CIA: FINANCIAL

STATEMENT
INTERPRETATION
CORPORATE
ACCOUNTING
BY- N.SUDEEP (2120283)
GEORGE THOMAS MATHEW
(2120235)
 TABLE OF CONTENTS
S.no TOPIC

1 Introduction

2 About the company

3 Analysis

4 Accounting standards

5 Conclusion
Infosys Limited
Infosys Limited is an Indian Technology company that provides global business
consulting and intormation technology services. The company was establshed in
the year 1981 by Narayana Murthy and a team of six other engineers in Pune, India
with an initial capital investment of US $ 39 billion. The company aims
to help businesses to renew and improve existing condition so that they can
achieve higher efficiencies and stay relevant according to the market trends.
Organization Heads
• Founder: - N.R, Narayana Murthy
CEO: Salil S. Parekh
Whole-time Director: Pravin Rao
• President: Mohit Josh:
• Chief Financial Officer: M.D-Ranganath
This study aims to study the financial statements of Infosys Limited Conterning
the standalone statements with
the dote collected. The source of data are the financial statements of (last3 years)
of Infosys limited.
 1- Cash and cash Equivalents- These are the assests that are owned by the
company, that are cash or can be converted into cash immediately.
Year Cash and cash Percentage change
equivalents
2017-18 16770 0

2018-19 19568 16.68%

2019-20 18649 -4.70%

2020-21 24714 32.52%

The above table shows the percentage value of change in cash and cash equivalents
of the compaty in respective years. The item Value had a negative change in 2019-
20 of -4.70%. but the next year it had a positive change of 32-52% which is a
positive sign for the company.

2. Current Investments- It is a type of investment that is nature realisable and is

intended to be held for not more than one year from the date of investment.
Year Current investments Percentage change

2017-18 5960 0

2018-19 6627 12.21%

2019-20 4655 -29.76%

2020-21 2342 -49.69%

The above table shows the percentage value of change in current investments of
the years for the respective years.The item value had negative change in both the
years which mean the current assets are reducing every year Which is a negative
sign for the grouth of the company.
3. Sundry debtors: It can be termed as accounts vecievable. These are recorded as
assets to a company on the money belongs to the company which is expected to
recieve.
Year Sundry debtors Percentage change

2017-18 12151 0

2018-19 13370 10.03%

2019-20 15459 15.62%

2020-21 16394 16.39%

The above table shows the percentage change in the value sundry debtors of the
company for the respective years. The item value had a positive change implying
an increase in the accounts recievable which is a positive sign for the growth of the
company i.e, assets are increasing.

4. loans and Advances: Loans refers to a debt provided by a company for a

particular period while advances are the funds provided by banks to business. This
fall under current assets.
Year Loans and advances Percentage change

2017-18 18458 0

2018-19 20161 9.23%

2019-20 19179 -4.87%

2020-21 20273 5.70%

The above table shows the pertentage change in the value of loans and advances of
the company for the years. The them value had a positive change in 2020-2021,
which shows an increase in the current assets which is positive sign for the growth
of the company.
5. Capital work in progress: It represents the costs incurred to date of a fixed asset
that is still under construction at the balance sheet date.
Year Capital work in progress Percentage change

2017-18 1442 0

2018-19 1212 -15.95%

2019-20 945 -22.03%

2020-21 906 -4.13%

The above table shows the percentage charge the capital work in progress of the
company for the respective years. There is negative change in the value of the item
over the years, the decrease in the item value means These assets are converted to
the fixed assets of the company like machinery which is good for long-term.

6. Trade Recievables: It is the balance of money due to a firm for goods or services
delivered or used but not yet paid by customers and comes under current asset.
Year Trade recievables Percentage change

2017-18 12151 0

2018-19 13370 10.03%

2019-20 15459 15.62%

2020-21 16394 6.05%

The above table shows the persentage change in trade receivables of the company
for the respective years. the item value change has remained positive all three years
which implies that assets are increasing every year which is good for the company.
 1. INTANGIBLE ASSETS: It is an asset that is not physical nature. goodwill,
brand recognition and intellectual property such as patents, trademarks and
copyrights are intangible assets.
Year Capital work in progress Percentage return

2017-18 130 0.00%

2018-19 103 -20.77%

2019-20 77 -25.24%

2020-21 234 203.90%

The item has shown a negative percentage change in the first two years but in year
2 020-21 the assets have seen a great rise of 203.90%, which is a good sign for the
growth of the company.

2. RESERVES AND SURPLUS: They are all the cumulative amount of rolaured
earnings recorded as a part of the shareholders equity and are carmarked by the
compary for specific purposes
Year Capital work in progress Percentage return

2017-18 62410 0

2018-19 60533 -3.01

2019-20 59808 -1.20

2020-21 69089 15.42

The item has shown a negative percentage change in first 2 years but in there 2020-
21, it has seen a great rise ep 15.42%. Increase in resources and surplus implies
that company is operating is a good condition and has set aside good amount to pay
in future.

