Subsidiaries Financial Statements 2019 20

Being Resilient.
That’s Live Enterprise.
Subsidiary Financials 2019–20

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Contents
Infosys BPM Limited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
EdgeVerve Systems Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Infosys McCamish Systems, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Infosys Public Services Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
Infy Consulting Company Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
Infosys Technologies (China) Co. Limited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
Infosys Poland Sp. z o.o. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
Infosys Consulting GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199
Infosys Technologies (Shanghai) Co. Limited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215
Infosys Consulting AG. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239
Infosys Technologies S. de R. L. de C. V. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247
Panaya Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263
Fluido Oy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273
Infosys (Czech Republic) Limited s.r.o. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285
WongDoody Holding Company, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305
Infosys Consulting Ltda. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317
Infosys Consulting Sp. z o.o.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 339
Infosys Management Consulting Pty. Limited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 355
Kallidus, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375
Brilliant Basics Limited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 397
Infosys Consulting S.R.L (Argentina). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 413
Portland Group Pty. Ltd.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 433
Infosys Middle East FZ LLC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 455
Panaya Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 473
Infosys Technologies (Sweden) AB. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 491
Infosys Subsidiary Financials 2019-20

Infy Consulting B.V. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 503
Infosys Consulting (Shanghai) Co. Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 523
Skava Systems Private Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 543
Infosys Consulting (Belgium) N.V. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 571
Infosys BPO Americas LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 591
Infosys Consulting S.R.L. (Romania) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 599
Infosys Chile SpA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 619
Panaya GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 629
Infosys Austria GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 647
Infosys Consulting s.r.o.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 663
Lodestone Management Consultants Portugal, Unipessoal, Lda. . . . . . . . . . . . . . . . . . . . 679
Brilliant Basics Holdings Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 697
Infosys Americas Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 711
Infosys Luxembourg S.a.r.l.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 725
Infosys Nova Holdings LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 739
Infosys Consulting Holding AG. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 749
Infosys Arabia Limited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 757
Infosys South Africa Pty. Ltd.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 769
Brilliant Basics (MENA) DMCC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 781
HIPUS Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 791
Infosys Consulting SAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 815
Stater N.V. (Stater). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 841
Infosys Compaz Pte. Ltd.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 919
Infosys Consulting Pte. Ltd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 949

Infosys BPM Limited
Independent auditor’s report
To the members of Infosys BPM Limited
Report on the Audit of the Standalone Financial Statements

Opinion
We have audited the accompanying standalone financial statements of INFOSYS BPM 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”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone
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.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities
for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance
with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical
requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules
made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s
Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit
opinion on the standalone financial statements.
Information Other than the Financial Statements and Auditor’s Report Thereon
The Company’s Board of Directors is responsible for the other information. The other information comprises the information
included in the Management Discussion and Analysis, Board’s Report including Annexures to Board’s Report, Business
Responsibility Report, Corporate Governance and Shareholder’s Information, but does not include the standalone financial
statements and our auditor’s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our
knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Management’s Responsibilities for the Standalone Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the
preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance,
including other comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS and
other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and
detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial
controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the standalone financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are responsible for overseeing the Company’s financial reporting process.
2 I Infosys BPM Limited Infosys Subsidiary Financials 2019-20

Auditor’s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect
a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
• Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion
on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such
controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on
the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the standalone financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures,
and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate,
makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements
may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work
and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone
financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from
our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in
Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under
Section 133 of the Act.
e) On the basis of the written representations received from the directors as on March 31, 2020 taken on record by the
Board of Directors, none of the directors is disqualified as on March 31, 2020 from being appointed as a director in
terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating
effectiveness of such controls, refer to our separate Report in “Annexure A”. Our report expresses an unmodified opinion
on the adequacy and operating effectiveness of the Company’s internal financial controls over financial reporting.
Infosys Subsidiary Financials 2019-20 Infosys BPM Limited I 3

g) With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of Section
197(16) of the Act, as amended: In our opinion and to the best of our information and according to the explanations
given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions
of Section 197 of the Act.
h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies
(Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the
explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements.
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable
losses, if any, on long-term contracts including derivative contracts;
iii. There were no amounts which were required to be transferred to the Investor Education and Protection
Fund by the Company.
2. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the Central Government in
terms of Section 143(11) of the Act, we give in “Annexure B” a statement on the matters specified in paragraphs
3 and 4 of the Order.
For DELOITTE HASKINS & SELLS LLP

(Firm’s Registration number :117366W/W-100018)
Chartered Accountants
Anand Subramanian
Partner
(Membership number : 110815)
UDIN: 20110815AAAAAR8591
Place: Bengaluru
Date: April 16, 2020

Annexure “A” to the Independent Auditor’s Report
(Referred to in paragraph 1 (f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report to the Members
of Infosys BPM Limited of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over financial reporting of infosys BPM limited (“the Company”) as of March
31, 2020 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Board of Directors of the Company is responsible for establishing and maintaining internal financial controls based on the
internal control over financial reporting criteria established by the Company considering the essential components of internal
control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute
of Chartered Accountants of India (“ICAI”). These responsibilities include the design, implementation and maintenance of
adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to respective company’s policies, the safeguarding of its assets, the prevention and detection of frauds and
errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information,
as required under the Companies Act, 2013.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting of the Company
based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls
Over Financial Reporting (the “Guidance Note”) issued by the ICAI and the Standards on Auditing prescribed under Section
143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and
the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether adequate internal financial controls over financial reporting was established and maintained and if
such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system
over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting
included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material
weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed
risk. 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.
We believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis for our audit opinion on
the Company’s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles. A company’s internal financial control over financial reporting includes those policies
and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that
receipts and expenditures of the Company are being made only in accordance with authorisations of management and directors
of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition,
use, or disposition of the company’s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion
or improper management override of controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to
the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.

Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material
respects, an adequate internal financial controls system over financial reporting and such internal financial controls over
financial reporting were operating effectively as at March 31, 2020, based on the internal financial control over financial
reporting criteria established by the Company considering the essential components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.

