming very competitive and winning the deal increases exponentially. So at times it is difficult to carve out the impact and really categorize and say that because of these things this is the kind of impact we are seeing. So my sense is over a period of time when the adoption of some of these things increases, then it will definitely reflect both on the top line and bottom line and that trend you will see over a period of time. It is very difficult to probably compare on a quarter-on-quarter basis.

Varun Sood

Just one follow up here; so how soon can we see the first impact, say 12-months from now, 24-months from now on overall Infosys?

Vishal Sikka

That was in the past, the first impact has already happened a long time ago. If you can perhaps quantify what you mean by impact we can try to give you a better sense. But like I said 10% of the revenue in 2020 from new areas. $1.5 bn of revenue coming from new, from inorganic work that we do and the projects and the impact that I quantified earlier this is what, but you have to understand that at several hundred projects this is no longer something that is a fledgling thing, this is something that is a very active part of the organization but like Pravin said it is difficult to quantify exactly how much of this is going to do what.

Ranganath D. Mavinakere

Varun, just to add on, it is almost now 12-months into our strategy articulation and execution. If you look at some of the early indicators, we cannot say it is only because of New or only because of Renew, but if you look at the top 10 account growth, the growth has significantly improved last three quarters, likewise the number of deal wins has also improved over the last three quarters. Likewise, there are many other indicators, that are kind of leading indicators if you want to call it. But we do not want to kind of jump to conclusion at this stage but the execution of the strategy, if you look at the trajectory and the moment I think there are directional signals.

Varun Sud

By impact I just wanted to understand were you not dependent on the externalities, say Q3, Q4 it has traditionally been weak meaning you have automated or you have brought in new revenue stream so much that you will not be dependent so much on the external factors, that is what I wanted to understand.

Vishal Sikka

No Varun, our endeavor is to make sure that in Q3 and Q4, largely through the power of automation and these innovative areas as well as through the deal wins that we have had in the last few quarters which will slowly start to ramp up as we go forward and most importantly through the operational efficiency, that we buck this trend that we have historically had for many years but our visibility is what it is right now.

Varun Sud

So your Q3 this year will be better than last year?

Vishal Sikka

Our endeavor, our work, our wish is that it is much better but our visibility is that it will not be.

Balaji

Vishal, there are two things, again upward revision in guidance by two points in rupee terms and marginally lower by, is it again because of currency volatility and there is no any other impact of your performance because now you are getting into double-digit phase?

Rajiv Bansal

No, the reported guidance that you are seeing is only because of currency movement. If you look at this quarter there was very-very significant cross currency movement. We have lost about $20 mn of revenue just in translation, if you extrapolate that into three quarters it is roughly about $60 mn to $65 mn of revenue that we have lost only in translation and that is the reason the 7.2% has come down to 6.4% at the lower end and 9.2% has come down to 8.4% at the upper end. Other than that I think what you should look at in these times of volatile currency is the constant currency guidance and that has been maintained at 10% to 12%.

Vishal Sikka

In other words, 7.2% to 9.2% on June 30 is the same as 6.4% to 8.4% in September 30, is the same as 10% to 12% in constant currency and there is no change.

Balaji

But this is in terms of non-operational aspects are concerned but operationally you do not see that this year your guidance could be much better because now you are getting into double-digit and then you have repeat business, you have crossed 1,000 clients. There have been client addition also, incrementally also I do not see that except the currency impact, isn’t the revenues coming from your new acquisitions and new buildings?

Ranganath D. Mavinakere

So I think if you look at our constant currency guidance of 10% to 12%, it is certainly double the growth rate of last year. Certainly even if you look at the current constant currency guidance it is already higher because of some of the strategy execution elements happening, the growth that we saw in Q1 and Q2, so it is already higher than last year.

Balaji

About Bansal’s leaving there is no explanation given, because you have buried it inside as usual and then lot of accolades, outstanding contribution, so much imagination and all these things, but what is the reason actually, why this sudden development? It was such a great privilege and proud and whatever you said to have been associated with Infosys, you should be retiring and not quitting, two-three years I have seen.

Rajiv Bansal

You had last quarter scolded me for the press release that I had made, so I thought if I become a journalist after quitting then I might not get scolded, so now I am thinking to become a journalist.

Balaji

What’s the reason? How could Vishal, you can relieve him like this?

Vishal Sikka

Well, first of all nothing is buried anywhere because he is sitting right here. He has had a great run at 16 years at Infosys and he wants to do something else and we are sad to see him go, but we are also happy to see Ranga coming, so there is nothing more than that. After 12 years I was done at SAP and after 16 years he is done here. We live lives, if we are fortunate we get associated with companies that are bigger than us, that live longer than us, we have to look at the fact that we all have about 40 odd years of our work life and we do make choices, we do things in the course of that. So that is all it is Mr. Balaji, I wish there was anything more juicy or interesting to tell you but there isn’t.

Balaji

This is only for consumption, there must be something more than this.

Dipu

Dr. Sikka, just trying to understand $23 mn you have booked some client termination balance sheet, what is that, it is an IMS contract as told and secondly I was trying to understand what Pravin said about headwind, traditionally H2 has been weaker as compared to H1, weaker than the first half of the fiscal and at the beginning of the year some people have already raised this question, you had said that because of the strategy you have adopted ‘Renew and New’ that will perhaps, the benefits will kick in towards the second half of the year. And so the traditional weakness will somehow get mitigated in second half, but because you have retained your guidance which in dollar terms perhaps it is being seen as it has been revised downwards, so that means there will be no growth or negative growth in the next two quarters. So how different this headwind you are seeing now, is there kind of pricing pressure you are seeing, in terms of deal wins you are seeing any kind of traction or any particular segment you are seeing any certain weakness, can you just explain?

Vishal Sikka

Sure. I think on the $23 mn, maybe Sandeep can answer that. On the pricing and the second half we have already talked about this. We are aware that even if we are flat we would end up at higher end of the guidance of 10% to 12%, but as I said because of what we see right now in the second half traditionally has seasonal dips in the growth and so forth, so we are going to work very hard to make sure that we buck this trend. I have been saying that, we have been foreseeing that all year, so we are working very hard towards that, but based on what we see right now we are keeping our guidance. So Sandeep you want to add anything?

Sandeep Dadlani

Sure. So the $23 mn onetime impact is from a core Manufacturing client that we had a cloud and infrastructure deal with. For reasons completely internal to this client, the client went through a restructuring and therefore the contract where it stood did not make sense so they terminated the contract. These kind of contracts are complex and come with termination fees and so we recovered the termination fees. This clearly is onetime and does not continue into future quarters and it comes at the same margins as the original contract was signed, that is how this is one time.

Bhibu

Just one follow-up about Mr. Bansal’s exit, so can you say that there is still some churn happening in the top management because last quarter we saw one of your senior executive, Sanjay Jalona also quitting, now Rajiv is quitting, maybe to pursue opportunities outside and your attrition also continues to be high. So while there are churn at the top level, that kind of emits signal which people at the lower level that they get impacted. So are you seeing, this is perhaps going to be the last leg of churn in the top management and from here you will see kind of stability.

Vishal Sikka

I think the attrition has actually come down significantly, we were down to 14.1% in the last quarter, I think there is a tremendous sense of inspiration when you walk around in the campus and you talk to the employees, they feel engaged and inspired at an unprecedented level and so I actually feel that we have done a great job and maybe Pravin you can also talk about this that in terms of managing the attrition and so on. In terms of top management, we have had a very stable top management, the executive vice president other, than as you mentioned Sanjay and now Rajiv, the entire team is still intact and with us. In the course of our careers, in the course of the life of the company these things happen, this is natural, so there is not anything unusual, I certainly am not worried about this having a larger impact.

Pravin Rao

I agree. When you look at even something like Sanjay’s exit, I mean at times when senior people leave you definitely feel sad about it but at the same time and they are leaving for better opportunities and you have to be happy for them and it is not every day a CEO position opens up. So I do not see that as an issue and we have enough bench strength for us to be able to manage it, so I do not say that. And in terms of attrition, attrition actually has come down, it is about 14.1%, last quarter it was 14.2%, but if you compare attrition same period last year it was 22% or something, it has come down by over 8%. So in that sense attrition is pretty much under control, it is in the ballpark which we typically expect 13% to 15%, so we are lesser worried about attrition. And the kind of excitement we see because of many initiatives that are going on is very palpable, it is real to see the kind of excitement that we are seeing based on the ‘Zero Distance’ initiative, ‘Zero Bench’ initiative, ‘Aikido’, lot of things, many strategies coming live, people are actively participating in the strategy and we are making lot of changes to the SWAT initiatives and so on. So net-net I believe that attrition is no longer an issue, we are comfortable where it is, people have high energy, they are very confident about the backing of people and we are confident about the future as well.

Derek

Hi, this is Derek from Reuters. So what exactly was the reason for you to change your revenue guidance in USD terms, because of currency fluctuations or a stronger dollar could not have already been factored in by the company and also by analysts and investors and so on. And also another question is, your constant currency revenue has reached double-digits but when will it reach the NASSCOM’s forecast of about 14% to 20%, by when?

Vishal Sikka

So I have today now repeated this 11 times, for the 12^th time, there is no change to the guidance, there is no reduction in the guidance, there is no revision in the guidance, there is no reduction in dollar terms. 10% to 12% constant currency has been our guidance since the beginning of the year, it continues to be the case. It was 7.2% to 9.2% on June 30^th terms which is the same as 6.4% to 8.4% on September 30^th terms which is what we have said, there is no reduction in guidance. And I am not familiar, perhaps Pravin you can say if 14% to 20% NASSCOM, this is news to me.

Pravin Rao

NASSCOM has said 13% to 15%, I have not seen anything 14% to 20%, I am not sure where you are getting the data from. And we have very clearly said that next year is when we are getting back to industry growth rate and that is something we said in the beginning of the year and that is what we maintain as well.

Balaji

No, NASSCOM has not at all considered Infosys in one of their contributor..

Pravin Rao

Balaji, there are lots of companies that make into NASSCOM thing. Last year also NASSCOM said industry grew by 13-15% or 13.5% odd. Infosys grew by only 5%. So last year NASSCOM said industry grew by 13%, we grew by 5%. So this year they are saying industry will grow between 13-15%. We are saying we will grow from 10-12%. So Infosys is part of the NASSCOM thing but there are a lot of other companies also which make up the NASSCOM thing.

Rahul

Rahul from ET Now. Pravin, my question is for you, want to get your take on the entire pricing game that we saw this quarter and if you could give us some insights on what reasons really helped you log gains and if this is really sustainable going ahead.

Pravin Rao

I don’t think we should read too much into the pricing. There are many elements that get into the pricing. One of the elements which contributed was higher number of working days in quarter 2. There are other factors as well and we have more than 8,000 projects and at times we have efficiencies and so on. So looking at the quarter 2 thing, it is not a secular trend so you shouldn’t expect the pricing to dramatically change. Many of these initiatives we are working on will over a period of time have a positive impact on the pricing realization. But it’s early days to declare victory and say because of our initiatives we are seeing pricing benefits. And the reality of the industry is a big part of the business is going through pricing challenges and that is the reality we have to accept it and that is where there is a lot of effort internally in terms of automation, tools, productivity improvement and so on so that you can counter the impact of all these pricing pressures.

Dipu

Now that the campus hiring season is on and I remember during one of your last analysts meet you had said about how to increase the stipend money being paid to the interns to attract better talents. To this effect just trying to understand, what is the kind of hiring outlook you have, the kind of talents now you hire from campuses, the kind of training they undergo under your new strategy, and the entry-level compensation, any plan to revise it? If you can just give some holistic idea about the hiring?

Pravin Rao

We are planning to recruit about 20,000 people in the campus this year. The salary remains at Rs. 3.25 lakhs which we have maintained for the last 2-3 years, the competition that Rs. 3.3 lakhs which you are talking from the competition is something they have actually caught up because earlier they were at Rs. 3 lakhs or so whereas we have always been paying Rs. 3.25 lakhs. From a strategy perspective in the last semester of the engineering we are taking interns. So we are not only increasing the number of interns but we are increasing the stipend as well to make it more attractive and increase the stickiness. So we have increased the stipend. We are increasing the stipend from Rs. 4000 per month to Rs. 10,000 per month and we believe that that model of getting people to work with us in the last semester and then later on eventually joining us will have a much better impact and in terms of their readiness to get into the corporate world and be familiar with our processes and so on.

In terms of training, the overall duration of training still remains same about 5 to 5.5 months but there have been significant improvement in the nature, the course curriculum, the methodology in which we train and teach and so on. With the result some of the initiatives that we have undertaken we have seen significant improvement in the pass rates during the training and administrators within the training. And so that is something we have made significant changes and we will continue to evolve but the duration will remain 5 to 5.5 months because we believe that that is fundamental, that is a core strength of ours and that’s at the huge competitive advantage. We will continue to invest in training.

Pravin

This is Pravin from New Indian express. I wanted to know, now that the startup ecosystem is so vibrant how is that impacting your hiring especially on your salaries?

Vishal Sikka

It’s a question that how are we attractive to startup companies or is it how startup companies hiring is impacting our hiring? It is not impacting our hiring at all.

Pravin

No in terms of salary offers that you need to make.

Vishal Sikka

Yes I understand, but I don’t see any impact from that.

Pravin Rao

See, typically when we recruit, some small percentage of people who probably we will never be able to attract because when you are looking at people joining some of the startups, Googles of the world there they are paying Rs. 15-16-17 lakhs kind of a thing. Or historically even before the startup world many of these people would prefer going onsite in different thing rather than working with companies like Infosys, so that is one part of it. The second thing is in order to make our thing competitive we have started a new thing called ‘Expert Track’ where we are offering significantly higher compensation comparable to what some of these new age companies offer and we are going to leading business schools and IIMs to recruit.

Vishal Sikka

I was just saying to Rajiv my assessment of your question. Startups are becoming interesting, therefore, we invest more in startups from our startup fund which Ritika manages, therefore, startups become successful, therefore we become successful, therefore our employees make more money. In other words startups becoming successful is actually good for our employees’ salaries.

Venkatesh

Vishal hi, Venkatesh here of Business Line. Just want to understand a few quarters back there was a lot of reliance on third party contractors and all these things. So what’s the status on that? Has that come down? Has it been reduced? If you could quantify something on that?

Pravin Rao

The sub-contractor spend has increased this quarter. To a large extent a big percentage of the sub-contractor spend is for recruiting people onsite and there is a dependency on the availability of visa. So as you are aware, the new set of visas become effective only from October 1^st. So normally in the quarter 2 for us we typically run out of visa, we are operating at a very high visa utilization so we typically expect to see increased sub-con spend to manage the situation. But coming forward in quarter 3 and quarter 4 we will start seeing that coming down because we will have more people with visas available. And also from a strategy perspective at times it makes sense to use subcontractors because lot of times there is a need for specific skills or from a client perspective there is a need for agility in terms of staffing and at times it may be difficult to deploy people with time frames which clients look at. So from a strategy perspective we will continue to use that sub-con but we will operate in an efficient manner that over a period of time we are able to rotate them out and bring our own, deploy our own people. So this you will see some variations based on the seasonality but you will never be able to see zero spend on sub-con.

Moderator

We will take one last question please.

Balaji

……the number of seats. But recently the government announced that it has approved two of your projects. So what is this change in the equation? Headquarters number of seats being overtaken by Pune. It’s a relief? Because Bangalore is already choked?

Vishal Sikka

We are growing significantly in Bangalore. We are adding more space. We are in fact adding more land in Bangalore and so far Pune is geographically a very attractive place for many clients as well as for many of Infoscions. So this is a, I think, see-saw that we’ll see continuing but Bangalore actually continues to be an extremely attractive location not only for us obviously but also for our clients.

Kritika

Vishal, a quick question on your inorganic strategy. You, of course, have been focused on expanding through digital acquisition possibly in the future. But what traditional services continue to be an area of focus? And also I wanted to understand how would the pricing of digital contracts in the long-term pan out because we still don’t have as much clarity on exactly what is the kind of revenue base that comes in? What is the pricing structure that works in? How does that pan out over say 4 to 5 years?

Vishal Sikka

So maybe Ritika can talk about the inorganic strategy and Sandeep perhaps you can talk about digital?

Ritika Suri

Here we continue to see a lot of assets obviously in a lot of industry, not just for typical services. Obviously we have said that we are investing in automation and artificial intelligence, machine learning. So all these areas continue to be very interesting and attractive to us. In specific to your question, of course, services industry especially assets that help us be the next generation of software-led services are much more attractive. And then Sandeep if you want to answer the next?

Sandeep Dadlani

Sure. On pricing for digital contracts we have seen a steady movement from the old T&M contracts to fixed price contracts, to now business outcome type contracts. And the linkage of business outcomes is more towards sometimes the number of websites managed, the number of e-commerce transactions or purely the end-to-end customer experience that we are managing whether it is for a retailer or a bank or a B2B player.

Balaji

The clarification to demystify, like I don’t follow the technological aspects. You have given even your quotes also. Sir, could you tell the ratio what it would be keeping in view the target you have $80,000 per employee in 2020. How much would be actually the human intervention and then the automation there because you are improvising and then seeing that there is a lot of redundancy is gone and then lot of automation ensures that there is minimum intervention. Have you worked out that? Because you said inorganic you will grow so much, in organic you will grow so much, $16.5 will come from that, but from the human point of view this increasing will come because as automation and more software comes into the picture, there will be minimum intervention by these people or more levels being taken care of by the machines.

Vishal Sikka

So if you look at our Edge business with our Edge applications or Finacle there is an inherent non-linearity that is built into this model. Same applies to Panaya, to Skava, and especially to IIP because IIP actually is a platform. So in those areas, as the scale of the business grows the number of people does not grow linearly with that scale and, therefore, the revenue per employee ends up being dramatically higher. The second part of it is the role that automation plays in improving the productivity of employees in the traditional services, and this is an example that I have been giving, where instead of a certain number of people going into a project as a People only Project, People plus Software end up improving the productivity of the project, improving the margin of the project and, therefore, the revenue per employee in the company. So on the whole $80,000 is our target, our goal and this would mean basically adding 60% more efficiency over the next five years and we see evidence now based on the little projects that I have talked about in infrastructure or maybe Ravi can mention, we have seen some examples where there has been as much as 50% improvement, 17% to 50% effort savings in infrastructure management projects which we have already seen in Q2 in these projects that I talked about. So we have reason to believe that over time we can get there.

Balaji

……..

Vishal Sikka

Mr. Balaji that is always a reality of life.

Balaji

You are setting up benchmarks over time; the industry will catch-up with you.

Vishal Sikka

Yes, so therefore, good news is that human creativity and human ability to innovate has no limit so we continue to get better. Thank you very much.

Exhibit 99.4

Common TV Address

cOMMON tv ADDRESS

Q2 FY 2016 RESULTS

October 12, 2015

CORPORATE PARTICIPANTs

Vishal Sikka

Chief Executive Officer & Managing Director

Pravin Rao

Chief Operating Officer

Rajiv Bansal

Chief Financial Officer

Ranganath D Mavinakere

Chief Financial Officer (Designate)

PRESS

Sara

CNBC TV18

Rukmini Rao

Bloomberg TV India

Chandra

ET Now

Vishal Sikka

Hi everyone, this is Vishal. It is great pleasure to be with all of you.

We had a great quarter. We delivered $2.392 bn in revenue which is a reported growth of 6% quarter-on-quarter and a constant currency growth of 6.9% quarter-on-quarter. So that is a great performance by our teams all around, best performance in more than 16 quarters. The results were affected by a one-time $23 mn revenue because of termination of one client who decided to transition out of a project because of a demerger. But despite that we would have 5% reported growth and 5.9% constant currency growth. On all dimensions the company performed very well. The margins are 25.5%, utilization went up to 81.3%. So on all dimensions the company did quite well. Our focus on operational excellence has been showing some good results. Large deal pipeline looks good. We had TCV wins over the quarter of close to $1 bn, that is the largest ever. Our $50+ accounts number went up to 50 and the top 25 accounts grew 7.9% in constant currency, so that also outperformed the company. So on all dimensions we have had great progress. Of course this is still early in our journey but we are making great progress on our ‘Renew and New’ strategy. The one aspect of that on the Renew side is our innovation with ‘Zero Distance’. This is an initiative to bring innovation to every ongoing project. It is a one of a kind initiative in the industry and we have been seeing some extraordinarily results in this. More than 5,600 of our projects, approximately 80% of our delivery organization has now delivered at least one innovation in their ongoing projects. This is quite an extraordinary way to deliver value to our clients.

Also on the 20^th of August, we launched our ‘Aikido’ services and that has been seeing tremendous progress. On ‘Ai’ which is our software work and software platforms from our Artificial Intelligence and Big Data platform IIP to our Automation work where we have already freed roughly 900 jobs to the work in knowledge interchange and knowledge capture. With ‘Ki’ and our design services work, we already had more than 120 client engagements with Design Thinking. We continue to make progress on our innovation journey to help rethink the notion of IT Services towards one where people are amplified by technology and by software.

On the people side, I am sad to see my friend and partner for the last 16-months Rajiv leave us. He is leaving us at the end of today. As sad as I am to see him go, I am equally happy to see my partner and trusted colleague over the last 16-months, M.D. Ranganath become our new CFO starting tomorrow. So we are quite excited about this. Also Krish Shankar has joined us as our new Head of HR. He brings an extraordinary experience in managing large human resource teams and he will be instrumental in helping us transform our people aspects of our journey, which is core to our company strategy.

So, all in all, a very good quarter, a very encouraging quarter. We are now entering the second half of the year which is traditionally a difficult one for the industry. There are some headwinds in certain clients that we have seen. We are keeping our guidance at 10% to 12% in constant currency which is what it has been since the beginning of the year. No change to that. We will obviously work very hard and endeavor to buck this trend in the second half that has plagued Infosys as well as the IT services industry but based on the current visibility that we have we are keeping the guidance at what it has been. So, with that, Pravin, if there is nothing else, then we will take some questions. What do you think?

Pravin Rao

Just to clarify: Rajiv is stepping down as CFO today but he will be with the company till December 31^st enabling the transition. Otherwise, you have covered everything.

Sara

Congratulations on good quarter. This is Sara from CNBCTV18. My first question to Vishal. You have maintained your constant currency guidance but you have lowered the dollar revenue guidance. Is there largely owing to the currency headwinds or are there any foreseeable wrinkles that are likely? Also, Pravin, I believe the pricing has gone up and that is a big relief for most investors. Pricing has gone up by about 2.5% roughly. Is that a trend that is likely to continue or could there be some bottoming out of this going forward? Rajiv, you are the man of the moment. So big question is what is the reason for your quitting? What is road ahead for you now? And are you confident that Infosys will be able to recover from there have been multiple management changes, you have been there through the transition, so do you feel that Infosys is ready for that? And Ranga Congratulations! What are the immediate challenges that lie ahead of you, is it maintaining margins at Rajiv’s 24-26% range or is it probably staying in terms of market share ahead of your peers?

Vishal Sikka

We are retaining our guidance. 6.4%-8.4% is the September 30^th rate. So there is no change to our guidance. That is simply because as I said the second half has traditionally been a weak half for the industry, the furloughs and leaves and things of this nature. And we have also seen certain clients as we have talked to, some headwinds that we foresee. But we are working very hard and we are going to try to make sure that we buck that trend this time around. But based on what Pravin and I see so far for the rest of the year, we are keeping the guidance that we have provided.

Pravin Rao

On the pricing front, it has been a good quarter for us, partly aided by higher number of working days and some of the initiatives kicking in. At the same time, we continue to see a lot of pricing challenges particularly on the large deals on the renewal side of the business and that is the reality in the industry. That is why a lot of our efforts on automation, productivity improvement and so on. It has started paying some dividends, but this is a long journey. I think we just touched the tip of the iceberg and we need to continue to work on these initiatives. So I would not declare it as a victory or I would not call it as a secular trend, but we are happy with what we have seen. But we have to continue our focus on productivity front and so on, because pricing pressure is a reality in this industry.

Rajiv Bansal

I have been here for 16-years now and 3-years as CFO. It has been long-long innings. When I look back, it has been on the most exciting and rewarding experience that I could have got. Becoming the CFO at the age of 40, it is like a dream come true. I am probably one of the very few who have lived their dreams at Infosys. There are many exciting opportunities in the world outside. When I was sitting back and thinking about what next and what I should do. I still have our 16-17-years more of work-life left and I need to do something more exciting, more challenging, something that can create more value. The world is moving towards value maximization, opportunity maximization and I want to do something new. I look forward to the next phase of my life. I am sure it is going to be a very exciting one. It is sad to go, it is always sad to leave something that you have been associated with for the last 16 years. But, life moves on. So for me, I think the first priority would be to ensure a smooth transition. I know Ranga for the last 15 years. Ranga has been a colleague and a friend for the last 15 years and I am sure he would lead this company along with Vishal and Pravin into much higher heights. So I am not worried about that. And the question of management transition, this is a reality of life, this is a reality of business. People come, people go, companies are far stronger. The fundamentals are very strong, the foundation is very strong, and Vishal, Pravin, Ranga and the entire leadership team are all working together to make sure the company goes from height to height. I think the company is well placed. This quarter the growth has been extraordinary, I think everybody is surprised with the growth. So the fundamentals are good, the growth has come back. Mr. Murthy once told me, if you can be part of the turnaround story of a company, that is the best experience you can get as a CFO. I am glad that I was part of the journey. It is still a long way to go. I am sure Vishal, Pravin and Ranga would carry from here. But it has been a very-very rewarding and fulfilling experience as a CFO here. Thank you.

Ranganath D. Mavinakere

It is great to connect with all of you. I think the first thing I would say that it is indeed a privilege more than anything else to lead a world-class finance team at Infosys. My illustrious predecessors – Mohandas Pai, Bala and Rajiv, have built a very committed set of individuals, a finance team with high professional ethics. And more importantly, finance team in Infosys has always set high benchmarks, whether it was first ever listing of an Indian company in US, first ever Indian company to publish IFRS and most transparent financial reporting, there are many-many firsts that Infosys finance team has done. I would like to certainly build upon that tradition. I think if you look at the core value systems of the company, be the founders like Mr. Murthy, Nandan, Kris, Shibu, Dinesh, it is all about transparency and integrity and that is a source of strength for all of us. We continue to draw strength from our core value systems.

Coming back to your question, we have had a very broad-based growth in the first half of the year. If you look at the operational efficiencies, whether you look at the margins, they have all seen a very healthy trend line. I think our focus clearly now is the smooth execution of our ‘Renew and New’ strategy for consistent and profitable growth. I am very confident that with a world-class finance team that we have and the business leadership that we have, we will continue to make progress in that journey.

Rukmini Rao

Vishal, Rukmini Rao from Bloomberg TV India. First question is your ‘Aikido’ strategy that you have rolled out. Just want to understand in terms of client acceptance, it has just been about a month or so, how has been the feedback? And also given this transition is happening at a very crucial time for Infosys, what is that in terms of fallout that you could see because you had problems with the kind of management changes that have happened and the morale of the employees being hit, so how is the transition going to affect? Pravin, in terms of headwinds in the second half, what are those likely to be? And Rajiv, if you can give us a word on the currency, how are you viewing it and also given the fact that your hedging has perhaps saved you from the kind of cross-currency movements? And Ranga, you have handled perhaps various roles in this organization with Murthy’s comeback and later in the strategy, what kind of a role are you going to be playing other than CFO in terms of strategy of the company?

Vishal Sikka

Rukmini, the ‘Aikido’ strategy work has been going very well. Of course, we started that work more than a year ago and we christened it ‘Aikido’ back in August. Over that last one year we have seen tremendous adoption of all three dimensions of this. While the name ‘Aikido’ is new, the work that we have been doing there has been going on for quite some time. In particular, in our software and platform work, we have seen tremendous adoption. We have more than 160 engagements now of our Infosys Information platform, on which we build Big Data, Machine Learning, Complex Analytical, AI Solutions. We have 38 projects that went live over the course of the last quarter. So we have seen great adoption of the IAP, our Automation platform. We have more than 57 engagements, 300 people just in our Infrastructure Management Service were freed through the power of automation in the last quarter and our goal is to get to a 1,000 in this current quarter with automation. But beyond the infrastructure practice, in our verification practice as well as in Application Maintenance, we saw another 300 people that we were able to free as a result of that. In BPO we were able to bring automation into our processes beyond what we were doing before as a result of the automation platform. That has resulted in additional 160 people savings in BPO.

So as you can see this is building up now. We expect that in the course of the second half we will get to 2,000 people that we would be able to free up because of automation and that number will then continue to build from there. Panaya and Skava continue to have dramatic improvement in the ability that we have seen to engage with the clients. We have more than 57 engagements with Panaya and 53 with Skava that we added in the course of the last two quarters. So this is great adoption of this ‘People Plus Software’ strategy where we bring in the software to help accelerate the adoption of our services and help improve our margins while at the same time improving our bandwidth to be able to do better. The most exciting one is the Design area. We have crossed 55,000 Infoscions that have been trained on Design Thinking including more than 90% of our sales organization, more than 90% of our consulting organization and a vast majority of our delivery organization. That is a tremendous testament to the education foundation of our company. And then on the client side with the ‘Do’ services we have more than 100 engagements that we have had already and 60 of the top 200 clients, we have already done design services sessions with them. That serves to improve and elevate our relationship with our clients to the most strategic levels. So I am very happy with the adoption of Aikido over the course of the last several months and especially in this last quarter. As we see this seasonal trend and so forth, this innovation that we are pioneering is going to be that basis on which we will grow to become the next generation services company.

As to the management transition, as Rajiv said, this is a course of life, this is par for the course whatever the management lingo for that is. Companies and institutions outlast anyone of us and I think that is the key here. We have a tremendous bench, tremendous management team as you can see with Ranga coming in. Rajiv will be here with us until the end of the year to help with the transition. So I think under the circumstance, this is a great testament to how resilient the company is. I am not concerned about any management. In fact if you look at the overall attrition, that has come down again to 14.1% which is a dramatic improvement in attrition since I started.

Pravin Rao

Historically for the industry second half growth has been relatively lower when compared with the first half. In quarter three, we typically have lower working days, furloughs, impact of those things. For us at least, quarter four also has probably been challenging in the last couple of years. So this time particularly in quarter 3, apart from the traditional furloughs in the industries like Manufacturing which we have already factored in, this time we are also anticipating furlough impact to be much larger in couple of other industries as well which historically we would not have seen in the past and there are couple of client specific things as well. So based on the visibility we have, we feel that second half would be challenging. At the same time Vishal talked about many initiatives. So our endeavor is to make sure that we try to minimize the impact and we are hopeful that many of the initiatives that we are doing will probably give us the momentum getting into Quarter 4. But at this stage given the visibility we have decided to retain the guidance.

Rajiv Bansal

On the currency, we all wish for a very stable currency market but that is not what it is likely to be and this is a very-very volatile currency market. If you look at this quarter the Australian dollar depreciated by 8.7%, euro and GBP did well against the dollar, they were almost stable but Australian dollar went almost 8.7%. So we are going to continue to see this kind of movement in the currency markets and we have a very effective hedging strategy. I think we are one of the very few in the industry who took the lead of saying that we are going to take the short-term hedges, we will hedge our net asset book, so that the impact of the translation on the P&L is negligible and that has worked very well for us. We had over $990 mn of hedge book as of September 30^th. We had $8 mn of exchange gain during the quarter, I think our hedging policy has worked well for us and we do not see any reasons to change that at this point of time.

Ranganath D. Mavinakere

Yes, I completely agree with Rajiv. And going back to your question, we have still retained our guidance in constant currency 10% to 12% and that is almost double the rate of growth that we had in the previous year. The first two quarters have gone well both in terms of revenue trajectory as well as margins. Still I think we have scope for operational efficiency improvement, we will still focus on further enhancing our utilization rate which is already above 81% and continue to focus on optimizing our cost whether thorough the onsite effort mix which is currently at 29.2% or through optimizing the role ratios. There are many levers that are available to us for operational efficiency. We will continue to focus on them.

Chandra

Hi everyone, Chandra here from ET Now, last but not the least. I will come to each of you, Vishal want to start with you, I understand that currency was a factor why the guidance was revised downwards but this really points to a flat-to-negative percentage growth for the rest of the year. So if you can throw some light on that in terms of the challenges that you are seeing. And I know you said management transition is a natural process, but in the last few months we have seen you steadily adding your own team, few people from SAP and now Ranga, so if you really have to assure investors that it is going to be a steady ship going forward what will you say to them? Pravin, if you can throw some more color on the challenges in the second half with respect to verticals and geography that you are seeing at this point? Rajiv, both your predecessors took to private equities and venture capital, is that going to be your next calling? And Ranga, you sort of represent a bridge between the old and the new, so are you going to lean towards margins or growth, it is a tough trade off but on which side are you now? Thank you.

Vishal Sikka

Great question Chandra. I think on the management stability, I feel very confident that the transition between Rajiv and Ranga is going to be a very smooth one as you can see already. Management transitions happen. It is the way businesses evolve, the institution here that our founders and Mr. Murthy have built is stronger and will live longer than any one of us. I think that is the perspective that I bring to this and the team that we have is an awesome team and an extraordinarily gifted team. Just in the last few months I have seen with the adoption of the innovation initiatives and especially ‘Zero Distance’ and this new one that we have launched recently called ‘Zero Bench’ from the traditional existing organization, it is amazing for me to see the depth of talent that we have. I think we are barely scratching the surface. So I am not at all worried about the talent and the leadership in the company. Now Krish is going to join us in the next week or so and he will take the helm of our HR and our people strategy going forward, so that is going to be fun. I am not at all worried about the depth or the breadth or the competence of the management team and the company. I mean if you look at our segment performance under Mohit's leadership, we had $551 mn performance in the Financial Services and we had a great growth from a very large existing base, so we are pretty confident there.

In terms of the second half, I think that again the key is to see that we are not revising the guidance downwards. We are in fact preserving the guidance at 10%-12% constant currency. The reason for that is that historically Q3 and Q4 have been bad ones for the industry and also for our company and we are endeavoring to buck that trend this time around but it would be unfair for us, based on the visibility that we have right now, having talked to a few clients and looking at what is happening, also we have $23 mn one-time revenue jump that we got in Q2 from this one particular client; so as a result, based on what we see for now, we are keeping the guidance at what it is. But obviously our endeavor will be to ensure that we not only beat that, but we beat it in a purposeful way by bringing the power of our innovation, by the power of our automation and these productivity improvements to get there.

Pravin Rao

On the performance, geography wise we are not seeing too much difference, Rest of the World obviously because we have a big exposure to Australia because of currency we have seen lower growth. Otherwise in North America and Europe, we have had good performance this quarter and we do not see too much difference going forward in the second half. But from a vertical perspective when we look at it, we had a very good growth in Financial Services, on the back of deal wins which we had won in the last few quarters. At the same time when we look forward, some of the momentum will continue but banks continue to face cost pressures. We do anticipate some challenges particularly in the insurance sub-segment of the BFSI. Retail has done well this quarter but we expect Retail to be volatile, at least this quarter because this is the holiday seasons, clients are watchful depending on how the season goes, to some extent the incidence of the spend going forward. Energy actually continues to be in trouble. We are seeing the second wave of cost cutting going on and we do not expect recovery at least till the end of next year. Telecom continues to be a bit of a struggle as well. Most telecom companies are struggling for top-line as well as bottom-line. They are looking at newer ways of growing revenue. Life sciences is doing well, Healthcare is also doing reasonably okay. But by and large just to summarize in the second half apart from the headwinds I talked about, we particularly expect Retail to be a little bit softer than it was, maybe a little bit slowdown in the momentum in the Financial Services particularly in the Insurance, but barring that it is probably the same trend that we typically see in our industry.