9. LONG TERM INVESTMENTS: It is an account a company plans to Keep for at

least a year such as bards, stacks, real-estate, and cash. This account appears on the
arets side in the balance sheet
Year Capital work in progress Percentage return

2017-18 17899 0

2018-19 18139 1.34

2019-20 17922 -1.20

2020-21 24155 34.78

The item has shown a regative change in the first two years but in year 2020-21,
the reserues and surplus has seen a great rise of 34.781. Increase in investments is
always good to the company increases the arsets for the company in the long seen
which means the company will have arsets in the future.

10. SHARE CAPITAL: It is the money a company raises by issuing common or

preferred stack. Share capital is reported by a company on its balance sheet is the
stareholders equity section.
Year Capital work in progress Percentage return

2017-18 1092 0

2018-19 2178 99.45

2019-20 2426 11.39

2020-21 2501 3.13

The item has seen a positive change or increase in the value of over the years. The
increase in the lapital for the company can finance additional company growth. It
is a good sign to investors and analysts if a company can issue amount of
additional stock without a drop in share price.

NOTES:
11 ACCRUED EXPENSES, NOTE NUMBER 2.11 (OTHER FINANCIAL
LIABILITIES) : It is also knowon as accrued liabilities, is an acesenting term that
refers to an expense that is recognized on books: before it is paid
Year Capital work in progress Percentage return

2017-18 1776 0

2018-19 2310 30.07

2019-20 2646 14.55

2020-21 2944 11.26

The item has shown a positive change in the past if years but the rate of change is
in a reducing state which can be understood by looking at the percentage change
shown is the table above

12. UNEARNED REVENUES, NOTE NUMBER 2.13 (OTHER CURRENT

LIABILITIES):
unearned revenue is money received by an Individual or company for a service or
product that has yet to be provided a delivered.
Year Capital work in progress Percentage return
 2017-18 1887 0

2018-19 2094 10.97

2019-20 2140 2.20

2020-21 3145 46.96

The Item has shown a positive change over the years which means the value of
unearned revenues is increasing year by year. In the year 2020-21 the change was
marimum which was 46.96%. Increase in the current liabilities is a source of
funding and so represents the cashflow for the company.

ACCOUNTING
STANDARDS OF INFOSYS:
15.1.1 Basis of preparation of financial statements:
These financial statements are propared in accordance with Indias generally
accepted accounting principles (GARP) under the histtreal cost cormention on the
to accrual bases except for certain financial instruments which are measured at fair
values.
15. 1.2 Use of Estimates:
The preparation of the financial statements in conformity with GAP requires
maragement to make estimates and assumptions that affect the reported balances of
assets and liabilities and dis closures relating to contingent liabilities as at the date
of the financial statements and reported amounts of income and expenses during
the period.
15.1-Revenue recognition:
Reuenue is primarily derived from software development and related services.
arrangements with customers for software dewelopment and related services are
there on a fixed price, fixed time frame on a time and material basis.
15.1.4 PROVISIONS AND CONTINGENT LIABILITIES :
A provision is recognized if, as a result of past event, the compary has a prevent
Legal obligation that can be estemated reliably, and it is probable that an outflow
of economic benefits will be required settle the obligation
15.1.5 FIXED ASSETS, INTANGIBLE ASSETS AND CAPITAL- WORK-IN-
PROGRESS:
Ture asses are Gated at test, less accumulated depreciation and impairments. Direct
costs are capitalized until fixed assets are ready for use. Capital work in -progress
comprises Outstanding advances paid to acquire fixed assets, and the colt of fixed
assets that are not yet sleady for the intended use at the reporting date.
15.1.6 DEPRECIATION AND AMORTIZATION:
depreciation on fixed asset Is provided on the straight line method over the useful
lives estimated by the management. Depreciation for Assets purchased I sold
during a peried is proportionately charged.

CONCLUSION:
Financial statement interpretation provides an understanding of how the company
conducts its business along with determining the company's health and stability.
Different accounting methods adopted different firms and companies changes the
health and profit lewels either by intreasing on decreasing it. Different analysis
methods and different analysts pray get varied results from the lane information
that is provided. So, Cut in important to understand that financial statement
Interpretation analysis has its own Limitations Hence, we must know that financial
statement analysis us the only one of the tools which major one that in mod while
taking an investment decision. coming to the company chosen, through the
provided data we can have an estimate about Infosys and the operations it
completed with the help of the line items that are chosen. We can conclude that it
us n profitable company and a fast-growing company.