Anand Subramanian
Partner
Place: Bengaluru

Annexure ‘B’ to the Independent auditor’s report
(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report to the
Members of Infosys BPM Limited of even date)
i. In respect of the Company’s fixed assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details and
situation of fixed assets.
(b) The Company has a program of verification to cover all the items of fixed assets in a phased manner which, in our
opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program,
certain fixed assets were physically verified by the Management during the year. According to the information and
explanations given to us, no material discrepancies were noticed on such verification.
(c) In respect of immovable properties of land and building that have been taken on lease and disclosed as fixed assets in
the standalone financial statements, the lease agreements are in the name of the Company.
ii. The Company is in the business of providing business process management services and does not have any physical
inventories. Accordingly, reporting under Clause 3 (ii) of the Order is not applicable to the Company.
iii. The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or
other parties covered in the register maintained under Section 189 of the Act.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the
provisions of Sections 185 and 186 of the Act in respect of grant of loans, making investments and providing guarantees
and securities, as applicable.
v. The Company has not accepted deposits during the year and does not have any unclaimed deposits as at March 31,
2020 and therefore, the provisions of the Clause 3 (v) of the Order are not applicable to the Company.
vi. The maintenance of cost records has not been specified by the Central Government under Section 148(1) of the
Companies Act, 2013 for the business activities carried out by the Company. Thus reporting under Clause 3(vi) of the
order is not applicable to the Company.
vii. According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees’
State Insurance, Income Tax, Goods and Service Tax, Customs Duty, Cess and other material statutory dues applicable
to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees’ State Insurance, Income Tax,
Goods and Service Tax, Customs Duty, Cess and other material statutory dues in arrears as at March 31, 2020 for a
period of more than six months from the date they became payable.
(c) Details of dues of Income Tax and Service Tax which have not been deposited as at March 31, 2020 on account of
dispute are given below:
Nature of the statute Nature of dues Forum where Dispute is Pending Period to which the Amount ` Crores
Amount Relates
The Income Tax Act, 1961 Income Tax Appellate Tribunal A.Y. 2011-12 -*
A.Y. 2008-09 to
A.Y 2010-11, A.Y
2012-13, A.Y.
2013-14, A.Y.
Appellate Authority upto 2015-16 and A.Y.
Income Tax Commissioner’s Level 2016-17 -*
Finance Act, 1994 F.Y. 2004-05 to F.Y.
Service Tax Appellate Tribunal 2011-12 94.69
* Indicates amount less than Rs. 1 crore.
viii. The Company has not taken any loans or borrowings from financial institutions, banks and government or has not
issued any debentures. Hence reporting under Clause 3 (viii) of the Order is not applicable to the Company.
ix. The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments)
or term loans and hence reporting under Clause 3 (ix) of the Order is not applicable to the Company.
x. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company
or no material fraud on the Company by its officers or employees has been noticed or reported during the year.

xi. In our opinion and according to the information and explanations given to us, the Company has paid / provided
managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read
with Schedule V to the Act.
xii. The Company is not a Nidhi Company and hence reporting under Clause 3 (xii) of the Order is not applicable to the Company.
xiii. In our opinion and according to the information and explanations given to us, the Company is in compliance with
Section 177 and 188 of the Companies Act, 2013 where applicable, for all transactions with the related parties and
the details of related party transactions have been disclosed in the standalone financial statements as required by the
applicable accounting standards.
xiv. During the year, the Company has not made any preferential allotment or private placement of shares or fully or
partly paid convertible debentures and hence reporting under Clause 3 (xiv) of the Order is not applicable to the
Company.
xv. In our opinion and according to the information and explanations given to us, during the year the Company has not
entered into any non-cash transactions with its Directors or persons connected to its directors and hence provisions of
Section 192 of the Companies Act, 2013 are not applicable to the Company.
xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

Chartered Accountantsw
Anand Subramanian
Partner
Place: Bengaluru

Balance Sheet
(in ` crore)
Particulars Note no. As at March 31,
2020 2019
ASSETS
Non-current assets
Property, plant and equipment 2.1 214 228
Right-of-use assets 2.2 427 –
Capital work-in-progress – 11
Goodwill 19 19
Financial assets
Investments 2.3 801 849
Loans 2.4 – –
Other financial assets 2.5 41 34
Deferred tax assets (net) 2.15 97 58
Income tax assets (net) 2.15 118 96
Other non-current assets 2.8 108 77
Total non-current assets 1,825 1,372
Current assets
Financial assets
Investments 2.3 630 535
Trade receivables 2.6 935 715
Cash and cash equivalents 2.7 2,274 1,837
Loans 2.4 21 19
Other financial assets 2.5 297 277
Income tax assets (net) 2.15 7 –
Other current assets 2.8 179 93
Total current assets 4,343 3,476
Total assets 6,168 4,848
EQUITY AND LIABILITIES
Equity
Equity share capital 2.10 34 34
Other equity 4,632 4,000
Total equity 4,666 4,034
LIABILITIES
Non-current liabilities
Financial liabilities
Lease liabilities 2.2 418 –
Other financial liabilities 2.11 1 1
Other non-current liabilities 2.13 – 10
Total non-current liabilities 419 11
Current liabilities
Trade payables 2.12
Total outstanding dues of micro enterprises and small
– –
enterprises
Total outstanding dues of creditors other than micro
enterprises and small enterprises 55 72
Lease liabilities 2.2 70 –
Other financial liabilities 2.11 523 426
Other current liabilities 2.13 382 261
Provisions 2.14 28 28
Income tax liabilities (net) 2.15 25 16
Total current liabilities 1,083 803
Total equity and liabilities 6,168 4,848

The accompanying notes form an integral part of the standalone financial statements
As per our report of even date attached for and on behalf of the Board of Directors of Infosys BPM Limited
for Deloitte Haskins & Sells LLP
Firm’s registration number:117366W/ W-100018
Anand Subramanian Ravikumar Singisetti Anantharaman Radhakrishnan

Partner Chairman and Director Managing Director and
Membership number: 110815 Chief Executive Officer
Prem Pereira Bindu Raghavan