Rajiv Bansal

I wish I could do that if I had the amount of money which Mohan and Bala had. But unfortunately I do not have that amount of money so I really cannot do that. But jokes apart, I think it is opportunity to thank Mohan and Bala because honestly if I look at from a professional perspective, I am what I am because of them. They have taught me every trick in the game, they have taught me everything that I know in my finance field. So a big thanks to them, I have learnt a lot from them and I continue to look forward to them for support and guidance in future. Having said that, 16 years of Infosys, you have missed out on the opportunities outside. You never look at the opportunities outside Infosys and you look at the world outside today, there are so many opportunities to create value. I think today the ecosystem in India is such that there is so much opportunity to create value if one really wants to. I would want to be part of one of those opportunity maximization initiatives which is going to be challenging, exciting and I need to figure out how to keep driving me for the next 16-17 years of my life. So I feel very excited about couple of opportunities that I am looking at. Probably the path will cross again whether it is a PE world or a large business house or a startup, I do not know. Honestly I cannot say at this point of time, but it is going to be an exciting next phase of life.

Ranganath D. Mavinakere

Well Chandra, I think there is no old Infosys, there is no new Infosys. There is only one Infosys and that Infosys always stands. As Mr. Murthy used to say, consistent and profitable growth. It is not going to be ‘growth or margin’, it is ‘growth and margin’. Even if you look at Renew and New strategy that we have laid out, it has a lofty goal of 30% right. Vishal has laid out a vision of by 2020 30% operating margin. Essentially I think initiatives like Automation is going to be a big play in terms of ensuring our operational effectiveness and also we have many-many other levers to manage our cost and we will continue to focus on efficiencies. So it is not growth at the cost of margin, it is growth and margin.

Exhibit 99.5

Fact Sheet

Exhibit 99.6

Earnings Call 1

EARNINGS CALL 1

Q2 2016 RESULTS

October 12, 2015

CORPORATE PARTICIPANTs

Vishal Sikka

Chief Executive Officer & Managing Director

Pravin Rao

Chief Operating Officer

Rajiv Bansal

Chief Financial Officer

Ranganath D Mavinakere

Chief Financial Officer (Designate)

Analysts

Yogesh Agarwal

HSBC

Sandeep Muthangi

IIFL

Anantha Narayan

Credit Suisse

Viju George

JP Morgan

Ankur Rudra

CLSA

Surendra Goyal

Citigroup

Pankaj Kapoor

JM Financials

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 Q2 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; CFO-Designate – Mr. M.D. Ranganath along with other members of the senior management team. We will start the call with some remarks on the performance of the company by Dr. Sikka, followed by comments by the leadership team. Subsequently, we will open up the call for questions.

Before I 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 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 afternoon, Folks, and Thanks for joining us.

I am pleased with our performance for the quarter ending September 30, 2015. Our revenue for the quarter was Rs.15,635 Cr or $2.392 bn. This translates to a quarter-on-quarter growth of 8.9% in rupee terms, 6% in US dollar terms and 6.9% in Q1 constant currency terms. This number includes a one-time early termination fee paid to us by a client that went through an internal restructuring and therefore had to terminate a project. Excluding this extraordinary item, our revenue growth was still strong at 5.9% in constant currency and 5% in reported terms.

We have retained our annual guidance of 10-12% in constant currency. So there is no change in our guidance. We are aware that even if we grow flat over the next two quarters, the annual growth could be at the higher end of the guidance of 10-12%. The second half traditionally has seasonal dips in growth in the IT services industry. While it is our endeavor and we will work hard to buck this trend, given the short-term headwinds in a few accounts, we have been cautious in keeping our guidance unchanged. This is based on our current visibility and we will revisit this when we have better visibility.

Our volumes grew 3.7% and the blended per capita revenue improved 2.6%. The demand environment continues to be good except for seasonal variations. Our operating margin for the quarter was 25.5%, up from 24% in the previous quarter, helped largely by better operational efficiencies, better utilization as well as 70 basis points due to currency movements. We reported Earnings Per Share of Rs. 14.87 for the quarter or 23 cents in US dollar terms. Employee utilization was 81.3%, up from 80.2% in Q1. This is excluding trainees.

I continue to be perplexed by the notion of the bench in the IT services industry which I believe pervades IT services companies. We have launched an internal program called ‘Zero Bench’ and in just about 90 days we have created a marketplace to leverage our extra capacity of talent. This platform already has created 3,830+ jobs internally and approximately 50% of our erstwhile bench is actually working on these jobs. I am convinced that we can get this to 100% within the rest of the fiscal year and work to eliminate the inefficiency that stems from underutilization of highly skilled talent.

Let me now talk about some of the key developments of the quarter and share some perspective on the execution of our strategy: In Q2 we deepened our client relationships. The number of $50 mn+ clients grew to 50; our top client grew by 8.4% and the top 25 clients grew by 7.9% in constant currency, faster than the company’s average growth rate. We added 24 net new clients during the quarter. Our momentum of large deal wins continued and we won 5 large deals in the quarter and nearly $1 bn in Total Contract Value for the first time in our history. The pipeline of large deals continues to be good. Notable client engagements and wins from this quarter include India’s Goods and Services Tax Network, TOMS Shoes, CPO Commerce, Baxter Food Group, Saks Fifth Avenue, and ABB.

We are making progress on the execution of our strategy with our focus on better client relationship management, better proposal quality as well as a strong discipline around large deals pipeline and internal operational efficiencies. At the same time, we are seeing our clients on a shared path with us to leverage our innovation and the next-generation of services in which software, platforms, and systems amplify people and their abilities. Let me share some examples:

On the ‘Renew’ front of our ‘Renew and New’ strategy, ‘Zero Distance’ continues to be a strategic differentiator for us. This is a program inside Infosys to bring innovation to every project that we do. We now have more than 5,680 projects from across service lines taking these ideas to clients. This represents more than 80% of our delivery organization participating in grassroots innovation. Several of these ideas embrace automation to optimize operational spend and to renew client technology landscapes.

On August 20, we announced the launch of ‘Aikido’ comprising three enhanced service offerings in Knowledge-based IT, Platforms and in Design Thinking. ‘Ki’ of Aikido is all about the renewal of existing landscapes bringing new technologies and tools, AI, DevOps, API, Economy, Cloud, Automation etc., into our traditional engagements in Application Maintenance, Testing and BPO together and in capturing the knowledge transfer that needs to happen in Application Maintenance, Testing, BPO and other engagements comprehensively and explicitly using knowledge-based systems and AI. The ‘Ai’ of Aikido is about Platforms and Platforms as a Service including IIP, IAP (Infosys Automation Platform), Panaya, Skava and Finacle and Edge products. The Infosys Information Platform now has more than 160 engagements to-date with 20 in production are going into production over the course of the last quarter.

We added new capabilities including Natural Language Processing and others. We have a great partnership including Amazon with IIP running on Amazon Web Services. Some of the new IIP projects include generating sales insight for an Australian retailer, predicting inventory requirements for a chocolate retailer and many others. The Infosys Automation Platform is now in 66 engagements across 57 clients and we have extended it from just infrastructure management to other service lines as well such as ADM and testing. It is starting to generate material productivity improvements in our delivery organization ranging from 17%-50% of effort savings within projects. All service lines put together have released 833 people already from production projects within the first half of 2016 from this massive embrace of automation. 185 of these people were released in Q1 and in Q2 the number grew to 648. CIS, Application Development and Maintenance and IVS are the top adopters. In CIS, 37% of work automated results in 17.8% effort savings and release of more than 300 people; in ADM and IVS, approximately roughly 300 additional people were released; and in BPO 160 people were released as a result of Automation on IAP.

On Panaya and Skava, the integration into Infosys is going well. We added 53 new clients on Panaya and won 20 deals jointly with other Infosys business units. More significant is that Panaya is now helping us with larger engagements where we are transforming clients’ enterprise package landscapes. Skava posted better-than-expected growth in Q2 and there are more than 50 opportunities with a joint Infosys-Skava Solution. The synergies are clear in Cloud, Automation and in new digital experiences.

We completed the merger of our Finacle and EdgeVerve business in August. We had 39 wins and 23 Go-Lives for both the Finacle and Edge suite of solutions across various market regions. Some of the last quarter’s notable Finacle deals include the rollout of Finacle Azure at the State Bank of India and Finacle payments to 6,800 branches of the Punjab National Bank in India.

And the last part of ‘Aikido’ is ‘Do’ which is about bringing Design-led services to our customers. We have conducted 117 ‘Do’ client engagements to-date; 60 of these in our top clients and these have begun to result not so much in revenue but more importantly, in elevating our relationships and in bringing us closer to the more strategic areas of our clients.

Let me now talk about our Employees: The group’s total headcount stood at 187,976 people as of September 30. In annualized terms, standalone attrition has dropped to 14.1% this quarter. We continue to simplify our internal processes and have redesigned our performance management framework to focus more on individual accountability, individual responsibility and continuous feedback. We also continue our strong emphasis on training and learning as the very core of our company. We increase the reach of our Infosys Learning Platform and launched the platform for Interactive Video-based Learning where our leaders can teach other Infoscions across the company. On bringing Design Thinking into everything we do at Infosys, we have now trained more than 54,000 employees across the company.

We are seeing unprecedented demand from start-ups to work with us as a part of our Innovation Fund. Start-ups see Infosys not just as an investor, but as a strategic driver that helps validate and grow their addressable market. Our recent partnerships with Incubators like Level 39 and Innovate Finance are some examples of our strengthening reach in this area. We continue to selectively pursue acquisitions, those which represent the future and that will bring value to our clients. Growth through alliances has been a key focus area for Infosys. We are deepening our relationship with the existing partners such as Amazon Web Services, Microsoft, Oracle, SAP, IBM, EMC, Huawei, Tableau and others, just to name a few. We also entered into new partnership with GE, with NetSuite and with Software AG that we are very excited about. We further extended our research collaborations with top universities like Stanford, Cornell, and Emory University on Data Science, Artificial Intelligence and Security.

For this fiscal year, we have pledged Rs. 270 Cr towards Corporate Social Responsibility primarily for activities being carried out through the Infosys Foundation in areas related to Education, Healthcare, Destitute Care and Rural Development. The Infosys Foundation USA launched its Inaugural Infy Maker Awards, a commitment made by us at the White House earlier this year with the objective of sparking the spirit of Making in Everyday Learning. In addition, Infosys Foundation USA also continues to fund grants to make high quality Computer Science Education widely and easily accessible to all.

I want to take a moment to acknowledge the hard work and commitment of Infoscions all around the world and especially our business unit leaders who are in the room here today. Sandeep Dadlani, Mohit Joshi, Rajesh Murthy, Sanjay Purohit, Manish Tandon, Ravi Kumar, Abdul Razack, Michael Reh, Anup Upadhyay, Binod H R and of course my friend and partner, Pravin.

We announced today that M.D. Ranganath or Ranga who is the Executive Vice President at Infosys will take over as CFO from Rajiv Bansal, effective October 13, 2015 which is tomorrow. Rajiv has expressed his intention to leave the company for personal reasons but to continue as an advisor to me and our Board through December 31, to effect a smooth transition. I have worked closely with Ranga since joining Infosys and have come to know him as a really passionate and a balanced leader with the highest integrity and I look forward to working closely with him as our new CFO. Rajiv has been instrumental in executing our financial strategy and leading it. We will miss him, his brilliance and his passion. So for one last time hopefully for now, I will request him to take you through the financial highlights before we open it up for further questions. Rajiv.

Rajiv Bansal

Thank you, Vishal, thanks for all the kind words.

Good Morning, Everyone. As Vishal mentioned, we had a good quarter with all round growth across geographies, verticals, service lines. All our operating parameters improved during the quarter. Our volumes grew by 3.7%, utilization excluding trainees improved by 1.1% and pricing improved by 2.6% on reported basis. We ended the quarter with revenues of Rs. 15,635 cr, a quarter-on-quarter growth of 8.9% in rupee terms. In dollar terms, we grew 6% on reported basis and 6.9% on constant currency basis. This includes one-time revenue of $23 mn, (Rs.151 cr) on account of termination of one of our contracts by a client as a result of the internal restructuring. Excluding the impact of this, the pricing for the quarter improved by 1.5% on reported basis and 2.4% on constant currency basis. However, on a year-on-year basis, the pricing has declined by 6.4% in reported basis and 1.7% in constant currency basis.

During the quarter, our utilization excluding trainees went up from 80.2% to 81.3%. Utilization including trainees was at 75.4% as against 75.7% last quarter. This is primarily because most of the fresher’s join during the July and September quarter from the colleges. Onsite mix has remained flat at 29.2%.

Our operating margin for the quarter was at 25.5%, an expansion of 150 basis points during the quarter. Margins during the quarter were helped by rupee depreciating against the US dollar by 2.7% which gave us a benefit of about 70 basis points which was offset by an increase in variable pay for our employees from 80% to 100% this quarter. Margin expansion was therefore primarily on account of increase in constant currency pricing of 2.4% and utilization increase of 1.1%.

We added 17,595 gross employees during the quarter. Again, there is seasonality in it because most of the fresher’s from colleges join us during this quarter. We had a net addition of 8,453 employees. Though the absolute attrition for Infosys has seen marginal increase, the quarterly annualized attrition rate has come down to 14.1% from 14.2% last quarter. On a consolidated basis, annualized attrition is marginally up at 19.9% as against 19.2% last quarter.

Our cash and cash equivalents as of September 30^th were at Rs. 32,099 Cr as against Rs. 30,235 Cr on June 30^th. Our cash flows from operations improved during the quarter due to our strong focus on controlling our Days of Sales Outstanding. DSO for the quarter improved to 64 days as against 68 days in Q1.

During the quarter, we have seen volatile currency markets. For instance, on the quarter end exchange rate, rupee depreciated by 3% against the US dollar, 3.2% against the euro, while it appreciated by 5.7% against the Australian dollar. Considering the volatility, we believe our current hedging strategy of taking short-term hedges in line with net assets in the balance sheet provides us adequate insurance against the volatility. We have outstanding hedges of $990 mn as of quarter end and we had booked an exchange gain of $8 mn during the quarter.

The Effective Tax Rate for the quarter was at 29%, this is in line with what we guided for in Q1. For FY16, we expect it to be in the range of 29-30% due to increase in statutory tax rates in India and some of our SEZ units moving from 100% tax exemption to 50% tax exemption.

Coming to segments performance, in reported currency terms, North America grew by 6.1%, Europe grew by 8.3%, India increased by 9.4%, while Rest of the World grew by 0.8%. Growth in the Rest of the World was affected by depreciation of Australian dollar against US dollar by 8.1% during the quarter. Amongst verticals, RCL grew by 7.9%, ECS by 5.9%, Manufacturing by 5.5% and FSI by 5.2%.

As you all know, this is my last earnings call at Infosys. It has been an amazing 16 years journey at Infosys and 3 years as the CFO. I would like to thank each one of you for your tremendous support and guidance that you provided me during the years. It has been an absolute pleasure working with each one of you and I have learned something new in each of our interactions. I do hope we will continue to interact as friends in future. I wish you all the very best and thanks once again.

With this I request Ranga to provide some color on the guidance and the future outlook.

Ranganath D Mavinakere

Thanks, Rajiv. Before I get into guidance, Hello! Everyone. This is Ranga here. It is great to connect with all of you today. I had an opportunity to meet several of you over the last few years in my earlier roles. It is good to connect again. It is indeed my privilege to lead a world-class finance team at Infosys. I have to say that my illustrious predecessors – Mohan, Bala and Rajiv – have ensured that finance function plays a key role in the growth and success of the company. They have built a world-class finance team.

Finance function at Infosys has always set new benchmarks. Whether it was the first ever US listing by an Indian company or first ever adoption of IFRS by an Indian company or the most transparent financial reporting, finance function has always led from the front. We will continue to focus on smooth execution of ‘Renew, New’ strategy for consistent and profitable growth.

Lastly, for all of us at Infosys, main source of strength is our core value system of Integrity and Transparency. Our founders – Mr. Murthy, Nandan, Kris, Shibu, Dinesh and others – have established the solid foundation of core values and we will continue to draw strength from these core values. I look forward to connecting with you over the next few weeks.

Now, coming back to guidance, as you know, we have retained our annual guidance of 10-12% in constant currency. So there is no change in our annual guidance. You would recollect that we have not changed our guidance in constant currency since we announced it in April. So it continues 10-12%. Every quarter we also give reported currency guidance based on the prevailing exchange rates. We did that in March, we did that in June 30^th, as well as in September. Based on the prevailing exchange rates as of September 30^th we have given the reported guidance of 6.4%-8.4%. So we have not really changed the constant currency guidance. As you know the second half has seasonal dips in growth and we also have few client specific short-term headwinds, we have taken that into account. So based on the current visibility, our guidance stays in constant currency of 10% to 12%.

So with that I would like to open it up for any questions.

Moderator

Thank you very much sir. Ladies and Gentlemen, we will now begin the question-and-answer session. Our first question is from Yogesh Agarwal of HSBC. Please go ahead.

Yogesh Agarwal

Hi, good afternoon. First of all, Rajiv all the best for your future endeavors and Ranga, welcome to the CFO office. Just have one question, Vishal you have mentioned in your previous calls that next year Infosys is looking to achieve sector average growth or sector leading growth. Now if I just go by with your second half guidance, it may be difficult to go in double-digit growth even at the higher end of the guidance. So you expect next year to be much higher growth from the deals you are winning this year or you would have to revisit that expectation for next year growth?

Vishal Sikka

Yogesh, we are holding on to our goal of getting to industry leading growth next year and we are confident of achieving that and through a combination of the operational excellence and the measures that we have put into place over the last few quarters and those are already starting to show results. As you saw in large deal wins in this last quarter, we have further improved our win rate. We have achieved large deal wins of close to a $1 bn in TCV as far as I know for the first time ever. We are also seeing the uptick in our innovation areas such as especially ‘‘Zero Distance’’ as well as the ‘Aikido’ services that are helping us to augment the work that we have done by improving the quality of the work that we do, by bringing more automation and more innovation to the work that we do on an ongoing basis as well as complementing it with new kinds of work that we do. So through the combination of the better execution and the large deal wins that we have had and the momentum that we would get from that as well as the automation and innovation kicking in and providing additional boost, we feel comfortable with our expectation to get to industry leading growth next year.

Moderator

Thank you. Our next question is from Sandeep Muthangi of IIFL. Please go ahead.

Sandeep Muthangi

Rajiv, it has been great to know you, all the best for the future. Ranga, big congratulations, I look forward to interacting with you. I had two questions, the first one is for Dr. Sikka, Infosys had two quarters of very strong growth. If you were to look back at these two quarters what do you think are the areas where traction has improved and is sustainable?

Vishal Sikka

Well, Sandeep we have instituted two dimensions of improvement that lead to business impact in the near term and the third one which is a dimension of culture and the foundation of the company which will have a longer term sustained impact. Those two dimensions of the business impact are in the operational excellence areas and the second one is in the area of our strategy with ‘Renew and New’. So if you look at our operational excellence areas, we have seen already the results of this – better ability to do revenue forecasting, better construction of pipelines, a dedicated focus on winning large deals, improving proposal quality, improving our ability to win large deals by the way that we articulate our value proposition to our clients, focusing on top account growth, focusing on talent fulfillment, and improving our ability to get to just-in-time talent fulfillment and things of this nature which have already resulted in two successive quarters where our top clients have outperformed the growth of the company as well as in large deals where we have had two successive quarters where we have won large deals at a win rate that was significantly better than in the past. So that has been one of the areas that has led to, I would say the bulk of the improvement that we have seen in the last two quarters has come from that. We intend to continue that and indeed accelerate that as we go forward, so we continue to see the benefits of that dedicated focus on these key areas of operational excellence.

The second dimension of our growth is the innovation. The innovation strategy that we have laid out is to renew our existing services through the power of automation and innovation and to complement that with completely new areas that we have never been in before. These are starting to show results in a measurable way now. While it is still early, we see very encouraging signs of ‘Zero Distance’’, ‘Ai, Ki and Do’ starting to produce adoption in clients, improving our mind share and starting to show measureable impact on revenue. In terms of ‘Zero Distance’, I mentioned earlier that we have 5,600 projects where the teams have already done some innovation in the projects. We already have a plan to bring every single ‘Zero Distance’ innovation happening at our top 250 clients to them as a way to create a kind of a groundswell of innovation. similarly I mentioned earlier the statistics around the adoption of ‘Ai, Ki and Do’ and in particular there, the Ai -Platform adoption where we bring our software and software-based innovations to complement and amplify the ability of our people to become more effective, more productive and to improve our margins. I see that that has already started to show some results. So I would say a majority of the improvements in the last two quarters was because of operational excellence but we already see measurable signs of improvement coming because of our innovation.

Sandeep Muthangi

Right, fantastic. Just one question on the realizations, how should we read into this metric going forward because on one hand clearly you have also commented on pricing being an issue in the legacy area or the large deals and on the other hand you have the benefit of automation and tool utilization and stuff like that? So my question is, should one expect the realization increase in this quarter to be a sign of things to come as in it being more sustainable?

Vishal Sikka

So Sandeep, I think the key is the downward pressure on price that we see in the industry is not a onetime kind of a thing. I think this is a much longer lasting, sustained trend that we have to deal within the industry. As I have said, the right way to deal with this is to amplify our ability through automation, through software. We are doing that in spades now. It is still early in terms of the revenue impact to the company but we are starting to see quite a bit of adoption happening in these areas. So I mentioned 160 projects in using our Infosys Information Platform, 57 client engagements with Automation around Infrastructure Management, BPO, IVS and ADM as well as the adoption of our ‘Ki’ and ‘Do’ services and of course bringing Panaya and Skava in areas where they are relevant. So the basic idea is to transition from a model that is a ‘People Only Model’ to go to ‘People Plus Software’, and as a result of this, a very nice virtuous cycle gets created. The number of people in the project becomes less because the software automates some of the work that was done earlier by people. The software is higher margin and therefore the margin in the project improves which allows us to price the project better in keeping with becoming more attractive to the customer and in keeping with the increased pricing pressure from the customer side. The result of this creates better bandwidth for us to be able to do more projects. So that is a classic example of what Prof. Mashelkar used to say about ‘Being able to do more with less for more.’ So that is the formula that we are working to bring into every engagement that we have. We have now as I mentioned earlier great examples of success with these kind of initiatives. For example Panaya coming into other areas, for example automation coming into other areas and so on. It is now our team's endeavor to get this to every single client that we have and we have already started to make plans to bring each one of the ‘Zero Distance’ ‘Ai’, ‘Ki’ and ‘Do’ engagement to each of our top 250 clients before the end of this financial year. So we are confident in our ability to build a strategy that bucks this downward pricing pressure which is a sustained change in the industry and indeed turns that into an advantage for us by leveraging the power of automation.

Moderator

Thank you. Our next question is from Anantha Narayan of Credit Suisse. Please go ahead.

Anantha Narayan

Hi good afternoon, thank and congratulation for a very strong quarter. Also Rajiv thank you for all your help, we will miss you but wish you all the best for your future plans and Ranga welcome to the CFO role. So Vishal for my first question, and you would obviously be aware of all this recent noise around Infosys being a lot more aggressive while bidding for contracts in the market place. So just would love to get your thoughts behind this and also when you look at the journey of getting your margins from the current levels to that aspirational 30% level, do you foresee sort of smooth movement up or do you think we could potentially have a leg down first before we have the leg up?

Vishal Sikka

No, that is absolutely not the case Anantha, I do not know where this rumor comes from. Perhaps competition is facing some heat and therefore we start to hear this noise around it. You can see from our margin numbers that we are continuing to grow and we are continuing to grow in a healthy manner despite the currency fluctuation. So when we did 25.5% margin and only 70 basis points of that improvement came because of currency the rest of it was a result of better execution, better utilization and in particular the role of automation and these kind of efficiencies in how we deliver. So I think that this idea that we are being aggressive and buying deals and so on is absolute nonsense. I think the key that lies for us is in being able to bring in the power of automation, the power of simplification of services and so forth in how we deliver. So being able to win better business through better proposal quality, through better engagement and articulation of value to clients through the power of things like Design Thinking, in engaging with them strategically. Recently we had one of the largest banks in the world who visited us at Stanford and Palo Alto spent a week with us. Together we uncovered some great next generation challenges for them that they go after together with us. So these kinds of movements are really what is going to continue to sustain our ability to grow the business over the mid-term and not this word that seems to be around that we are being aggressive. Pravin, you want to add something?

Pravin Rao

As Vishal said we are not really changing the game. The realization, it's clear that in one part of the business there is tremendous pricing pressure, there is tremendous focus on cutting cost from our clients and that is the reality of business. We have to accept it and internally we need to price what is appropriate from a deal context perspective and internally we need to work on our own internal efficiencies and so on to meet our margin expectation. So we have not really gone aggressive as is being said. If at all anything, we are pricing it right for the market and right for the deal but it is not only pricing that is helping us win. It is also a combination of focus on the solution, articulating the solution better, bringing in all our tools to bring better solution and value to the clients and so on. So those are the combination of things which have resulted in improved win rates, it is not about pricing or going aggressive on pricing.

Anantha Narayan

Thanks for that. And also Vishal in your opening comments you alluded to the headwinds in certain customer accounts. Can you just give us a bit of more color on that, is that specific to Infosys, which areas are they in and how long could that continue?

Pravin Rao

This one-off thing was where we had about $23 mn incremental revenue this quarter was in one of the projects that got cancelled in a customer where there was a demerger and client did not see value in continuing with the project. So that is a one-off thing. It is not a secular trend or anything. But from a second half perspective, while we have had a good first half in the second half our belief is historically we have seen second half being relatively weak for the industry. So in quarter 3, we are definitely seeing the typical headwinds like furloughs, lower number of working days and so on. But in addition we are also seeing a little bit of weakness in couple of areas. That’s why mean based on the visibility that we have today, we believe that second half will be weaker than the first half. At the same time, Vishal talked about a lot of other internal initiatives and other things that are going on. So our endeavor is to make sure that we try to deploy many of these things and try to minimize the impact of the historical weakness that we see in this half. But only over a period of time, we will be able to get a sense of it. But at this stage based on the visibility our belief is second half will be little bit challenging as compared to the first half.

Vishal Sikka

To add to that, I would just say that when I look at the industry, the seasonal headwinds that you see in Q3 and Q4 both in the industry as well as that Infosys has seen in the past, we are absolutely committed to working hard to buck this trend but the visibility that Pravin and I have right now, basically suggests to us that we should keep the guidance and revisit that when we can. Obviously, we are aware that even if we were flat in the next two quarters and in life there are better aspirations than just being flat with regard to the past, we would get to the high-end of the guidance, we are aware of that. So as soon as we have visibility that allows us to think that we can do better than this we will let you guys know. But for now we are just keeping the guidance where it is and going forward from there.

Anantha Narayan

Sure. And just one final question to Ranga, do we have any color yet on what the RSU plan could mean to margins for the rest of this fiscal year and for FY17?

Ranganath D. Mavinakere

We are still working on the exact plan in terms of coverage within the employees, who all we need to give and what is the extent of grants relating to the RSU plan in the current year or the next fiscal year. We are still in the early stages of working out. The moment we finalize the grant plan we will certainly share those details.

Moderator

Our next question is from Viju George of JP Morgan. Please go ahead.

Viju George

Hi, good afternoon. Congratulations on strong quarter. Rajiv thanks a lot for interactions. You will be missed. Good luck! Ranga congratulations. My question really pertains to the H2, I know we have talked a fair bit about it. Vishal, you did say in the course of H1 several times that you try and see how best you can make sure that H2 does not revert to the traditional H2 we have seen of Infosys, particularly the Q4 phenomenon in the last three to four years. Based on the guidance that you have given right now it does seem that you know better off now than maybe three four months back when you talked about trying to make sure that you do not end on a weak note on Q4 as you did maybe in the last three to four years.

Vishal Sikka

Viju as I mentioned that is our endeavor to ensure that we buck this trend but we do not have that visibility right now as Pravin mentioned already. We have had a great first half, all cylinder are firing. The teams are really inspired so we are going to work hard to make sure that we buck this trend. But right now based on what we see this is what we feel comfortable with. So 10% to 12% on constant currency, we are maintaining that guidance.

Viju George

Sure. And I think Pravin you earlier alluded to the fact that you are seeing probably a couple of client specific headwinds over and above the seasonal headwind that you normally expect going into H2. Is that the primary factor or is it just that seasonal factor that is guiding you towards a marked slowdown in H2?

Pravin Rao

Viju, if you look at our performance in first half, we had a strong performance in Financial Services on the back of several wins over the last few quarters but when you get into the sub-segment level, we are seeing challenges in the Insurance segment. And the other thing that we are also seeing in the Financial Services is the banks are under tremendous pressure to cut cost. In quarter 3 typically we would have seen lesser furlough impact in FSI but this time we anticipate some amount of furlough impact in FSI as well because of the tremendous pressure on cost and in the Banking industry. So that is one headwind which we typically have not seen historically in the past. Or if you will look at Energy segment, now given the oil price and the volatility we are also now started seeing a second wave of price cuts, cost reductions, postponement and so on. So we will see some impact there as well. Retail had a strong quarter 2 but quarter 3 is a season where the holiday season will have a big impact on their spending and depending on how the holiday season proceeds we may see some volatility in their spending as well. So based on all these things which are probably over and above the seasonal historical headwinds, we believe that quarter 3 will be softer. But many of the things that we have started the momentum and other things, we are hoping that we will see better positivity in quarter 4. But at this stage we do not have visibility to take any view on that.

Viju George

One last question if I may, is this partly some of these incremental issues you think Infy specific or you think they are going to impact the sector this time around vis-à-vis the normal impact that you see in H2?

Pravin Rao

If you look at the Insurance probably it is Infy specific because of our current presence in the Insurance industry. But when you look at rest of Banking or when you talk about Retail, we believe it would potentially be an industry vertical or even in the Energy vertical it would be across the industry, I don't think it would be Infy specific.

Vishal Sikka

And Viju, as I have said before the way to get away from these seasonal things and these kind of trends is to go to the path of innovation, to the path of automation and that is what we are endeavoring to do and we will continue to do with full vigor. As you can see from our performance over the last four quarters we have demonstrated that the new ideas, the improved ideas are becoming embraced and adopted and the more of this that we do, the more we will be able to buck these kinds of trends. Q3 is here and now, so our endeavor is to make sure that we are able to do the usual things that we do to help address these kinds of challenges but also to double down on the innovation and the automation and these new areas to help overcome these challenges. So, if we are able to do that then we will obviously do better than the guidance that we have given. But the visibility that we have for now is dominated by these forces that Pravin talked about and therefore we are keeping the guidance where it is. But obviously our endeavor is to do far better.

Viju George

Thank you Vishal and thank you Pravin, all the best in H2.

Moderator

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

Ankur Rudra

Hi, thanks for taking my question and congrats on a strong quarter. Rajiv, we will miss you. Thanks for all the insights in the past and Ranga congratulations. My first question if I could peel the onion on the guidance a bit more. Is there any change to the guidance setting process now compared to before? What I mean is, it used to be a bit more realistic in terms of what you see going forward and with a strong beginning to the year this year are you beginning to factor in perhaps a little bit of conservatism due to macro challenges you have seen in the last 3 to 4 months or has your visibility gotten a bit more clouded from a demand perspective?

Vishal Sikka

Ankur maybe Pravin, Rajiv or Ranga can add but as far as I can tell there is no change to how we approach these things. I mean the whole guidance institution itself is somewhat interesting. We all pretend to be fortune tellers for a short period of time but as far as I can tell there is no change in the way that we think about these things may be Rajiv or Ranga or Pravin can add something to this.

Rajiv Bansal

Nothing to add Ankur. The process remains the same I think our philosophy has always been the same for last many years. Our guidance is always a statement of fact, it is based on what we see. We know that H2 is seasonally weaker half for the industry especially for us and considering all the stuff it doesn't make sense in trying to revise your guidance with the kind of volatility that we are seeing in the currency markets and the kind of things happening in the world around us. So I think philosophy remains the same. As Vishal said the endeavor is always to buck the trend and do much better and I think we are geared. If you look at our order book, if you look at our performance, operational parameters of the last two quarters and the performance, it has been a very solid performance. So I think it gives you the confidence as we go into second half. But honestly it didn't make sense to revise the guidance at this point of time. And thanks for all the wishes, it was great interacting with you all these years and I look forward to you interacting with you again.

Ranganath D. Mavinakere

I completely agree with Rajiv saying that there is absolutely no change in any process or anything relating to guidance. It is purely based on the visibility at this point in time. We have had very broad-based growth in the first few quarters and also margin improvement due to operational efficiencies. At the same time based on the current visibility at this point in time we are retaining the guidance. There is no change in the process or approach.

Ankur Rudra

Just one more question Vishal if you could help us, you have made comments about how you don't think pricing is something that you have been aggressive on but in terms of the more commoditized end of the market, how do you view pricing as a strategic tool from a market share gain perspective perhaps the next 18 to 36 months?

Vishal Sikka

The overall pricing pressure is going to continue to be a reality in the industry. I believe that the right way to address this is by bringing in software and automation and new kind of technology-based innovation into the mix of what we bring. I will give you one example. This comes from Sandeep’s area in the logistics area where we had a Panaya win outside of Panaya traditional area in the area of testing automation. Because of the significant interest in this area, I want to walk through a particular deal that we won so that you can see what I'm talking about.

In this particular case it's a very small example, it is a $370,000 project over 18 months, $100,000 of Panaya license and because of bringing Panaya into the project where it would have been traditionally a people only project, we were able to reduce the testing effort by 40%. We were able to improve our margin and deliver a better price to the client and therefore win the project. We want to repeat this formula hundreds of times as we go forward. Already as I mentioned we have 57 deals where we have brought Panaya in of this kind smaller or larger than this. The idea is to not address the pricing pressure by hiring cheaper or hiring faster or jamming deeper into the projects faster and faster and this type of a thing, that would be the wrong way to address this. But the right way to address this is to bring more automation, more innovation. Testing is an area where on the downstream part, there has already been a lot of automation. But there is very little automation almost no automation in the frontline of testing where you have specifications of software that have to be written in automated ways, where you have to do the models and the model checking. There is a lot of research going on in the software world. For example, the Head of the Computer Science Department at Stanford, who we collaborate with, Alex Aiken is one of the leaders in Software Testing and all their research is in this area of bringing specification-based automation, model checking, understanding the specs and using advanced consent satisfaction, AI technology to be able to understand what softwares intent so there is less effort that goes in to understanding software. This is just verification. Similarly in all service lines in software upgrades, in application maintenance, especially in infrastructure management, in BPO there are opportunities to do better knowledge capture, to automate the manual work, to bring more advanced kinds of systems for being able to take away more and more of the mechanizable parts of the work that we do and do that using software which improves our margin, which lowers the cost for the clients, it improves our throughput and basically the virtuous cycle start from there and builds up from there. This is a formula that we are working on and this is going to be the mechanism for us to win going forward. And we already have examples like this happening all over the place and, therefore, we feel comfortable with where things will be in the longer term.

Moderator

Thank you. Our next question is from Surendra Goyal of Citigroup. Please go ahead.

Surendra Goyal

Good afternoon everyone. All the best Rajiv and congrats Ranga. I just had a couple of small questions. Firstly this $23 mn fee which we have called out, how does it flow through to margins? Are there any costs associated with it?

Rajiv Bansal

Hi Surendra. Thanks for all the wishes. It was great interacting with you all these years. On the specific question of $23 mn, this is actually an IMS deal so we have got a termination fee but we have also transferred all the assets to the clients. So on the margins front there is no impact on the margin. It is at the same margin as the rest of the company.

Surendra Goyal

Rajiv could you also explain the realization bit, like after a while we have seen a good improvement there, what are the reasons driving the improvement in realization sequentially?

