Accountancy Project-Sem 1

(BBA-LLB HONS.)
Introduction:
The Company-

Established in 1981, Infosys is a NYSE listed global consulting and IT services

company with more than 240k employees.
Infosys Limited is an Indian Information Technology company that provides global
business consulting and information technology services. Infosys helps clients in 45
countries to create and execute different strategies for their digital transformation.
Infosys helps businesses to renew & improve existing conditions so that their
business can achieve higher efficiencies and stay relevant according to current
times. Through their hard work & dedication, from a capital of US$250, Infosys has
grown to become a US$12.87 billion (Q2 FY21 revenues) company with a market
capitalization of approximately US$58.82 billion.

In its journey of 39 years, it has catalysed some of the major changes that has led to
India's emergence as the global destination for software services talent. It pioneered
the Global Delivery Model and became the first IT Company from India to be listed
on NASDAQ. Its employee stock options program created some of India's first
salaried millionaires.

Infosys products and services offered:

Infosys provides software development and its maintenance services to a wide array
of companies from different fields such as insurance, finance, manufacturing etc.
Some of the important work-related platforms used in Infosys are

 Mana which is now called NIA - Next Generation Integrated AI Platform.

 Edge Verve Systems which include Finacle, a banking solution with various
modules related to corporate & retail banking.
 Infosys' own analytics platform called as Infosys Information Platform.
 Infosys consulting is a global management consulting service.

Competition:

 Cognizant: Cognizant is an American multinational product led digital

corporation that provides digital products, digital IT services, including digital,
technology, consulting, and operations services. It sells digital products
on cloud-based data engineering, model-based testing tool, process automation
tool RPA
  Capgemini: Capgemini SE is a French multinational corporation that
provides consulting, technology, professional, and outsourcing services. It is
headquartered in Paris, France.
 Tata Consultancy Services: Tata Consultancy Services Limited is an Indian
multinational information technology services and consulting company
headquartered in Mumbai, Maharashtra, India. It is a subsidiary of the Tata
Group and operates in 149 locations across 46 countries. TCS is the second
largest Indian company by market capitalization.
 Tech Mahindra: Tech Mahindra Limited is an Indian multinational
technology company, providing information technology and business process
outsourcing services. A subsidiary of the Mahindra Group, the company is
headquartered in Pune and has its registered office in Mumbai.
 Accenture: Accenture plc is an American-Irish multinational professional
services company. A Fortune Global 500 company, it reported revenues of
$43.2 billion in 2019 and had 492,000 employees, serving clients in more than
120 countries.

Infosys’ Mission Statement

"To achieve our objectives in an environment of fairness, honesty, and courtesy

towards our clients, employees, vendors and society"

Infosys’ Vision Statement

"To be a globally respected corporation that provides best-of-breed business

solutions, leveraging technology, delivered by best-in-class people." 

Infosys Tagline

 “Powered by Intellect, Driven by Values”

Financial assets

Subsidiaries:
During the year, Infosys invested additionally in their subsidiaries, for the purpose of
acquisition of entities, operations and expansions.
HIPUS Co., Ltd (formerly, Hitachi Procurement Service Co. Ltd.) (“HIPUS”)

On April 1, 2019, Infosys Consulting Pte Limited, a wholly owned subsidiary of

Infosys Limited, acquired 81% voting interests in HIPUS Co., Limited, a wholly-
owned subsidiary of Hitachi Ltd, Japan, for a total cash consideration of JPY 3.29
billion (approximately ` 206 crore). HIPUS handles indirect materials purchasing
functions for the Hitachi Group. The entity provides end-to-end procurement
capabilities, through its procurement function expertise, localized team and BPM
networks in Japan.

Stater N.V.

On May 23, 2019, Infosys Consulting Pte Limited acquired 75% of voting interests
in Stater N.V. (“Stater”), a wholly owned subsidiary of ABN AMRO Bank N.V.,
Netherlands, for a total cash consideration of Euro 154 million (approximately `
1,195 crore). Stater brings European mortgage expertise and a robust digital platform
to drive superior customer experience. The Company has recorded a financial
liability for the estimated present value of its gross obligation to purchase the non-
controlling interest as of the acquisition date in accordance with the share purchase
agreement with a corresponding adjustment to equity.

Outbox Systems Inc. dba Simplus

On March 13, 2020, Infosys Nova Holdings LLC acquired 100% of voting interests
in Outbox Systems Inc. dba Simplus, a US-based Salesforce advisor and consulting
partner in cloud consulting, implementation and training services for a total
consideration of up to US$ 250 million (approximately ` 1,892 crore).