Chief Financial Officer Company Secretary
Bengaluru
April 16, 2020

Statement of Profit and Loss
(in ` crore), except equity share and per equity share data
Particulars Note no. Year ended March 31,
2020 2019
Revenue from operations 2.16 4,595 3,932
Other income, net 2.17 290 225
Total income 4,885 4,157
Expenses
Employee benefit expenses 2.18 2,926 2,434
Cost of technical sub-contractors and professional charges 2.18 385 302
Travel expenses 150 161
Rent 32 115
Depreciation and amortization expense 2.1 & 2.2 153 83
Finance cost 2.2 32 –
Other expenses 2.18 349 279
Total expenses 4,027 3,374
Profit before tax 858 783
Tax expense:
Current tax 2.15 244 195
Deferred tax 2.15 (34) (8)
Profit for the year 648 596
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Remeasurement of the net defined benefit liability / asset, net (3) (4)
(3) (4)
Items that will be reclassified subsequently to profit or loss
Fair value changes on investments, net 2.3 6 1
6 1
Total other comprehensive income / (loss), net of tax 3 (3)
Total comprehensive income for the year 651 593
Earnings per equity share
Equity shares of par value ` 10 each
Basic and diluted (`) 191.61 176.30
Weighted average number of equity shares used in computing
earnings per equity share
Basic and diluted 2.20 3,38,27,751 3,38,27,751


Bengaluru
April 16, 2020

Statement of Changes in Equity
(in ` crore)
Particulars Equity Other equity Total
share Reserves and surplus Other equity
capital Securities Retained Capital General Special comprehensive attributable
premium earnings reserve reserve economic to equity
income
(2) zone re- holders
investment of the
reserve (1) Company
(2)
Balance as at April 1, 2018 34 25 2,376 1 1,000 24 (19) 3,441
Changes in equity for the
year ended March 31, 2019
Profit for the period – – 596 – – – – 596
Fair value changes on
investments, net of tax
(Refer to Note 2.3) – – – – – – 1 1
Remeasurement of the net
defined benefit liability /
asset, net of tax – – – – – – (4) (4)
Total comprehensive
income for the year – – 596 – – – (3) 593
Transfer to Special
Economic Zone Re-
investment Reserve – – (110) – – 110 – –
Transfer from Special
Economic Zone Re-
investment Reserve on
utilization – – 44 – – (44) – –
Balance as at March 31,
2019 34 25 2,906 1 1,000 90 (22) 4,034
Balance as at April 1, 2019 34 25 2,906 1 1,000 90 (22) 4,034
Impact on account of
adoption of Ind AS 116
(Refer to Note 2.2) – – (19) – – – – (19)
34 25 2,887 1 1,000 90 (22) 4,015
Changes in equity for the
year ended March 31, 2020
Profit for the period – – 648 – – – – 648
Fair value changes on
investments, net of tax
(Refer to Note 2.3) – – – – – – 6 6
asset, net of tax – – – – – – (3) (3)
Total comprehensive
income for the year – – 648 – – – 3 651
Transfer to Special
Economic Zone Re-
investment Reserve – – (116) – – 116 – –
Transfer from Special
Economic Zone Re-
investment Reserve on
utilization – – 45 – – (45) – –
Balance as at March 31,
2020 34 25 3,464 1 1,000 161 (19) 4,666

(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)
A description of the purposes of each reserve within equity have been disclosed in Note 2.10.


Bengaluru
April 16, 2020

Statement of Cash Flows
Accounting Policy
Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions
of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or
expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities
of the Company are segregated. The Company considers all highly liquid investments that are readily convertible to known
amounts of cash to be cash equivalents.
(in ` crore)
2020 2019
Cash flow from operating activities:
Adjustments to reconcile net profit to net cash provided by
operating activities:
Depreciation and amortization expense 2.1 and 2.2 153 83
Finance cost 2.2 32 –
Income tax expense 2.15 210 187
Sale of duty scrips (27) –
Profit on sale of property, plant and equipment (1) (1)
Interest on bank deposits and others (170) (102)
Income on other financial assets (54) (81)
Exchange differences on translation of assets and liabilities (2) (11)
Allowance for credit loss on financial assets 6 8
Other adjustments 9 6
Changes in assets and liabilities
Trade receivables and unbilled revenue (262) (235)
Loans and other financial assets and other assets (92) (108)
Trade payables (17) 43
Other financial liabilities, other liabilities and provisions 236 216
Cash generated from operations 669 601
Income taxes paid (259) (208)
Net cash from operating activities 410 393
Cash flow from investing activities:
Expenditure on property, plant and equipment, net of sale proceeds (70) (61)
Loans to employees (4) (1)
Deposits placed with corporation (10) (16)
Interest received on bank deposits and others 202 129
Investment in subsidiary 2.3 – (14)
Payment to acquire financial assets
Non-convertible debentures (252) (66)
Certificates of deposit (238) (342)
Government bonds (7) (6)
Liquid mutual fund units and fixed maturity plan securities (2,992) (4,296)
Proceeds on sale of financial assets
Non-convertible debentures 100 136
Government bonds 6 –
Certificates of deposit 370 390
Liquid mutual fund units and fixed maturity plan securities 3,006 4,277
Net cash from investing activities 111 130
Cash flows from financing activities:
Payment of lease liabilities 2.2 (85) –
Net cash used in financing activities (85) –

2020 2019
Effect of exchange differences on translation of foreign currency cash
and cash equivalents 1 11
Net increase in cash and cash equivalents 436 523
Cash and cash equivalents at the beginning of the period 2.7 1,837 1,303
Cash and cash equivalents at the end of the year 2.7 2,274 1,837
Supplementary information:
Restricted cash balance 2.7 – –