Rajiv Bansal

As I have been telling you over the years, you can't look at these trends on a quarter-to-quarter basis because when you have about 8,000 projects running at any point of time, project life cycles depending on what gets executed and what gets delivered, does have an impact on the realized revenue in a quarter. But having said that, this quarter we had one extra working day at our onsite locations. We had a couple of extra working days in UK and Australia which helped us with increased revenue because of time and material projects. At the same time because of certain transitions which got completed and certain maintenance, large maintenance projects, we saw a little bit of catch-up of revenues during the quarter. But these are something which is not unique in this quarter. These happen on a quarter-to-quarter basis because when you are running 8,000 projects you would have all projects at different life-cycle stages. So this is nothing unique. The number of working days do change quarter-on-quarter and with 50% of our revenues still coming from time and material projects, you would see the working day impacting our revenues and the reported realizations on a quarterly basis. I think the right thing would be to look at on an annual basis and that is where you see the trend lines going.

Moderator

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

Pankaj Kapoor

Congratulations on the quarter. Rajiv, wish you all the best and Ranga welcome to the new role. My first question is on your campus recruitment plans. Can you give some sense of the number of offers we are planning to give at the campuses this year? And do you intend to increase the salaries like the couple of your competitors are planning to do?

Pravin Rao

We are planning to go with 20,000 offers in the campus. In terms of compensation increase, we are already at the range which people are talking about. When we look at competition they are talking about Rs. 3.3 lakhs, we already at Rs. 3.25 lakhs for the last couple of years, so we are not seeing any material difference in doing that. On the contrary, we are focusing a lot more on internship because we believe that in the final semester if we can provide the internship opportunity for them, the potential of them joining us, the stickiness will improve tremendously so we are focusing more on that. We typically pay about Rs. 4,000 per month on internship and we have increased that to Rs. 10,000 per month. So that is where we will be doing it. But on a compensation side, competition has just caught up with where we were in the last 2-3 years.

Pankaj Kapoor

Thanks Pravin. And second, I am just trying to reconcile this strong headcount addition that we had in this quarter with the focus on automation that we have been talking about and which is also now getting visible on the realization. Is the profile of hiring in this quarter any different or it is just largely the last year offers coming in and mostly of freshers?

Pravin Rao

See, the benefits of automation that we are talking about, the real realization will happen over 2-5 years’ time because we have to recognize that whenever we win any large deals client typically expect 35-40% improvement in productivity and so on. So those are the things we already bake in the proposal and over a period of time most of these contracts are 3 to 5 year duration and we expect the benefits of automation to kick in over a period of time. So you will definitely not see that kind of outcome from automation flowing into headcount immediately, at least in the next 1 or 2 years.

Also as Vishal talked about in the earlier thing, the level of automation that we are doing is the basic one. Now the opportunity is in extending it and doing it something different. For instance in testing, most of the automation is today in the test execution which is just about 40% of the testing life-cycle. The opportunity is in automating the test case generation, the test data generation and so on. So likewise even in an application development scenario the kind of automation you need to do is significantly different from what you have seen in a BPO world or in an infrastructure world. So this is a focus area which we will continue to invest in and continue to innovate. We have to bring in artificial intelligence, we have to bring in cognitive ability and so on and many of these will take time because any automation systems you develop using this with more usage the systems will become better and it will become much more productive. So all this will take time. So the benefits you will typically see over a period of time and that's when you will probably see co-relation between headcount addition and impact of automation. But in the short-term you will not see that benefits.

Moderator

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

Sandeep Mahindroo

Thanks everyone for joining us on this call. We look forward to talking to you again. Have a good day.

Exhibit 99.7

Earnings Call 2

EARNINGS CALL 2

Q2 FY2016 RESULTS

October 12, 2015

CORPORATE PARTICIPANTs

Vishal Sikka

Chief Executive Officer & Managing Director

Pravin Rao

Chief Operating Officer

Rajiv Bansal

Chief Financial Officer

Ranganath D. Mavinakere

Chief Financial Officer (Designate)

ANALYSTS

Edward Caso

Wells Fargo

Keith Bachman

BMO Capital

Ravi Menon

Elara Securities

Anil Doradla

William Blair

Rod Bourgeois

DeepDive Equity Research

Surendra Goyal

Citigroup

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 Q2 FY16 Financial Results. I am Sandeep from the Investor Relations team in Bangalore. Joining us today on this call is CEO and MD – Dr. Vishal Sikka, COO – Mr. Pravin Rao, CFO – Mr. Rajiv Bansal, CFO-Designate – Mr. M.D. Ranganath along with other members of the senior management team. We will start the call with some remarks on the performance of the company by Dr. Sikka followed by comments by the leadership team. Subsequently we will open up the call for questions.

Before I 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 risk 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

Thanks, Sandeep. Good morning and Good evening folks, thank for joining us.

I am very pleased with our performance for the quarter ending September 30, 2015. Our revenue for the quarter was in US$2.392 bn, this translates to a quarter-on-quarter growth of 6% in US dollar reported terms and 6.9% in Q1 constant currency terms. This number includes a one-time early termination fee paid to us by a client that went through an internal restructuring and therefore had to terminate the project. Excluding this extraordinary item, our revenue growth was still strong at 5.9% in constant currency and 5% in US dollar reported terms.

We have retained our annual guidance of 10% to 12% in constant currency, so there is no change in our guidance. We are aware that even if we grow flat over the next two quarters the annual growth could be at the higher end of this guidance of 10% to 12%. The second half traditionally has seasonal dips in growth. While it is our endeavor and we will work hard to buck this trend, given the short-term headwinds in a few accounts we have been cautious in keeping this guidance unchanged.

Our volumes grew 3.7% and our blended per capita revenue improved by 2.6%. The demand environment continues to be a very good one except for seasonal variations, our operating margin for the quarter was 25.5%, up from 24% in the previous quarter helped largely by better operational efficiencies, better utilization as well as 70 basis points due to currency movements.

We reported earnings per share of $0.23 in US dollar terms. Employee utilization was 81.3%, up from 80.2% in Q1, this is excluding trainees. I continue to be somewhat perplexed by the notion of the bench which I believe pervades IT services companies. We have launched an internal program here at Infosys called ‘Zero Bench’ and in just about 90 days we have created a market place to leverage our extra capacity of talent. The platform already has 3,832 jobs posted and approximately 50% of our bench have worked on these jobs. I am convinced that we can get this to 100% within the rest of the fiscal year and work to eliminate the inefficiencies stemming from under-utilization.

Let me talk about now some of the key developments of the quarter and share some perspective on the execution of our strategy. In Q2 we deepened our client relationships, the number of $50 mn plus clients grew to 50, our top client grew by 8.4% and the top 25 clients grew 7.9% in constant currency, faster than the company's average growth rate for the second quarter in a row. We added 24 net new clients during the quarter, our momentum of large deal wins continued and we won five large deals in the quarter, nearly a $1 bn in total contract value for the first time ever. The pipeline of our large deal continues to be a good one. Notable client engagements and wins from this quarter include ABB, Saks Fifth Avenue, India's Goods and Services Tax Network, TOMS Shoes, CPO Commerce, Baxter Food Group and others. We are making progress on the execution of our strategy with our focus on better client relationship management, proposal quality improvement as well as a strong discipline around large deal pipeline and internal operational efficiencies.

At the same time we are seeing our clients on a shared path with us to leverage innovation and the next generation of services in which software, platforms, and systems amplify people's ability. Let me share some examples. On the Renew front of our strategy ‘Zero Distance’ continues to be a strategic differentiator for us. This is a program inside Infosys to bring innovation to every single project that we do and we now have more than 5,680 projects from across our service lines taking these innovative ideas to their client. This is a large scale embrace of innovation at our very grass roots in our delivery organization and these 5,680 reflect more than 80% of our delivery organization participating in bringing some innovation to their project or the other. Many of these ideas embrace automation to optimize operational spend and renew client technology landscapes.

On August 20, we launched ‘Aikido’ comprising three enhanced service offerings in our knowledge based IT platform work, platform work and in design thinking. The key of ‘Aikido’ is all about the renewal of existing landscapes, about bringing in new technologies and new tools, AI, DevOps, the API economy, cloud and automation to name a few. It is about capturing the knowhow that is laden inside the minds of the people, inside the systems and the processes that are inside the enterprise IT landscapes. And to bring this into our traditional engagements whether it is in application maintenance, in testing, in BPO or in other systems. One example of this is a large European turbo machinery company that engaged us in a complex computational geometry project that required deep knowledge in software techniques for turbo machinery as well as in visualization, in constraint satisfaction and other AI technologies to develop critical application for designing, rendering and generating manufacturing data to reduce cycle and effort by 40% and minimize errors.

The ‘Ai’ of Aikido is about platforms and platforms as a service, including our Infosys Information Platform, Infosys Automation Platform, Panaya, Skava, Finacle and Edge products. The Infosys Information Platform now has more than 160 engagements to-date with 38 going in production or already in production over the course of the last quarter. We have added several new capabilities including Natural Language Processing and deployed IIP now on Amazon's web services as a self-service trial. Some of the new IIP projects include generating sales insights for a large Australian retailer enabling real time prediction for out of stock items for a chocolate retailer, enabling predictive maintenance of manufacturing equipment for a large pharmaceutical company and many more.

The Infosys Automation Platform is now in 66 engagements across 57 clients and we have extended it from just infrastructure management to other service lines. For example ADM and testing as well as BPO. It is starting to generate material productivity improvements in our delivery organization ranging from 17% to 50% in effort savings. In the first half of 2016 from this massive embrace of automation at Infosys, all service lines together released 833 people from production projects, BPO released 364. In Q2 alone this included 300 people from our infrastructure management service, 348 from ADM and Infosys Verification Service, and 169 from BPO.

On Panaya and Skava, the integration into Infosys is going very well. We added 53 new clients on Panaya and won 20 deals jointly with other Infosys business units. More significant is that Panaya is helping us with larger engagements where we are transforming client's enterprise package landscapes. Skava posted better than expected growth in Q2 and there are more than 50 opportunities with the joint Infosys Skava solution. The synergies are clear in cloud, automation and a new digital experience for the consumers.

We completed the merger of our Finacle and EdgeVerve businesses in August, we had 39 wins and 23 go-live for both the Finacle and Edge suit of solutions across various markets. Some of the quarters notable for Finacle deals include the rollout of Finacle at the State Bank of India and Finacle Payments to 6,800 branches of the Punjab National Bank in India.

And the last part of Aikido is ‘Do’ which is about bringing design-led services to our customers. We have conducted 117 ‘Do’ engagements with our clients to-date and these have begun to result not so much in revenue but even more importantly in elevating our relationships with our clients and in bringing us closer to the most important strategic areas they face.

Let me now talk about our employees. The group's total headcount stood at 187,976 people as of 30^th of September. In annualized terms, standalone attrition dropped to 14.1% this quarter. We continue to simplify our internal processes and we redesigned our performance management framework to focus on individual accountability and continuous feedback. We also continue our strong emphasis on training and learning. We increased the reach of our Infosys learning platform and launched a platform for interactive video based learning that our executives are using to teach our employees and on bringing design thinking into everything that we do at Infosys. We have now trained more than 54,000 employees.

With regard to partnerships, we are seeing unprecedented demand from startups to work with us as a part of our innovation fund. Startups see Infosys not just as in investor but as a strategic driver that helps it validate and grow their addressable market. Our recent partnership with incubators like level 39 and Innovate Finance are some examples of our strengthening reach. We continue to selectively pursue acquisitions, those which represent the future and not the past and those that will bring value to our clients. Growth through alliance has been a key focus area for Infosys. We are deepening our relationships with key existing partners such as Amazon web services, Microsoft, Oracle, SAP, IBM, AMC, Huawei, Tableau to name a few. We also entered into new partnerships with GE and with NetSuit. We further extended our research collaborations with top universities like Stanford, Cornell, and Emory University on data science, artificial intelligence, and security.

For this fiscal year we pledged Rs.270 crores towards Corporate Social Responsibility, primarily for activities being carried out through the Infosys Foundation in areas related to education, healthcare, destitute care, and rural development. The Infosys Foundation USA launched this inaugural Infy Makers Awards, a commitment made by us at the White House earlier this year with the objective of sparking the spirit in everyday learning. In addition, Infosys foundation USA also continues to fund grants to make high quality computer science education, widely and easily accessible to everyone in the United States.

I want to take a moment to acknowledge the hard work and commitment of Infoscious all around the world and specially our management team, our business unit leaders who are in the room here with me today. Sandeep Dadlani, Mohit Joshi, Rajesh Murthy, Manish Tandon, Sanjay Purohit, Ravi Kumar, Abdul Razzaq, Michael Reh, Anup Uppadhayay, Binod HR and of course my friend and esteemed partner Pravin. We announced today that MD Ranganath or Ranga who is currently our Executive Vice President of Strategic Operations will take over as CFO from Rajiv Bansal effective tomorrow October 13th, 2015. Rajiv has expressed his intention to leave the company for personal reasons but to continue as an advisor to me through December 31 to effect a smooth transition. I have worked closely with Ranga since joining Infosys and have come to know him as a passionate and a balanced leader with the utmost integrity and I look forward to working closely with him. Rajiv has been instrumental in executing our financial strategy and we will miss him, his brilliance, and his passion. So for one last time, I will request Rajiv to take you through the financial highlights before we open it up to questions.

Rajiv Bansal

Thank you Vishal. Good morning everyone. As Vishal mentioned we had a good quarter with all around growth across geographies, verticals, and service lines. All our operating parameters improved during the quarter. Our volumes grew by 3.7%, utilization excluding trainees improved by 1.1% and the pricing improved by 2.6% on reported basis. We ended the quarter with revenues of $2.392 bn, a quarter-on-quarter increase of 6% on reported basis and 6.9% on constant currency basis. This includes onetime revenue of 23 mn on account of termination of one of the contracts by client as a result of their internal restructuring. Excluding this impact the pricing for the quarter has improved by 1.5% on reported basis and 2.4% on constant currency basis. However on a year-on-year basis pricing has declined by 6.4% reported basis and 1.7% in constant currency basis.

During the quarter our utilization excluding trainees went up from 80.2% to 81.3%, the utilization including trainees is marginally down at 75.4% as against 75.7% in the last quarter. As you are aware the utilization in Q2 is generally lower because of the freshers who joined us the system during the quarter. Onsite the mix remains flat at 29.2%.

Our operating margins for the quarter was 25.5%, an expansion of 150 basis points during the quarter. Margins during the quarter was helped by rupee depreciation against US dollar by 2.7% which was offset by increase in variable pay from 80% to 100%. The margin expansion was therefore mainly on account of increase in constant currency pricing of 2.4% and utilization increase of 1.1%.

We added 17,595 gross employees during the quarter with the net addition of 8,453 employees. Though the absolute attrition for IL has seen a marginal increase, however our quarterly annualized attrition has declined marginally to 14.1% from 14.2% last quarter. On consolidated group basis, annualized attrition was at 19.9% as against 19.2% last quarter.

Our cash and cash equivalents as of September 30th was at $4.894 bn compared to $4.75 bn as of June 30^th. Our cash flows from operations improved in the quarter due to strong focus on controlling DSO. DSO for the quarter improved to 64 days as against 68 days in first quarter.

During the quarter we have seen very volatile currency markets. On the quarter and exchange rate basis, US dollar appreciated by 3% against INR, 8.5% against Australian dollar, and 3.4% against British Pound. Considering the volatility we believe our current hedging policy of taking short-term hedges in line with the net assets in the balance sheet provides us adequate insurance against the volatility. We have outstanding hedges of $990 mn as of the quarter end and we had an exchange gain of $8 mn during the second quarter.

The effective tax rate for the quarter is at 29%, this is in line with what we have guided in Q1. For FY16 we expect the effective tax rate to be in the range of 29% to 30% due to increase in the statutory tax rates in India and also some of our SEZ units moving from 100% tax exemption to 50% tax exemption.

Coming to segment performance, in reported currency terms North America grew by 6.1%, Europe grew by 8.3%, India increased by 9.4% while rest of the world grew by 0.8%. The growth in rest of the world was affected by depreciation of Australian dollar against US dollar by 8.1% during the quarter. Amongst verticals Retail grew by 7.9%, ECS by 5.9%, Manufacturing by 5.5% and FSI by 5.2%.

As you all know, this is my last earnings call, it has been an amazing 16 years of journey at Infosys including three years as CFO. I would like to thank each one of you for the tremendous support and guidance that you have provided me through the years. It has been an absolute pleasure working with all of you and I have always learnt something new in each of our interactions. I do hope that we will continue to interact as friends in future. I wish you all the very best. Thank you once again.

With this I request Ranga to provide the color on the guidance and the future outlook. Ranga.

Ranganath D. Mavinakere

Thank you Rajiv. Before I get to the guidance, first of all I would like to say hello to everyone. This is Ranga here. It is great to connect with all of you today. I had an opportunity to meet several of you over the past few years in my earlier roles, it is good to connect again. It is indeed my privilege to lead a world-class finance team at Infosys. I have to say that my illustrious predecessors- Mohandas Pai, Bala and Rajiv have ensured that finance function plays a key role in the growth and success of the company. They have built a world-class finance team which I am proud of.

Finance function at Infosys has always set new benchmarks, whether it was the first ever US listing by an Indian company or a first ever adoption of IFRS by an Indian company or the most transparent financial reporting, finance function has always lead from the front. So we will continue to focus on a smooth execution of our Renew-New strategy for consistent and profitable growth.

Lastly for all of us at Infosys main source of strength is our core value system of integrity and transparency. Our founders Mr. Murthy, Nandan, Kris, Shibu, Dinesh and others have established this solid foundation of core values and we will continue to draw strength from these core values. I look forward to connecting with all of you over the next few weeks.

Now coming back to guidance, we have retained our annual guidance of 10% to 12% in constant currency, so there is no change in our annual guidance. The second half traditionally has seasonal dips in growth, while it is endeavor to kind of closely monitor this, at this point in time given certain short-term headwinds in a few accounts we would like to maintain the guidance at 10% to 12%. Thank you.

On this if there are any questions we will certainly address during the course of the call.

Moderator

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 was wondering if you could flush out some of the short-term headwinds, what verticals, what particular reasons and you said short-term, so spending clauses or are contracts being delayed or cancelled? Thank you.

Vishal Sikka

Hey Edward, this is Vishal. First of all in all my engagements with clients there is a huge shift happening in the industries around us and so the need for innovation. On the one hand there is pricing pressure and a consistent and sustained downward pressure on pricing on the traditional IT services world and that is coming from the fact that many of the businesses in many industries are under pressure, under disruption, whether it is a short-term one with environmental effects around them or a structural one with the disruption that they are facing. However in the same business as we see that there is always a need for innovative next generation solutions that bring that value and immediacy of relevance to their businesses, so that will be our endeavor. While on the traditional side and as I mentioned earlier and also Ranga mentioned, there is a seasonal aspect to this downturn that happens typically in Q3 and also in Q4 for the industry and certainly for Infosys. We are going to work had to ensure that those new timeless kinds of value providing services which is what ‘Aikido’ and ‘Zero Distance’ embody, produce enough of a value in the short-term that we buck this trend. Having said that, perhaps Pravin can add some color on the industries where we see short-term challenges.

Pravin Rao

In the normal course the industry has challenges in quarter 3 due to furloughs which is predominant in the manufacturing vertical and to some extent in retail. We also have lower working days in quarter three, so those are things which we have already factored earlier. But apart from that we are also seeing some additional headwinds. In financial services by and large we are seeing good momentum but we are seeing challenges in insurance sub-segment and in addition we also expect to see little bit more of impact from the furlough perspective because banks are also now looking at aggressively cost cutting measures, so we anticipate some amount of furlough impact as well which historically we had not seen in the past. Retail is another vertical where we have seen good traction in quarter 2 but we do expect some amount of volatility which is typical given the holiday season and some of the spending will depend on how the holiday season pans out, so we do anticipate some softness in Retail. In the Manufacturing vertical, while we are seeing good traction in auto and hi-tech, we are seeing some challenges in the aero industry, also in the industrials where there is exposure to oil and gas or mining we are seeing some challenges, so we do expect some additional impact here. Energy continues to be challenged because of the oil prices and we are now seeing a second wave of cost cutting in the energy companies, so that also adds to some challenges. So these are somethings which typically we do not see, even though quarter 3 is historically soft these are some of the additional challenges we are anticipating in this quarter and that is one of the reasons why we are talking about a soft H2.

Edward Caso

My other question is on realization, surprising at least to me it's strong this quarter, I was wondering if Rajiv could break that down a little bit and why YoY is realization strong?

Rajiv Bansal

This is a quarter where we have more working days, so we had one extra working day in US and three extra working days in UK and Australia because of which we have seen an upside of about $17 mn of revenue during the quarter. We have about 8,000 projects running at any point of time and depending on which lifecycle stage they are in, there would always be a lot of maintenance projects would be in the transition phase and based on the IFRS guidelines of revenue recognition, there would always be revenue recognized depending on when the transactions are getting completed, so this is a normal course of business which will happen. But we are seeing certain upside in revenue on one or two projects because of this reason and we have seen about $17 mn of revenue coming up because of additional working days. Also if you remember we had announced acquisition of Skava and Kallidus in June of last quarter, so the full quarter revenue has come into this quarter which is additional $6 mn of revenue, so if we take $17 plus $6 and also different project lifecycle that is what explains why the pricing is showing an improvement in this quarter.

Moderator

Thank you. We will take our next question from Keith Bachman of Bank of Montreal. Please go ahead.

Keith Bachman

I wanted to follow Ed's question if I could, could you talk Rajiv a little bit about pricing that you are seeing in the current order trends, in particular Cognizant has suggested that pricing has become more competitive, if you could give some characterization on the pricing trends in the last 90 plus days, has the market become more competitive or is it staying fairly consistent? And then I have a follow-up.

Pravin Rao

We continue to see pricing pressure in the run side of the business and this is something not new, we have seen this in the past as well and that is something we have been consistently saying and this something is a reality from our perspective at least and we are working hard on our automation agenda, productivity improvement agenda because in the long run that is the only way to counter it. So we are not seeing any unusual, more than usual level of pricing sensitivity in the market place or aggressiveness. This is something which we have seen in the last several quarters and we expect to see it in future as well.

Keith Bachman

And my follow-up if I could, if you could talk a little bit about how currency has impacted margins and what role you think currency will play in your margins as you look out over the next couple of quarters? Thank you very much.

Rajiv Bansal

So during the quarter we have seen rupee depreciate against the dollar by about 2.7% which has given us a positive benefit of about 70 basis points on the margin. But however we have seen a sudden appreciation of rupee against the dollar in the first 10 days of October and it has appreciated by almost about 1.5%-2% already. So the rupee volatility is going to impact the margins and there is nothing you can do really in the short run on the reported margin front because of the rupee appreciation or depreciation. However in the medium to long-term this start getting priced to the clients because we are working towards a certain margin target as our cost structures in different currencies are changing because of the volatility in currency that automatically starts getting priced to the clients. So when we give long-term, if you look at the last many-many years we have seen rupee moving from Rs.48 to Rs.68 and then come back to Rs.58, go back to Rs.65 but our margins have remained in a narrow band. On a quarter-on-quarter basis you will see the impact of rupee appreciation, depreciation flow out to the margins but I think on a medium to long-term I think it gets spread to the clients.

Moderator

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

Ravi Menon

I have a question on this subcontracting, so my first question you have seen a 11.4% increase QoQ in USD terms so how do you expect us to move going ahead, is this mostly due to inception number of visas or due to a skill gap?

Pravin Rao

Yes, I think the new visas start becoming effective from October 1^st, so typically towards the June to September quarter we normally have challenges given a very high level of visa utilization and significant percentage of the sub-con spend is onsite, so to that extent what we have seen this quarter is because of that reason but over a period of time when the new visas start kicking in it also takes time, even though the visa is effective October 1^st, we have to apply for petition and there is appointment and there will be a backlog as well. So the whole of this quarter it takes us to get these visas actionized. So we will see some continued impact to some extent in quarter 3, but subsequently it should taper down.

Ravi Menon

And I have a second question Pravin, if I may. You had indicated I think in the investor conference in New York that seasonally though traditionally Q2 has been stronger than Q1 but we should not really expect that his year, but you have surprised us positively. So what areas have been as a source of the positive surprise for this quarter compared to when you made your comments?

Pravin Rao

This time there has been an all round growth, I mean if you look at it from a geography perspective we have seen good growth in Europe, good growth in Americas and if you factor in, normalize the rest of the world for currency in Australia, then even we have seen good growth in Australia as well and even across the verticals and service lines we have seen good growth. The only vertical where we have seen some challenges were in insurance, Telecom, then Energy, otherwise by and large it has been fairly positive. One part of it obviously we talked about the one-off revenue this quarter impact of one-off revenue, so that is something which is a one-off thing which we should not factor in, but I think when I talked in the conference, we had not anticipated the kind of strong volumes and the momentum that kicked in from some of our earlier wins. So to some extent we did not anticipate that at the beginning of the quarter but apart from that I think rest of the performance has been on expected lines.

Ravi Menon

So if I am right a little bit on that, would you say that some contract that were in practice got into revenue a little earlier, so can we say that revenues that were expected to start next quarter and got a little pulled in?

Pravin Rao

I think to some extent we have a hole in the sense that we got this one-off $23 mn revenue so that we need to make up in quarter three, and moreover that account or project which got cancelled would have contributed to some revenue that is also something we need to backfill. So to that extent we are starting quarter three on maybe a slightly lower point than what we would have normally anticipated. Then I also talked about some of the additional headwinds that we have seen, if those materialize than quarter three will continue to be soft, we are hopeful, I mean if they do not materialize then we may end up little better. But as Vishal talked earlier we have got many initiatives in place and our hope and expectation is, at least our endeavor is to make sure that we continue to focus on getting at least driving some incremental growth in most of our accounts through all these initiatives. So hopefully if not in quarter three we will get some momentum back in quarter four. At this stage we do not have the visibility so that is why from a guidance perspective we have guided for no change in the guidance and soft H2.

Moderator

Thank you. Our next question is from Anil Doradla of William Blair. Please go ahead.

Anil Doradla

Vishal, I just wanted to step back and ask kind of a big picture question, since you have come on board several strategic changes, can you help us understand how you have impacted two things, one is on the hiring front, and one is the pricing front? On the hiring front are you able to attract the new talent for these new initiatives and on the pricing front are your customers able to see your new value add and are they paying for this?

Vishal Sikka

So Anil yes, the answer the both questions is yes. On hiring in the new areas we are able to attract some world-class talent which we have been able to do that. I think that talent attracts talent and so that is sort of the principle that has been at work here. On the Renew side again, in the traditional hiring side as well we see tremendous interest, we see resumes constantly from people who reach out to us from our competitors and others in the industry, so that has been actually a very encouraging sign.

In terms of the pricing I think that when we look at the traditional services and how they go through transformation, we have to look at it differently than the way we look at completely new kind of services. So for instance when we look at completely new kinds of services based on design, based on new kinds of platforms where unprecedented cost performance improvements can be delivered or where new kinds of applications using artificial intelligence and technologies like that can be delivered, we generally do not see any pricing issues and we are able to get higher margins and things of that nature. So on the new areas because of the strong relevance and the strategic importance of these areas we do not see a pricing related issue.

When you look at traditional IT outsourcing or other forms of deals of the more traditional IT services oriented deals, there we do see continuously downward pricing pressure and I believe that that is a structural trend and the way we want to deal with that is through bringing of course first of all operational excellence but also by bringing much more use of automation, by being proactive and bringing innovation into our projects.

So for instance I will give you an example, in Sandeep's area in Logistics, one particular deal that we did with Panaya was a deal, I will just walk you through one example of this, it is a testing deal using IVS, so this was one of the early examples where we were actually able to apply Panaya beyond their traditional area of package system upgrades to a testing project. The entire project was for $370,000 over 18 months. We were able to by the use of Panaya eliminate 40% of the effort and the Panaya license in there was for $100,000. So when you look at this kind of an example we are transitioning from a people oriented model which is under the pricing pressure to a people plus software oriented model where we are able to take advantage of the software to dramatically reduce the number of people necessary in a project. The software is higher margin therefore the margin on the project for us improves, the cost, our ability to price the project attractive to the client goes up, and because we have less number of people working on it our bandwidth improves because we can do more projects with less number of people. So it creates a virtuous cycle where we are able to deal with the downward pricing pressure in a way that is constructive for the client as well as for us.

I believe that this is the recipe for the future. All the examples of software, the ‘Ai’ of Aikido that I talked about are around this pattern that we are driving and the more of this that we do the better our ability to deal with the negative pricing pressure will continue to be and our endeavor is to do hundreds of these kinds of projects across the company and we are already doing once as I mentioned earlier in the call. So that is the way that we want to deal with the downward pricing pressure by bringing the software into the mix that enables us to better differentiate our offerings, continue to improve our margins while improving the productivity of the people and thereby dealing with this. And I also believe that if we wait long enough and just wait for these brushes to become significantly stronger than they already are then it will be more difficult to get the earnings and get the margins improvements and things of this nature. So timing is essential and that is why we are doubling down on scaling these innovative areas in how they can improve the effectiveness of our existing offerings now and our goal is and our team is committed to this to bring these innovations to all of our top 200 clients, all the Aikido inventions to all top 200 clients by the end of this fiscal year.

Anil Doradla

And a quick follow-up, you talked about Manufacturing and Energy being soft beyond the seasonality, so does the second half quarter guidance assume the macro stays as it is or there is further deterioration in these two areas?

Vishal Sikka

It assumes the deterioration that we have already talked about and it takes that into account, we do not see further deterioration than that.

Moderator

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

Rod Bourgeois

So investors are inquiring about the real implications of your latest guidance, so let me ask about how your overall demand outlook has changed over the past three to six months excluding the normal impacts of seasonality and excluding the one-off impact of that terminated client. In other words, it would be helpful to understand how your outlook for the second half has changed since the outlook and assumptions you had in place three to six months ago? I think the specific things investors are really trying to understand here is are you in a situation now where the first half demand was stronger than you expected but you are now worried that demand has dampened to some extent for the second half or perhaps you are just being extra careful with your guidance? If you could clarify on that that would be great.

Vishal Sikka

Maybe I can start and then Pravin you can add. If you look further out than the second half of this year, the new deal wins that we have had recently will certainly give us confidence in our ability to grow the business as well as the adoption of our innovation which we are very serious about, it is something that gives us confidence in where we are going. But when you look at the near term and what is happening in Q3 and Q4, you have to understand that a large amount of our business depends on our existing business and therefore changes that happen in existing clients especially downward changes have an immediate impact whereas buildup of this business takes a longer period of time. So all this work that we are talking about is governed to a much larger degree by the existing business and not so much by the new business that we have been winning, so in that sense the demand environment has to be qualified to be a demand environment pertaining to the existing efforts that are ongoing at our clients when it comes to the near term. Does that make sense? So that is what the basis of the near terms, I mean 90 day cycle is basically governed by that even though these large multi-year projects take a long time to get up and running and start and so forth. So we are very confident in where we are headed and we are maintaining our yearly guidance, also we are maintaining our guidance to get to industry leading growth by next year. However in this particular quarter ahead of us and possibly in the second half of the year based on what we see. Of course, having said all of that with the focus that our teams have showed in Q1 and Q2 and especially with the adoption of the innovation that I have been talking about, it will be our endeavor to work really hard to make sure that none of this stuff that we are talking about happens and that we are able to beat the guidance. But based on what Pravin and I see today, it is still early in the quarter, this is basically our guidance so that is where we are.

Rod Bourgeois

Got it. So it sounds like you are feeling really encouraged about your new contract wins and the ramp-ups there, but you have got some issues in your existing client base that you started to see in Q2 and you have to be careful in case the pressures on your existing clients continue into the second half, is that the summary?

Vishal Sikka

You sir have said it most eloquently, I have repeated this thing that I just told you probably 35 times today and what you have just said is the most eloquent capture of the situation.

Rod Bourgeois

Great. Thanks for the clarification, I appreciate it.

Moderator

Thank you. Our next question is from Sudendra Goyal of Citi Group. Please go ahead.

Surendra Goyal

Yes, so this question is for Rajiv. Just looking at the cash flow statement, in the first half FY16, net cash provided by operating activities is down significantly YoY. In that context could you specifically tell us what the line ‘pre-payment and other assets’ in the cash flow statement covers. It seems to have impacted cash flows by around $260 mn in the first half versus almost no impact last year.

Rajiv Bansal

See, we have not seen anything significant in the second quarter. First quarter we had a dividend payout, second quarter we paid out the dividend tax, we also had the impact of rupee depreciation and also what is happening now is earlier we used to get interest on our fixed deposits and most of our cash is lying as fixed deposits with multiple banks in India. Earlier we used to get quarterly interest and we used to redeposit them, but what we started doing when we saw the interest rates started falling, we have kept them on a compounding basis, so instead of getting interest payments every quarter and then reinvesting, we have asked the banks to reinvest them so that we get the compounding benefit. So that is the reason what you see is though the interest gets accrued it really does not get paid to us and that is what also impacts the cash flows. So last quarter we also had DSO going up to 68 days, so other than the DSO going up marginally last quarter, dividends being paid out and the change in the interest payments of the banks that we initiated because of the falling interest rates there has been no major change in our cash flow.

Surendra Goyal

Rajiv just to clarify, I am talking of operating cash flows, not really investing activities. So if you look at the cash flow there is a line called prepayment and other assets which has impacted the cash flows negatively by $262 mn while last year first half there was practically no impact, so that is the line specifically that I am asking about.

Sandeep Mahindroo

Yes Surendra, so I think Rajiv answered that, basically we are reinvesting the interest component that we earlier used to collect, that is being reinvested and that appears as a pre-payment. So once we collect it you will see an improvement in cash flow to that extent.

Moderator

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

Sandeep Mahindroo

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

Moderator

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

Exhibit 99.8

Form of Advertisement

Infosys Limited

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

CIN : L85110KA1981PLC013115

Website: www.infosys.com

Email: [email protected]

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

Audited consolidated financial results of Infosys Limited and its subsidiaries for the quarter and half-year ended September 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 September 30,	Quarter ended June 30,	Quarter ended September 30,	Half-year ended September 30,		Year ended March 31,
	2015	2015	2014	2015	2014	2015
Revenues	15,635	14,354	13,342	29,989	26,112	53,319
Cost of sales	9,724	9,123	8,201	18,847	16,247	32,883
Gross profit	5,911	5,231	5,141	11,142	9,865	20,436
Selling and marketing expenses	843	820	769	1,663	1,435	2,941
Administrative expenses	1,075	964	889	2,038	1,736	3,663
Operating profit	3,993	3,447	3,483	7,441	6,694	13,832
Other income, net	793	758	877	1,551	1,706	3,427
Share in associate's profit /(loss)	(1)	–	–	(1)	–	(1)
Profit before income taxes	4,785	4,205	4,360	8,991	8,400	17,258
Income tax expense	1,387	1,175	1,264	2,562	2,418	4,929
Net profit	3,398	3,030	3,096	6,429	5,982	12,329
Paid-up equity share capital (par value 5/- each, fully paid)	1,144	1,144	286	1,144	286	572
Share premium, retained earnings and other components of equity	54,191	54,191	47,244	54,191	47,244	54,191
Earnings per share (par value 5/- each) ⁽¹⁾
Basic	14.87	13.26	13.55	28.13	26.17	53.94
Diluted	14.87	13.26	13.55	28.13	26.17	53.94
Total public shareholding⁽²⁾
Number of shares	159,98,70,171	160,06,77,720	39,66,88,097	159,98,70,171	39,66,88,097	80,65,15,515
Percentage of shareholding	69.65	69.69	69.08	69.65	69.08	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	30,04,31,272	9,14,08,078	30,04,31,272	9,14,08,078	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	100.00	100.00
Percentage of shares (as a % of the total share capital of the Company)	13.08	13.08	15.92	13.08	15.92	13.08

⁽¹⁾	Adjusted for bonus issues wherever applicable
⁽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 September 30, 2015, June 30, 2015 and March 31, 2015, also excludes treasury shares.

1.	The audited consolidated financial statements for the quarter and half-year ended September 30, 2015 have been taken on record by the Board of Directors at its meeting held on October 12, 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.