The Infosys Board of Directors

1. Nandan M. Nilekani- Chairman

2. U.B. Pravin Rao- Chief Operating Officer and Whole-time Director

3. Salil Parekh- Chief Executive Officer and Managing Director

4. Kiran Mazumdar-Shaw- Lead Independent Director

5. Michael Gibbs- Independent Director

 6. D. Sundaram- Independent Director

7. Dr. Punita Kumar-Sinha- Independent Director

8. Uri Levine- Additional and Independent Director

Revenue:

The growth in its revenues in fiscal 2020 from fiscal 2019 is as follows:

The increase in revenues was primarily attributable to an increase in large deal wins
and the volume across most of the segments.

The revenues from digital and core services for fiscals 2020 and 2019 are as follows:

Source: Financial Express

 PROMOTER HOLDING
Quarter Ending: September 2020
Shareholding belonging to the category: "Promoter and Promoter Group”

Name of the Shareholder Total Shares

held
Nandan M Nilekani 0.96
N R Narayana Murthy 0.39
S Gopalakrishnan 0.98
Asha Dinesh 0.91
Dinesh Krishnaswamy 0.76
Rohini Nilekani 0.81
Sudha Gopalakrishnan 2.24
Akshata Murty 0.91
S D Shibulal 0.04
Sudha N Murty 0.81
Janhavi Nilekani 0.3
KUMARI SHIBULAL 0.22
Nihar Nilekani 0.3
Rohan Murty 1.43
GAURAV MANCHANDA 0.32
Meghana Gopalakrishnan 0.11
Divya Dinesh 0.18
Deeksha Dinesh 0.18
SHRUTI SHIBULAL 0.06
Shreyas Shibulal 0.56
MILAN SHIBULAL MANCHANDA 0.33
BHAIRAVI MADHUSUDHAN 0.15
SHIBULAL
Size and composition of the Board
The SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as
amended (“the Listing Regulations”) mandate the following:
• For a company with a non-executive chairman, who is a promoter, at least half of
the board shall consist of independent directors.

• The board of directors of the top 1,000 listed companies effective April 1, 2020
shall have at least one independent woman director.

The year at a glance:

Based on Ind AS consolidated financial statements

Segment Reporting:

During the three months ended June 30, 2018, the Group internally reorganized some
of its business segments to deepen customer relationships, improve focus of sales
investments and increase management oversight. Therefore, enterprises in Insurance
which was earlier considered under the Life Sciences, Healthcare and Insurance
business segment are now considered under the Financial Services business segment
and enterprises in Communication, Telecom OEM and Media which was earlier
under Energy & Utilities, Communication and Services is shown as a separate
business segment. Assets and liabilities used in the Group’s business are not
identified to any of the reportable segments, as these are used interchangeably
between segments.
The 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. Business segment revenue information is collated
based on individual customers invoiced or in relation to which the revenue is
otherwise recognized.

Auditor’s report

“We have audited the accompanying standalone financial statements of INFOSYS

LIMITED (the “Company”), which comprise the Balance Sheet as at March 31,
2020, the Statement of Profit and Loss (including Other Comprehensive Income), the
Statement of Changes in Equity and the Statement of Cash Flows ended on that date,
and a summary of significant accounting policies and other explanatory information
(hereinafter referred to as the “standalone financial statements”).”

The Auditors’ believe that, the financial statements give the information required by
the Companies Act, 2013 (the “Act”) in the manner so required and give a true and
fair view in conformity with the Indian Accounting Standards prescribed under
section 133 of the Act read with the Companies (Indian Accounting Standards)
Rules, 2015, as amended, (“Ind AS”) and other accounting principles generally
accepted in India, of the state of affairs of the Company as at March 31, 2020, the
profit and total comprehensive income, changes in equity and its cash flows for the
year ended on that date.

Directors’ responsibility statement

The financial statements are prepared in accordance with the Indian Accounting
Standards (Ind AS) under the historical cost convention on accrual basis except for
certain financial instruments, which are measured at fair values, the provisions of the
Companies Act, 2013 (to the extent notified) and guidelines issued by SEBI. The Ind
AS are prescribed under Section 133 of the Companies Act, 2013, read with Rule 3
of the Companies (Indian Accounting Standards) Rules, 2015 and Companies
(Indian Accounting Standards) Amendment Rules, 2016.
The directors confirm that:
• In preparation of the annual accounts for the financial year ended March 31, 2020,
the applicable accounting standards have been followed and there are no material
departures.
• They have selected such accounting policies and applied them consistently and
made judgments and estimates that are reasonable and prudent so as to give a true
and fair view of the state of affairs of the Company at the end of the financial year
and of the profit of the Company for that period.
• They have taken proper and sufficient care towards the maintenance of adequate
accounting records in accordance with the provisions of the Companies Act, 2013 for
safeguarding the assets of the Company and for preventing and detecting fraud and
other irregularities.
• They have prepared the annual accounts on a going concern basis.
• They have laid down internal financial controls, which are adequate and are
operating effectively.
• They have devised proper systems to ensure compliance with the provisions of all
applicable laws, and such systems are adequate and operating effectively.