Bengaluru
April 16, 2020

Notes to the Standalone Financial Statements
1. Overview statements in the period in which changes are made and,

if material, their effects are disclosed in the notes to the
1.1 Company overview standalone financial statements.
Infosys BPM Limited (“Infosys BPM” or “the Company”)
(formerly known as Infosys BPO Limited) was incorporated Estimation of uncertainties relating to the global
on April 3, 2002 to provide business process management health pandemic from COVID-19 (COVID 19)
services to organizations that outsource their business The Company has considered the possible effects that may
processes. Infosys BPM is a majority-owned and controlled result from the pandemic relating to COVID-19 on the
subsidiary of Infosys Limited. The Company helps clients carrying amounts of receivables, unbilled revenues and
improve their competitive positioning by managing their investment in subsidiaries. In developing the assumptions
business processes in addition to providing increased value. relating to the possible future uncertainties in the global
The Company is a public limited company incorporated and economic conditions because of this pandemic, the Company,
domiciled in India and has its registered office at Bengaluru, as at the date of approval of these financial statements has
Karnataka, India. The Company is a majority-owned and used internal and external sources of information and related
controlled subsidiary of Infosys Limited. The name of the information, and economic forecasts. The Company expects
Company was changed from Infosys BPO Limited to Infosys to recover the carrying amount of these assets and will
BPM Limited with effect from December 18, 2017. continue to closely monitor any material changes to future
economic conditions.
The standalone financial statements are approved by the
Company’s Board of Directors on April 16, 2020. 1.4 Critical accounting estimates
1.2 Basis of preparation of financial statements a. Revenue recognition
These standalone financial statements are prepared in The Company’s contracts with customers include promises to
accordance with Indian Accounting Standards (Ind AS), transfer multiple products and services to a customer.
under the historical cost convention on the accrual basis Revenues from customer contracts are considered for
except for certain financial instruments which are measured recognition and measurement when the contract has been
at fair values, the provisions of the Companies Act, 2013 (‘the approved, in writing, by the parties to the contract, the
Act’) (to the extent notified) . The Ind AS are prescribed under parties to contract are committed to perform their respective
Section 133 of the Act read with Rule 3 of the Companies obligations under the contract, and the contract is legally
(Indian Accounting Standards) Rules, 2015 and relevant enforceable. The Company assesses the services promised in a
amendment rules issued thereafter. contract and identifies distinct performance obligations in the
Accounting policies have been applied consistently to all contract. Identification of distinct performance obligations to
periods presented in these standalone financial statements determine the deliverables and the ability of the customer to
except where a newly issued accounting standard is initially benefit independently from such deliverables, and allocation
adopted or a revision to an existing accounting standard of transaction price to these distinct performance obligations
requires a change in the accounting policy hitherto in use. involves significant judgment.
As the quarter and year-end figures are taken from the source Fixed-price business process management services revenue is
and rounded to the nearest digits, the figures reported for the recognized ratably on a straight-line basis when services are
previous quarters might not always add up to the year-end performed through an indefinite number of repetitive acts
figures reported in this standalone financial statements. over a specified period. Revenue from fixed-price business
process management services contract is recognized ratably
1.3 Use of estimates and judgments using a percentage-of-completion method when the pattern
The preparation of the financial statements in conformity of benefits from the services rendered to the customer and
with Ind AS requires the Management to make estimates, company’s costs to fulfil the contract is not even through
judgments and assumptions. These estimates, judgments and the period of the contract because the services are generally
assumptions affect the application of accounting policies and discrete in nature and not repetitive. The use of method
the reported amounts of assets and liabilities, the disclosures to recognize the business process management revenues
of contingent assets and liabilities at the date of the financial services requires judgment and is based on the promises in
statements and reported amounts of revenues and expenses the contract and nature of the deliverables.
during the period. The application of accounting policies
Provisions for estimated losses, if any, on uncompleted
that require critical accounting estimates involving complex
contracts are recorded in the period in which such losses
and subjective judgments and the use of assumptions in
become probable based on the estimated efforts or costs to
the standalone financial statements have been disclosed in
complete the contract.
Note 1.4. Accounting estimates could change from period
to period. Actual results could differ from those estimates. The Company uses the percentage-of-completion method in
Appropriate changes in estimates are made as management accounting for its fixed-price contracts. Use of the percentage-
becomes aware of changes in circumstances surrounding the of-completion method requires the Company to determine
estimates. Changes in estimates are reflected in the financial the actual efforts or costs expended to date as a proportion of

the estimated total efforts or costs to be incurred. Efforts or the straight-line method. The estimated useful lives of
costs expended have been used to measure progress towards assets are as follows:
completion as there is a direct relationship between input and Building (1) 22-25 years
productivity. The estimation of total efforts or costs involves Plant and machinery (1) 5 years
significant judgment and is assessed throughout the period Computer equipment (1) 3-5 years
of the contract to reflect any changes based on the latest Furniture and fixtures (1) 5 years
available information. Office equipment (1) 5 years
Provisions for estimated losses, if any, on uncompleted Leasehold improvements Over the lease term or 5
contracts are recorded in the period in which such losses years whichever is lower
Based on technical evaluation, the Management believes that the
(1)
complete the contract. Also Refer to Note 2.16. useful lives as given above best represent the period over which the
b. Income taxes Management expects to use these assets. Hence, the useful lives for
these assets is different from the useful lives as prescribed under Part C
The Company’s major tax jurisdiction is India even of Schedule II of the Companies Act, 2013.
though the Company also files tax returns in other Depreciation methods, useful lives and residual values are
overseas jurisdiction. Significant judgments are involved reviewed periodically, including at each financial year end.
in determining the provision for income taxes, including
amount expected to be paid / recovered for uncertain tax Advances paid towards the acquisition of property, plant and
positions. Also Refer to Note 2.15. equipment outstanding at each Balance Sheet date is classified
as capital advances under other non-current assets and the
c. Property, plant and equipment cost of assets not ready to use before such date are disclosed
Property, plant and equipment represent a significant under ‘Capital work-in-progress’. Subsequent expenditures
proportion of the asset base of the Company. The charge in relating to property, plant and equipment is capitalized only
respect of periodic depreciation is derived after determining when it is probable that future economic benefits associated
an estimate of an asset’s expected useful life and the expected with these will flow to the Company and the cost of the item
residual value at the end of its life. The useful lives and can be measured reliably. Repairs and maintenance costs are
residual values of the Company’s assets are determined by the recognized in the Statement of Profit and Loss when incurred.
Management at the time the asset is acquired and reviewed The cost and related accumulated depreciation are eliminated
periodically, including at each financial year end. The lives from the financial statements upon sale or retirement of the
are based on historical experience with similar assets as well asset and the resultant gains or losses are recognized in the
as anticipation of future events, which may impact their life, Statement of Profit and Loss.
such as changes in technology. Also Refer to Note 2.1.
Impairment
d. Leases Property, plant and equipment are evaluated for recoverability
Ind AS 116 requires lessees to determine the lease term as the whenever events or changes in circumstances indicate that
non-cancellable period of a lease adjusted with any option their carrying amounts may not be recoverable. For the
to extend or terminate the lease, if the use of such option purpose of impairment testing, the recoverable amount (i.e.
is reasonably certain. The Company makes an assessment the higher of the fair value less cost to sell or the value-in-use)
on the expected lease term on a lease-by-lease basis and is determined on an individual asset basis unless the asset
thereby assesses whether it is reasonably certain that any does not generate cash flows that are largely independent
options to extend or terminate the contract will be exercised. of those from other assets. In such cases, the recoverable
In evaluating the lease term, the Company considers factors amount is determined for the cash generated unit (CGU) to
such as any significant leasehold improvements undertaken which the asset belongs.
over the lease term, costs relating to the termination of the If such assets are considered to be impaired, the impairment to
lease and the importance of the underlying asset to Infosys be recognized in the Statement of Profit and Loss is measured
BPM’s operations taking into account the location of the by the amount by which the carrying value of the assets
underlying asset and the availability of suitable alternatives. exceeds the estimated recoverable amount of the asset. An
The lease term in future periods is reassessed to ensure that impairment loss is reversed in the Statement of Profit and Loss
the lease term reflects the current economic circumstances. if there has been a change in the estimates used to determine
Also Refer to Note 2.2. the recoverable amount. The carrying amount of the asset is
increased to its revised recoverable amount, provided that
2.1 Property, plant and equipment
this amount does not exceed the carrying amount that would
Accounting policy have been determined (net of any accumulated amortization
Property, plant and equipment are stated at cost, less or depreciation) had no impairment loss been recognized for
accumulated depreciation and impairment, if any. Costs the asset in prior years.
directly attributable to acquisition are capitalized until the
property, plant and equipment are ready for use, as intended
by management. The Company depreciates property, plant
and equipment over their estimated useful lives using