2.	Senior management changes

	Mr. Rajiv Bansal, Executive Vice President and Chief Financial Officer (CFO) of Infosys since October 2012, has informed the Company of his intention to resign. He will be replaced by M.D. Ranganath effective end of business October 12, 2015.

3.	Investments

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

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

4.	The Board approved the 2015 Incentive Compensation Plan, amending the existing 2011 RSU Plan. The 2011 RSU plan has been amended in accordance with the SEBI (share based employee benefits) regulations, 2014 and will be issued as the 2015 Incentive Compensation Plan. The grants made under the 2011 RSU plan will continue to be administered and implemented by the 2015 Incentive Compensation Plan. The 2015 Incentive Compensation Plan will be subject to the approval of shareholders.

	The Board further approved the issuance of new shares, so as not to cumulatively exceed 2% of the shares outstanding, in order to support grants made over time under the 2015 Incentive Compensation Plan. Approval to issue such shares under the 2015 Incentive Compensation plan will be subject to the approval of shareholders.

5.	Information on dividends for the quarter and half-year ended September 30, 2015

	The Board declared an interim dividend of 10/- per equity share. The record date for the payment of interim dividend is October 19, 2015. The interim dividend will be paid on October 21, 2015. The interim dividend declared in the previous year was 30/-(not adjusted for bonus issues) per equity share.

(in )

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

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

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

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.

6. Other information (Consolidated - Audited)

(in crore)

Particulars	Quarter ended September 30,	Quarter ended June 30,	Quarter ended September 30,	Half-year ended September 30,		Year ended March 31,
	2015	2015	2014	2015	2014	2015
Staff costs	8,558	8,053	7,522	16,612	14,877	29,742
Items exceeding 10% of aggregate expenditure	–	–	–	–	–	–
Details of other income:
Interest income on deposits and certificates of deposit	624	657	644	1,281	1,258	2,631
Income from available-for-sale financial assets	47	49	70	96	149	261
Miscellaneous income, net	70	77	15	147	22	60
Gains / (losses) on foreign currency	52	(25)	148	27	277	475
Total	793	758	877	1,551	1,706	3,427

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

(in crore)

Particulars	Quarter ended September 30,	Quarter ended June 30,	Quarter ended September 30,	Half-year ended September 30,		Year ended March 31,
	2015	2015	2014	2015	2014	2015
Revenues	13,525	12,738	11,863	26,263	23,182	47,300
Profit before exceptional item and tax	4,575	3,993	4,169	8,569	7,964	16,386
Profit on transfer of business⁽¹⁾	3,036	–	412	3,036	412	412
Profit before tax	7,611	3,993	4,581	11,605	8,376	16,798
Profit for the period	6,306	2,897	3,365	9,204	6,085	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 Systems Limited, a wholly owned subsidiary.

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

Nature of complaints received	Opening balance	Additions	Disposal	Closing balance
Non-receipt of dividend / Annual Report	–	218	218	–

9. Consolidated statement of assets and liabilities (IFRS Consolidated – Audited)

(in crore)

Particulars	As at
	September 30, 2015	March 31, 2015
EQUITY AND LIABILITIES
Shareholders’ funds
Share capital	1,144	572
Reserves and surplus	56,201	54,191
Sub-total – Shareholders' Fund	57,345	54,763
Minority interests	–	–
Non-current liabilities
Deferred tax liabilities	277	160
Other long-term liabilities	127	46
Sub-total – Non-current liabilities	404	206
Current liabilities
Trade payables	110	140
Other current liabilities	12,612	10,765
Short-term provisions	435	478
Sub-total – Current liabilities	13,157	11,383
TOTAL– EQUITY AND LIABILITIES	70,906	66,352
ASSETS
Non-current assets
Fixed assets	10,603	9,763
Goodwill on consolidation	3,668	3,091
Non-current investments	1,705	1,438
Deferred tax assets	511	537
Other non-current assets	5,340	4,327
Sub-total – Non-current assets	21,827	19,156
Current assets
Current investments	582	874
Trade receivables	10,397	9,713
Cash and cash equivalents	29,946	30,367
Other current assets	8,154	6,242
Sub-total Current assets	49,079	47,196
TOTAL – ASSETS	70,906	66,352

The above disclosure is in compliance with Clause 41(V)(h) and Annexure IX of the Listing Agreement. The disclosure is an extract of the audited IFRS Consolidated Balance Sheet as at September 30, 2015.

10. Segment reporting (IFRS Consolidated - Audited)

(in crore)

Particulars	Quarter ended September 30,	Quarter ended June 30,	Quarter ended September 30,	Half-year ended September 30,		Year ended March 31,
	2015	2015	2014	2015	2014	2015
Revenue by business segment
Financial Services (FS)	4,241	3,882	3,579	8,123	7,071	14,394
Manufacturing (MFG)	3,622	3,332	3,020	6,954	5,903	12,140
Energy & utilities, Communication and Services (ECS)	2,814	2,627	2,608	5,441	5,009	10,057
Retail, Consumer packaged goods and Logistics (RCL)	2,582	2,342	2,224	4,924	4,416	8,869
Life Sciences, Healthcare and Insurance (HILIFE)	2,086	1,944	1,673	4,031	3,262	6,881
All other segments	290	227	238	516	451	978
Total	15,635	14,354	13,342	29,989	26,112	53,319
Less: Inter-segment revenue	–	–	–	–	–	–
Net revenue from operations	15,635	14,354	13,342	29,989	26,112	53,319
Segment profit before tax, depreciation and non-controlling interests:
Financial Services (FS)	1,258	1,073	1,052	2,331	2,051	4,262
Manufacturing (MFG)	891	785	778	1,677	1,492	3,025
Energy & utilities, Communication and Services (ECS)	834	783	835	1,617	1,561	3,049
Retail, Consumer packaged goods and Logistics (RCL)	726	645	668	1,370	1,327	2,679
Life Sciences, Healthcare and Insurance (HILIFE)	585	494	444	1,080	845	1,865
All other segments	60	(19)	(3)	41	(61)	21
Total	4,354	3,761	3,774	8,116	7,215	14,901
Less: Other unallocable expenditure	361	314	291	675	521	1,069
Add: Unallocable other income	793	758	877	1,551	1,706	3,427
Add: Share in Associate's profit / (loss)	(1)	–	–	(1)	–	(1)
Profit before tax and non-controlling interests	4,785	4,205	4,360	8,991	8,400	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	Dr. Vishal Sikka
October 12, 2015	Chief Executive Officer and Managing Director

The Board has also taken on record the unaudited condensed consolidated results of Infosys Limited and its subsidiaries for the quarter and half-year ended September 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 September 30,	Quarter ended June 30,	Quarter ended September 30,	Half-year ended September 30,		Year ended March 31,
	2015	2015	2014	2015	2014	2015
Revenues	2,392	2,256	2,201	4,647	4,334	8,711
Cost of sales	1,488	1,434	1,353	2,922	2,697	5,374
Gross profit	904	822	848	1,725	1,637	3,337
Net profit	519	476	511	995	933	2,013
Earnings per equity share
Basic	0.23	0.21	0.22	0.44	0.43	0.88
Diluted	0.23	0.21	0.22	0.44	0.43	0.88
Total assets	10,810	10,587	9,989	10,810	9,989	10,615
Cash and cash equivalents including available-for-sale financial assets (current) and certificates of deposit	4,655	4,537	5,232	4,655	5,232	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 October 12, 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	September 30, 2015	March 31, 2015
ASSETS
Current assets
Cash and cash equivalents	2.1	4,566	4,859
Available-for-sale financial assets	2.2	89	140
Trade receivables		1,585	1,554
Unbilled revenue		524	455
Prepayments and other current assets	2.4	714	527
Derivative financial instruments	2.7	4	16
Total current assets		7,482	7,551
Non-current assets
Property, plant and equipment	2.5	1,477	1,460
Goodwill	2.6	559	495
Intangible assets		140	102
Investment in associate		15	15
Available-for-sale financial assets	2.2	245	215
Deferred income tax assets		78	85
Income tax assets		715	654
Other non-current assets	2.4	99	38
Total Non-current assets		3,328	3,064
Total assets		10,810	10,615
LIABILITIES AND EQUITY
Current liabilities
Trade payables		17	22
Derivative financial instruments	2.7	2	–
Current income tax liabilities		476	451
Client deposits		3	4
Unearned revenue		169	168
Employee benefit obligations		183	171
Provisions	2.8	66	77
Other current liabilities	2.9	1,090	927
Total current liabilities		2,006	1,820
Non-current liabilities
Deferred income tax liabilities		42	25
Other non-current liabilities	2.9	19	8
Total liabilities		2,067	1,853
Equity
Share capital - 5 ($0.16) par value 2,400,000,000 (1,200,000,000) equity shares authorized, issued and outstanding 2,285,619,380 (1,142,805,132) net of 11,325,284 (5,667,200) treasury shares, as of September 30, 2015 (March 31, 2015), respectively		199	109
Share premium		569	659
Retained earnings		10,449	10,090
Other reserves		–	–
Other components of equity		(2,474)	(2,096)
Total equity attributable to equity holders of the company		8,743	8,762
Non-controlling interests		–	–
Total equity		8,743	8,762
Total liabilities and equity		10,810	10,615

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

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

R. Seshasayee

Chairman

Dr. Vishal Sikka

Chief Executive Officer and

Managing Director

Roopa Kudva

Director

Bangalore

October 12, 2015

Rajiv Bansal

Chief Financial Officer

A.G.S. Manikantha

Company Secretary

Infosys Limited and Subsidiaries

Unaudited Condensed Consolidated Interim Statements of Comprehensive Income

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

	Note	Three months ended September 30,		Six months ended September 30,
		2015	2014	2015	2014
Revenues		2,392	2,201	4,647	4,334
Cost of sales	2.15	1,488	1,353	2,922	2,697
Gross profit		904	848	1,725	1,637
Operating expenses:
Selling and marketing expenses	2.15	129	127	258	238
Administrative expenses	2.15	165	146	316	288
Total operating expenses		294	273	574	526
Operating profit		610	575	1,151	1,111
Other income, net		121	144	240	283
Share in associate's profit / (loss)		–	–	–	–
Profit before income taxes		731	719	1,391	1,394
Income tax expense	2.11	212	208	396	401
Net profit		519	511	995	993
Other comprehensive income
Items that will not be reclassified to profit or loss:
Re-measurements of the net defined benefit liability/asset		(1)	(1)	(2)	(4)
		(1)	(1)	(2)	(4)
Items that may be reclassified subsequently to profit or loss:
Fair value changes on available-for-sale financial assets	2.2 & 2.11	5	5	3	8
Exchange differences on translation of foreign operations		(242)	(223)	(379)	(259)
		(237)	(218)	(376)	(251)
Total other comprehensive income, net of tax		(238)	(219)	(378)	(255)
Total comprehensive income		281	292	617	738
Profit attributable to:
Owners of the company		519	511	995	993
Non-controlling interests		–	–	–	–
		519	511	995	993
Total comprehensive income attributable to:
Owners of the company		281	292	617	738
Non-controlling interests		–	–	–	–
		281	292	617	738
Earnings per equity share
Basic ($)		0.23	0.22	0.44	0.43
Diluted ($)		0.23	0.22	0.44	0.43
Weighted average equity shares used in computing earnings per equity share	2.12
Basic		2,285,614,029	2,285,610,264	2,285,612,157	2,285,610,264
Diluted		2,285,713,042	2,285,616,112	2,285,696,678	2,285,613,188

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

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

R. Seshasayee

Chairman

Dr. Vishal Sikka

Chief Executive Officer and

Managing Director

Roopa Kudva

Director

Bangalore

October 12, 2015

Rajiv Bansal

Chief Financial Officer

A.G.S. Manikantha

Company Secretary

Infosys Limited and Subsidiaries

Unaudited Condensed Consolidated Interim Statements of Changes in Equity

(Dollars in millions except equity share data)

	Shares⁽²⁾	Share capital	Share premium	Retained earnings	Other reserves ⁽³⁾	Other components of equity	Total equity attributable to equity holders of the company
Balance as of April 1, 2014	571,402,566	64	704	8,892	–	(1,727)	7,933
Changes in equity for the six months ended September 30, 2014
Remeasurement of the net defined benefit liability/asset, net of tax effect	–	–	–	–	–	(4)	(4)
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)	–	–	–	–	–	8	8
Net profit	–	–	–	993	–	–	993
Exchange differences on translation of foreign operations	–	–	–	–	–	(259)	(259)
Balance as of September 30, 2014	571,402,566	64	704	9,406	–	(1,982)	8,192
Balance as of April 1, 2015	1,142,805,132	109	659	10,090	–	(2,096)	8,762
Changes in equity for the six months ended September 30, 2015
Shares issued on exercise of employee stock options	9,116	–	–	–	–	–	–
Increase in share capital on account of bonus issue⁽¹⁾ (Refer Note 2.17)	1,142,805,132	90	–	–	–	–	90
Amount utilized for bonus issue⁽¹⁾ (Refer Note 2.17)	–	–	(90)	–	–	–	(90)
Transfer to other reserves	–	–	–	(40)	40	–	–
Transfer from other reserves on utilization	–	–	–	40	(40)	–	–
Remeasurement of the net defined benefit liability/asset, net of tax effect	–	–	–	–	–	(2)	(2)
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)	–	–	–	–	–	3	3
Net profit	–	–	–	995	–	–	995
Exchange differences on translation of foreign operations	–	–	–	–	–	(379)	(379)
Balance as of September 30, 2015	2,285,619,380	199	569	10,449	–	(2,474)	8,743

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

⁽¹⁾	net of treasury shares
⁽²⁾	excludes treasury shares of 11,325,284 as of September 30, 2015, 5,667,200 as of April 1, 2015 and 2,833,600 each as of September 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.

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

R. Seshasayee

Chairman

Dr. Vishal Sikka

Chief Executive Officer and

Managing Director

Roopa Kudva

Director

Bangalore

October 12, 2015

Rajiv Bansal

Chief Financial Officer

A.G.S. Manikantha

Company Secretary

Infosys Limited and Subsidiaries

Unaudited Condensed Consolidated Interim Statements of Cash Flows

(Dollars in millions)

	Six months ended September 30,
	2015	2014
Operating activities:
Net Profit	995	993
Adjustments to reconcile net profit to net cash provided by operating activities :
Depreciation and amortisation	104	86
Income from available-for-sale financial assets and certificates of deposit	(15)	(30)
Income tax expense	396	401
Effect of exchange rate changes on assets and liabilities	8	3
Deferred purchase price	19	19
Provisions for doubtful trade receivable	1	28
Other adjustments	12	6
Changes in Working Capital
Trade receivables	(98)	(142)
Prepayments and other assets	(262)	2
Unbilled revenue	(92)	(23)
Trade payables	(5)	(3)
Client deposits	(1)	(3)
Unearned revenue	9	30
Other liabilities and provisions	198	130
Cash generated from operations	1,269	1,497
Income taxes paid	(443)	(326)
Net cash provided by operating activities	826	1,171
Investing activities:
Expenditure on property, plant and equipment, net of sale proceeds, including changes in retention money and capital creditors	(195)	(168)
Loans to employees	(1)	(5)
Deposits placed with corporation	(4)	1
Income from available-for-sale financial assets and certificates of deposit	14	30
Payment for acquisition of business, net of cash acquired	(87)	–
Investment in preference securities	(3)	–
Investment in other available-for-sale financial assets	(2)	–
Investment in quoted debt securities	(31)	–
Redemption of certificates of deposit	–	121
Investment in liquid mutual funds	(2,115)	(1,999)
Redemption of liquid mutual funds	2,156	1,741
Investment in fixed maturity plan securities	–	(5)
Redemption of fixed maturity plan securities	5	5
Net cash used in investing activities	(263)	(279)
Financing activities:
Payment of dividend (including corporate dividend tax)	(636)	(479)
Net cash used in financing activities	(636)	(479)
Effect of exchange rate changes on cash and cash equivalents	(220)	(140)
Net increase/(decrease) in cash and cash equivalents	(73)	413
Cash and cash equivalents at the beginning	4,859	4,331
Cash and cash equivalents at the end	4,566	4,604
Supplementary information:
Restricted cash balance	58	57

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

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

R. Seshasayee

Chairman

Dr. Vishal Sikka

Chief Executive Officer and

Managing Director

Roopa Kudva

Director

Bangalore

October 12, 2015

Rajiv Bansal

Chief Financial Officer

A.G.S Manikantha

Company Secretary

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

1. Company Overview and Significant Accounting Policies

1.1

Company overview

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

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

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

The Group's unaudited condensed consolidated interim financial statements are authorized for issue by the company's Board of Directors on October 12, 2015.

1.2

Basis of preparation of financial statements

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

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

1.3 Basis of consolidation

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

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

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

1.4 Use of estimates

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

1.5 Critical accounting estimates

a. Revenue recognition

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

b. Income taxes

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

c. Business combinations and intangible assets

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

d. Property, plant and equipment

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

e. Impairment of Goodwill

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

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

1.6 Revenue recognition

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

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

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

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

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

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

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

1.7 Property, plant and equipment

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

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

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

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

1.8 Business combinations

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

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

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

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

1.9 Employee benefits

1.9.1 Gratuity

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

Liabilities with regard to the Gratuity Plan are determined by actuarial valuation, performed by an independent actuary, at each balance sheet date using the projected unit credit method. The company fully contributes all ascertained liabilities to the Infosys Limited Employees' Gratuity Fund Trust (the Trust). In case of Infosys BPO and EdgeVerve, contributions are made to the Infosys BPO's Employees' Gratuity Fund Trust and EdgeVerve Systems Limited Employees' Gratuity Fund Trust, respectively. Trustees administer contributions made to the Trusts and contributions are invested in a scheme with Life Insurance Corporation of India as permitted by law of India.

The Group recognizes the net obligation of a defined benefit plan in its balance sheet as an asset or liability. Gains and losses through re-measurements of the net defined benefit liability/asset are recognized in other comprehensive income. The actual return of the portfolio of plan assets, in excess of the yields computed by applying the discount rate used to measure the defined benefit obligation is recognized in other comprehensive income. The effect of any plan amendments are recognized in net profits in the statement of comprehensive income.

1.9.2 Superannuation

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

1.9.3 Provident fund

Eligible employees of Infosys receive benefits from a provident fund, which is a defined benefit plan. Both the eligible employee and the company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employee's salary. The company contributes a portion to the Infosys Limited Employees' Provident Fund Trust. The trust invests in specific designated instruments as permitted by Indian law. The remaining portion is contributed to the government administered pension fund. The rate at which the annual interest is payable to the beneficiaries by the trust is being administered by the government. The company has an obligation to make good the shortfall, if any, between the return from the investments of the Trust and the notified interest rate.

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

1.9.4 Compensated absences

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

1.10 Share - based compensation

The Group recognizes compensation expense relating to share-based payments in net profit using fair-value in accordance with IFRS 2, Share-Based Payment. The estimated fair value of awards is charged to income on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was in-substance, multiple awards with a corresponding increase to share premium.

1.11 Earnings per equity share

Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

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

1.12 Recent accounting pronouncements

1.12.1 Standards issued but not yet effective

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

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

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

IFRS 15 Revenue from Contract with Customers: In May 2014, the International Accounting Standards Board (IASB) issued IFRS 15, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts with customers. The standard permits the use of either the retrospective or cumulative effect transition method. The effective date for adoption of IFRS 15 is annual periods beginning on or after January 1, 2017, though early adoption is permitted.

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

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
	September 30, 2015	March 31, 2015
Cash and bank deposits	3,774	4,192
Deposits with corporations	792	667
	4,566	4,859

Cash and cash equivalents as of September 30, 2015 and March 31, 2015 include restricted cash and bank balances of $58 million each. 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
	September 30, 2015	March 31, 2015
Current accounts
ANZ Bank, Taiwan	1	1
Banamex Bank, Mexico	1	2
Bank of America, Mexico	4	4
Bank of America, USA	123	115
Bank Zachodni WBK S.A, Poland	1	1
Barclays Bank, UK	1	2
Bank Leumi, Israel (US Dollar account)	2	1
Bank Leumi, Israel (Israeli Sheqel account)	2	2
China Merchants Bank, China	2	1
Citibank N.A, China	10	3
Citibank N.A., China (U.S. Dollar account)	12	4
Citibank N.A., Costa Rica	–	1
Citibank N.A., Czech Republic	1	1
Citibank N.A., Australia	9	4
Citibank N.A., Brazil	1	4
Citibank N.A., Dubai	1	–
Citibank N.A., India	–	1
Citibank N.A., Japan	6	3
Citibank N.A., New Zealand	1	1
Citibank N.A., Singapore	1	–
Citibank N.A., South Africa	1	1
CitiBank N.A., USA	5	–
CitiBank N.A., EEFC (U.S. Dollar account)	1	–
Commerzbank, Germany	3	3
Deutsche Bank, India	3	1
Deutsche Bank, Philippines	1	1
Deutsche Bank, Philippines (U.S. Dollar account)	–	1
Deutsche Bank, Poland	2	3
Deutsche Bank, EEFC (Euro account)	2	1
Deutsche Bank, EEFC (Swiss Franc account)	1	1
Deutsche Bank, EEFC (U.S. Dollar account)	5	1
Deutsche Bank, EEFC (United Kingdom Pound Sterling account)	1	1
Deutsche Bank, Belgium	4	2
Deutsche Bank, Czech Republic	1	1
Deutsche Bank, Czech Republic (Euro account)	1	–
Deutsche Bank, Czech Republic (U.S. Dollar account)	5	3
Deutsche Bank, France	1	–
Deutsche Bank, Germany	4	1
Deutsche Bank, Netherlands	4	–
Deutsche Bank, Singapore	1	1
Deutsche Bank, United Kingdom	31	4
HSBC Bank, Brazil	–	1
HSBC Bank, Hong Kong	2	7
ICICI Bank, India	3	5
ICICI Bank, EEFC (U.S. Dollar account)	1	2
ICICI Bank, EEFC (United Kingdom Pound Sterling account)	1	–
ICICI Bank-Unpaid dividend account	1	–
ING Bank, Belgium	1	–
Nordbanken, Sweden	1	1
Punjab National Bank, India	–	1
Raiffeisen Bank, Romania	–	–
Royal Bank of Scotland, China	1	7
Royal Bank of Scotland, China (U.S. Dollar account)	1	7
Royal Bank of Canada, Canada	5	3
Silicon Valley Bank, USA	1	11
Silicon Valley Bank, (Euro account)	9	3
Silicon Valley Bank, (United Kingdom Pound Sterling account)	2	1
Union Bank of Switzerland AG	4	2
Union Bank of Switzerland AG, (U.S. Dollar Account)	1	–
Union Bank of Switzerland AG, (Euro Account)	1	1
Wells Fargo Bank N.A., USA	6	6
Westpac, Australia	1	1
	298	236
Deposit accounts
Allahabad Bank	30	32
Andhra Bank	43	27
Axis Bank	228	239
Bank of Baroda	365	383
Bank of India	368	431
Canara Bank	358	501
Central Bank of India	207	221
Citibank	11	–
Corporation Bank	169	204
Deutsche Bank, Poland	28	19
Development Bank of Singapore	–	6
HDFC Bank Ltd.	394	336
ICICI Bank	478	507
IDBI Bank	36	137
Indian Overseas Bank	44	104
Indusind Bank	38	12
ING Vysya Bank	–	16
Kotak Mahindra Bank Limited	15	1
National Australia Bank Limited	5	14
Oriental Bank of Commerce	229	253
Punjab National Bank	23	95
South Indian Bank	4	4
State Bank of India	9	9
Syndicate Bank	68	65
Union Bank of India	162	168
Vijaya Bank	41	75
Yes Bank	123	97
	3,476	3,956
Deposits with corporations
HDFC Limited, India	792	667
	792	667
Total	4,566	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
	September 30, 2015	March 31, 2015
Current
Mutual fund units:
Liquid mutual fund units
Cost and fair value	88	135
Quoted debt securities:
Cost	1	–
Gross unrealized holding gains/(losses)	–	–
Fair value	1	–
Fixed Maturity Plan Securities
Cost	–	5
Gross unrealized holding gains	–	–
Fair value	–	5
	89	140
Non-current
Quoted debt securities:
Cost	237	216
Gross unrealized holding gains/(losses)	2	(1)
Fair value	239	215
Unquoted equity and preference securities:
Cost	4	–
Gross unrealized holding gains	–	–
Fair value	4	–
Others:
Cost	2	–
Gross unrealized holding gains	–	–
Fair value	2	–
	245	215
Total available-for-sale financial assets	334	355

Mutual fund units:

Liquid mutual funds:

The fair value of liquid mutual funds as of September 30, 2015 and March 31, 2015 was $88 million and $135 million, respectively. The fair value is based on quoted prices.

Fixed maturity plan securities:

During the six months ended September 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 loss of less than $1 million, net of taxes has been recognized in other comprehensive income for each of the three months and six months ended September 30, 2014, respectively (Refer to note 2.11).

Quoted debt securities:

The fair value of quoted debt securities as on September 30, 2015 and March 31, 2015 was $240 million and $215 million, respectively. The net unrealized gain of $5 million, net of taxes of less than $1 million, has been recognized in other comprehensive income for the three months ended September 30, 2015. The net unrealized gain of $3 million, net of taxes of less than $1 million, has been recognized in other comprehensive income for the six months ended September 30, 2015. The net unrealized gain of $5 million and $8 million, net of taxes has been recognized in other comprehensive income for the three months and six months ended September 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⁽¹⁾	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

⁽¹⁾ Includes cash and cash equivalents acquired of $19 million.

The goodwill is not tax deductible.

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

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

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

Kallidus Inc. (d.b.a Skava)

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

Infosys expects to help its clients bring new digital experiences to their customers through IP-led technology offerings, new automation tools and 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⁽¹⁾	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

⁽¹⁾ Includes cash and cash equivalents acquired of $4 million.

The goodwill is not tax deductible.

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

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

(Dollars in millions)

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

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

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

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

EdgeVerve System Limited

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

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

Finacle and Edge Services

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

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

2.4 Prepayments and other assets

Prepayments and other assets consist of the following:

(Dollars in millions)

	As of
	September 30, 2015	March 31, 2015
Current
Rental deposits	4	4
Security deposits	1	1
Loans and advances to employees	33	35
Prepaid expenses ⁽¹⁾	15	16
Interest accrued and not due	209	63
Withholding taxes ⁽¹⁾	231	218
Deposit with corporation	171	176
Deferred contract cost⁽¹⁾	5	–
Advance payments to vendors for supply of goods ⁽¹⁾	20	13
Other assets	25	1
	714	527
Non-Current
Loans and advances to employees	6	5
Security deposits	11	11
Deposit with corporation	9	9
Prepaid gratuity ⁽¹⁾	3	4
Prepaid expenses ⁽¹⁾	1	1
Deferred contract cost⁽¹⁾	55	–
Rental Deposits	14	8
	99	38
	813	565
Financial assets in prepayments and other assets	483	313

⁽¹⁾Nonfinancial assets

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

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

2.5 Property, plant and equipment

Following are the changes in the carrying value of property, plant and equipment for the three months ended September 30, 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 July 1, 2015	248	936	345	573	193	5	247	2,547
Additions	1	8	15	29	5	–	39	97
Deletions	–	–	(1)	(37)	–	–	–	(38)
Translation difference	(7)	(27)	(10)	(16)	(6)	–	(8)	(74)
Gross carrying value as of September 30, 2015	242	917	349	549	192	5	278	2,532
Accumulated depreciation as of July 1, 2015	(3)	(320)	(214)	(377)	(136)	(3)	–	(1,053)
Depreciation	–	(9)	(11)	(22)	(6)	–	–	(48)
Accumulated depreciation on deletions	–	–	1	15	–	–	–	16
Translation difference	1	10	5	10	4	–	–	30
Accumulated depreciation as of September 30, 2015	(2)	(319)	(219)	(374)	(138)	(3)	–	(1,055)
Carrying value as of July 1, 2015	245	616	131	196	57	2	247	1,494
Carrying value as of September 30, 2015	240	598	130	175	54	2	278	1,477

Following are the changes in the carrying value of property, plant and equipment for the three months ended September 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 July 1, 2014	216	845	288	460	169	5	319	2,302
Additions	37	41	21	27	9	–	–	135
Deletions	–	–	(1)	(3)	–	(1)	(45)	(50)
Translation difference	(5)	(23)	(7)	(13)	(5)	1	(8)	(60)
Gross carrying value as of September 30, 2014	248	863	301	471	173	5	266	2,327
Accumulated depreciation as of July 1, 2014	–	(305)	(183)	(339)	(119)	(2)	–	(948)
Depreciation	(2)	(8)	(11)	(15)	(8)	–	–	(44)
Accumulated depreciation on deletions	–	–	1	1	–	–	–	2
Translation difference	–	8	3	10	3	(1)	–	23
Accumulated depreciation as of September 30, 2014	(2)	(305)	(190)	(343)	(124)	(3)	–	(967)
Carrying value as of July 1, 2014	216	540	105	121	50	3	319	1,354
Carrying value as of September 30, 2014	246	558	111	128	49	2	266	1,360

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

(Dollars in millions)

	Land	Buildings	Plant and machinery	Computer equipment	Furniture and fixtures	Vehicles	Capital work-in-progress	Total
Gross carrying value as of April 1, 2015	250	940	337	535	189	6	230	2,487
Additions	4	20	29	77	12	–	60	202
Deletions	–	–	(1)	(39)	–	–	–	(40)
Translation difference	(12)	(43)	(16)	(24)	(9)	(1)	(12)	(117)
Gross carrying value as of September 30, 2015	242	917	349	549	192	5	278	2,532
Accumulated depreciation as of April 1, 2015	(3)	(317)	(207)	(365)	(132)	(3)	–	(1,027)
Depreciation	–	(17)	(23)	(40)	(12)	–	–	(92)
Accumulated depreciation on deletions	–	–	1	16	–	–	–	17
Translation difference	1	15	10	15	6	–	–	47
Accumulated depreciation as of September 30, 2015	(2)	(319)	(219)	(374)	(138)	(3)	–	(1,055)
Carrying value as of April 1, 2015	247	623	130	170	57	3	230	1,460
Carrying value as of September 30, 2015	240	598	130	175	54	2	278	1,477

Following are the changes in the carrying value of property, plant and equipment for the six months ended September 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	64	51	28	46	11	–	14	214
Deletions	–	–	(2)	(5)	(2)	(1)	(45)	(55)
Translation difference	(6)	(27)	(9)	(14)	(6)	–	(8)	(70)
Gross carrying value as of September 30, 2014	248	863	301	471	173	5	266	2,327
Accumulated depreciation as of April 1, 2014	–	(300)	(175)	(328)	(117)	(2)	–	(922)
Depreciation	(2)	(15)	(22)	(28)	(13)	–	–	(80)
Accumulated depreciation on deletions	–	–	2	3	2	–	–	7
Translation difference	–	10	5	10	4	(1)	–	28
Accumulated depreciation as of September 30, 2014	(2)	(305)	(190)	(343)	(124)	(3)	–	(967)
Carrying value as of April 1, 2014	190	539	109	116	53	4	305	1,316
Carrying value as of September 30, 2014	246	558	111	128	49	2	266	1,360

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

(Dollars in millions)

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

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

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

Carrying value of land includes $94 million and $99 million as of September 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 $219 million and $252 million as of September 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
	September 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	(7)	(39)
Carrying value at the end	559	495

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

Effective April 1, 2015, the company reorganized its business to support its objective of delivery innovation. Consequent to the internal reorganization there were changes effected in the segments based on the “management approach” as defined in IFRS 8, Operating Segments. (Refer Note 2.14). Accordingly the goodwill has been allocated to the new operating segments as at September 30, 2015.

(Dollars in millions)

Segment	As of
	September 30, 2015
Financial services	125
Manufacturing	124
Retail, Consumer packaged goods and Logistics	87
Life Sciences, Healthcare and Insurance	98
Energy & utilities, Communication and Services	99
	533
Operating segments without significant goodwill	26
Total	559

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 September 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)	4,566	–	–	–	4,566
Available-for-sale financial assets (Refer to Note 2.2)	–	–	334	–	334
Trade receivables	1,585	–	–	–	1,585
Unbilled revenue	524	–	–	–	524
Prepayments and other assets (Refer to Note 2.4)	483	–	–	–	483
Derivative financial instruments	–	4	–	–	4
Total	7,158	4	334	–	7,496
Liabilities:
Trade payables	–	–	–	17	17
Derivative financial instruments	–	2	–	–	2
Client deposits	–	–	–	3	3
Employee benefit obligation	–	–	–	183	183
Other liabilities including contingent consideration (Refer note 2.9)	–	16	–	899	915
Total	–	18	–	1,102	1,120

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 September 30, 2015:

(Dollars in millions)

	As of September 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)	88	88	–	–
Available- for- sale financial asset- Investments in quoted debt securities (Refer to Note 2.2)	240	62	178	–
Available- for- sale financial asset- Investments in preference securities (Refer to Note 2.2)	4	–	–	4
Available- for- sale financial asset- others (Refer Note 2.2)	2	–	–	2
Derivative financial instruments- gain on outstanding foreign exchange forward and option contracts	4	–	4	–
Liabilities				–
Derivative financial instruments- loss on outstanding foreign exchange forward and option contracts	2	–	2	–
Liability towards contingent consideration (Refer note 2.3)⁽¹⁾	16	–	–	16

During the six months ended September 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.

⁽¹⁾Discounted at 14.3%

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

The 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 September 30,		Six months ended September 30,
	2015	2014	2015	2014
Interest income on deposits and certificates of deposit	95	106	199	209
Income from available-for-sale financial assets	7	12	15	25
	102	118	214	234

Derivative financial instruments

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

(In millions)

	As of
	September 30, 2015	March 31, 2015
Forward contracts
In U.S. dollars	644	716
In Euro	74	67
In United Kingdom Pound Sterling	65	73
In Australian dollars	95	98
In Canadian dollars	12	12
In Singapore dollars	10	25
In Swiss Franc	30	–
Options Contracts
In U.S. dollars	50	–

The Group recognized a net loss on derivative financial instruments of $3 million and a net gain of $14 million for the three months ended September 30, 2015 and September 30, 2014, respectively, which is included under other income.

The Group recognized a net loss on derivative financial instruments of $14 million and a net gain on derivative financial instruments of $27 million for the six months ended September 30, 2015 and September 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
	September 30, 2015	March 31, 2015
Not later than one month	216	237
Later than one month and not later than three months	377	605
Later than three months and not later than one year	397	155
	990	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
	September 30, 2015	March 31, 2015
Aggregate amount of outstanding forward and option contracts	990	997
Gain on outstanding forward and option contracts	4	16
Loss on outstanding forward and option contracts	2	–

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

(Dollars in millions)

	U.S. dollars	Euro	United Kingdom Pound Sterling	Australian dollars	Other currencies	Total
Cash and cash equivalents	179	21	35	24	75	334
Trade receivables	1,113	163	86	79	99	1,540
Unbilled revenue	337	70	27	22	43	499
Other assets	26	7	4	2	12	51
Trade payables	(7)	(1)	(1)	–	(5)	(14)
Client deposits	(2)	–	–	–	(1)	(3)
Accrued expenses	(140)	(29)	(21)	(5)	(36)	(231)
Employee benefit obligation	(78)	(12)	(6)	(21)	(17)	(134)
Other liabilities	(151)	(19)	(5)	(3)	(123)	(301)
Net assets / (liabilities)	1,277	200	119	98	47	1,741

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 September 30, 2015 and September 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 0.51% and 0.54%, respectively.

For the six months ended September 30, 2015 and September 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 0.50% and 0.53%, respectively.