FINANCIAL POSITION
Balance sheet:
Analysis of financial performance:
INFOSYS Balance Sheet Analysis
 The company's current liabilities during FY20 stood at Rs 209 billion as
compared to Rs 186 billion in FY19, thereby witnessing an increase of
11.9%.
 Current assets rose 3% and stood at Rs 546 billion, while fixed assets
rose 45% and stood at Rs 247 billion in FY20.
 Overall, the total assets and liabilities for FY20 stood at Rs 928 billion
as against Rs 847 billion during FY19, thereby witnessing a growth of
9%.

INFOSYS Cash Flow Statement Analysis

  INFOSYS's cash flow from operating activities (CFO) during FY20
stood at Rs 170 billion, an improvement of 14.6% on a YoY basis.
 Cash flow from investing activities (CFI) during FY20 stood at Rs -2
billion on a YoY basis.
 Cash flow from financial activities (CFF) during FY20 stood at Rs -176
billion on a YoY basis.
 Overall, net cash flows for the company during FY20 stood at Rs -9
billion from the Rs -3 billion net cash flows seen during FY19.

Current Valuations for INFOSYS

 The trailing twelve-month earnings per share (EPS) of the company

stands at Rs 39.2, an improvement from the EPS of Rs 35.5 recorded last
year.
 The price to earnings (P/E) ratio, at the current price of Rs 956.5, stands
at 24.0 times its trailing twelve months earnings.
 The price to book value (P/BV) ratio at current price levels stands at 4.4
times, while the price to sales ratio stands at 3.2 times.
 The company's price to cash flow (P/CF) ratio stood at 21.0 times its
end-of-year operating cash flow earnings.
Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015
Name(s) of parties with whom the
agreement is entered
Expected date of completion of
investment
Purpose of entering into the agreement
Consideration for the investment
Nature of consideration
Infosys Consulting Pte. Ltd. (“IC”),
which is a wholly owned subsidiary
of Infosys Limited will be entering
into an agreement with -
ABN AMRO Bank N.V., a company
incorporated under the laws of the
Netherlands ("ABN AMRO"); and
Stater N.V., a company incorporated
under the laws of the Netherlands
(“Stater”).
The transaction is expected to close in
Q1 FY2020, subject to customary
closing conditions.
Founded in 1997, Stater is a wholly
owned subsidiary of ABN AMRO
Bank N.V. providing end-to-
end mortgage
administration services in the
Netherlands, Belgium and Germany.
https://stater.nl/en/
As part of the transaction, Infosys
Consulting Pte. Ltd. will acquire 75%
stake in Stater from ABN AMRO by
way of an acquisition of existing
shares. ABN AMRO will continue to
hold the remaining 25% of the
shareholding.
The strategic partnership is in
alignment with Infosys’ strategy to
strengthen its mortgage servicing
capabilities in Continental Europe
EUR 127.5 million for 75% stake,
subject to customary closing
adjustments
Cash
Industry to which the entity being
acquired belongs
Brief details of any governmental or
regulatory approvals required for the
acquisition
In case of issuance of shares to the
parties, details of issue price, class of
shares issued
Shareholding, if any, in the entity with
whom the agreement is executed
Whether, the said parties are related to
promoter/promoter group / group
companies in any manner. If yes, nature
of the relationship.
Whether, the transaction would fall
within related party transactions? If yes,
whether the same is done at “arms-
length”.
In case of termination or amendment of
agreement, listed entity shall disclose
additional details to stock exchanges
Significant terms of the agreement
BPM (Business Process Management)
Customary approvals from the
relevant competition authority and the
Dutch Authority for the Financial
Markets (“AFM”)
No
Nil
No
No
Not applicable.
As part of the terms of the
Shareholders’ Agreement, Infosys to
have the rights of a majority
shareholder including the right to
appoint majority of the directors in the
supervisory board, right to subscribe
to new shares, right of first refusal in
the event of transfer of shares, right to
restrict amendment of Articles,
issuance, redemption and repurchase
of shares, merger, demerger,
bankruptcy or Liquidation among
others.
Annual report 2019-20

Thank You!