The changes in the carrying value of property, plant and equipment for the year ended March 31, 2020 are as follows:
(in ` crore)
Particulars Land – Buildings Leasehold Plant and Office Computer Furniture Total
Leasehold improvement machinery equipment equipment and
fixtures
Gross carrying value as
at April 1, 2019 12 154 118 61 111 308 67 831
Reclassified on account
of adoption of Ind AS
116 (Refer to Note 2.2) (12) – – – – – – (12)
Additions – 1 16 2 5 50 4 78
Deletions – – (2) – (5) (13) (3) (23)
Gross carrying value as
at March 31, 2020 – 155 132 63 111 345 68 874
Accumulated
depreciation as at April
1, 2019 1 67 93 45 104 233 60 603
Reclassified on account
of adoption of Ind AS
116 (Refer to Note 2.2) (1) – – – – – – (1)
Depreciation – 6 15 7 4 44 3 79
Accumulated
depreciation on
deletions – – (1) – (5) (13) (2) (21)
Accumulated
depreciation as at
March 31, 2020 – 73 107 52 103 264 61 660
Carrying value as at
March 31, 2020 – 82 25 11 8 81 7 214
April 1, 2019 11 87 25 16 7 75 7 228
(in ` crore)
Particulars Land- Buildings Leasehold Plant and Office Computer Furniture Total
Leasehold improvement machinery equipment equipment and
(1) fixtures
Gross carrying value as at
April 1, 2018 12 153 114 59 113 270 66 787
Additions – 1 6 2 2 47 4 62
Deletions – – (2) – (4) (9) (3) (18)
March 31, 2019 12 154 118 61 111 308 67 831
Accumulated depreciation
as at April 1, 2018 1 61 77 37 104 201 57 538
Depreciation – 6 18 8 4 41 6 83
on deletions – – (2) – (4) (9) (3) (18)
as at March 31, 2019 1 67 93 45 104 233 60 603
March 31, 2019 11 87 25 16 7 75 7 228
Carrying value as at April
1, 2018 11 92 37 22 9 69 9 249
Gross carrying value of leasehold land represents amounts paid under certain lease-cum-sale agreement to acquire land including agreement where the
(1)
Company has an option to purchase or renew the property on expiry of the lease period.
The aggregate depreciation has been included under depreciation and amortization expense in the Statement of Profit and Loss.