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

Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to $1,585 million and $1,554 million as of September 30, 2015 and March 31, 2015, respectively and unbilled revenue amounting to $524 million and $455 million as of September 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 September 30,		Six months ended September 30,
	2015	2014	2015	2014
Revenue from top customer	3.7	3.4	3.7	3.4
Revenue from top five customers	14.0	13.6	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, $1,104 million and $1,174 million as of September 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 $6 million and $4 million as of September 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 $52 million and $55 million as of September 30, 2015 and March 31, 2015, respectively, that are past due, is given below:

(Dollars in millions)

	As of
Period (in days)	September 30, 2015	March 31, 2015
Less than 30	301	263
31 – 60	103	55
61 – 90	40	14
More than 90	37	48
	481	380

The provision for doubtful trade receivables for the three months and six months ended September 30, 2015 is $2 million and $1 million, respectively.

The provision for doubtful trade receivables for the three months and six months ended September 30, 2014 is $9 million and $28 million, respectively.

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

(Dollars in millions)

	Three months ended September 30,		Six months ended September 30,		Year ended March 31,
	2015	2014	2015	2014	2015
Balance at the beginning	58	55	59	36	36
Translation differences	(2)	(1)	(2)	(1)	(4)
Provisions for doubtful trade receivable	2	9	1	28	29
Trade receivables written off	–	(1)	–	(1)	(2)
Balance at the end	58	62	58	62	59

Liquidity risk

As of September 30, 2015, the Group had a working capital of $5,476 million including cash and cash equivalents of $4,566 million and current available-for-sale financial assets of $89 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 September 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 September 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 September 30, 2015:

(Dollars in millions)

Particulars	Less than 1 year	1-2 years	2-4 years	4-7 years	Total
Trade payables	17	–	–	–	17
Client deposits	3	–	–	–	3
Other liabilities (excluding liability towards acquisition - Refer Note 2.9)	800	1	1	–	802
Liability towards acquisitions on an undiscounted basis (including contingent consideration) -Refer Note 2.9	104	7	7	–	118

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 September 30, 2015 and March 31, 2015, the Group had outstanding financial guarantees of $8 million and $7 million, respectively towards leased premises. These financial guarantees can be invoked upon breach of any term of the lease agreement. To the Group’s knowledge there has been no breach of any term of the lease agreement as of September 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
	September 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	(5)	17	(1)
Amount set off	(3)	3	(1)	1
Net amount presented in balance sheet	4	(2)	16	–

2.8 Provisions

Provisions comprise the following:

(Dollars in millions)

	As of
	September 30, 2015	March 31, 2015
Provision for post sales client support and other provisions	66	77
	66	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 September 30, 2015	Six months ended September 30, 2015
Balance at the beginning	74	77
Translation differences	–	–
Provision recognized/(reversed)	(1)	3
Provision utilized	(7)	(14)
Balance at the end	66	66

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

As of September 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 $41 million (270 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
	September 30, 2015	March 31, 2015
Current
Accrued compensation to employees	374	337
Accrued expenses	377	318
Withholding taxes payable ⁽¹⁾	187	145
Retainage	9	8
Liabilities of controlled trusts	26	28
Accrued gratuity	–	1
Liability towards acquisition of business	97	78
Liability towards contingent consideration (Refer note 2.3)	5	–
Others	15	12
	1,090	927
Non-Current
Liability towards contingent consideration (Refer note 2.3)	11	–
Accrued compensation to employees	1	–
Deferred income - government grant on land use rights⁽¹⁾	7	8
	19	8
	1,109	935
Financial liabilities included in other liabilities	915	782
Financial liability towards acquisitions on an undiscounted basis (including contingent consideration)- Refer note 2.3	118	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 1,13,34,400 shares (held by the Infosys Limited Employees' Welfare Trust and adjusted for bonus shares issued) and the plan shall continue in effect for a term of 10 years from the date of initial grant under the plan. The RSUs will be issued at par value of the equity share. As on September 30, 2015, 1,11,02,071 shares are available for issue under the 2011 plan. The 2011 Plan is administered by the Management Development and Compensation Committee ( 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 Officer and Managing Director. The Board in its meeting held on June 22, 2015, on recommendation of Nomination and Remuneration Committee, granted 124,061 RSUs to Dr. Vishal Sikka. The RSUs will vest over a period of four years from the date of the grant in the proportions specified in the award agreement. The RSUs will vest subject to achievement of certain key performance indicators as set forth in the award agreement for each applicable year of the vesting tranche and continued employment through each vesting date.

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

Particulars	Three months ended September 30, 2015		Six months ended September 30, 2015
	Shares arising out of options	Weighted average exercise price ($)	Shares arising out of options	Weighted average exercise price ($)
2011 Plan:
Outstanding at the beginning⁽¹⁾	2,32,329	0.08	1,08,268	0.08
Granted	–	–	1,24,061	0.08
Forfeited and expired	–	–	–	–
Exercised	9,116	0.08	9,116	0.08
Outstanding at the end	2,23,213	0.08	2,23,213	0.08
Exercisable at the end	–	–	–	–

⁽¹⁾adjusted for bonus issues (Refer note 2.17)

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

The activity in the 2011 Plan during the three months and six months ended September 30, 2014 is set out below:

Particulars	Three months ended September 30, 2014		Six months ended September 30, 2014
	Shares arising out of options	Weighted average exercise price ($)	Shares arising out of options	Weighted average exercise price ($)
2011 Plan:
Outstanding at the beginning	–	–	–	–
Granted⁽¹⁾	91,176	0.08	91,176	0.08
Forfeited and expired	–	–	–	–
Exercised	–	–	–	–
Outstanding at the end	91,176	0.08	91,176	0.08
Exercisable at the end	–	–	–	–

⁽¹⁾Adjusted for bonus issues. (Refer note 2.17)

The weighted average remaining contractual life of RSUs outstanding as of September 30, 2015 and March 31, 2015 under the 2011 Plan was 2.47 years and 2.39 years, respectively.

The expected term of the RSU is estimated based on the vesting term and contractual term of the RSU, as well as expected exercise behaviour of the employee who receives the RSU. Expected volatility during the expected term of the RSU is based on historical volatility of the observed market prices of the company's publicly traded equity shares during a period equivalent to the expected term of the RSU.

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

Options granted during	Fiscal 2016	Fiscal 2015
Grant date	22-Jun-15	21-Aug-14
Weighted average share price ($) ⁽¹⁾	16	58
Exercise price ($)	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 ($) ⁽¹⁾	15	55

⁽¹⁾ Data for Fiscal 2015 is not adjusted for bonus issues

During each of the three months ended September 30, 2015 and September 30, 2014, the company recorded an employee stock compensation expense of less than $1 million in the statement of comprehensive income.

During each of the six months ended September 30, 2015 and September 30, 2014, the company recorded an employee stock compensation expense of less than $1 million in the statement of comprehensive income.

2.11 Income taxes

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

(Dollars in millions)

	Three months ended September 30,		Six months ended September 30,
	2015	2014	2015	2014
Current taxes
Domestic taxes	172	163	314	319
Foreign taxes	48	49	84	90
	220	212	398	409
Deferred taxes
Domestic taxes	(1)	1	6	(2)
Foreign taxes	(7)	(5)	(8)	(6)
	(8)	(4)	(2)	(8)
Income tax expense	212	208	396	401

Income tax expense for each of the three months ended September 30, 2015 and September 30, 2014 includes reversals (net of provisions) of $5 million, pertaining to earlier periods.

Income tax expense for the six months ended September 30, 2015 and September 30, 2014 includes reversals (net of provisions) of $18 million and $8 millions pertaining to earlier periods.

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

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

For the three months and six months ended September 30, 2014, a reversal of deferred tax asset of less than $1 million and $2 million, respectively, relating to available-for-sale financial assets has been recognized in other comprehensive income.

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

(Dollars in millions)

	Three months ended September 30,		Six months ended September 30,
	2015	2014	2015	2014
Profit before income taxes	731	719	1,391	1,394
Enacted tax rates in India	34.61%	33.99%	34.61%	33.99%
Computed expected tax expense	253	245	482	474
Tax effect due to non-taxable income for Indian tax purposes	(74)	(69)	(136)	(134)
Overseas taxes	28	34	51	64
Tax reversals, overseas and domestic	(5)	(5)	(18)	(8)
Effect of differential overseas tax rates	2	(1)	1	(2)
Effect of exempt non operating income	(2)	(4)	(5)	(9)
Effect of unrecognized deferred tax assets	–	–	2	3
Effect of non-deductible expenses	11	12	22	18
Additional deductions on research and development expense	(2)	(3)	(4)	(5)
Others	1	(1)	1	–
Income tax expense	212	208	396	401

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 six months ended September 30, 2015 and September 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 September 30, 2015, claims against the group not acknowledged as debts from the Indian Income tax authorities net of amount paid to statutory authorities of $526 million (3,451 crore) amounted to $2 million (11 crore).

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

Payment of $526 million (3,451 crore) includes demands from the Indian Income tax authorities of $491 million (3,221 crore), including interest of $145 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 September 30,		Six months ended September 30,
	2015	2014	2015	2014
Basic earnings per equity share - weighted average number of equity shares outstanding⁽¹⁾⁽²⁾	2,285,614,029	2,285,610,264	2,285,612,157	2,285,610,264
Effect of dilutive common equivalent shares	99,013	5,848	84,521	2,924
Diluted earnings per equity share - weighted average number of equity shares and common equivalent shares outstanding	2,285,713,042	2,285,616,112	2,285,696,678	2,285,613,188

⁽¹⁾	Excludes treasury shares
⁽²⁾	adjusted for bonus issues. Refer Note 2.17

For the three months and six months ended September 30, 2015 and September 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)

	Three months ended September 30,		Six months ended September 30,
	2015	2014	2015	2014
Salaries and other employee benefits to whole-time directors and executive officers⁽¹⁾	1	1	5	3
Commission and other benefits to non-executive/ independent directors	–	–	–	–
Total	1	1	5	3

⁽¹⁾ Includes stock compensation expense of less than $1 million

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 September 30, 2015 and September 30, 2014

(Dollars in millions)

	FS	MFG	ECS	RCL	HILIFE	All other segments	Total
Revenues	649	554	431	395	319	44	2,392
	*591*	*498*	*431*	*367*	*275*	39	*2,201*
Identifiable operating expenses	302	281	197	186	151	24	1,141
	282	250	189	168	136	30	1,055
Allocated expenses	155	137	106	98	79	11	586
	136	120	103	89	66	10	524
Segment profit	192	136	128	111	89	9	665
	173	128	139	110	73	(1)	*622*
Unallocable expenses							55
							47
Operating profit							610
							575
Other income, net							121
							144
Share in associate's profit / (loss)							–
							–
Profit before Income taxes							731
							719
Income tax expense							212
							208
Net profit							519
							*511*
Depreciation and amortisation							55
							47
Non-cash expenses other than depreciation and amortisation							–
							–

Six months ended September 30, 2015 and September 30, 2014

(Dollars in millions)

	FS	MFG	ECS	RCL	HILIFE	All other segments	Total
Revenues	1,259	1,077	843	763	625	80	4,647
	*1,174*	*980*	*831*	*733*	*541*	75	*4,334*
Identifiable operating expenses	603	554	386	364	305	54	2,266
	568	499	374	338	272	67	2,118
Allocated expenses	295	263	207	187	153	20	1,125
	266	233	198	175	129	18	1,019
Segment profit	361	260	250	212	167	6	1,256
	340	248	259	220	140	(10)	*1,197*
Unallocable expenses							105
							86
Operating profit							1,151
							1,111
Other income, net							240
							283
Share in associate's profit / (loss)							–
							–
Profit before Income taxes							1,391
							1,394
Income tax expense							396
							401
Net profit							995
							*993*
Depreciation and amortisation							104
							86
Non-cash expenses other than depreciation and amortisation							1
							–

2.15.2 Geographic Segments

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

(Dollars in millions)

	North America	Europe	India	Rest of the World	Total
Revenues	1,513	548	55	276	2,392
	1,338	543	49	271	*2,201*
Identifiable operating expenses	735	267	13	126	1,141
	646	258	26	125	1,055
Allocated expenses	374	135	12	65	586
	322	130	11	61	524
Segment profit	404	146	30	85	665
	*370*	*155*	12	85	*622*
Unallocable expenses					55
					47
Operating profit					610
					*575*
Other income, net					121
					144
Share in associate's profit / (loss)					–
					–
Profit before Income taxes					731
					719
Income Tax expense					212
					208
Net profit					519
					*511*
Depreciation and amortisation					55
					47
Non-cash expenses other than depreciation and amortisation					–
					–

Six months ended September 30, 2015 and September 30, 2014

(Dollars in millions)

	North America	Europe	India	Rest of the World	Total
Revenues	2,939	1,053	105	550	4,647
	*2,635*	*1,065*	*100*	*534*	*4,334*
Identifiable operating expenses	1,457	519	51	239	2,266
	1,277	524	67	250	2,118
Allocated expenses	719	257	22	127	1,125
	627	252	21	119	1,019
Segment profit	763	277	32	184	1,256
	*731*	*289*	12	*165*	*1,197*
Unallocable expenses					105
					86
Operating profit					1,151
					*1,111*
Other income, net					240
					283
Share in associate's profit / (loss)					–
					–
Profit before Income taxes					1,391
					*1,394*
Income Tax expense					396
					401
Net profit					995
					*993*
Depreciation and amortisation					104
					86
Non-cash expenses other than depreciation and amortisation					1
					–

2.14.3 Significant clients

No client individually accounted for more than 10% of the revenues for the three months and six months ended September 30, 2015 and September 30, 2014.

2.15 Break-up of expenses

Cost of sales

(Dollars in millions)

	Three months ended September 30,		Six months ended September 30,
	2015	2014	2015	2014
Employee benefit costs	1,155	1,092	2,277	2,183
Deferred purchase price pertaining to acquisition	10	10	19	19
Depreciation and amortisation	55	47	104	86
Travelling costs	66	58	130	116
Cost of technical sub-contractors	131	84	249	159
Cost of software packages for own use	27	29	57	67
Third party items bought for service delivery to clients	26	6	44	15
Operating lease payments	9	9	18	18
Communication costs	7	6	14	13
Repairs and maintenance	5	4	14	10
Provision for post-sales client support	(5)	3	(7)	4
Other expenses	2	5	3	7
Total	1,488	1,353	2,922	2,697

Sales and marketing expenses

(Dollars in millions)

	Three months ended September 30,		Six months ended September 30,
	2015	2014	2015	2014
Employee benefit costs	103	103	201	196
Travelling costs	13	12	26	21
Branding and marketing	9	7	21	12
Operating lease payments	2	2	3	3
Consultancy and professional charges	2	–	4	1
Communication costs	1	2	1	2
Other expenses	(1)	1	2	3
Total	129	127	258	238

Administrative expenses

(Dollars in millions)

	Three months ended September 30,		Six months ended September 30,
	2015	2014	2015	2014
Employee benefit costs	53	45	97	90
Consultancy and professional charges	25	14	48	21
Repairs and maintenance	31	22	59	41
Power and fuel	9	10	17	19
Communication costs	10	10	19	22
Travelling costs	9	9	21	16
Rates and taxes	5	5	10	9
Operating lease payments	3	2	5	5
Insurance charges	2	2	4	4
Provisions for doubtful trade receivable	2	9	1	28
Commission to non-whole time directors	–	–	1	–
Contributions towards Corporate Social Responsibility	9	13	16	21
Other expenses	7	5	18	12
Total	165	146	316	288

2.16 Dividends

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

The amount of per share dividend recognized as distributions to equity shareholders for the six months ended September 30, 2015 and September 30, 2014 was 29.50/- per equity share ($0.47 per equity share) (not adjusted for June 17, 2015 bonus issue) and 43.00/- per equity share ($0.72 per equity share) (not adjusted for bonus issues), respectively.

The Board of Directors, in their meeting on October 12, 2015, declared an interim dividend of approximately $0.15 per equity share (10/- per equity share), which would result in a net cash outflow of approximately $420 million, (excluding dividend paid on treasury shares) inclusive of corporate dividend tax.

2.17 Share capital and share premium

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

Management’s Responsibility for the Consolidated Interim Financial Statements

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

Auditor’s Responsibility

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

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

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

Opinion

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

(a)

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

(b)

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

(d)

in the case of the consolidated statement of cash flows, of the consolidated cash flows for the six 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

October 12, 2015

Infosys Limited and subsidiaries

(In crore except equity share data)

Consolidated Balance Sheets as of	Note	September 30, 2015	March 31, 2015
ASSETS
Current assets
Cash and cash equivalents	2.1	29,946	30,367
Available-for-sale financial assets	2.2	582	874
Trade receivables		10,397	9,713
Unbilled revenue		3,441	2,845
Prepayments and other current assets	2.4	4,684	3,296
Derivative financial instruments	2.7	29	101
Total current assets		49,079	47,196
Non-current assets
Property, plant and equipment	2.5	9,686	9,125
Goodwill	2.6	3,668	3,091
Intangible assets	2.6	917	638
Investment in associate	2.18	96	93
Available-for-sale financial assets	2.2	1,609	1,345
Deferred income tax assets	2.16	511	537
Income tax assets	2.16	4,693	4,089
Other non-current assets	2.4	647	238
Total non-current assets		21,827	19,156
Total assets		70,906	66,352
LIABILITIES AND EQUITY
Current liabilities
Trade payables		110	140
Derivative financial instruments	2.7	18	3
Current income tax liabilities	2.16	3,118	2,818
Client deposits		22	27
Unearned revenue		1,107	1,052
Employee benefit obligations		1,199	1,069
Provisions	2.8	435	478
Other current liabilities	2.9	7,148	5,796
Total current liabilities		13,157	11,383
Non-current liabilities
Deferred income tax liabilities	2.16	277	160
Other non-current liabilities	2.9	127	46
Total liabilities		13,561	11,589
Equity
Share capital- 5 par value 240,00,00,000 (120,00,00,000) equity shares authorized, issued and outstanding 228,56,19,380 (114,28,05,132) net of 1,13,25,284 (56,67,200) treasury shares as of September 30, 2015 (March 31, 2015), respectively		1,144	572
Share premium		2,238	2,806
Retained earnings		53,346	50,978
Other reserves		–	–
Other components of equity		617	407
Total equity attributable to equity holders of the Company		57,345	54,763
Non-controlling interests		–	–
Total equity		57,345	54,763
Total liabilities and equity		70,906	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 No : 101248W/W-100022

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

Membership No. 205385

Bangalore October 12, 2015	Rajiv Bansal Chief Financial Officer	A.G.S Manikantha Company Secretary

Infosys Limited and subsidiaries

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

Consolidated Statements of Comprehensive Income	Note	Three months ended September 30,		Six months ended September 30,
		2015	2014	2015	2014
Revenues		15,635	13,342	29,989	26,112
Cost of sales	2.10	9,724	8,201	18,847	16,247
Gross profit		5,911	5,141	11,142	9,865
Operating expenses:
Selling and marketing expenses	2.10	843	769	1,663	1,435
Administrative expenses	2.10	1,075	889	2,038	1,736
Total operating expenses		1,918	1,658	3,701	3,171
Operating profit		3,993	3,483	7,441	6,694
Other income, net	2.13	793	877	1,551	1,706
Share in associate's profit / (loss)		(1)	–	(1)	–
Profit before income taxes		4,785	4,360	8,991	8,400
Income tax expense	2.16	1,387	1,264	2,562	2,418
Net profit		3,398	3,096	6,429	5,982
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)	(3)	(14)	(23)
		(7)	(3)	(14)	(23)
Items that may be reclassified subsequently to profit or loss
Fair value changes on available-for-sale financial asset	2.2 & 2.16	30	28	18	45
Exchange differences on translation of foreign operations		62	(76)	206	(76)
		92	(48)	224	(31)
Total other comprehensive income, net of tax		85	(51)	210	(54)

Total comprehensive income		3,483	3,045	6,639	5,928
Profit attributable to:
Owners of the company		3,398	3,096	6,429	5,982
Non-controlling interests		–	–	–	–
		3,398	3,096	6,429	5,982
Total comprehensive income attributable to:
Owners of the company		3,483	3,045	6,639	5,928
Non-controlling interests		–	–	–	–
		3,483	3,045	6,639	5,928
Earnings per equity share
Basic ()		14.87	13.55	28.13	26.17
Diluted ()		14.87	13.55	28.13	26.17
Weighted average equity shares used in computing earnings per equity share	2.17
Basic		228,56,14,029	228,56,10,264	228,56,12,157	228,56,10,264
Diluted		228,57,13,042	228,56,16,112	228,56,96,678	228,56,13,188

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

As per our report of even date attached

for B S R & Co. LLP

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

Chartered Accountants

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

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

Membership No. 205385

Bangalore October 12, 2015	Rajiv Bansal Chief Financial Officer	A.G.S Manikantha Company Secretary

Infosys Limited and subsidiaries

(In crore except equity share data)

Consolidated Statements of Changes in Equity	*Shares^()**	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 six months ended September 30, 2014
Employee stock compensation expense (refer to note 2.15)	–	–	1	–	–	–	1
Remeasurement of the net defined benefit liability/asset, net of tax effect ( refer note 2.11 and 2.16)	–	–	–	–	–	(23)	(23)
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)	–	–	–	–	–	45	45
Net profit	–	–	–	5,982	–	–	5,982
Exchange differences on translation of foreign operations	–	–	–	–	–	(76)	(76)
Balance as of September 30, 2014	57,14,02,566	286	3,091	46,689	–	516	50,582
Balance as of April 1, 2015	114,28,05,132	572	2,806	50,978	–	407	54,763
Changes in equity for the six months ended September 30, 2015
Increase in share capital on account of bonus issue^#(refer to note 2.12)	114,28,05,132	572	–	–	–	–	572
Amounts utilized for bonus issue (refer note 2.12)^#	–	–	(572)	–	–	–	(572)
Shares issued on exercise of employee stock options (Refer note 2.15)	9,116	–	–	–	–	–	–
Transferred to other reserves (refer note 2.12)	–	–	–	(265)	265	–	–
Transferred from other reserves (refer note 2.12)	–	–	–	265	(265)	–	–
Employee stock compensation expense (refer to note 2.15)	–	–	4	–	–	–	4
Remeasurement of the net defined benefit liability/asset, net of tax effect (refer note 2.11 and 2.16)	–	–	–	–	–	(14)	(14)
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)	–	–	–	–	–	18	18
Net profit	–	–	–	6,429	–	–	6,429
Exchange differences on translation of foreign operations	–	–	–	–	–	206	206
Balance as of September 30, 2015	228,56,19,380	1,144	2,238	53,346	–	617	57,345

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

^#	net of treasury shares
*	excludes treasury shares of 1,13,25,284 as of September 30, 2015, 56,67,200 as of April 1, 2015 and 28,33,600 each as of September 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 No : 101248W/W-100022

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

Membership No. 205385

Bangalore October 12, 2015	Rajiv Bansal Chief Financial Officer	A.G.S Manikantha Company Secretary

Infosys Limited and subsidiaries

(In crore)

Consolidated Statements of Cash Flows	Note	Six months ended September 30,
		2015	2014
Operating activities:
Net profit		6,429	5,982
Adjustments to reconcile net profit to net cash provided by operating activities:
Depreciation and amortization	2.5 and 2.6	671	521
Income tax expense	2.16	2,562	2,418
Income on available-for-sale financial assets and certificates of deposits		(96)	(179)
Effect of exchange rate changes on assets and liabilities		50	15
Deferred purchase price		124	116
Provision for doubtful account receivables		7	169
Other adjustments		79	29
Changes in working capital
Trade receivables		(635)	(858)
Prepayments and other assets		(1,693)	13
Unbilled revenue		(596)	(137)
Trade payables		(33)	(20)
Client deposits		(5)	(15)
Unearned revenue		55	180
Other liabilities and provisions		1,275	786
Cash generated from operations		8,194	9,020
Income taxes paid	2.16	(2,862)	(1,967)
Net cash provided by operating activities		5,332	7,053
Investing activities:
Expenditure on property, plant and equipment net of sale proceeds, including changes in retention money and capital creditors	2.5 and 2.9	(1,268)	(1,013)
Loans to employees		(6)	(32)
Deposits placed with corporation		(24)	6
Income on available-for-sale financial assets and certificates of deposit		86	178
Payment for acquisition of business, net of cash acquired	2.3	(549)	–
Investment in preference securities		(22)	–
Investment in other available-for-sale financial assets		(15)	–
Investment in qouted debt securities		(201)	(1)
Investment in certificates of deposit		–	–
Redemption of certificates of deposit		–	733
Investment in liquid mutual fund units		(13,664)	(12,039)
Redemption of liquid mutual fund units		13,932	10,487
Investment in fixed maturity plan securities		–	(30)
Redemption of fixed maturity plan securities		33	30
Net cash used in investing activities		(1,698)	(1,681)
Financing activities:
Payment of dividends (including corporate dividend tax)		(4,061)	(2,877)
Net cash used in financing activities		(4,061)	(2,877)
Effect of exchange rate changes on cash and cash equivalents		6	(13)
Net decrease in cash and cash equivalents		(427)	2,495
Cash and cash equivalents at the beginning	2.1	30,367	25,950
Cash and cash equivalents at the end	2.1	29,946	28,432
Supplementary information:
Restricted cash balance	2.1	382	351

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

As per our report of even date attached

for B S R & Co. LLP

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

Chartered Accountants

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

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

Membership No. 205385

Bangalore October 12, 2015	Rajiv Bansal Chief Financial Officer	A.G.S Manikantha Company Secretary

Notes to the Consolidated Interim Financial Statements

1. Company Overview and Significant Accounting Policies

1.1 Company overview

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

The company is a public limited company incorporated and domiciled in India and has its registered office at Bangalore, Karnataka, India. The company has its primary listings on the BSE Limited and National Stock Exchange in India. The company’s American Depositary Shares representing equity shares are also listed on the New York Stock Exchange (NYSE), 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 October 12, 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

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

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

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

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

1.7 Property, plant and equipment

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

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

1.8 Business combinations

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

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

1.9 Goodwill

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

1.10 Intangible assets

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

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

1.11 Financial instruments

Financial instruments of the Group are classified in the following categories: non-derivative financial instruments comprising of loans and receivables, available-for-sale financial assets and trade and other payables; derivative financial instruments 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.

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

1.18.3 Provident fund

1.18.4 Compensated absences

1.19 Share-based compensation

1.20 Dividends

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

1.21 Operating profit

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

1.22 Other income

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

1.23 Leases

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

1.24 Government grants

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

1.25 Recent accounting pronouncements

1.25.1 Standards issued but not yet effective

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
	September 30, 2015	March 31, 2015
Cash and bank deposits	24,751	26,195
Deposits with corporation	5,195	4,172
	29,946	30,367

Cash and cash equivalents as of September 30, 2015 and March 31, 2015 include restricted cash and bank balances of 382 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
	September 30, 2015	March 31, 2015
Current Accounts
ANZ Bank, Taiwan	4	4
Axis Bank account, India	1	–
Banamex Bank, Mexico	6	10
Banamex Bank, Mexico (U.S. Dollar account)	1	1
Bank of America, Mexico	23	26
Bank of America, USA	809	716
Bank of Baroda, Mauritius	1	–
Bank Zachodni WBK S.A, Poland	3	4
Bank of Tokyo-Mitsubishi UFJ, Ltd., Japan	–	1
Barclays Bank, UK	9	10
Bank Leumi, Israel (US Dollar account)	15	7
Bank Leumi, Israel (Israeli Sheqel account)	15	15
Bank Leumi, Israel (Euro account)	2	3
Bank Leumi, Israel (Yen account)	1	–
China Merchants Bank, China	12	4
Citibank N.A, China	67	20
Citibank N.A., China (U.S. Dollar account)	81	24
Citibank N.A., Costa Rica	1	5
Citibank N.A., Czech Republic	6	6
Citibank N.A., Australia	59	25
Citibank N.A., Austria	1	–
Citibank N.A., Brazil	8	27
Citibank N.A., Dubai	4	1
Citibank N.A., India	2	7
Citibank N.A., Japan	38	20
Citibank N.A., New Zealand	5	6
Citibank N.A., Portugal	1	–
Citibank N.A., Singapore	5	2
Citibank N.A., South Africa	6	3
Citibank N.A., Philippines, (U.S. Dollar account)	1	1
CitiBank N.A., USA	36	–
CitiBank N.A., EEFC (U.S. Dollar account)	6	2
Commerzbank, Germany	20	19
Crédit Industriel et Commercial Bank, France	–	1
Deutsche Bank, India	21	5
Deutsche Bank, Philippines	3	3
Deutsche Bank, Philippines (U.S. Dollar account)	2	3
Deutsche Bank, Poland	13	19
Deutsche Bank, Poland (Euro Account)	–	1
Deutsche Bank, EEFC (Australian Dollar account)	1	–
Deutsche Bank, EEFC (Euro account)	11	3
Deutsche Bank, EEFC (Swiss Franc account)	4	5
Deutsche Bank, EEFC (U.S. Dollar account)	36	8
Deutsche Bank, EEFC (United Kingdom Pound Sterling account)	7	5
Deutsche Bank, Belgium	23	13
Deutsche Bank, Czech Republic	6	6
Deutsche Bank, Czech Republic (Euro account)	5	2
Deutsche Bank, Czech Republic (U.S. Dollar account)	33	20
Deutsche Bank, France	5	2
Deutsche Bank, Germany	28	8
Deutsche Bank, Netherlands	23	2
Deutsche Bank, Russia	1	–
Deutsche Bank, Singapore	6	5
Deutsche Bank, Spain	1	1
Deutsche Bank, Switzerland	3	–
Deutsche Bank, United Kingdom	206	25
HDFC Bank-Unpaid dividend account	1	1
HSBC Bank, Brazil	1	3
HSBC Bank, Hong Kong	13	44
ICICI Bank, India	21	30
ICICI Bank, EEFC (Euro account)	2	–
ICICI Bank, EEFC (U.S. Dollar account)	5	14
ICICI Bank, EEFC (United Kingdom Pound Sterling account)	3	–
ICICI Bank-Unpaid dividend account	2	2
ING Bank, Belgium	3	–
Nordbanken, Sweden	10	3
Punjab National Bank, India	3	7
Raiffeisen Bank, Romania	1	–
Royal Bank of Scotland, China	3	45
Royal Bank of Scotland, China (U.S. Dollar account)	7	47
Royal Bank of Canada, Canada	30	16
Santander Bank, Argentina	1	2
Santander Bank, Spain	–	1
State Bank of India, India	2	2
Silicon Valley Bank, USA	5	66
Silicon Valley Bank, (Euro account)	62	16
Silicon Valley Bank, (United Kingdom Pound Sterling account)	12	5
Union Bank of Switzerland AG	24	12
Union Bank of Switzerland AG, (U.S. Dollar Account)	6	2
Union Bank of Switzerland AG, (United Kingdom Pound Sterling account)	–	1
Union Bank of Switzerland AG, (Euro Account)	8	4
Wells Fargo Bank N.A., USA	37	38
Westpac, Australia	3	6
	1,952	1,473
Deposit Accounts
Allahabad Bank	200	200
Andhra Bank	280	171
Axis Bank	1,493	1,495
Bank of Baroda	2,394	2,394
Bank of India	2,414	2,691
Canara Bank	2,351	3,134
Central Bank of India	1,357	1,383
Citibank	72	–
Corporation Bank	1,111	1,277
Deutsche Bank, Poland	185	121
Development Bank of Singapore	–	35
HDFC Bank Ltd.	2,584	2,097
ICICI Bank	3,136	3,166
IDBI Bank	236	856
Indian Overseas Bank	290	651
Indusind Bank	250	75
ING Vysya Bank	–	100
Kotak Mahindra Bank Limited	100	5
National Australia Bank Limited	32	87
Oriental Bank of Commerce	1,500	1,580
Punjab National Bank	153	592
South Indian Bank	27	27
State Bank of India	56	57
Syndicate Bank	444	407
Union Bank of India	1,063	1,051
Vijaya Bank	267	466
Yes Bank	804	604
	22,799	24,722
Deposits with corporation
HDFC Limited	5,195	4,172
	5,195	4,172
Total	29,946	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
	September 30, 2015	March 31, 2015
Current
Mutual fund units:
Liquid mutual funds
Cost and fair value	578	842
Fixed maturity plan securities
Cost	–	30
Gross unrealized holding gain / (loss)	–	2
Fair value	–	32
Quoted debt securities:
Cost	4	–
Gross unrealized holding gain/ (loss)	–	–
Fair value	4	–
	582	874
Non-current
Quoted debt securities:
Cost	1,557	1,352
Gross unrealized holding gain/ (loss)	14	(8)
Fair value	1,571	1,344
Unquoted equity and preference securities:
Cost	23	1
Gross unrealized holding gains	–	–
Fair value	23	1
Others:
Cost	15	–
Gross unrealized holding gains	–	–
Fair value	15	–
	1,609	1,345
Total available-for-sale financial assets	2,191	2,219

Mutual fund units:

Liquid mutual funds

The fair value of liquid mutual funds as of September 30, 2015 and March 31, 2015 is 578 crore and 842 crore, respectively. The fair value is based on quoted price.

Fixed maturity plan securities:

During the six months ended September 30, 2015, the company redeemed fixed maturity plans securities of 30 crore. On redemption, the unrealized 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 loss of 1 crore, and net unrealized gain of 2 crore, net of taxes of less than 1 crore, has been recognized in the other comprehensive income for the three months ended September 30, 2014 and six months ended September 30, 2014, respectively. (Refer to note 2.16).

Quoted debt securities:

The fair value of quoted debt securities as of September 30, 2015 and March 31, 2015 is 1,575 crore and 1,344 crore, respectively. The net unrealized gain of 30 crore, net of taxes of 4 crore, has been recognized in the other comprehensive income for the three months ended September 30, 2015. The net unrealized gain of 19 crore, net of taxes of 3 crore, has been recognized in the other comprehensive income for the six months ended September 30, 2015. The net unrealized gain of 31 crore, net of taxes, has been recognized in other comprehensive income for the three months ended September 30, 2014. The net unrealized gain of 44 crore, net of taxes, has been recognized in other comprehensive income for the six months ended September 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 and six months ended September 30, 2015 and September 30, 2014, a post-acquisition employee remuneration expense of 64 crore and 60 crore, 124 crore and 116 crore respectively, is recorded in cost of sales in the statement of comprehensive income. As of September 30, 2015 and March 31, 2015, the liability towards deferred purchase price amounted to 634 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 *	38	–	38
Intangible assets – technology	–	243	243
Intangible assets – trade name	–	21	21
Intangible assets - customer contracts and relationships	–	82	82
Intangible assets – non compete agreements	–	26	26
Deferred tax liabilities on intangible assets	–	(99)	(99)
	47	273	320
Goodwill			1,078
Total purchase price			1,398

*	Includes cash and cash equivalents acquired of 116 crore.

The goodwill is not tax deductible.

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

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

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

Kallidus Inc. (d.b.a Skava)

On June 2, 2015, Infosys acquired 100% of the voting interests in Kallidus Inc., US (Kallidus), a leading provider of digital experience solutions, including mobile commerce and in-store shopping experiences to large retail clients and 100% of the voting interests of Skava Systems Private Limited, India, an affiliate of Kallidus. The business acquisition was conducted by entering into a share purchase agreement for cash consideration of 578 crore and a contingent consideration of up to $20 million (approximately 131 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^(*)	35	–	35
Intangible assets – technology	–	130	130
Intangible assets – trade name	–	14	14
Intangible assets - customer contracts and relationships	–	175	175
Deferred tax liabilities on intangible assets	–	(128)	(128)
	35	191	226
Goodwill			452
Total purchase price			678

* Includes cash and cash equivalents acquired of 29 crore

The goodwill is not tax deductible.

The gross amount of trade receivables acquired and its fair value is 57 crore and the amounts have been largely collected.

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

(in crore)

Component	Consideration settled
Cash paid	578
Fair value of contingent consideration	100
Total purchase price	678

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

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

The transaction costs of 12 crore related to the acquisition have been included under administrative expenses in the statement of comprehensive income for the six months ended September 30, 2015.