2.2 Leases The Company as a lessor
Accounting policy Leases for which the Company is a lessor is classified as a
finance or operating lease. Whenever the terms of the lease
The Company as a lessee transfer substantially all the risks and rewards of ownership
The Company’s lease asset classes primarily consist of leases to the lessee, the contract is classified as a finance lease. All
for land and buildings. The Company assesses whether a other leases are classified as operating leases.
contract contains a lease, at inception of a contract. A contract When the Company is an intermediate lessor, it accounts
is, or contains, a lease if the contract conveys the right to for its interests in the head lease and the sublease separately.
control the use of an identified asset for a period of time The sublease is classified as a financing or operating lease by
in exchange for consideration. To assess whether a contract reference to the right-of-use asset arising from the head lease.
conveys the right to control the use of an identified asset, the For operating leases, rental income is recognized on a straight-
Company assesses whether: (1) the contact involves the use line basis over the term of the relevant lease.
of an identified asset (2) the Company has substantially all
of the economic benefits from use of the asset through the Transition
period of the lease and (3) the Company has the right to direct Effective April 1, 2019, the Company adopted Ind AS 116,
the use of the asset. Leases and applied the standard to all lease contracts existing
At the date of commencement of the lease, the Company on April 1, 2019 using the modified retrospective method and
recognizes a right-of-use asset (ROU) and a corresponding has taken the cumulative adjustment to retained earnings, on
lease liability for all lease arrangements in which it is a the date of initial application. Consequently, the Company
lessee, except for leases with a term of twelve months or less recorded the lease liability at the present value of the lease
(short-term leases) and low value leases. For these short- payments discounted at the incremental borrowing rate and
term and low value leases, the Company recognizes the lease the right-of-use asset at its carrying amount as if the standard
payments as an operating expense on a straight-line basis over had been applied since the commencement date of the lease,
the term of the lease. but discounted at the Company’s incremental borrowing rate
Certain lease arrangements include the options to extend or at the date of initial application. Comparatives as at and for
terminate the lease before the end of the lease term. ROU the year ended March 31, 2019 have not been retrospectively
assets and lease liabilities includes these options when it is adjusted and therefore will continue to be reported under the
reasonably certain that they will be exercised. accounting policies included as part of our annual financial
statements for year ended March 31, 2019.
The ROU assets are initially recognized at cost, which
comprises the initial amount of the lease liability adjusted for On transition, the adoption of the new standard resulted in
any lease payments made at or prior to the commencement recognition of ROU asset of `409 crore and a lease liability
date of the lease plus any initial direct costs less any lease of ` 446 crore. Further, upon transition, the Company
incentives. They are subsequently measured at cost less reclassified leasehold land previously accounted as finance
accumulated depreciation and impairment losses. lease under property, plant and equipment to ROU asset and
deferred rent accounted under other liabilities to retained
ROU assets are depreciated from the commencement date
earnings. The cumulative effect of applying the standard of
on a straight-line basis over the shorter of the lease term and
`19 crore was adjusted in retained earnings, net of taxes.
useful life of the underlying asset. ROU assets are evaluated for
Ind AS 116 will result in an increase in cash inflows from
recoverability whenever events or changes in circumstances
operating activities and an increase in cash outflows from
indicate their carrying amounts may not be recoverable. For
financing activities on account of lease payments.
the purpose of impairment testing, the recoverable amount
(i.e., the higher of the fair value less cost to sell and the The following is the summary of practical expedients elected
value-in-use) is determined on an individual asset basis on initial application:
unless the asset does not generate cash flows that are largely 1. Applied a single discount rate to a portfolio of leases of
independent of those from other assets. In such cases, the similar assets in similar economic environment with a
recoverable amount is determined as Cash Generating Unit similar end date
(CGU) to which the asset belongs. 2. Applied the exemption not to recognize ROU assets and
The lease liability is initially measured at amortized cost at liabilities for leases with less than 12 months of lease term
the present value of the future lease payments. The lease on the date of initial application
payments are discounted using the interest rate implicit in 3. Excluded the initial direct costs from the measurement of
the lease or, if not readily determinable, using the incremental the ROU asset at the date of initial application.
borrowing rates in the country of domicile of these leases.
4. Applied the practical expedient to grandfather the
Lease liabilities are remeasured with a corresponding
assessment of which transactions are leases. Accordingly,
adjustment to the related right-of-use asset if the Company
Ind AS 116 is applied only to contracts that were previously
changes its assessment if whether it will exercise an extension
identified as leases under Ind AS 17.
or a termination option.
The difference between the lease obligation recorded as of
Lease liability and ROU assets have been separately presented
March 31, 2019 under Ind AS 17 disclosed under Note 2.12
in the Balance Sheet and lease payments have been classified
of the 2019 Annual financial statements and the value of the
as financing cash flows.

lease liability as of April 1, 2019 is primarily on account of The Company does not face a significant liquidity risk
inclusion of extension and termination options reasonably with regard to its lease liabilities as the current assets are
certain to be exercised, in measuring the lease liability in sufficient to meet the obligations related to lease liabilities as
accordance with Ind AS 116. and when they fall due.
The weighted average incremental borrowing rate applied to 2.3 Investments
lease liabilities as at April 1, 2019 is 7%. (in ` crore)
Following are the changes in the carrying value of right-of-use Particulars As at March 31,
assets for the year ended March 31, 2020: 2020 2019
(in ` crore) Non-current investments
Particulars Category of ROU asset Total Equity instruments of
Land Buildings subsidiaries 582 582
Balance as of Government bonds 8 –
April 1, 2019 – 409 409 Non-convertible
Reclassified debentures 211 210
on account of Fixed maturity plan
adoption of securities – 57
Ind AS 116 Total non-current
(Refer to Note investments 801 849
2.1) 11 – 11 Current investments
Additions – 103 103 Liquid mutual fund units 66 70
Deletions – (22) (22) Fixed maturity plan
Amortization (1) (73) (74) securities 61 –
Balance as Government bonds – 6
of March 31, Certificates of deposit 241 359
2020 10 417 427 Non-convertible
debentures 262 100
The aggregate depreciation expense on ROU assets is
Total current investments 630 535
included under depreciation and amortization expense in
Total carrying value 1,431 1,384
the Statement of Profit and Loss.
The break-up of current and non-current lease liabilities as (in ` crore), except as otherwise stated
at March 31, 2020 is as follows: Particulars As at March 31,
(in ` crore) 2020 2019
Particulars Amount Non-current investments
Non-current lease liabilities 418 Unquoted
Current lease liabilities 70 Investments carried at cost
Total 488 Investments in
equity instruments of
The movement in lease liabilities during the year ended subsidiaries
March 31, 2020 is as follows: Infosys (Czech Republic)
(in ` crore)
Limited s.r.o. 3 3
Particulars Amount
Infosys Poland Sp z.o.o,
Balance as of April 1, 2019 446
5,000 (5,000) equity
Additions 103
shares of PLN 500 each,
Deletions (25)
fully paid 59 59
Finance cost accrued during the period 32
Infosys McCamish
Payment of lease liabilities (85)
Systems LLC 289 289
Translation difference 17
Portland Group Pty.
Balance as of March 31, 2020 488
Limited, 17,45,00,000
Rental expense recorded for short-term leases was `32 crore (17,45,00,000) equity
for the year ended March 31, 2020. share of AUD 1 each,
fully paid 211 211
The table below provides details regarding the contractual
Infosys BPO Americas LLC 20 20
maturities of lease liabilities as at March 31, 2020 on
582 582
an undiscounted basis:
(in ` crore)
Quoted
Particulars Amount Investments carried at
Less than one year 99 amortized cost
One to five years 311 Government bonds
More than five years 221 (Refer to Note 2.3.2) 8 –
Total 631 8 –

Particulars As at March 31, Aggregate amount of quoted 542 373
2020 2019 investments
Investments carried at Market value of quoted
fair value through other investments (including
comprehensive income interest accrued thereon) –
Non-convertible Non-current 219 267
debentures (Refer to Market value of quoted
Note 2.3.3) 211 210 investments (including
211 210 interest accrued thereon) –
Investments carried at Current 323 104
fair value through profit Aggregate amount of
or loss unquoted investments 889 1,011
Fixed maturity plan Investment carried at cost 582 582
securities (Refer to Note Investment carried at
2.3.4) – 57 amortized cost 8 6
– 57 Investment carried at
Total non-current fair value through other
investments 801 849 comprehensive income 714 669
Current investments Investment carried at fair
Unquoted value through profit or loss 127 127
Investments carried at fair
value through profit or loss Refer to Note 2.9 for accounting policies on
Liquid mutual fund units financial instruments.
(Refer to Note 2.3.1) 66 70 Method of fair valuation
66 70 (in ` crore)
Investments carried at Class of Method As at March 31,
fair value through other investment 2020 2019
comprehensive income Non- Quoted price
Certificates of deposit convertible and market
(Refer to Note 2.3.5) 241 359 debentures observable
241 359 inputs 473 310
Quoted Fixed maturity Market
Investments carried at plan securities observable
amortized cost inputs 61 57
Government bonds (Refer Liquid mutual Quoted
to Note 2.3.2) – 6 fund units price 66 70
– 6 Certificates of Market
Investments carried at deposit observable
fair value through other inputs 241 359
comprehensive income
Non-convertible
debentures (Refer to Note
2.3.3) 262 100
262 100
Investments carried at fair
value through profit or loss
Fixed maturity plan
securities (Refer to Note
2.3.4) 61 –
61 –
Total current investments 630 535
Total investments 1,431 1,384

2.3.1 Details of investments in liquid mutual fund units
The balances held in liquid mutual fund units as at March 31, 2020 and March 31, 2019 are as follows:
(in ` crore)
Particulars As at March 31, 2020 As at March 31, 2019
Units Amount Units Amount
Aditya Birla Sun Life Cash Plus – Growth – Direct
Plan 1,533,992 49 1,332,847 40
HDFC Liquid Fund – Direct Plan – Growth
Option – – 40,821 15
IDFC Corporate Bond – Fund Direct Plan 11,902,495 17 11,902,495 15
13,436,487 66 13,276,163 70
2.3.2 Details of investments in government bonds

The balances held in government bonds as at March 31, 2020 and March 31, 2019 are as follows:
(in ` crore)
Philippine T Bill PHY6972HAZ92 MAT Date MAY
29, 2019 – – – 6
Philippine T Bill PHY6972HAF39 MAT Date MAY
29, 2019 – 8 – –
– 8 – 6
2.3.3 Details of investments in non-convertible debentures

The balances held in non-convertible debentures as at March 31, 2020 and March 31, 2019 are as follows:
(in ` crore)
8.60% Life Insurance Corporation Housing
Finance Limited 22JUL2020 1,000 107 1,000 106
Finance Limited 29JUL2020 350 37 350 37
Finance Limited 24DEC2020 650 66 650 67
7.78% Housing Development Finance
Corporation Ltd 24MAR2020 – – 100 100
Finance Limited 11JUN2020 500 52 – –
8.58% Housing Development Finance
Corporation Ltd 22MAR2022 1,250 129 – –
Finance Limited 20JUN2022 750 82 – –
4,500 473 2,100 310
2.3.4 Details of investments in fixed maturity plan securities

The balances held in fixed maturity plan securities as at March 31, 2020 and March 31, 2019 are as follows:
(in ` crore)
ICICI FMP Series 80 – 1194 D Plan F Div 15,000,000 19 15,000,000 17
Nippon India Fixed Horizon Fund – XXXII Series
8 – Dividend Plan 15,000,000 18 15,000,000 16
HDFC FMP 1155D Feb 2017 – Direct Growth
Series 37 10,000,000 12 10,000,000 12
Aditya Birla Sunlife Fixed-Term Plan – Series OD
(1,145 days) 10,000,000 12 10,000,000 12
50,000,000 61 50,000,000 57

2.3.5 Details of investments in certificate of deposits
The balances held in certificate of deposits as at March 31, 2020 and March 31, 2019 are as follows:
(in ` crore)
Kotak Mahindra Bank Limited CD 27 SEP 19 – – 27,000 261
Axis Bank Limited CD August 9, 2019 – – 10,000 98
Axis Bank Limited CD 30 October 30, 2020 10,000 97 – –
Axis Bank Limited CD 13 January13, 2021 10,000 96 – –
Axis Bank Limited CD 17 November 17, 2020 5,000 48 – –
25,000 241 37,000 359
2.4 Loans
(in ` crore)
Particulars As at March 31,
2020 2019
Non-current
Unsecured, considered doubtful
Loans to employees 5 5
Less: Allowance for doubtful loans to employees 5 5
Total non-current loans – –
Current
Unsecured, considered good
Loans to employees 21 19
Total current loans 21 19
Total loans 21 19
2.5 Other financial assets

(in ` crore)
2020 2019
Non-current
Security deposits (1) 3 3
Rental deposits (1) 38 31
Total non-current other financial assets 41 34
Current
Security deposits (1) 1 –
Rental deposits (1) 1 –
Restricted deposits (1)** 108 98
Unbilled revenues (1) (3)* 158 127
Interest accrued but not due (1) 25 37
Foreign currency forward contracts (2) – 14
Others (1) (3) (3) 4 1
Total current other financial assets 297 277
Total other financial assets 338 311
(1)
Financial assets carried at amortized cost 338 297
(2)
Financial assets carried at fair value through Profit or Loss – 14
(3)
Includes dues from holding company, subsidiaries and other group companies
(Refer to Note 2.22) 7 7
* Classified as financial asset as right to consideration is conditional upon passage of time.
** Restricted deposits represent deposit with financial institutions to settle employees compensated absences obligations as and when they arise during the
normal course of business.