EdgeVerve Systems Limited

EdgeVerve was created as a wholly owned subsidiary to focus on developing and selling products and platforms. On April 15, 2014, the Board of Directors of Infosys authorized the Company to execute a Business Transfer Agreement and related documents with EdgeVerve, subject to securing the requisite approval from shareholders in the Annual General Meeting. Subsequently, at the AGM held on June 14, 2014, the shareholders authorized the Board to enter into a Business Transfer Agreement and related documents with EdgeVerve, with effect from July 1, 2014 or such other date as may be decided by the Board of Directors. The company had undertaken an enterprise valuation by an independent valuer and accordingly the business was transferred for a consideration of 421 crore with effect from July 1, 2014 which was settled through the issue of fully paid up equity shares.

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

Finacle and Edge Services

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

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

2.4 Prepayments and other assets

Prepayments and other assets consist of the following:

(In crore)

	As of
	September 30, 2015	March 31, 2015
Current
Rental deposits	23	24
Security deposits	10	4
Loans and advances to employees	217	222
Prepaid expenses⁽¹⁾	100	98
Interest accrued and not due	1,372	396
Withholding taxes⁽¹⁾	1,513	1,364
Advance payments to vendors for supply of goods⁽¹⁾	128	79
Deposit with corporations	1,125	1,100
Deferred contract cost⁽¹⁾	33	–
Other assets	163	9
	4,684	3,296
Non-current
Loans and advances to employees	42	31
Deposit with corporations	56	58
Rental deposits	93	47
Security deposits	74	68
Deferred contract cost⁽¹⁾	361	–
Prepaid expenses⁽¹⁾	4	7
Prepaid gratuity⁽¹⁾	17	27
	647	238
	5,331	3,534
Financial assets in prepayments and other assets	3,175	1,959

⁽¹⁾

Non financial assets

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

2.5 Property, plant and equipment

Following are the changes in the carrying value of property, plant and equipment for the three months ended September 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 July 1, 2015	1,580	5,955	2,196	3,647	1,232	35	1,573	16,218
Additions	9	56	94	191	32	2	252	636
Deletions	–	–	(2)	(241)	(2)	(1)	–	(246)
Translation difference	–	–	(1)	3	(1)	–	–	1
Gross carrying value as of September 30, 2015	1,589	6,011	2,287	3,600	1,261	36	1,825	16,609
Accumulated depreciation as of July 1, 2015	(17)	(2,035)	(1,365)	(2,402)	(868)	(20)	–	(6,707)
Depreciation	(2)	(54)	(76)	(142)	(37)	(2)	–	(313)
Accumulated depreciation on deletions	–	–	1	93	–	–	–	94
Translation difference	–	–	1	(2)	3	1	–	3
Accumulated depreciation as of September 30, 2015	(19)	(2,089)	(1,439)	(2,453)	(902)	(21)	–	(6,923)
Carrying value as of July 1, 2015	1,563	3,920	831	1,245	364	15	1,573	9,511
Carrying value as of September 30, 2015	1,570	3,922	848	1,147	359	15	1,825	9,686

Following are the changes in the carrying value of property, plant and equipment for the three months ended September 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 July 1, 2014	1,299	5,086	1,733	2,766	1,019	34	1,917	13,854
Additions	229	245	127	162	50	–	–	813
Deletions	–	–	(3)	(24)	–	–	(274)	(301)
Translation difference	–	–	2	1	–	(1)	–	2
Gross carrying value as of September 30, 2014	1,528	5,331	1,859	2,905	1,069	33	1,643	14,368
Accumulated depreciation as of July 1, 2014	–	(1,838)	(1,100)	(2,034)	(718)	(18)	–	(5,708)
Depreciation	(15)	(46)	(73)	(94)	(45)	(2)	–	(275)
Accumulated depreciation on deletions	–	–	1	14	–	–	–	15
Translation difference	–	–	–	(3)	(1)	2	–	(2)
Accumulated depreciation as of September 30, 2014	(15)	(1,884)	(1,172)	(2,117)	(764)	(18)	–	(5,970)
Carrying value as of July 1, 2014	1,299	3,248	633	732	301	16	1,917	8,146
Carrying value as of September 30, 2014	1,513	3,447	687	788	305	15	1,643	8,398

Following are the changes in the carrying value of property, plant and equipment for the six months ended September 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	27	130	186	494	79	3	385	1,304
Deletions	–	–	(5)	(254)	(3)	(2)	–	(264)
Translation difference	–	–	1	11	5	1	–	18
Gross carrying value as of September 30, 2015	1,589	6,011	2,287	3,600	1,261	36	1,825	16,609
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	(3)	(107)	(148)	(256)	(77)	(3)	–	(594)
Accumulated depreciation on deletions	–	–	4	100	1	1	–	106
Translation difference	–	–	(1)	(9)	(1)	–	–	(11)
Accumulated depreciation as of September 30, 2015	(19)	(2,089)	(1,439)	(2,453)	(902)	(21)	–	(6,923)
Carrying value as of April 1, 2015	1,546	3,899	811	1,060	354	15	1,440	9,125
Carrying value as of September 30, 2015	1,570	3,922	848	1,147	359	15	1,825	9,686

Following are the changes in the carrying value of property, plant and equipment for the six months ended September 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	388	305	167	275	64	1	85	1,285
Deletions	–	–	(11)	(31)	(12)	(3)	(274)	(331)
Translation difference	–	–	1	2	–	(1)	–	2
Gross carrying value as of September 30, 2014	1,528	5,331	1,859	2,905	1,069	33	1,643	14,368
Accumulated depreciation as of April 1, 2014	–	(1,794)	(1,048)	(1,965)	(700)	(18)	–	(5,525)
Depreciation	(15)	(90)	(133)	(170)	(76)	(3)	–	(487)
Accumulated depreciation on deletions	–	–	9	21	12	2	–	44
Translation difference	–	–	–	(3)	–	1	–	(2)
Accumulated depreciation as of September 30, 2014	(15)	(1,884)	(1,172)	(2,117)	(764)	(18)	–	(5,970)
Carrying value as of April 1, 2014	1,140	3,232	654	694	317	18	1,832	7,887
Carrying value as of September 30, 2014	1,513	3,447	687	788	305	15	1,643	8,398

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

(In crore)

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

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

Carrying value of land includes 614 crore and 617 crore as of September 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 1,438 crore and 1,574 crore, as of September 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
	September 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	125	(144)
Carrying value at the end	3,668	3,091

Effective April 1, 2015, the company reorganized its business to support its objective of delivery innovation. Consequent to the internal reorganization there were changes effected in the segments based on the “management approach” as defined in IFRS 8, Operating Segments. (Refer Note 2.19). Accordingly the goodwill has been allocated to the new operating segments as at September 30, 2015.

(In crore)

Segment	As of
	September 30, 2015
Financial services	821
Manufacturing	814
Retail, Consumer packaged goods and Logistics	572
Life Sciences, Healthcare and Insurance	644
Energy & utilities, Communication and Services	648
	3,499
Operating segments without significant goodwill	169
Total	3,668

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 September 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 July 1, 2015	640	396	21	11	72	66	35	1,241
Additions	–	–	–	–	–	–	–	–
Deletion	–	–	–	(10)	–	–	–	(10)
Translation differences	4	12	–	–	1	(1)	1	17
Gross carrying value as of September 30, 2015	644	408	21	1	73	65	36	1,248
Accumulated amortization as of July 1, 2015	(187)	(29)	(21)	(11)	(5)	(32)	(12)	(297)
Amortization expense	(30)	(10)	–	–	(1)	(1)	(3)	(45)
Deletion	–	–	–	10	–	–	–	10
Translation differences	–	(1)	–	–	–	2	–	1
Accumulated amortization as of September 30, 2015	(217)	(40)	(21)	(1)	(6)	(31)	(15)	(331)
Carrying value as of July 1, 2015	453	367	–	–	67	34	23	944
Carrying value as of September 30, 2015	427	368	–	–	67	34	21	917

Following are the changes in the carrying value of acquired intangible assets for the three months ended September 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 July 1, 2014	381	35	21	11	68	28	9	553
Additions	–	–	–	–	–	–	–	–
Translation differences	(11)	1	–	–	2	(1)	–	(9)
Gross carrying value as of September 30, 2014	370	36	21	11	70	27	9	544
Accumulated amortization as of July 1, 2014	(136)	(26)	(21)	(11)	(4)	(23)	(8)	(229)
Amortization expense	(9)	(1)	–	–	(1)	(4)	(1)	(16)
Translation differences	1	(1)	–	–	1	1	–	2
Accumulated amortization as of September 30, 2014	(144)	(28)	(21)	(11)	(4)	(26)	(9)	(243)
Carrying value as of July 1, 2014	245	9	–	–	64	5	1	324
Carrying value as of September 30, 2014	226	8	–	–	66	1	–	301

Following are the changes in the carrying value of acquired intangible assets for the six months ended September 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	–	–	–	(10)	–	–	–	(10)
Translation differences	21	17	–	–	2	2	2	44
Gross carrying value as of September 30, 2015	644	408	21	1	73	65	36	1,248
Accumulated amortization as of April 1, 2015	(162)	(21)	(21)	(11)	(5)	(28)	(9)	(257)
Amortization expense	(50)	(18)	–	–	(1)	(2)	(6)	(77)
Deletion	–	–	–	10	–	–	–	10
Translation differences	(5)	(1)	–	–	–	(1)	–	(7)
Accumulated amortization as of September 30, 2015	(217)	(40)	(21)	(1)	(6)	(31)	(15)	(331)
Carrying value as of April 1, 2015	286	240	–	–	66	21	25	638
Carrying value as of September 30, 2015	427	368	–	–	67	34	21	917

Following are the changes in the carrying value of acquired intangible assets for the six months ended September 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	(11)	1	–	–	2	(1)	–	(9)
Gross carrying value as of September 30, 2014	370	36	21	11	70	27	9	544
Accumulated amortization as of April 1, 2014	(125)	(26)	(19)	(11)	(3)	(20)	(7)	(211)
Amortization expense	(20)	(2)	(2)	–	(1)	(7)	(2)	(34)
Translation differences	1	–	–	–	–	1	–	2
Accumulated amortization as of September 30, 2014	(144)	(28)	(21)	(11)	(4)	(26)	(9)	(243)
Carrying value as of April 1, 2014	256	9	2	–	65	8	2	342
Carrying value as of September 30, 2014	226	8	–	–	66	1	–	301

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 September 30, 2015 are as follows:

(in years unless otherwise stated)

Intangible asset	Asset acquisition/ Business combination	Useful life	Remaining Useful life
Land use rights	Asset acquisition	50	46
Customer contracts and relationships	McCamish	9	3
Customer contracts and relationships	Portland	10	6
Customer contracts and relationships	Seabury and Smith	5	2
Customer relationships	Lodestone	10	7
Technology	Panaya	10	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	7 months	3 months
Customer relationships	Kallidus d.b.a Skava	8	8
Trade name	Kallidus d.b.a Skava	2.6	2.2

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

Research and development expense recognized in net profit in the consolidated statement of comprehensive income, for the three months and six months ended September 30, 2015 and September 30, 2014 was 173 crore and 162 crore and 333 crore and 327 crore, respectively.

2.7 Financial instruments

Financial instruments by category

The carrying value and fair value of financial instruments by categories as of September 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)	29,946	–	–	–	29,946
Available-for-sale financial assets (Refer Note 2.2)	–	–	2,191	–	2,191
Trade receivables	10,397	–	–	–	10,397
Unbilled revenue	3,441	–	–	–	3,441
Prepayments and other assets (Refer Note 2.4)	3,175	–	–	–	3,175
Derivative financial instruments	–	29	–	–	29
Total	46,959	29	2,191	–	49,179
Liabilities:
Trade payables	–	–	–	110	110
Derivative financial instruments	–	18	–	–	18
Client deposits	–	–	–	22	22
Employee benefit obligations	–	–	–	1,199	1,199
Other liabilities including contingent consideration (Refer Note 2.9)	–	107	–	5,897	6,004
Total	–	125	–	7,228	7,353

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 September 30, 2015:

(In crore)

	As of September 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)	578	578	–	–
Available- for- sale financial asset- Investments in quoted debt securities (Refer Note 2.2)	1,575	407	1,168	–
Available- for- sale financial asset- Investments in preference securities (Refer Note 2.2)	23	–	–	23
Available- for- sale financial asset- others (Refer Note 2.2)	15	–	–	15
Derivative financial instruments - gain on outstanding foreign exchange forward and option contracts	29	–	29	–
Liabilities
Derivative financial instruments - loss on outstanding foreign exchange forward and option contracts	18	–	18	–
Liability towards contingent consideration (Refer note 2.9)*	107	–	–	107

During the six months ended September 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.

*	Discounted at 14.3%

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

The 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 September 30,		Six months ended September 30,
	2015	2014	2015	2014
Interest income on deposits and certificates of deposit (Refer Note 2.13)	624	644	1,281	1,258
Income from available-for-sale financial assets (Refer Note 2.13)	47	70	96	149
	671	714	1,377	1,407

Derivative financial instruments

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

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

	As of		As of
	September 30, 2015		March 31, 2015
	In million	In crore	In million	In crore
Forward contracts
In U.S. dollars	644	4,224	716	4,475
In Euro	74	544	67	447
In United Kingdom Pound Sterling	65	650	73	671
In Australian dollars	95	438	98	466
In Canadian dollars	12	59	12	59
In Singapore dollars	10	46	25	114
In Swiss Franc	30	202
Options Contracts
In U.S. dollars	50	328	–	–
Total forwards and options		6,491		6,232

The Group recognized a net loss on derivative financial instruments of 18 crore and 92 crore during the three months and six months ended September 30, 2015 as against a net gain on derivative financial instruments of 84 crore and 160 crore during the three months and six months ended September 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
	September 30, 2015	March 31, 2015
Not later than one month	1,416	1,484
Later than one month and not later than three months	2,469	3,781
Later than three months and not later than one year	2,606	967
	6,491	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
	September 30, 2015	March 31, 2015
Aggregate amount of outstanding forward and option contracts	6,491	6,232
Gain on outstanding forward and option contracts	29	101
Loss on outstanding forward and option contracts	18	3

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

(In crore)

	U.S. dollars	Euro	United Kingdom Pound Sterling	Australian dollars	Other currencies	Total
Cash and cash equivalents	1,175	134	229	157	494	2,189
Trade receivables	7,299	1,067	567	519	647	10,099
Unbilled revenue	2,209	459	179	149	280	3,276
Other assets	172	41	27	15	78	333
Trade payables	(46)	(4)	(10)	(2)	(27)	(89)
Client deposits	(16)	–	–	–	(5)	(21)
Accrued expenses	(916)	(188)	(138)	(34)	(240)	(1,516)
Employee benefit obligations	(512)	(76)	(37)	(141)	(116)	(882)
Other liabilities	(990)	(124)	(30)	(20)	(805)	(1,969)
Net assets / (liabilities)	8,375	1,309	787	643	306	11,420

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 September 30, 2015 and September 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 0.51% and 0.54%, respectively.

For the six months ended September 30, 2015 and September 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 0.50% and 0.53%, respectively.

Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to 10,397 crore and 9,713 crore as of September 30, 2015 and March 31, 2015, respectively and unbilled revenue amounting to 3,441 crore and 2,845 crore as of September 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 September 30,		Six months ended September 30,
	2015	2014	2015	2014
Revenue from top customer	3.7	3.4	3.7	3.4
Revenue from top five customers	14.0	13.6	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 7,239 crore and 7,336 crore as of September 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 38 crore and 23 crore as of September 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 341 crore and 343 crore as of September 30, 2015 and March 31, 2015, respectively, that are past due, is given below:

(In crore)

Period (in days)	As of
	September 30, 2015	March 31, 2015
Less than 30	1,977	1,641
31 – 60	675	345
61 – 90	266	89
More than 90	240	302
	3,158	2,377

The provision for doubtful trade receivable for the three months and six months ended September 30, 2015 was 11 crore and 6 crore, respectively. The provision for doubtful trade receivable for the three months and six months ended September 30, 2014 was 54 crore and 169 crore, respectively.

(In crore)

	Three months ended September 30,		Six months ended September 30,		Year ended March 31,
	2015	2014	2015	2014	2015
Balance at the beginning	367	329	366	214	214
Translation differences	1	1	7	2	(7)
Provisions for doubtful accounts receivable (refer note 2.10)	11	54	7	169	171
Trade receivables written off	–	(3)	–	(4)	(12)
Balance at the end	379	381	380	381	366

Liquidity risk

As of September 30, 2015, the Group had a working capital of 35,922 crore including cash and cash equivalents of 29,946 crore and current available-for-sale financial assets of 582 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 September 30, 2015 and March 31, 2015, the outstanding employee benefit obligations were 1,199 crore and 1,069 crore, respectively, which have been substantially funded. Further, as of September 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 September 30, 2015:

(In crore)

Particulars	Less than 1 year	1-2 years	2-4 years	4-7 years	Total
Trade payables	110	–	–	–	110
Client deposits	22	–	–	–	22
Other liabilities (excluding liability towards acquisition) (Refer Note 2.9)	5,253	6	4	–	5,263
Liability towards acquisitions on an undiscounted basis (including contingent consideration) -Refer Note 2.9	680	46	46	–	772

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

(In crore)

Particulars	Less than 1 year	1-2 years	2-4 years	4-7 years	Total
Trade payables	140	–	–	–	140
Client deposits	27	–	–	–	27
Other liabilities ( excluding liabilities towards acquisition ) (Refer Note 2.9)	4,891	–	–	–	4,891
Liability towards acquisitions on an undiscounted basis (Refer Note 2.9)	525	–	–	–	525

As of September 30, 2015 and March 31, 2015, the group had outstanding financial guarantees of 55 crore and 43 crore, respectively, towards leased premises. These financial guarantees can be invoked upon breach of any term of the lease agreement. To the group’s knowledge there has been no breach of any term of the lease agreement as of September 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 recognized amounts and the group intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

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

(In crore)

	As of		As of
	September 30, 2015		March 31, 2015
	Derivative financial asset	Derivative financial liability	Derivative financial asset	Derivative financial liability
Gross amount of recognized financial asset/liability	46	(35)	105	(7)
Amount set off	(17)	17	(4)	4
Net amount presented in balance sheet	29	(18)	101	(3)

2.8 Provisions

Provisions comprise the following:

(In crore)

	As of
	September 30, 2015	March 31, 2015
Provision for post sales client support and other provisions	435	478
	435	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 September 30, 2015	Six months ended September 30, 2015
Balance at the beginning	474	478
Provision recognized/ (reversed)	(10)	18
Provision utilized	(43)	(87)
Translation difference	14	26
Balance at the end	435	435

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

As of September 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 270 crore and 261 crore, respectively.

2.9 Other liabilities

Other liabilities comprise the following :

(In crore)

	As of
	September 30, 2015	March 31, 2015
Current
Accrued compensation to employees	2,455	2,106
Accrued expenses	2,472	1,984
Withholding taxes payable⁽¹⁾	1,223	904
Retainage	57	53
Liabilities of controlled trusts	173	177
Deferred income - government grant on land use rights⁽¹⁾ (Refer Note 2.6)	1	1
Accrued gratuity	1	7
Liability towards contingent consideration (Refer note 2.3)	37	–
Liability towards acquisition of business (Refer note 2.3)	634	487
Others	95	77
	7,148	5,796
Non-current
Liability towards contingent consideration (Refer note 2.3)	70	–
Accrued compensation to employees	10	–
Deferred income - government grant on land use rights⁽¹⁾(Refer Note 2.6)	47	46
	127	46
	7,275	5,842
Financial liabilities included in other liabilities	6,004	4,891
Financial liability towards acquisitions on an undiscounted basis (including contingent consideration) - Refer note 2.3	772	525

⁽¹⁾

Non financial liabilities

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

2.10 Expenses by nature

(In crore)

	Three months ended September 30,		Six months ended September 30,
	2015	2014	2015	2014
Employee benefit costs (Refer Note 2.11.4)	8,558	7,522	16,612	14,877
Deferred purchase price pertaining to acquisition (Refer Note 2.3)	64	60	124	116
Depreciation and amortization charges (Refer Note 2.5 and 2.6)	358	291	671	521
Travelling costs	582	477	1,137	922
Consultancy and professional charges	184	91	353	137
Cost of Software packages for own use	180	180	379	405
Third party items bought for service delivery to clients	174	33	287	90
Communication costs	111	108	223	223
Cost of technical sub-contractors	858	508	1,608	956
Power and fuel	59	60	112	115
Repairs and maintenance	237	158	468	307
Rates and taxes	30	32	62	57
Insurance charges	13	12	28	25
Commission to non-whole time directors	2	2	5	4
Branding and marketing expenses	61	44	137	72
Provision for post-sales client support	(34)	18	(43)	24
Provision for doubtful account receivables (Refer Note 2.7)	11	54	7	169
Contribution towards Corporate Social Responsibility	59	77	104	125
Operating lease payments (Refer Note 2.14)	87	78	168	159
Others	48	54	106	114
Total cost of sales, selling and marketing expenses and administrative expenses	11,642	9,859	22,548	19,418

2.10.1 Break-up of expenses

Cost of sales

(In crore)

	Three months ended September 30,		Six months ended September 30,
	2015	2014	2015	2014
Employee benefit costs	7,544	6,622	14,689	13,152
Deferred purchase price pertaining to acquisition (Refer Note 2.3)	64	60	124	116
Depreciation and amortization	358	291	671	521
Travelling costs	434	352	835	699
Cost of Software packages for own use	179	181	367	406
Third party items bought for service delivery to clients	174	33	287	90
Cost of technical sub-contractors	858	508	1,607	956
Operating lease payments	59	54	113	109
Communication costs	42	36	90	76
Repairs and maintenance	33	23	86	60
Provision for post-sales client support	(34)	18	(43)	24
Others	13	23	21	38
Total	9,724	8,201	18,847	16,247

Selling and marketing expenses

(In crore)

	Three months ended September 30,		Six months ended September 30,
	2015	2014	2015	2014
Employee benefit costs	670	624	1,295	1,181
Travelling costs	86	71	169	124
Branding and marketing	61	43	135	71
Operating lease payments	11	10	21	20
Communication costs	5	8	9	13
Consultancy and professional charges	13	6	27	9
Others	(3)	7	7	17
Total	843	769	1,663	1,435

Administrative expenses

(In crore)

	Three months ended September 30,		Six months ended September 30,
	2015	2014	2015	2014
Employee benefit costs	344	276	628	544
Consultancy and professional charges	163	85	314	128
Repairs and maintenance	203	135	380	247
Power and fuel	59	60	112	115
Communication costs	64	64	124	134
Travelling costs	62	54	133	99
Provision for doubtful accounts receivable	11	54	7	169
Rates and taxes	30	32	62	57
Insurance charges	13	12	28	25
Operating lease payments	17	14	34	30
Commission to non-whole time directors	2	2	5	4
Contribution towards Corporate Social Responsibility	59	77	104	125
Others	48	24	107	59
Total	1,075	889	2,038	1,736

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 September 30, 2015 and March 31, 2015:

(In crore)

	As of
	September 30, 2015	March 31, 2015
Change in benefit obligations
Benefit obligations at the beginning	816	707
Service cost	59	95
Interest expense	31	60
Addition through business combination	1	–
Remeasurements - Actuarial (gains)/ losses	23	70
Benefits paid	(38)	(116)
Benefit obligations at the end	892	816
Change in plan assets
Fair value of plan assets at the beginning	836	717
Interest income	33	67
Remeasurements- Return on plan assets excluding amounts included in interest income	4	6
Contributions	73	162
Benefits paid	(38)	(116)
Fair value of plan assets at the end	908	836
Funded status	16	20
Prepaid gratuity benefit	17	27
Accrued gratuity	(1)	(7)

Amount for the three months and six months ended September 30, 2015 and September 30, 2014 recognized in net profit in the statement of comprehensive income:

(In crore)

	Three months ended September 30,		Six months ended September 30,
	2015	2014	2015	2014
Service cost	30	24	59	48
Net interest on the net defined benefit liability/asset	(2)	(1)	(2)	(2)
Net gratuity cost	28	23	57	46

Amount for the three months and six months ended September 30, 2015 and September 30, 2014 recognized in statement of other comprehensive income:

(In crore)

	Three months ended September 30,		Six months ended September 30,
	2015	2014	2015	2014
Remeasurements of the net defined benefit liability/ (asset)
Actuarial (gains) / losses	12	3	23	34
(Return) / loss on plan assets excluding amounts included in the net interest on the net defined benefit liability/(asset)	(2)	–	(4)	(3)
	10	3	19	31

(In crore)

	Three months ended September 30,		Six months ended September 30,
	2015	2014	2015	2014
(Gain)/loss from change in demographic assumptions	–	–	–	–
(Gain)/loss from change in financial assumptions	4	3	(10)	18
	4	3	(10)	18

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

(In crore)

	Three months ended September 30,		Six months ended September 30,
	2015	2014	2015	2014
Cost of sales	25	20	51	41
Selling and marketing expenses	2	3	4	4
Administrative expenses	1	–	2	1
	28	23	57	46

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

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

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

	Three months ended September 30,		Six months ended September 30,
	2015	2014	2015	2014
Discount rate	7.8%	9.2%	7.8%	9.2%
Weighted average rate of increase in compensation levels	8.0%	8.0%	8.0%	8.0%
Weighted average duration of defined benefit obligation	6.5 years	6.4 years	6.5 years	6.4 years

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

The Company contributes all ascertained liabilities towards gratuity to the Infosys Limited Employees' Gratuity Fund Trust. In case of Infosys BPO and EdgeVerve, contributions are made to the Infosys BPO Employees' Gratuity Fund Trust and EdgeVerve Systems Limited Employees Gratuity Fund Trust, respectively. Trustees administer contributions made to the trust. As of September 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 and six months ended September 30, 2015 and September 30, 2014 were 19 crore and 16 crore and 37 crore and 36 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 September 30, 2015, every percentage point increase / decrease in discount rate will affect our gratuity benefit obligation by approximately 43 crore.

As of September 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 58 crore to the gratuity trusts during the remainder of fiscal 2016.

Maturity profile of defined benefit obligation:

(in crore)

Within 1 year	138
1-2 year	142
2-3 year	150
3-4 year	159
4-5 year	171
5-10 years	871

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 56 crore and 53 crore and 114 crore and 106 crore to the superannuation plan during the three months and six months ended September 30, 2015 and September 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 September 30,		Six months ended September 30,
	2015	2014	2015	2014
Cost of sales	50	47	101	94
Selling and marketing expenses	4	4	9	8
Administrative expenses	2	2	4	4
	56	53	114	106

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 September 30, 2015 and March 31, 2015, respectively.

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

(In crore)

	As of
	September 30, 2015	March 31, 2015
Plan assets at period end, at fair value	3,318	2,912
Present value of benefit obligation at period end	3,318	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
	September 30, 2015	March 31, 2015
Government of India (GOI) bond yield	8.00%	7.80%
Remaining term to maturity of portfolio	7.1 years	7 years
Expected guaranteed interest rate- First year:	8.75%	8.75%
- Thereafter:	8.60%	8.60%

The Group contributed 102 crore and 81 crore and 203 crore and 160 crore to the provident fund during the three months and six months ended September 30, 2015 and September 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 September 30,		Six months ended September 30,
	2015	2014	2015	2014
Cost of sales	91	72	180	142
Selling and marketing expenses	8	7	16	13
Administrative expenses	3	2	7	5
	102	81	203	160

2.11.4 Employee benefit costs include:

(In crore)

	Three months ended September 30,		Six months ended September 30,
	2015	2014	2015	2014
Salaries and bonus*	8,371	7,364	16,237	14,564
Defined contribution plans	74	66	147	128
Defined benefit plans	113	92	228	185
	8,558	7,522	16,612	14,877

*	Includes stock compensation expense of 2 crore and 1 crore, and 4 crore and 1 crore for the three months and six months ended September 30, 2015 and September 30, 2014, respectively.

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

The employee benefit cost is recognized in the following line items in the statement of comprehensive income:

(In crore)

	Three months ended September 30,		Six months ended September 30,
	2015	2014	2015	2014
Cost of sales	7,544	6,622	14,689	13,152
Selling and marketing expenses	670	624	1,295	1,181
Administrative expenses	344	276	628	544
	8,558	7,522	16,612	14,877

2.12 Equity

Share capital and share premium

The Company has allotted 114,84,72,332 fully paid-up shares of face value 5/- each during the quarter ended June 30, 2015, pursuant to bonus issue approved by the shareholders through postal ballot. The book closure date fixed by the Board was June 17, 2015. Bonus share of one equity share for every equity share held, and a stock dividend of one American Depositary Share (ADS) for every ADS held, respectively, has been allotted. Consequently, the ratio of equity shares underlying the ADSs held by an American Depositary Receipt holder remains unchanged. Options granted under the restricted stock unit plan have been adjusted for bonus shares. 11,325,284 and 56,67,200 shares were held by controlled trust as of September 30, 2015 and March 31, 2015, respectively .

Retained earnings

Retained earnings represent the amount of accumulated earnings of the Group.

Other Reserves

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

Other components of equity

Other components of equity consist of currency translation, fair value changes on available-for-sale financial assets 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 September 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 Board increased dividend pay-out ratio from up to 40% to up to 50% of post-tax consolidated profits effective fiscal 2015.

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

The board of directors in their meeting on October 12, 2015 declared an interim dividend of 10/- per equity share which would result in a net cash outflow of approximately 2,753 crore, (excluding dividend paid on treasury shares) inclusive of corporate dividend tax.

2.12.3 Liquidation

In the event of liquidation of the Company, the holders of shares shall be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently, other than the amounts held by irrevocable controlled trusts. The amount distributed will be in proportion to the number of equity shares held by the shareholders. For irrevocable controlled trusts, the corpus would be settled in favour of the beneficiaries.

2.12.4 Share options

There are no voting, dividend or liquidation rights to the holders of options issued under the Company's share option plans.

2.13 Other income

Other income consists of the following:

(In crore)

	Three month ended September 30,		Six months ended September 30,
	2015	2014	2015	2014
Interest income on deposits and certificates of deposit	624	644	1,281	1,258
Exchange gains/ (losses) on forward and options contracts	(18)	84	(92)	160
Exchange gains/ (losses) on translation of other assets and liabilities	70	64	119	117
Income from available-for-sale financial assets	47	70	96	149
Others	70	15	147	22
	793	877	1,551	1,706

2.14 Operating leases

The Group has various operating leases, mainly for office buildings, that are renewable on a periodic basis. Rental expense for operating leases for the three months and six months ended September 30, 2015 and September 30, 2014 was 87 crore and 78 crore and 168 crore and 159 crore, respectively.

The schedule of future minimum rental payments in respect of non-cancellable operating leases is set out below:

(In crore)

	As of
	September 30, 2015	March 31, 2015
Within one year of the balance sheet date	277	168
Due in a period between one year and five years	664	395
Due after five years	283	168

A majority of the Group’s operating lease arrangements extend up to a maximum of ten years from their respective dates of inception, and relates to rented overseas premises. Some of these lease agreements have a price escalation clause.

2.15 Employees' Stock Option Plans (ESOP)

2011 RSU Plan (the 2011 Plan): The Company has a 2011 RSU Plan which provides for the grant of restricted stock units (RSUs) to eligible employees of the Company. The Board of Directors recommended establishment of the 2011 Plan to the shareholders on August 30, 2011 and the shareholders approved the recommendation of the Board of Directors on October 17, 2011 through a postal ballot. The maximum aggregate number of shares that may be awarded under the Plan is 11,334,400 shares (held by the Infosys Limited Employees' Welfare Trust and adjusted for bonus shares issued) and the plan shall continue in effect for a term of 10 years from the date of initial grant under the plan. The RSUs will be issued at par value of the equity share. As on September 30, 2015, 1,11,02,071 shares are available for issue under the 2011 plan. The 2011 Plan is administered by the Management Development and Compensation Committee now known as the Nomination and Remuneration Committee (the Committee) and through the trust. The Committee is comprised of independent members of the Board of Directors.

During the year ended March 31, 2015, the company made a grant of 108,268 restricted stock units (adjusted for bonus issues) to Dr. Vishal Sikka, Chief Executive 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 and six months ended September 30, 2015:

Particulars	Three months ended September 30, 2015		Six months ended September 30, 2015
	Shares arising out of options	Weighted average exercise price	Shares arising out of options	Weighted average exercise price
2011 Plan:
Outstanding at the beginning*	2,32,329	5	1,08,268	5
Granted	–	–	1,24,061	5
Forfeited and expired	–	–	–	–
Exercised*	9,116	5	9,116	5
Outstanding at the end	2,23,213	5	2,23,213	5
Exercisable at the end	–	–	–	–

*	Adjusted for bonus issues. (Refer note 2.12)

The weighted average share price of options exercised under the 2011 Plan on the date of exercise was 1,092/-.

The activity in the 2011 Plan during the three months and six months ended September 30, 2014 is set out below:

Particulars	Three months ended September 30, 2014		Six months ended September 30, 2014
	Shares arising out of options	Weighted average exercise price	Shares arising out of options	Weighted average exercise price
2011 Plan:
Outstanding at the beginning	–	–	–	–
Granted*	91,176	5	91,176	5
Forfeited and expired	–	–	–	–
Exercised	–	–	–	–
Outstanding at the end	91,176	5	91,176	5
Exercisable at the end	–	–	–	–

*	Adjusted for bonus issues (Refer note 2.12)

The weighted average remaining contractual life of RSUs outstanding as of September 30, 2015 and March 31, 2015 under the 2011 Plan was 2.47 years and 2.39 years, respectively.

The expected term of an RSU is estimated based on the vesting term and contractual term of the RSU, as well as expected exercise behaviour of the employee who receives the RSU. Expected volatility during the expected term of the RSU is based on historical volatility of the observed market prices of the company's publicly traded equity shares during a period equivalent to the expected term of the RSU.

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

Option granted during	Fiscal 2016	Fiscal 2015
Grant date	22-Jun-15	21-Aug-14
Weighted average share price ()*	1,024	3,549
Exercise price ()	5	5
Expected volatility (%)	28-36	30 - 37
Expected life of the option (years)	1 - 4	1 - 4
Expected dividends (%)	2.43	1.84
Risk-free interest rate (%)	7- 8	8 - 9
Weighted average fair value as on grant date ()*	948	3,355

*	Data for Fiscal 2015 is not adjusted for bonus issues

During the three months and six months ended September 30, 2015 and September 30, 2014, the company recorded an employee stock compensation expense of 2 crore and 1 crore, and 4 crore and 1 crore, respectively in the statement of comprehensive income.

2.16 Income taxes

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

(In crore)

	Three month ended September 30,		Six months ended September 30,
	2015	2014	2015	2014
Current taxes
Domestic taxes	1,124	991	2,025	1,920
Overseas taxes	317	297	549	544
	1,441	1,288	2,574	2,464
Deferred taxes
Domestic taxes	(4)	7	41	(11)
Overseas taxes	(50)	(31)	(53)	(35)
	(54)	(24)	(12)	(46)
Income tax expense	1,387	1,264	2,562	2,418

Income tax expense for the three months ended September 30, 2015 and September 30, 2014 includes reversals (net of provisions) of 30 crore and 26 crore, respectively, pertaining to earlier periods. Income tax expense for the six months ended September 30, 2015 and September 30, 2014 includes reversal (net of provisions) of 113 crore and 45 crore, respectively, pertaining to earlier periods.

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

A deferred tax liability of 4 crore relating to available-for-sale financial assets has been recognized in other comprehensive income for the three months ended September 30, 2015. A deferred tax liability of 2 crore relating to available-for-sale financial assets has been recognized in other comprehensive income for the six months ended September 30, 2015. A deferred tax liability of 2 crore relating to available-for-sale financial assets has been recognized in other comprehensive income for the three months ended September 30, 2014. A deferred tax liability of 2 crore and a reversal of deferred tax asset of 12 crore has been recognized in other comprehensive income for the six months ended September 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:

(In crore)

	Three months ended September 30,		Six months ended September 30,
	2015	2014	2015	2014
Profit before income taxes	4,785	4,360	8,991	8,400
Enacted tax rates in India	34.61%	33.99%	34.61%	33.99%
Computed expected tax expense	1,656	1,482	3,111	2,855
Tax effect due to non-taxable income for Indian tax purposes	(483)	(423)	(877)	(810)
Overseas taxes	183	208	332	384
Tax reversals, overseas and domestic	(30)	(26)	(113)	(45)
Effect of exempt non-operating income	(16)	(25)	(34)	(53)
Effect of unrecognized deferred tax assets	3	–	13	20
Effect of differential overseas tax rates	14	(7)	8	(13)
Effect of non-deductible expenses	65	74	140	109
Additional deduction on research and development expense	(12)	(14)	(26)	(29)
Others	7	(5)	8	–
Income tax expense	1,387	1,264	2,562	2,418

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 September 30, 2015, the Company has provided for branch profit tax of 331 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 15 crore movement on account of exchange rate during the six months ended September 30, 2015.

Deferred income tax liabilities have not been recognized on temporary differences amounting to 3,653 crore and 3,291 crore as of September 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 September 30, 2015 and March 31, 2015:

(In crore)

	As at
	September 30, 2015	March 31, 2015
Income tax assets	4,693	4,089
Current income tax liabilities	3,118	2,818
Net current income tax asset/ (liability) at the end	1,575	1,271

The gross movement in the current income tax asset/ (liability) for the three months and six months ended September 30, 2015 and September 30, 2014 is as follows:

(In crore)

	Three months ended September 30,		Six months ended September 30,
	2015	2014	2015	2014
Net current income tax asset/ (liability) at the beginning	1,450	(1,141)	1,271	(665)
Translation differences	6	(5)	11	5
Income tax paid	1,557	1,285	2,862	1,967
Current income tax expense (Refer Note 2.16)	(1,441)	(1,288)	(2,574)	(2,464)
Income tax on other comprehensive income	3	–	5	8
Net current income tax asset/ (liability) at the end	1,575	(1,149)	1,575	(1,149)

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

(In crore)

	As of
	September 30, 2015	March 31, 2015
Deferred income tax assets
Property, plant and equipment	202	241
Computer software	49	51
Accrued compensation to employees	57	48
Trade receivables	119	111
Compensated absences	336	299
Available-for-sale financial asset	–	1
Post sales client support	62	74
Others	31	31
Total deferred income tax assets	856	856
Deferred income tax liabilities
Intangible asset	(277)	(159)
Temporary difference related to branch profits	(331)	(316)
Property, plant and equipment	(2)	–
Available-for-sale financial asset	(2)	(1)
Others	(10)	(3)
Total deferred income tax liabilities	(622)	(479)
Deferred income tax assets after set off	511	537
Deferred income tax liabilities after set off	(277)	(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
	September 30, 2015	March 31, 2015
Deferred income tax assets to be recovered after 12 months	331	354
Deferred income tax assets to be recovered within 12 months	525	502
Total deferred income tax assets	856	856
Deferred income tax liabilities to be settled after 12 months	(427)	(374)
Deferred income tax liabilities to be settled within 12 months	(195)	(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 and six months period ended September 30, 2015 and September 30, 2014, is as follows:

(In crore)

	Three months ended September 30,		Six months ended September 30,
	2015	2014	2015	2014
Net deferred income tax asset at the beginning	200	595	377	592
Addition through business combination (Refer note 2.3)	–	–	(128)	–
Translation differences	(16)	(7)	(25)	(14)
Credits / (charge) relating to temporary differences (Refer Note 2.16)	54	24	12	46
Temporary difference on available-for-sale financial asset	(4)	(2)	(2)	(14)
Net deferred income tax asset at the end	234	610	234	610

The credits relating to temporary differences during the six months ended September 30, 2015 are primarily on account of trade receivables, compensated absences, accrued compensation to employees, partially offset by property, plant and equipment, computer software amortization and post sales customer support. The credits relating to temporary differences during the six months ended September 30, 2014 are primarily on account compensated absences, trade receivables, accrued compensation and post sales client support.

As of September 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 3,451 crore and 3,568 crore) amounted to 11 crore and 3 crore, respectively.

Payment of 3,451 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 September 30,		Six months ended September 30,
	2015	2014	2015	2014
Basic earnings per equity share - weighted average number of equity shares outstanding⁽¹⁾⁽²⁾	228,56,14,029	228,56,10,264	228,56,12,157	228,56,10,264
Effect of dilutive common equivalent shares - share options outstanding	99,013	5,848	84,521	2,924
Diluted earnings per equity share - weighted average number of equity shares and common equivalent shares outstanding	228,57,13,042	228,56,16,112	228,56,96,678	228,56,13,188

⁽¹⁾	Excludes treasury shares
⁽²⁾	adjusted for bonus issues. Refer Note 2.12

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

2.18 Related party transactions

List of subsidiaries:

Particulars	Country	Holding as of
		September 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
		September 30, 2015	March 31, 2015
DWA Nova LLC⁽¹⁾	U.S.	20%	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 September 30,		Six months ended September 30,
	2015	2014	2015	2014
Salaries and other employee benefits to whole-time directors and executive officers⁽¹⁾	6	3	28	14
Commission and other benefits to non-executive/independent directors	3	2	5	5
Total	9	5	33	19

⁽¹⁾

Includes stock compensation expense of 2 crore and 1 crore, and 4 crore and 1 crore for the three months and six months ended September 30, 2015 and September 30, 2014, respectively.

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 September 30, 2015 and September 30, 2014

(In crore)

Particulars	FS	MFG	ECS	RCL	HILIFE	All other segments	Total
Revenues	4,241	3,622	2,814	2,582	2,086	290	15,635
	*3,579*	*3,020*	*2,608*	*2,224*	*1,673*	*238*	*13,342*
Identifiable operating expenses	1,973	1,836	1,285	1,218	985	158	7,455
	1,706	1,517	1,145	1,021	826	184	6,399
Allocated expenses	1,010	895	695	638	516	72	3,826
	821	725	628	535	403	57	3,169
Segment profit	1,258	891	834	726	585	60	4,354
	*1,052*	*778*	*835*	*668*	*444*	*(3)*	*3,774*
Unallocable expenses							361
							291
Operating profit							3,993
							*3,483*
Other income, net							793
							877
Share in Associate's profit / (loss)							(1)
							–
Profit before income taxes							4,785
							*4,360*
Income tax expense							1,387
							1,264
Net profit							3,398
							*3,096*
Depreciation and amortization							358
							291
Non-cash expenses other than depreciation and amortization							3
							–

Six months ended September 30, 2015 and September 30, 2014

(In crore)

Particulars	FS	MFG	ECS	RCL	HILIFE	All other segments	Total
Revenues	8,123	6,954	5,441	4,924	4,031	516	29,989
	*7,071*	*5,903*	*5,009*	*4,416*	*3,262*	*451*	*26,112*
Identifiable operating expenses	3,886	3,573	2,491	2,348	1,963	349	14,610
	3,417	3,006	2,255	2,038	1,640	405	12,761
Allocated expenses	1,906	1,704	1,333	1,206	988	126	7,263
	1,603	1,405	1,193	1,051	777	107	6,136
Segment profit	2,331	1,677	1,617	1,370	1,080	41	8,116
	*2,051*	*1,492*	*1,561*	*1,327*	*845*	*(61)*	*7,215*
Unallocable expenses							675
							521
Operating profit							7,441
							*6,694*
Other income, net							1,551
							1,706
Share in Associate's profit / (loss)							(1)
							–
Profit before income taxes							8,991
							*8,400*
Income tax expense							2,562
							2,418
Net profit							6,429
							*5,982*
Depreciation and amortization							671
							521
Non-cash expenses other than depreciation and amortization							4
							–

2.19.2 Geographic segments

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

(In crore)

Particulars	North America	Europe	India	Rest of the World	Total
Revenues	9,891	3,580	360	1,804	15,635
	*8,110*	*3,295*	*297*	*1,640*	*13,342*
Identifiable operating expenses	4,803	1,742	87	823	7,455
	3,918	1,567	156	758	6,399
Allocated expenses	2,442	881	79	424	3,826
	1,950	789	62	368	3,169
Segment profit	2,646	957	194	557	4,354
	*2,242*	*939*	79	*514*	*3,774*
Unallocable expenses					361
					291
Operating profit					3,993
					*3,483*
Other income, net					793
					877
Share in Associate's profit / (loss)					(1)
					–
Profit before income taxes					4,785
					*4,360*
Income tax expense					1,387
					1,264
Net profit					3,398
					*3,096*
Depreciation and amortization					358
					291
Non-cash expenses other than depreciation and amortization					3
					–

2.19.2 Geographic segments

Six months ended September 30, 2015 and September 30, 2014

(In crore)

Particulars	North America	Europe	India	Rest of the World	Total
Revenues	18,965	6,800	678	3,546	29,989
	*15,874*	*6,416*	*605*	*3,217*	*26,112*
Identifiable operating expenses	9,392	3,351	323	1,544	14,610
	7,692	3,159	406	1,504	12,761
Allocated expenses	4,643	1,659	142	819	7,263
	3,775	1,520	124	717	6,136
Segment profit	4,930	1,790	213	1,183	8,116
	*4,407*	*1,737*	75	*996*	*7,215*
Unallocable expenses					675
					521
Operating profit					7,441
					*6,694*
Other income, net					1,551
					1,706
Share in Associate's profit / (loss)					(1)
					–
Profit before income taxes					8,991
					*8,400*
Income tax expense					2,562
					2,418
Net profit					6,429
					*5,982*
Depreciation and amortization					671
					521
Non-cash expenses other than depreciation and amortization					4
					–

2.19.3 Significant clients

No client individually accounted for more than 10% of the revenues in the three months and six months ended September 30, 2015 and September 30, 2014.

As per our report of even date attached

for B S R & Co. LLP

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

Chartered Accountants

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

Supreet Sachdev

Partner

R. Seshasayee

Chairman

Dr. Vishal Sikka

Chief Executive Officer and Managing Director

Roopa Kudva

Director

Membership No. 205385

Bangalore

October 12, 2015

Rajiv Bansal

Chief Financial Officer

A.G.S Manikantha

Company Secretary

Auditor’s Report on Quarterly Consolidated Financial Results of and Year to Date Financial Results 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 September 30, 2015 and the consolidated year to date financial results for the period from 1 April 2015 to 30 September 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 and year to date financial results have been prepared from consolidated interim financial statements, which are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial results based on our audit of such consolidated interim financial statements, which have been prepared in accordance with the recognition and measurement principles laid down in the International Accounting Standard (IAS) 34, Interim Financial Reporting, as issued by International Accounting Standards Board.

We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial results are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts disclosed as financial results. An audit also includes assessing the accounting principles used and significant estimates made by management. We believe that our audit provides a reasonable basis for our opinion.

In our opinion and to the best of our information and according to the explanations given to us, these quarterly consolidated and year to date financial results:

(i) include the quarterly and year to date financial results of the following entities:

	(a)	Infosys Limited;
	(b)	Infosys BPO Limited;
	(c)	Infosys BPO s.r.o;
	(d)	Infosys Technologia Do Brasil LTDA;
	(e)	Infosys Technologies (Australia) Pty Limited;
	(f)	Infosys Technologies (China) Co. Limited;
	(g)	Infosys McCamish Systems, LLC;
	(h)	Infosys Public Services, Inc.;
	(i)	Infosys Technologies S. de R.L.de C.V;
	(j)	Infosys Technologies (Sweden) AB;
	(k)	Infosys BPO Poland Sp z.o.o.;
	(l)	Infosys Technologies (Shanghai) Company Limited;
	(m)	Infosys Americas Inc.;
	(n)	Portland Group Pty Ltd;
	(o)	Edgeverve Systems Limited;
	(p)	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 September 30, 2015 as well as the consolidated year to date results for the period from 1 April 2015 to 30 September 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

October 12, 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 September 2015, the statement of profit and loss for the quarter and six months then ended and the cash flow statement for the six months then ended and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Interim Financial Statements

The Company’s Board of Directors is responsible for the preparation and presentation of these interim financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with Accounting Standards (AS) 25, Interim Financial Reporting as specified under section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the interim financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

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

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

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

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the interim financial statements give a true and fair view in conformity with AS 25, Interim Financial Reporting:

(i)

in the case of the balance sheet, of the state of affairs of the Company as at 30 September 2015;

(ii)

in the case of the statement of profit and loss, of the profit for the quarter and six months ended on that date; and

(iii)

in the case of the cash flow statement, of the cash flows for the six 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
12 October 2015

INFOSYS LIMITED

In crore

Balance Sheet as at	Note	September 30, 2015	March 31, 2015
EQUITY AND LIABILITIES
SHAREHOLDERS' FUNDS
Share capital	2.1	1,148	574
Reserves and surplus	2.2	53,363	47,494
		54,511	48,068
NON-CURRENT LIABILITIES
Deferred tax liabilities (net)	2.3	–	–
Other long-term liabilities	2.4	121	30
		121	30
CURRENT LIABILITIES
Trade payables	2.5	275	124
Other current liabilities	2.6	7,021	5,546
Short-term provisions	2.7	7,002	8,045
		14,298	13,715
		68,930	61,813
ASSETS
NON-CURRENT ASSETS
Fixed assets
Tangible assets	2.8	7,504	7,347
Capital work-in-progress		998	769
		8,502	8,116
Non-current investments	2.10	7,227	6,108
Deferred tax assets (net)	2.3	399	433
Long-term loans and advances	2.11	5,256	4,378
Other non-current assets	2.12	14	26
		21,398	19,061
CURRENT ASSETS
Current investments	2.10	537	749
Trade receivables	2.13	9,256	8,627
Cash and cash equivalents	2.14	26,863	27,722
Short-term loans and advances	2.15	10,876	5,654
		47,532	42,752
		68,930	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	Roopa Kudva
Partner	Chairman	Chief Executive Officer and Managing Director	Director
Membership No. 205385
Bangalore	Rajiv Bansal	A.G.S Manikantha
October 12, 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 September 30,		Half-Year ended September 30,
		2015	2014	2015	2014
Income from software services and products	2.16	13,525	11,863	26,263	23,182
Other income	2.17	774	833	1,493	1,623
Total revenue		14,299	12,696	27,756	24,805
Expenses
Employee benefit expenses	2.18	6,985	6,340	13,802	12,574
Deferred consideration pertaining to acquisition	2.10.1	46	56	91	113
Cost of technical sub-contractors	2.18	1,035	679	2,000	1,296
Travel expenses	2.18	425	366	857	706
Cost of software packages and others	2.18	335	198	626	466
Communication expenses	2.18	80	86	160	178
Professional charges		123	87	255	134
Depreciation and amortisation expense	2.8	272	251	524	443
Other expenses	2.18	423	464	872	931
Total expenses		9,724	8,527	19,187	16,841
PROFIT BEFORE EXCEPTIONAL ITEM AND TAX		4,575	4,169	8,569	7,964
Profit on transfer of business	2.10.2	3,036	412	3,036	412
PROFIT BEFORE TAX		7,611	4,581	11,605	8,376
Tax expense:
Current tax	2.19	1,333	1,231	2,382	2,319
Deferred tax	2.19	(28)	(15)	19	(28)
PROFIT FOR THE PERIOD		6,306	3,365	9,204	6,085
EARNINGS PER EQUITY SHARE
Equity shares of par value 5/- each
Before Exceptional item
Basic		14.24	12.92	26.85	24.82
Diluted		14.24	12.92	26.85	24.82
After Exceptional item
Basic		27.45	14.72	40.07	26.62
Diluted		27.45	14.72	40.07	26.62
Number of shares used in computing earnings per share	2.32
Basic		229,69,44,664	228,56,10,264	229,69,44,664	228,56,10,264
Diluted		229,69,44,664	228,56,14,168	229,69,44,664	228,56,12,216
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	Roopa Kudva
Partner	Chairman	Chief Executive Officer and Managing Director	Director
Membership No. 205385
Bangalore	Rajiv Bansal	A.G.S Manikantha
October 12, 2015	Chief Financial Officer	Company Secretary

INFOSYS LIMITED

In crore

Cash Flow Statement for the	Notes	Half-Year ended September 30,
		2015	2014
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax		11,605	8,376
Adjustments to reconcile profit before tax to cash generated by operating activities
Depreciation and amortisation expense		524	443
Provision for bad and doubtful debts		(13)	158
Deferred purchase price		91	113
Interest and dividend income		(1,286)	(1,333)
Profit on transfer of business (Refer to Note 2.10.2)		(3,036)	(412)
Stock compensation expense		4	1
Other adjustments		73	19
Effect of exchange differences on translation of assets and liabilities		24	13
Changes in assets and liabilities
Trade receivables		(616)	(930)
Loans and advances and other assets		(1,291)	(322)
Liabilities and provisions		1,532	1,277
		7,611	7,403
Income taxes paid		(2,665)	(1,835)
NET CASH GENERATED BY OPERATING ACTIVITIES		4,946	5,568
CASH FLOWS FROM INVESTING ACTIVITIES
Payment towards capital expenditure		(1,059)	(948)
Proceeds on sale of fixed assets		2	–
Investment in subsidiaries		(191)	(40)
Payment towards acquisition (refer note 2.10.5)		(578)	–
Payment arising out of business transfer		(250)
Investment in preferred stock		(22)	–
Investment in liquid mutual fund units		(13,320)	(11,620)
Disposal of liquid mutual fund units		13,532	10,088
Investment in tax free bond		(200)	–
Redemption of certificates of deposit		–	709
Interest and dividend received		365	1,271
NET CASH USED IN INVESTING ACTIVITIES		(1,721)	(540)
CASH FLOWS FROM FINANCING ACTIVITIES
Loan given to subsidiaries		(116)	–
Loan repaid by subsidiaries		115	–
Dividends paid (including corporate dividend tax)		(4,078)	(2,877)
NET CASH USED IN FINANCING ACTIVITIES		(4,079)	(2,877)
Effect of exchange differences on translation of foreign currency cash and cash equivalents		(5)	(5)
NET (DECREASE)/ INCREASE IN CASH AND CASH EQUIVALENTS		(859)	2,146
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	2.14	27,722	24,100
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD		26,863	26,246
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	Roopa Kudva
Partner	Chairman	Chief Executive Officer and Managing Director	Director
Membership No. 205385
Bangalore	Rajiv Bansal	A.G.S Manikantha
October 12, 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. Deferred contract costs are amortized over the term of the contract. Provision for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the current estimates.

Annual Technical Services revenue and revenue from fixed-price maintenance contracts are recognized ratably over the period in which services are rendered. Revenue from the sale of user licenses for software applications is recognized on transfer of the title in the user license, except in case of multiple element contracts, which require significant implementation services, where revenue for the entire arrangement is recognized over the implementation period based upon the percentage-of-completion method. Revenue from client training, support and other services arising due to the sale of software products is recognized as the related services are performed.

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

The Company presents revenues net of indirect taxes in its statement of profit and loss.

Profit on sale of investments is recorded on transfer of title from the Company and is determined as the difference between the sale price and carrying value of the investment. Lease rentals are recognized ratably on a straight line basis over the lease term. Interest is recognized using the time-proportion method, based on rates implicit in the transaction. Dividend income is recognized when the Company's right to receive dividend is established.

1.4 Provisions and contingent liabilities

A provision is recognized if, as a result of a past event, the Company has a present legal obligation that is reasonably estimable and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

1.5 Post-sales client support and warranties

The Company provides its clients with a fixed-period warranty for corrections of errors and support on all its fixed-price, fixed-timeframe contracts. Costs associated with such support services are accrued at the time when related revenues are recorded and included in statement of profit and loss. The Company estimates such costs based on historical experience and the estimates are reviewed annually for any material changes in assumptions.

1.6 Onerous contracts

Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable costs of meeting the future obligations under the contract. The provision is measured at lower of the expected cost of terminating the contract and the expected net cost of fulfilling the contract.

1.7 Tangible assets and capital work-in-progress

Tangible assets are stated at cost, less accumulated depreciation and impairment, if any. Direct costs are capitalized until such assets are ready for use. Capital work-in-progress comprises of the cost of fixed assets that are not yet ready for their intended use at the reporting date.

1.8 Intangible assets

Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment.

1.9 Depreciation and amortization

Depreciation on tangible assets is provided on the straight-line method over the useful lives of assets estimated by the Management. Depreciation for assets purchased / sold during a period is proportionately charged. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, commencing from the date the asset is available to the Company for its use. The Management estimates the useful lives for the other fixed assets as follows:

Buildings ⁽¹⁾	22-25 years
Plant and Machinery⁽¹⁾	5 years
Office equipment	5 years
Computer equipment ⁽¹⁾	3-5 years
Furniture and fixtures ⁽¹⁾	5 years
Vehicles ⁽¹⁾	5 years

⁽¹⁾

For these class of assets, based on internal assessment and independent technical evaluation carried out by external valuers the management believes that the useful lives as given above best represent the period over which management expects to use these assets. Hence the useful lives for these assets is different from the useful lives as prescribed under Part C of Schedule II of the Companies Act 2013.

Depreciation and amortization methods, useful lives and residual values are reviewed periodically, including at each financial year end. (Refer note 2.8)

1.10 Impairment

The Management periodically assesses using, external and internal sources, whether there is an indication that an asset may be impaired. An impairment loss is recognized wherever the carrying value of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset's net selling price and value in use, which means the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. An impairment loss for an asset is reversed if, and only if, the reversal can be related objectively to an event occurring after the impairment loss was recognized. The carrying amount of an asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

1.11 Retirement benefits to employees

a. Gratuity

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

Liabilities with regard to the Gratuity Plan are determined by actuarial valuation, performed by an independent actuary, at each Balance Sheet date using the projected unit credit method. The Company fully contributes all ascertained liabilities to the Infosys Limited Employees' Gratuity Fund Trust (the Trust). Trustees administer contributions made to the Trust and contributions are invested in a scheme with Life Insurance Corporation of India as permitted by law of India. The Company recognizes the net obligation of the gratuity plan in the Balance Sheet as an asset or liability, respectively in accordance with Accounting Standard (AS) 15, 'Employee Benefits'. The Company's overall expected long-term rate-of-return on assets has been determined based on consideration of available market information, current provisions of Indian law specifying the instruments in which investments can be made, and historical returns. The discount rate is based on the Government securities yield. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the statement of profit and loss in the period in which they arise.

b. Superannuation

Certain employees are also participants in the superannuation plan ('the Plan') which is a defined contribution plan. The Company has no obligations to the Plan beyond its monthly contributions which are periodically contributed to a trust fund, the corpus of which is invested with the Life Insurance Corporation of India.

c. Provident fund

Eligible employees receive benefits from a provident fund, which is a defined benefit plan. Both the eligible employee and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employee’s salary. The Company contributes a portion to the Infosys Limited Employees’ Provident Fund Trust. The trust invests in specific designated instruments as permitted by Indian law. The remaining portion is contributed to the government administered pension fund. The rate at which the annual interest is payable to the beneficiaries by the trust is being administered by the government. The Company has an obligation to make good the shortfall, if any, between the return from the investments of the trust and the notified interest rate.

d. Compensated absences

The employees of the Company are entitled to compensated absences which are both accumulating and non-accumulating in nature. The expected cost of accumulating compensated absences is determined by actuarial valuation using projected unit credit method on the additional amount expected to be paid/availed as a result of the unused entitlement that has accumulated at the Balance Sheet date. Expense on non-accumulating compensated absences is recognized in the period in which the absences occur.

1.12 Share-based payments

The company accounts for equity settled stock options as per the accounting treatment prescribed by Securities and Exchange Board of India ( share based employee benefits) Regulations, 2014 and the Guidance Note on Employee Share-based Payments issued by the Institute of Chartered Accountants of India using the intrinsic value method.

1.13 Foreign currency transactions

Foreign-currency denominated monetary assets and liabilities are translated at exchange rates in effect at the Balance Sheet date. The gains or losses resulting from such translations are included in the Statement of profit and loss. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction.

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

1.14 Forward and options contracts in foreign currencies

The Company uses foreign exchange forward and options contracts to hedge its exposure to movements in foreign exchange rates. The use of these foreign exchange forward and options contracts reduce the risk or cost to the Company and the Company does not use those for trading or speculation purposes.

Effective April 1, 2008, the Company adopted AS 30, 'Financial Instruments: Recognition and Measurement', to the extent that the adoption did not conflict with existing accounting standards and other authoritative pronouncements of the Company Law and other regulatory requirements.

Forward and options contracts are fair valued at each reporting date. The resultant gain or loss from these transactions are recognized in the statement of profit and loss. The Company records the gain or loss on effective hedges, if any, in the foreign currency fluctuation reserve until the transactions are complete. On completion, the gain or loss is transferred to the statement of profit and loss of that period. To designate a forward or options contract as an effective hedge, the Management objectively evaluates and evidences with appropriate supporting documents at the inception of each contract and subsequently whether the contract is effective in achieving offsetting cash flows attributable to the hedged risk. In the absence of a designation as effective hedge, a gain or loss is recognized in the statement of profit and loss. Currently hedges undertaken by the Company are all ineffective in nature and the resultant gain or loss consequent to fair valuation is recognized in the statement of profit and loss at each reporting date.

1.15 Income taxes

Income taxes are accrued in the same period that the related revenue and expenses arise. A provision is made for income tax, based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable. Minimum alternate tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of tax credit against future income tax liability, is recognized as an asset in the Balance Sheet if there is convincing evidence that the Company will pay normal tax after the tax holiday period and the resultant asset can be measured reliably. The Company offsets, on a year on year basis, the current tax assets and liabilities, where it has a legally enforceable right and where it intends to settle such assets and liabilities on a net basis.

The differences that result between the profit considered for income taxes and the profit as per the financial statements are identified, and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount of timing difference. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on enacted or substantively enacted regulations. Deferred tax assets in situation where unabsorbed depreciation and carry forward business loss exists, are recognized only if there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax asset can be realized. Deferred tax assets, other than in situation of unabsorbed depreciation and carry forward business loss, are recognized only if there is reasonable certainty that they will be realized. Deferred tax assets are reviewed for the appropriateness of their respective carrying values at each reporting date. Deferred tax assets and deferred tax liabilities have been offset wherever the Company has a legally enforceable right to set off current tax assets against current tax liabilities and where the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority. The income tax provision for the interim period is made based on the best estimate of the annual average tax rate expected to be applicable for the full financial year. Tax benefits of deductions earned on exercise of employee share options in excess of compensation charged to statement of profit and loss are credited to the securities premium reserve.

1.16 Earnings per share

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The diluted potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value which is the average market value of the outstanding shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

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

1.17 Investments

Trade investments are the investments made to enhance the Company’s business interests. Investments are either classified as current or long-term based on Management’s intention. Current investments are carried at the lower of cost and fair value of each investment individually. Cost for overseas investments comprises the Indian Rupee value of the consideration paid for the investment translated at the exchange rate prevalent at the date of investment. Long term investments are carried at cost less provisions recorded to recognize any decline, other than temporary, in the carrying value of each investment.

1.18 Cash and cash equivalents

Cash and cash equivalents comprise cash and cash on deposit with banks and corporations. The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.

1.19 Cash flow statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

1.20 Leases

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

2. NOTES TO ACCOUNTS FOR THE QUARTER AND HALF-YEAR ENDED SEPTEMBER 30, 2015

Amounts in the financial statements are presented in crore, except for per equity share data and as otherwise stated. All exact amounts are stated with the suffix “/-”. One crore equals 10 million.

The previous period figures have been regrouped/reclassified, wherever necessary to conform to the current period presentation.

2.1 SHARE CAPITAL

in crore, except as otherwise stated

Particulars	As at
	September 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 September 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.

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

During the year ended March 31, 2015, the amount of dividend per share recognised as distribution to equity shareholder includes 29.50/- per share of final dividend (not adjusted for bonus shares on June 17, 2015) and 30/- per share of interim dividend (not adjusted for bonus shares of June 17, 2015 and December 3, 2014). The total dividend appropriation for the year ended March 31, 2015 amounted to 6,145 crore including corporate dividend tax of 1,034 crore.

The Board of Directors, in their meeting on October 12, 2015, declared an interim dividend of 10/- per equity share.

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 September 30, 2015 and March 31, 2015 are set out below:

Name of the shareholder	As at September 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)	38,53,17,937	16.78	18,60,73,981	16.20
Life Insurance Corporation of India	12,70,70,876	5.53	55,274,758	4.81

The reconciliation of the number of shares outstanding and the amount of share capital as at September 30, 2015 and March 31, 2015 is set out below:

Particulars	As at September 30, 2015		As March 31, 2015
	Number of shares	Amount ( crore)	Number of shares	Amount ( crore)
Number of shares at the beginning of the period	114,84,72,332	574	57,14,02,566	286
Add: Bonus shares issued (Including bonus on treasury shares)	114,84,72,332	574	57,42,36,166	287
Add: Treasury shares on account of deconsolidation of trust	–	–	28,33,600	1
Number of shares at the end of the period	229,69,44,664	1,148	114,84,72,332	574

Stock Option Plan:

2011 RSU Plan (the 2011 Plan): The Company has a 2011 RSU Plan which provides for the grant of restricted stock units (RSUs) to eligible employees of the Company. The Board of Directors recommended establishment of the 2011 Plan to the shareholders on August 30, 2011 and the shareholders approved the recommendation of the Board of Directors on October 17, 2011 through a postal ballot. The maximum aggregate number of shares that may be awarded under the Plan is 11,334,400 shares (currently held by the Infosys Limited Employees' Welfare Trust and adjusted for bonus shares issued) and the plan shall continue in effect for a term of 10 years from the date of initial grant under the plan. The RSUs will be issued at par value of the equity share. As on September 30, 2015, 1,11,02,071 shares are available for issue under the 2011 plan. The 2011 Plan is administered by the Management Development and Compensation Committee now known as the Nomination and Remuneration Committee (the Committee) and through the trust. The Committee is comprised of independent members of the Board of Directors.

During the year ended March 31, 2015, the company made a grant of 108,268 restricted stock units (adjusted for bonus issues) to Dr. Vishal Sikka, Chief Executive Office and Managing Director. The Board in its meeting held on June 22, 2015, on recommendation of Nomination and Remuneration Committee, granted 1,24,061 RSUs to Dr. Vishal Sikka. The RSUs will vest over a period of four years from the date of the grant in the proportions specified in the award agreement. The RSUs will vest subject to achievement of certain key performance indicators as set forth in the award agreement for each applicable year of the vesting tranche and continued employment through each vesting date.

In accordance with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014, the excess of the closing market price on the grant date of the RSUs over the exercise price is amortised on a straight-line basis over the vesting period.

The activity in the 2011 Plan during the quarter and half-year ended September 30, 2015 is set out below:

Particulars	Quarter ended September 30, 2015		Half-Year ended September 30, 2015
	Shares arising out of options	Weighted average exercise price ()	Shares arising out of options	Weighted average exercise price ()
2011 Plan:
Outstanding at the beginning*	2,32,329	5	108,268	5
Granted	–	–	124,061	5
Forfeited and expired	–	–	–	–
Exercised*	9,116	5	9,116	5
Outstanding at the end	2,23,213	5	2,23,213	5
Exercisable at the end	–	–	–	–

* adjusted for bonus issues

The weighted average share price of options exercised under the 2011 Plan on the date of exercise was 1,092/-

The activity in the 2011 Plan during the three months and six months ended September 30, 2014 is set out below:

Particulars	Quarter ended September 30, 2014		Half-Year ended September 30, 2014
	Shares arising out of options	Weighted average exercise price ()	Shares arising out of options	Weighted average exercise price ()
2011 Plan:
Outstanding at the beginning	–	–	–	–
Granted*	91,176	5	91,176	5
Forfeited and expired	–	–	–	–
Exercised	–	–	–	–
Outstanding at the end	91,176	5	91,176	5
Exercisable at the end	–	–	–	–

*	Adjusted for bonus issue

The weighted average remaining contractual life of RSUs outstanding as of September 30, 2015 under the 2011 Plan was 2.47 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 September 30, 2015 is less than 1 crore (less than 1 crore for the quarter ended September 30, 2014) and during the half-year ended September 30, 2015 is less than 1 crore ( less than 1 crore for the half-year ended September 31, 2014). Consequently, there is no impact on earnings per share.

The fair value for the above impact analysis is estimated on the date of grant using the Black-Scholes-Merton model with the following assumptions:

Options granted during	Fiscal 2016	Fiscal 2015
Grant date	22-Jun-15	21-Aug-14
Weighted average share price ()*	1,024	3,549
Exercise price ()*	5	5
Expected volatility (%)	28-36	30 - 37
Expected life of the option (years)	1 - 4	1 - 4
Expected dividends (%)	2.43	1.84
Risk-free interest rate (%)	7- 8	8 - 9
Weighted average fair value as on grant date ()*	948	3,355

*	Data for Fiscal 2015 is not adjusted for bonus issues

During the quarter ended and half-year ended September 30, 2015, the company recorded an employee compensation expense of 2 crore and 4 crore respectively in the statement of profit and loss (1 crore during the quarter and half-year ended September 30, 2014)

2.2 RESERVES AND SURPLUS

in crore

Particulars	As at
	September 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
Add: Exercise of stock options	1	–
	2,205	2,778
Stock Options Outstanding- Opening balance (Refer note 2.1)	2	–
Additions during the period	4	2
Less: Exercise of stock options	1	–
	5	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	265	–
Less: Transferred to Surplus on utilization	265	–
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	9,204	12,164
Less: Deconsolidation of trust, net (Refer note 2.1)	–	42
Add: Transfer from Special Economic Zone Re-investment Reserve	265	–
Amount available for appropriation	44,621	42,514
Appropriations:
Interim dividend	2,297	1,723
Final dividend	–	3,388
Total dividend	2,297	5,111
Dividend tax	468	1,034
Amount transferred to general reserve	–	1,217
Amount transferred to Special Economic Zone Re-investment Reserve	265	–
Surplus- Closing Balance	41,591	35,152
	53,363	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
	September 30, 2015	March 31, 2015
Deferred tax assets
Fixed assets	169	210
Trade receivables	101	100
Compensated Absences	311	280
Computer software	49	51
Accrued compensation to employees	39	29
Post sales client support	60	72
Others	11	7
	740	749
Deferred tax liabilities
Branch profit tax	331	316
Others	10	–
	341	316
Deferred tax assets after set-off	399	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 September 30, 2015 and March 31, 2015, the Company has provided for branch profit tax of 331 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 15 crore movement on account of exchange rate during the half-year ended September 30, 2015.

2.4 OTHER LONG-TERM LIABILITIES

in crore

Particulars	As at
	September 30, 2015	March 31, 2015
Others
Gratuity obligation - unamortised amount relating to plan amendment (refer note 2.29)	2	3
Payable for acquisition of business (refer note 2.10.5)	92	–
Rental deposits received from subsidiary (refer note 2.26)	27	27
	121	30

2.5 TRADE PAYABLES

in crore

Particulars	As at
	September 30, 2015	March 31, 2015
Trade payables *	275	124
	275	124
*Includes dues to subsidiaries (refer note 2.26)	256	102

2.6 OTHER CURRENT LIABILITIES

in crore

Particulars	As at
	September 30, 2015	March 31, 2015
Accrued salaries and benefits
Salaries and benefits	1,219	1,144
Bonus and incentives	798	575
Unearned revenue	886	831
Unpaid dividends	3	3
Other liabilities
Provision for expenses⁽¹⁾	1,903	1,582
Retention monies	55	50
Withholding and other taxes payable	1,039	733
Gratuity obligation - unamortised amount relating to plan amendment, current (refer note 2.29)	4	4
Other payables⁽²⁾	411	79
Advances received from clients	6	20
Mark-to-market forward and options contracts	17	–
Payable for acquisition of business (refer note 2.10.1 and 2.10.5)	680	525
	7,021	5,546
⁽¹⁾ Includes dues to subsidiaries (refer note 2.26)	–	36
⁽²⁾ Includes dues to subsidiaries (refer note 2.26)	149	33

2.7 SHORT-TERM PROVISIONS

in crore

Particulars	As at
	September 30, 2015	March 31, 2015
Provision for employee benefits
Compensated absences	1,004	907
Other Provisions
Proposed dividend	2,297	3,388
Tax on dividend	468	690
Income taxes (net of advance tax and Tax Deducted at Source)	2,882	2,678
Post-sales client support and warranties and others	351	382
	7,002	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		Half-year ended		Year ended
	September 30, 2015	September 30, 2014	September 30, 2015	September 30, 2014	March 31, 2015
Balance at the beginning	398	307	382	325	325
Provision recognized/(reversed)	(22)	48	(2)	52	134
Provision utilised	(37)	(12)	(47)	(33)	(78)
Exchange difference during the period	12	2	18	1	1
Balance at the end	351	345	351	345	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 half-year ended September 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⁾⁽³⁾	Furniture and fixtures ⁽²⁾	Vehicles	Total	Intellectual property rights	Total
Original cost
As at April 1, 2015	929	621	5,733	1,361	525	2,812	832	14	12,827	42	42	12,869
Additions/ Adjustments during the period	28	–	130	116	65	408	75	3	825	–	–	825
Deductions/ Retirement during the period	–	–	–	–	–	(234)	(2)	–	(236)	(13)	(13)	(249)
As at September 30, 2015	957	621	5,863	1,477	590	2,986	905	17	13,416	29	29	13,445
Depreciation and amortization
As at April 1, 2015	–	16	1,937	838	280	1,852	549	8	5,480	42	42	5,522
For the period	–	2	104	94	43	223	57	1	524	–	–	524
Deductions/ Adjustments during the period	–	–	–	–	–	(91)	(1)	–	(92)	(13)	(13)	(105)
As at September 30, 2015	–	18	2,041	932	323	1,984	605	9	5,912	29	29	5,941
Net book value
As at September 30, 2015	957	603	3,822	545	267	1,002	300	8	7,504	–	–	7,504

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 half-year ended September 30, 2015, computer equipment having net book value of 20 crore was transferred to EdgeVerve (Refer note 2.10.2)

Following are the changes in the carrying value of fixed assets for the half-year ended September 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	13	10,361	59	59	10,420
Additions/ Adjustments during the period	118	268	306	92	69	244	58	1	1,156	–	–	1,156
Deductions/ Retirement during the period	–	–	–	–	–	(25)	–	(1)	(26)	–	–	(26)
As at September 30, 2014	899	617	5,184	1,182	462	2,397	737	13	11,491	59	59	11,550
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	–	14	88	86	31	157	61	1	438	5	5	443
Deductions/ Adjustments during the period	–	–	–	–	–	(17)	–	(1)	(18)	–	–	(18)
As at September 30, 2014	–	14	1,842	757	246	1,694	502	7	5,062	51	51	5,113

Net book value
As at September 30, 2014	899	603	3,342	425	216	703	235	6	6,429	8	8	6,437

Notes

⁽¹⁾

Buildings include 250/- being the value of 5 shares of 50/- each in Mittal Towers Premises Co-operative Society Limited.

⁽²⁾

Includes certain assets provided on cancellable operating lease to Infosys BPO, subsidiary

⁽³⁾

During the half-year ended September 30, 2014, computer equipment having book value of 8 crore was transferred to EdgeVerve Systems limited (Refer 2.10.2)

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 had changed the useful life of certain assets primarily consisting of buildings and computers with effect from April 1, 2014. Accordingly, the useful lives of certain assets required a change from previous estimate.

The Company has entered into lease-cum-sale agreements to acquire certain properties. In accordance with the terms of some of these agreements, the Company has the option to purchase or renew the properties on expiry of the lease period.

Tangible assets provided on operating lease to subsidiaries as at September 30, 2015 and March 31, 2015 are as follows:

in crore

Particulars	Cost	Accumulated depreciation	Net book value
Buildings	109	44	65
	98	35	63
Plant and equipment	9	2	7
	12	3	9
Furniture and fixtures	12	4	8
	11	2	9
Computer Equipment	1	1	–
	–	–	–
Office equipment	11	3	8
	6	1	5

The aggregate depreciation charged on the above assets during the quarter and half-year ended September 30, 2015 amounted to 3 crore and 5 crore ( 1 crore for the quarter and half-year ended September 30, 2014 each).

The rental income from subsidiaries for the quarter and half year ended September 30, 2015 amounted to 12 crore and 20 crore respectively (14 crore and 18 crore for the quarter and half-year ended September 30, 2014 respectively).

2.9 LEASES

Obligations on long-term, non-cancellable operating leases

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

in crore

Particulars	Quarter ended September 30,		Half-year ended September 30,
	2015	2014	2015	2014
Lease rentals recognized during the period	43	40	84	82

in crore

Lease obligations payable	As at
	September 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	326	284
Due after five years	206	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
	September 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 (29,400) - Class B Shares of CHF 100 each, fully paid up	1,323	1,323
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	22	–
Investments in equity instruments	7	7
Less: Provision for investments	6	6
	23	1
Others (quoted)
Investments in tax free bonds (refer note 2.10.7)	1,434	1,234
Investments in government bonds (refer note 2.10.7)	–	–
	1,434	1,234
Total non-current investments	7,227	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)	537	749
	537	749
Total current investments	537	749
Total investments	7,764	6,857
Aggregate amount of quoted investments excluding interest accrued but not due of 52 crore as at September 30, 2015 (46 crore as at March 31, 2015) included under Note 2.15 Short term Loans and advances.	1,434	1,234
Market value of quoted investments	1,501	1,269
Aggregate amount of unquoted investments	6,336	5,629
Aggregate amount of provision made for non-current unquoted investments	6	6

Profit on sale of Investment is less than 1 crore for quarter and half-year ended September 30, 2015 ( Less than 1 crore each for quarter and half-year ended September 30, 2014).

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 56 crore, representing the proportionate charge of the deferred consideration has been recognised as an expense during the quarter ended September 30, 2015 and September 30, 2014 respectively and 91 and 113 crore during half-year ended September 30, 2015 and September 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.

On April 24, 2015, the Board of Directors of Infosys has authorized the Company to execute a Business Transfer Agreement and related documents with EdgeVerve, to transfer the business of Finacle and Edge Services. Post the requisite approval from shareholders through postal ballot on June 4, 2015, a Business Transfer Agreement and other related documents were executed with EdgeVerve to transfer the business with effect from August 1, 2015. The company has undertaken an enterprise valuation by an independent valuer and accordingly the business were transferred for a consideration of 3,222 crore and 177 crore for Finacle and Edge Services, respectively. Net assets amounting to 363 crore, (including working capital amounting to 337 crore) have been transferred and accordingly a gain of 3,036 crore has been recorded as an exceptional item. The consideration will be settled through the issue of equity and debentures subject to the approval of the shareholders of 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 $20 millions (approximately 131 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 September 30, 2015 and March 31, 2015 are as follows:

in crore

Particulars	As at
	September 30, 2015	March 31, 2015
Preferred Stock
Airviz Inc.
2,82,279 (Nil) Series A Preferred Stock, fully paid up, par value USD 0.001 each	13	–
ANSR Consulting
52,631 (Nil) Series A Preferred Stock, fully paid up, par value USD 0.001 each	9	–
Equity Instrument
OnMobile Systems Inc., USA
21,54,100 (21,54,100) common stock, fully paid up, par value USD 0.001 each	4	4
Merasport Technologies Private Limited
2,420 (2,420) equity shares , fully paid up, par value 10/- each	2	2
Global Innovation and Technology Alliance
15,000 (10,000) equity shares , fully paid up, par value 1,000/- each	1	1
	29	7
Less: Provision for investment	6	6
	23	1

2.10.7 Details of Investments in tax free bonds

The balances held in tax free bonds as at September 30, 2015 and March 31, 2015 is as follows:

in crore

Particulars	Face Value	As at September 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
7.28% National Highways Authority of India Bonds 18SEP30	10,00,000/-	2,000	200	–	–
8.10% Indian Railway Finance Corporation Limited Bonds 23FEB2027	1,000/-	500,000	53	500,000	53
		58,08,450	1,434	58,06,450	1,234

The balances held in government bonds as at September 30, 2015 and March 31, 2015 is as follows:

in crore

Particular	Face Value	As at September 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 September 30, 2015 is as follows:

in crore

Particulars	Units	Amount
ICICI Prudential Liquid Plan - Direct Plan Daily Dividend	12,649,779	127
Reliance Treasury Plan - Direct Plan Daily Dividend Reinvestment	1,079,498	165
HDFC liquid Fund-Direct plan-Daily Dividend Reinvestment	2,403,210	245
	16,132,487	537

The balances held in liquid mutual fund units as at March 31, 2015 is as follows:

in crore

Particulars	Units	Amount
IDFC Cash Fund - Direct Plan Daily Dividend	29,30,197	293
Reliance Liquid Fund - Treasury Plan - Direct Plan Daily Dividend Option	9,81,551	150
SBI Premier Liquid Fund - Direct Plan Daily Dividend	9,97,094	100
ICICI Liquid Plan - Direct Plan Daily Dividend	2,05,44,807	206
	2,54,53,649	749

2.11 LONG-TERM LOANS AND ADVANCES

in crore

Particulars	As at
	September 30, 2015	March 31, 2015
Unsecured, considered good
Capital advances	312	316
Security deposits	69	65
Rental deposits ⁽¹⁾	77	45
Other loans and advances
Advance income taxes (net of provisions)	4,428	3,941
Prepaid expenses	5	7
Deferred Contract Cost	361	–
Loans and advances to employees	4	4
	5,256	4,378
Unsecured, considered doubtful
Loans and advances to employees	11	10
	5,267	4,388
Less: Provision for doubtful loans and advances to employees	11	10
	5,256	4,378
⁽¹⁾ Includes deposits with subsidiaries (refer note 2.26)	21	21

2.12 OTHER NON-CURRENT ASSETS

in crore

Particulars	As at
	September 30, 2015	March 31, 2015
Others
Advance to gratuity trust (refer note 2.29)	14	26
	14	26

2.13 TRADE RECEIVABLES ⁽¹⁾

in crore

Particulars	As at
	September 30, 2015	March 31, 2015
Debts outstanding for a period exceeding six months
Unsecured
Considered doubtful	224	162
Less: Provision for doubtful debts	224	162
	–	–
Other debts
Unsecured
Considered good⁽²⁾	9,256	8,627
Considered doubtful	88	160
	9,344	8,787
Less: Provision for doubtful debts	88	160
	9,256	8,627
	9,256	8,627
⁽¹⁾Includes dues from companies where directors are interested	1	6
⁽²⁾ Includes dues from subsidiaries (refer note 2.26)	317	309

2.14 CASH AND CASH EQUIVALENTS

in crore

Particulars	As at
	September 30, 2015	March 31, 2015
Cash on hand	–	–
Balances with banks
In current and deposit accounts	21,963	23,722
Others
Deposits with financial institution	4,900	4,000
	26,863	27,722
Balances with banks in unpaid dividend accounts	3	3
Deposit accounts with more than 12 months maturity	185	182
Balances with banks held as margin money deposits against guarantees	197	185

Cash and cash equivalents as of September 30, 2015 and March 31, 2015 include restricted cash and bank balances of 200 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
	September 30, 2015	March 31, 2015
In current accounts
ANZ Bank, Taiwan	4	4
Bank of America, USA	653	498
Bank of Baroda, Mauritius	1	–
Citibank N.A., Australia	30	10
Citibank N.A., India	2	6
Citibank N.A., Dubai	4	1
Citibank N.A., EEFC (U.S. Dollar account)	6	2
Citibank N.A., Japan	38	20
Citibank N.A., New Zealand	2	3
Citibank N.A., South Africa	5	2
Deutsche Bank, Philippines	2	2
Deutsche Bank, India	20	4
Deutsche Bank, EEFC (Euro account)	7	2
Deutsche Bank, EEFC (GBP account)	6	5
Deutsche Bank, EEFC (AUD account)	1	–
Deutsche Bank, EEFC (U.S. Dollar account)	34	7
Deutsche Bank, EEFC (CHF account)	1	4
Deutsche Bank, Belgium	23	13
Deutsche Bank, France	5	2
Deutsche Bank, Germany	28	8
Deutsche Bank, Netherlands	21	1
Deutsche Bank, Russia	1	–
Deutsche Bank, Singapore	6	5
Deutsche Bank, Spain	1	1
Deutsche Bank, Switzerland	3	–
Deutsche Bank, UK	205	24
HSBC, Hong Kong	13	44
ICICI Bank, India	1	18
ICICI Bank, EEFC (U.S. Dollar account)	3	9
Nordbanken, Sweden	5	1
Punjab National Bank, India	3	7
Royal Bank of Canada, Canada	16	11
State Bank of India	1	1
	1,151	715
In deposit accounts
Allahabad Bank	200	200
Andhra Bank	200	97
Axis Bank	1,343	1,415
Bank of Baroda	2,314	2,314
Bank of India	2,337	2,691
Canara Bank	2,075	2,841
Central Bank of India	1,257	1,303
Corporation Bank	1,031	1,197
Development Bank of Singapore	–	35
HDFC Bank	2,500	2,017
ICICI Bank	2,894	3,059
IDBI Bank	100	706
Indusind Bank	250	75
ING Vysya Bank	–	100
Indian Overseas Bank	250	573
Kotak Mahindra Bank Limited	100	–
Oriental Bank of Commerce	1,500	1,500
Punjab National Bank	55	512
Syndicate Bank	348	327
Union Bank of India	971	971
Vijaya Bank	187	386
Yes Bank	700	500
	20,612	22,819
In unpaid dividend accounts
HDFC Bank - Unpaid dividend account	1	1
ICICI bank - Unpaid dividend account	2	2
	3	3
In margin money deposits against guarantees
Canara Bank	140	128
State Bank of India	57	57
	197	185
Deposits with financial institution
HDFC Limited	4,900	4,000
	4,900	4,000
Total cash and cash equivalents as per Balance Sheet	26,863	27,722

2.15 SHORT-TERM LOANS AND ADVANCES

in crore

Particulars	As at
	September 30, 2015	March 31, 2015
Unsecured, considered good
Loans to subsidiaries (refer note 2.26)	23	24
Others
Advances
Prepaid expenses⁽³⁾	94	71
Deferred Contract Cost	33	–
For supply of goods and rendering of services	100	60
Withholding and other taxes receivable	1,403	1,253
Receivable on sale of business (Refer note 2.10.2)⁽¹⁾	3,399	–
Others⁽¹⁾	232	49
	5,284	1,457
Restricted deposits (refer note 2.33)	1,052	1,039
Unbilled revenues⁽²⁾	2,956	2,423
Interest accrued but not due	1,355	433
Loans and advances to employees
Housing and other loans	50	53
Salary advances	139	148
Security deposits	4	1
Mark-to-market forward and options contracts	27	94
Rental deposits	9	6
	10,876	5,654
⁽¹⁾ Includes dues from subsidiaries (refer note 2.26)	3,483	43
⁽²⁾ Includes dues from subsidiaries (refer note 2.26)	–	6
⁽³⁾ Includes dues from subsidiaries (refer note 2.26)	23	–

2.16 INCOME FROM SOFTWARE SERVICES AND PRODUCTS

in crore

Particulars	Quarter ended September 30,		Half-year ended September 30,
	2015	2014	2015	2014
Income from software services	13,366	11,478	25,626	22,399
Income from software products	159	385	637	783
	13,525	11,863	26,263	23,182

2.17 OTHER INCOME

in crore

Particulars	Quarter ended September 30,		Half-year ended September 30,
	2015	2014	2015	2014
Interest received on deposits with banks and others	603	636	1,245	1,244
Dividend received on investment in mutual fund units	19	40	41	89
Miscellaneous income, net	81	18	161	24
Gains / (losses) on foreign currency, net	71	139	46	266
	774	833	1,493	1,623

2.18 EXPENSES

in crore

Particulars	Quarter ended September 30,		Half-year ended September 30,
	2015	2014	2015	2014
Employee benefit expenses
Salaries and bonus including overseas staff expenses	6,825	6,216	13,473	12,297
Contribution to provident and other funds	132	107	281	247
Employee stock compensation expense (Refer note 2.1)	2	1	4	1
Staff welfare	26	16	44	29
	6,985	6,340	13,802	12,574
Cost of technical sub-contractors
Technical sub-contractors - subsidiaries	405	332	803	658
Technical sub-contractors - others	630	347	1,197	638
	1,035	679	2,000	1,296
Travel expenses
Overseas travel expenses	389	341	784	649
Travelling and conveyance	36	25	73	57
	425	366	857	706
Cost of software packages and others
For own use	163	166	347	379
Third party items bought for service delivery to clients	172	32	279	87
	335	198	626	466
Communication expenses
Telephone charges	55	62	108	127
Communication expenses	25	24	52	51
Other expenses
Office maintenance	118	94	224	169
Power and fuel	49	50	95	97
Brand building	37	30	94	44
Rent	43	40	84	82
Rates and taxes, excluding taxes on income	24	25	51	48
Repairs to building	41	14	70	25
Repairs to plant and machinery	20	11	37	22
Computer maintenance	16	18	51	50
Consumables	8	8	15	13
Insurance charges	11	11	22	21
Provision for post-sales client support and warranties	(37)	12	(32)	16
Commission to non-whole time directors	2	2	4	4
Provision for bad and doubtful debts and advances	5	52	(13)	158
Auditor's remuneration
Statutory audit fees	–	1	1	1
Other services	–	–	–	–
Reimbursement of expenses	–	–	–	–
Bank charges and commission	(1)	–	1	1
Contributions towards Corporate Social Responsibility	59	72	101	120
Others	28	24	67	60
	423	464	872	931

2.19 TAX EXPENSE

in crore

	Quarter ended September 30,		Quarter ended September 30,
	2015	2014	2015	2014
Current tax
Income tax	1,333	1,231	2,382	2,319
Deferred tax	(28)	(15)	19	(28)
	1,305	1,216	2,401	2,291

During the quarter ended September 30, 2015 and September 30, 2014, the company had reversal (net of provisions) of 29 crore and 25 crore, respectively, pertaining to tax relating to prior years.

During the half-year ended September 30, 2015 and September 30, 2014, the company had reversal (net of provisions) of 117 crore and 49 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
	September 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	29	22
Claims against the Company, not acknowledged as debts⁽¹⁾	185	167
[Net of amount paid to statutory authorities 3,453 crore (3,572 crore)]
Commitments :
Estimated amount of unexecuted capital contracts	1,251	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
	September 30, 2015		March 31, 2015
	in million	in crore	in million	in crore
Forward contracts outstanding
In USD	594	3,896	664	4,150
In Euro	64	470	59	396
In GBP	60	598	68	632
In AUD	90	415	95	452
In CAD	12	59	12	59
In SGD	10	46	25	114
In CHF	30	202	–	–
Options Outstanding
In USD	50	328	–	–
		6,014		5,803

As of September 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
	September 30, 2015	March 31, 2015
Not later than one month	1,328	1,382
Later than one month and not later than three months	2,283	3,608
Later than three months and not later than one year	2,403	813
	6,014	5,803

The Company recognized a loss of 14 crore and gain of 85 crore on derivative instruments during the quarter ended September 30, 2015 and September 30, 2014, respectively, which is included in other income.

The Company recognized a loss of 85 crore and gain of 157 crore on derivative instruments during the half-year ended September 30, 2015 and September 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 September 30,		Half-year ended September 30,
	2015	2014	2015	2014
Capital goods	70	110	177	179
	70	110	177	179

2.24 ACTIVITY IN FOREIGN CURRENCY

in crore

Particulars	Quarter ended September 30,		Half-year ended September 30,
	2015	2014	2015	2014
Earnings in foreign currency
Income from software services and products	13,281	11,597	25,734	22,649
Interest received from banks and others	–	1	1	2
	13,281	11,598	25,735	22,651
Expenditure in foreign currency
Overseas travel expenses (including visa charges)	205	158	672	527
Professional charges	86	48	195	71
Technical sub-contractors - subsidiaries	326	281	649	559
Overseas salaries and incentives	4,625	3,949	9,067	7,810
Other expenditure incurred overseas for software development	1,311	821	2,439	1,367
	6,553	5,257	13,022	10,334
Net earnings in foreign currency	6,728	6,341	12,713	12,317

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	Half-year ended September 30,
			2015	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
		September 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
		September 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 September 30, 2015 and March 31, 2015 are as follows:

in crore

Particulars	As at
	September 30, 2015	March 31, 2015
Trade Receivables
Infosys China	23	16
Infosys Mexico	13	1
Infosys Brasil	1	5
Infosys BPO	6	1
Lodestone Management Consultants Ltd.	34	26
EdgeVerve	6	14
Infosys Public Services	219	246
Infosys Sweden	15	–
	317	309
Loans
Lodestone Management Consultants Ltd.	–	6
Infosys Sweden	13	–
Kallidus	10	–
EdgeVerve	–	18
	23	24
Other receivables
Infosys BPO	5	1
Infosys Public Services	–	4
EdgeVerve	3,450	14
Panaya	25	–
Lodestone Management Consultants SAS	5	3
Lodestone Management Consultants GmbH	1	1
Lodestone Management Consultants Ltd.	20	20
	3,506	43
Unbilled revenues
Lodestone Management Consultants SAS	–	1
McCamish Systems LLC	–	5
	–	6
Trade payables
Infosys China	11	10
Infosys BPO	3	–
Infosys BPO s. r. o	1	–
Portland Group Pty Ltd	–	1
Infosys Mexico	1	1
Infosys Sweden	3	5
Lodestone Management Consultants Pty Limited	7	10
Lodestone Management Consultants Pte Ltd.	9	8
Lodestone Management Consultants Ltd.	75	65
Infosys Brasil	2	2
EdgeVerve	139	–
Infosys Public Services	5	–
	256	102
Other payables
Infosys BPO	28	16
McCamish Systems LLC	–	2
Lodestone Management Consultants AG	1	1
Lodestone Management Consultants Ltd.	1	1
EdgeVerve	93	9
Panaya	1	–
Panaya Ltd.	18	–
Skava Systems	–	–
Infosys Public Services	–	4
Infosys Sweden	6	–
Infosys Mexico	1	–
	149	33
Provision for expenses
Infosys BPO	–	(1)
Infosys Public Services	–	–
EdgeVerve	–	37
	–	36
Rental Deposit given for shared services
Infosys BPO	21	21
Rental Deposit taken for shared services
Infosys BPO	27	27

The details of the related parties transactions entered into by the Company, in addition to the lease commitments described in note 2.9, for the quarter and half–year ended September 30, 2015 and September 30, 2014 are as follows:

in crore

Particulars	Quarter ended September 30,		Half-year ended September 30,
	2015	2014	2015	2014
Capital transactions:
Financing transactions
EdgeVerve	–	461	–	461
Infosys Shanghai	–	–	191	–
	–	461	191	461
Loans (net of repayment)
Lodestone Management Consultants Ltd.	1	–	(6)	–
Infosys Sweden	–	–	13	–
Kallidus	–	–	10	–
EdgeVerve	44	–	(18)	–
	45	–	(1)	–
Revenue transactions:
Purchase of services
Infosys China	32	38	63	74
Lodestone Management Consultants Pty Limited	25	27	54	60
Lodestone Management Consultants Ltd.	190	161	364	342
Lodestone Management Consultants Pte Ltd.	28	9	59	17
Portland Group Pty Ltd	1	1	2	2
Infosys BPO s.r.o	3	2	6	5
Infosys BPO	85	50	158	99
Infosys Sweden	18	10	37	22
Infosys Mexico	3	3	6	5
EdgeVerve	–	29	–	29
Infosys Public Services	2	–	5	–
Panaya Ltd.	4	–	5	–
Infosys Brasil	3	2	4	3
	394	332	763	658
Purchase of shared services including facilities and personnel
Infosys BPO	3	19	5	37
	3	19	5	37
Interest income
EdgeVerve	1	–	2	–
Infosys Brasil	–	–	–	1
	1	–	2	1
Sale of services
Infosys China	2	1	5	4
Infosys Mexico	10	3	17	5
Lodestone Management Consultants Ltd.	7	5	11	11
Infosys Brasil	1	2	3	3
Infosys BPO	17	20	35	42
McCamish Systems LLC	1	2	2	3
Infosys Sweden	7	–	14	–
EdgeVerve	–	16	–	16
Infosys Public Services	219	194	433	363
	264	243	520	447
Sale of shared services including facilities and personnel
EdgeVerve	12	9	15	9
Panaya Ltd.	2	–	2	–
Infosys BPO	5	10	10	19
	19	19	27	28
Profit on transfer of business
EdgeVerve	3,036	412	3,036	412
	3,036	412	3,036	412
Cash paid under business transfer
EdgeVerve	250	–	250	–
	250	–	250	–

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

in crore

Particulars	Quarter ended September 30,		Half-year ended September 30,
	2015	2014	2015	2014
Salaries and other employee benefits to whole-time directors and executive officers ⁽¹⁾	6	3	28	14
Commission and other benefits to non-executive/independent directors	3	2	5	4
Total	9	5	33	18

⁽¹⁾

Includes stock compensation expense of 2 crore and 4 crore for quarter and half-year ended September 30, 2015.

2.27 RESEARCH AND DEVELOPMENT EXPENDITURE

in crore

Particulars	Quarter ended September 30,		Half-year ended September 30,
	2015	2014	2015	2014
Expenditure at Department of Scientific and Industrial Research (DSIR) approved R&D centers (eligible for weighted deduction)⁽¹⁾
Capital Expenditure	–	–	–	–
Revenue Expenditure	14	41	54	85
Other R&D Expenditure
Capital Expenditure	–	–	1	–
Revenue Expenditure	75	91	169	208
Total R&D Expenditure
Capital Expenditure	–	–	1	–
Revenue Expenditure	89	132	223	293

⁽¹⁾

During the quarter ended and half-year ended September 30, 2015 the company has claimed weighted tax deduction on eligible research and development till 31st July 2015 based on the approval received from Department of Scientific and Industrial Research (DSIR) on November 23, 2011 which has been renewed effective April 2014. With effect from 1st August 2015 the business of Finacle, including the R&D activities, is transferred to its wholly owned subsidiary Edgeverve Systems Limited, hence with effect from that date, Edgeverve Systems Limited will be claiming the weighted tax deduction on eligible research and development expenditures u/s 35(2AB) of the Income Tax Act 1961. The weighted tax deduction is equal to 200% of such expenditure incurred.

The eligible R&D revenue and capital expenditure are 14 crore and Nil for the quarter ended September 30, 2015 and 41 crore and Nil towards revenue and capital expenditure for the quarter ended September 30, 2014. The eligible R&D revenue and capital expenditure are 54 crore and Nil for the half-year ended September 30, 2015 and 85 crore and Nil towards revenue and capital expenditure for the half-year ended September 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 September 30, 2015 and September 30, 2014:

in crore

Particulars	FSI	MFG	ECS	RCL	LSH	Total
Income from software services and products	4,418	3,123	2,663	2,399	922	13,525
	3,992	2,537	2,534	2,097	703	11,863
Identifiable operating expenses	2,185	1,585	1,224	1,180	455	6,629
	1,968	1,284	1,206	994	357	5,809
Allocated expenses	917	654	557	502	193	2,823
	813	534	532	441	147	2,467
Segmental operating income	1,316	884	882	717	274	4,073
	1,211	719	796	662	199	3,587
Unallocable expenses						272
						251
Other income, net						774
						833
Profit before exceptional item and tax						4,575
						4,169
Exceptional item						3,036
						412
Profit before tax						7,611
						4,581
Tax expense						1,305
						1,216
Profit after taxes and exceptional item						6,306
						3,365

Half-year ended September 30, 2015 and September 30, 2014:

in crore

Particulars	FSI	MFG	ECS	RCL	LSH	Total
Income from software services and products	8,771	5,970	5,164	4,596	1,762	26,263
	7,888	4,976	4,823	4,159	1,336	23,182
Identifiable operating expenses	4,397	3,071	2,499	2,261	897	13,125
	3,916	2,523	2,402	1,975	714	11,530
Allocated expenses	1,822	1,268	1,097	976	375	5,538
	1,620	1,058	1,023	884	283	4,868
Segmental operating income	2,552	1,631	1,568	1,359	490	7,600
	2,352	1,395	1,398	1,300	339	6,784
Unallocable expenses						524
						443
Other income, net						1,493
						1,623
Profit before exceptional item and tax						8,569
						7,964
Exceptional item						3,036
						412
Profit before tax						11,605
						8,376
Tax expense						2,401
						2,291
Profit after taxes and exceptional item						9,204
						6,085

Geographic Segments

Quarter ended September 30, 2015 and September 30, 2014:

in crore

Particulars	North America	Europe	India	Rest of the World	Total
Income from software services and products	9,012	2,931	278	1,304	13,525
	7,530	2,658	306	1,369	11,863
Identifiable operating expenses	4,495	1,440	81	613	6,629
	3,708	1,303	158	640	5,809
Allocated expenses	1,886	613	56	268	2,823
	1,583	557	58	269	2,467
Segmental operating income	2,631	878	141	423	4,073
	2,239	798	90	460	3,587
Unallocable expenses					272
					251
Other income, net					774
					833
Profit before exceptional items and tax					4,575
					4,169
Exceptional item					3,036
					412
Profit before tax					7,611
					4,581
Tax expense					1,305
					1,216
Profit after taxes and exceptional items					6,306
					3,365

Half-year ended September 30, 2015 and September 30, 2014:

in crore

Particulars	North America	Europe	India	Rest of the World	Total
Income from software services and products	17,367	5,544	607	2,745	26,263
	14,711	5,149	608	2,714	23,182
Identifiable operating expenses	8,817	2,771	313	1,224	13,125
	7,264	2,598	395	1,273	11,530
Allocated expenses	3,688	1,174	117	559	5,538
	3,123	1,089	115	541	4,868
Segmental operating income	4,862	1,599	177	962	7,600
	4,324	1,462	98	900	6,784
Unallocable expenses					524
					443
Other income, net					1,493
					1,623
Profit before exceptional items and tax					8,569
					7,964
Exceptional item					3,036
					412
Profit before tax					11,605
					8,376
Tax expense					2,401
					2,291
Profit after taxes and exceptional items					9,204
					6,085

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
	September 30, 2015	March 31, 2015
Obligations at year/ period beginning	755	668
Service cost	54	89
Interest cost	28	56
Transfer of obligation*	(30)	(5)
Actuarial (gain)/loss	12	58
Benefits paid	(34)	(111)
Obligations at year/ period end	785	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	36	65
Transfer of assets*	(40)	–
Actuarial gain/(loss)	(4)	5
Contributions	60	145
Benefits paid	(34)	(111)
Plan assets at year/ period end, at fair value	799	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	799	781
Present value of the defined benefit obligations at the end of the year/ period	785	755
Re-imbursement (obligation)/asset*	–	(6)
Asset recognized in the balance sheet	14	20
Assumptions
Interest rate	8.00%	7.80%
Estimated rate of return on plan assets	9.50%	9.50%
Weighted expected rate of salary increase	8.00%	8.00%

*	from/to between group companies

in crore

Particulars	As at
	September 30, 2015	March 31, 2015	March 31, 2014	March 31, 2013	March 31, 2012
Obligations at year/ period end	785	755	668	612	569
Plan assets at year/ period end, at fair value	799	781	677	643	582
Funded Status	14	26	9	31	13
Experience adjustments:
(Gain)/loss:
Experience adjustments on plan liabilities	21	4	14	(49)	13
Experience adjustments on plan assets	(4)	(5)	3	–	–

Net gratuity cost for the quarter ended September 30, 2015 and September 30, 2014 comprises of the following components:

in crore

Particulars	Quarter ended September 30,		Half-year ended September 30,
	2015	2014	2015	2014
Gratuity cost for the period
Service cost	27	23	54	45
Interest cost	14	14	28	29
Expected return on plan assets	(18)	(16)	(36)	(32)
Actuarial (gain)/loss	2	(4)	16	24
Plan amendment amortization	(1)	(2)	(2)	(2)
Net gratuity cost	24	15	60	64
Actual return on plan assets	15	15	32	34

As at September 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 50 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 37crore, 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 September 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 84 crore and 170 crore during the quarter and half-year ended September 30, 2015 ( 70 crore and 139 crore during the quarter and half-year ended September 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 September 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
	September 30, 2015	March 31, 2015	March 31, 2014	March 31, 2013	March 31, 2012
Plan assets at period end, at fair value	3,318	2,912	2,817	2,399	1,816
Present value of benefit obligation at period end	3,318	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
	September 30, 2015	March 31, 2015
Government of India (GOI) bond yield	8.00%	7.80%
Remaining term of maturity of portfolio	7.1 years	7 years
Expected guaranteed interest rate- First year	8.75%	8.75%
- Thereafter	8.60%	8.60%

2.31 SUPERANNUATION

The Company contributed 55 crore and 112 crore to the Superannuation trust during the quarter and half-year ended September 30, 2015 (53 crore and 105 crore during the quarter and half-year ended September 30, 2014).

2.32 RECONCILIATION OF BASIC AND DILUTED SHARES USED IN COMPUTING EARNINGS PER SHARE

Particulars	Quarter ended September 30,		Half-Year ended September 30,
	2015	2014	2015	2014
Number of shares considered as basic weighted average shares outstanding*^#	229,69,44,664	228,56,10,264	229,69,44,664	228,56,10,264
Effect of dilutive common equivalent shares	–	3,904	–	1,952
Number of shares considered as weighted average shares and potential shares outstanding	229,69,44,664	228,56,14,168	229,69,44,664	228,56,12,216

*	adjusted for bonus issue.(refer Note 2.1)

^#	balance during the quarter and half-year ended September 30, 2014 was net of treasury shares

2.33 RESTRICTED DEPOSITS

Restricted deposits as at September 30, 2015 comprises 1,052 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 September 30,		Half-year ended September 30,
	2015	2014	2015	2014
Income from software services and products	13,525	11,863	26,263	23,182
Software development expenses	7,976	6,897	15,744	13,746
GROSS PROFIT	5,549	4,966	10,519	9,436
Selling and marketing expenses	657	664	1,347	1,242
General and administration expenses	819	715	1,572	1,410
	1,476	1,379	2,919	2,652
OPERATING PROFIT BEFORE DEPRECIATION	4,073	3,587	7,600	6,784
Depreciation and amortization	272	251	524	443
OPERATING PROFIT	3,801	3,336	7,076	6,341
Other income	774	833	1,493	1,623
PROFIT BEFORE EXCEPTIONAL ITEM AND TAX	4,575	4,169	8,569	7,964
Profit on transfer on business (refer to note 2.10.2)	3,036	412	3,036	412
PROFIT BEFORE TAX	7,611	4,581	11,605	8,376
Tax expense:
Current tax	1,333	1,231	2,382	2,319
Deferred tax	(28)	(15)	19	(28)
PROFIT FOR THE PERIOD	6,306	3,365	9,204	6,085

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	Roopa Kudva
Partner	Chairman	Chief Executive Officer and Managing Director	Director
Membership No. 205385
Bangalore	Rajiv Bansal	A.G.S Manikantha
October 12, 2015	Chief Financial Officer	Company Secretary

Auditors’ Report on Quarterly Financial Results and Year to Date 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 September 30, 2015 and year to date financial results for the period from 1 April 2015 to 30 September 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 as well as year to date financial results have been prepared on the basis of the interim financial statements, which are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial results based on our audit of such interim financial statements, which have been prepared in accordance with the recognition and measurement principles laid down in Accounting Standard (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 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 September 30, 2015 as well as the year to date results for the period from April 1, 2015 to September 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
October 12, 2015

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