2.6 Trade receivables Particulars As at March 31,
(in ` crore) 2020 2019
Particulars As at March 31, Total non-current other
2020 2019 assets 108 77
Current (2) Current
Unsecured Advances other than capital
Considered good (1) 935 715 advance
Considered doubtful 18 15 Payment to vendors for
953 730 supply of goods 11 10
Less: Allowances for credit Others
losses 18 15 Prepaid expenses 31 17
Total trade receivables 935 715 Deferred contract cost(2) 22 7
(1)
Includes dues from Withholding taxes and
companies where directors others(3) 68 48
are interested Unbilled revenues(1) 19 11
(2)
Includes dues from Others 28 –
holding company, Total current other assets 179 93
subsidiaries and other group Total other assets 287 170
companies (Refer to Note
2.22) 65 60
(1)
Classified as non-financial asset as contractual right to consideration is
dependent on completion of contractual milestones.
(2)
Deferred contract costs are upfront costs incurred for the contract and
2.7 Cash and cash equivalents are amortized over the term of the contract. Cost which are expected
(in ` crore) to be amortized within twelve months from the Balance Sheet date
Particulars As at March 31, have been presented as current. During year ended March 31, 2020,
2020 2019 incremental costs of ` 66 crores have been recorded as deferred contract
Balances with banks costs incurred with respect to acquisition of two contracts.
(3)
Withholding and the other taxes primarily consists of input tax credit.
In current and deposit
accounts 1,574 1,154 2.9 Financial instruments
Cash on hand – –
Others Accounting policy
Deposits with financial 2.9.1 Initial recognition
institution 700 683
2,274 1,837 The Company recognizes financial assets and financial
Deposits with more liabilities when it becomes a party to the contractual
than 12 months maturity 555 400 provisions of the instrument. All financial assets and liabilities
are recognized at fair value on initial recognition, except for
Cash and cash equivalents as at March 31, 2020 and March 31, trade receivables which are initially measured at transaction
2019 include restricted bank balances of less than ` 1 crore price. Transaction costs that are directly attributable to the
each. This represents restricted bank balance, in trust account, acquisition or issue of financial assets and financial liabilities,
in accordance with collection agency licensing requirements. that are not at fair value through profit or loss, are added to
the fair value on initial recognition. Regular way purchase
The deposits maintained by the Company with banks and
and sale of financial assets are accounted for at trade date.
financial institutions comprise of time deposits, which can be
withdrawn by the Company at any point without prior notice 2.9.2 Subsequent measurement
or penalty on the principal.
a. Non-derivative financial instruments
2.8 Other assets
(in ` crore) (i) Financial assets carried at amortized cost
Particulars As at March 31, A financial asset is subsequently measured at amortized cost if
2020 2019 it is held within a business model whose objective is to hold
Non-current the asset in order to collect contractual cash flows and the
Capital advances – 1 contractual terms of the financial asset give rise on specified
Advances other than capital dates to cash flows that are solely payments of principal and
advance interest on the principal amount outstanding.
Prepaid gratuity – 4
(ii) Financial assets at fair value through other
Others
Prepaid expenses 1 1
Deferred contract cost(2) 90 51 A financial asset is subsequently measured at fair value
Withholding taxes and through other comprehensive income if it is held within a
others(3) 17 20 business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets and the

contractual terms of the financial asset give rise on specified 2.9.3 Derecognition of financial instruments
dates to cash flows that are solely payments of principal and The Company derecognizes a financial asset when the
interest on the principal amount outstanding. Further, in contractual rights to the cash flows from the financial asset
cases where the Company has made an irrevocable election expire or it transfers the financial asset and the transfer
based on its business model, for its investments which are qualifies for derecognition under Ind AS 109. A financial
classified as equity instruments, the subsequent changes in liability (or a part of a financial liability) is derecognized from
fair value are recognized in other comprehensive income. the Company’s Balance Sheet when the obligation specified in
(iii) Financial assets at fair value through profit or loss the contract is discharged or cancelled or expires.
A financial asset which is not classified in any of the above 2.9.4 Fair value of financial instruments
categories are subsequently fair valued through profit or loss.
In determining the fair value of its financial instruments, the
(iv) Financial liabilities Company uses a variety of methods and assumptions that
Financial liabilities are subsequently carried at amortized cost are based on market conditions and risks existing at each
using the effective interest method, except for contingent reporting date. The methods used to determine fair value
consideration recognized in a business combination which include discounted cash flow analysis, available quoted
is subsequently measured at fair value through profit or loss. market prices and dealer quotes. All methods of assessing
For trade and other payables maturing within one year from fair value result in general approximation of value, and such
the Balance Sheet date, the carrying amounts approximate fair value may never actually be realized.
value due to the short maturity of these instruments. Refer to financial instruments by category table below for the
disclosure on carrying value and fair value on financial assets
(v) Investment in subsidiaries and liabilities. For financial assets and liabilities maturing
Investment in subsidiaries is carried at cost in the separate within one year from the Balance Sheet date and which are
financial statements. not carried at fair value, the carrying amounts approximate
fair value due to short maturity of these instruments.
b. Derivative financial instruments
The Company holds derivative financial instruments 2.9.5 Impairment
such as foreign exchange forward and option contracts to The Company recognizes loss allowances using the expected
mitigate the risk of changes in exchange rates on foreign credit loss (ECL) model for the financial assets and unbilled
currency exposures. The counterparty for these contracts revenues which are not fair valued through profit or loss.
is generally a bank. Loss allowance for trade receivables and unbilled revenues
(i) Financial assets or financial liabilities, at fair value with no significant financing component is measured at an
through profit or loss amount equal to lifetime ECL. For all other financial assets,
expected credit losses are measured at an amount equal
This category has derivative financial assets or liabilities to the 12-month ECL, unless there has been a significant
which are not designated as hedges. increase in credit risk from initial recognition in which case
Although the Company believes that these derivatives those are measured at lifetime ECL. The amount of expected
constitute hedges from an economic perspective, they may credit losses (or reversal) that is required to adjust the loss
not qualify for hedge accounting under Ind AS 109, Financial allowance at the reporting date to the amount that is required
Instruments. Any derivative that is either not designated as to be recognized is recognized as an impairment gain or loss
hedge, or is so designated but is ineffective as per Ind AS 109, in Statement of Profit and Loss.
is categorized as a financial asset or financial liability, at fair
value through profit or loss.
Derivatives not designated as hedges are recognized initially
at fair value and attributable transaction costs are recognized
in Statement of Profit and Loss when incurred. Subsequent
to initial recognition, these derivatives are measured at fair
value through profit or loss and the resulting exchange gains
or losses are included in other income. Assets/liabilities in this
category are presented as current assets / current liabilities if
they are either held for trading or are expected to be realized
within twelve months after the Balance Sheet date.

Financial instruments by category
The carrying value and fair value of financial instruments by categories as at March 31, 2020 are as follows:
(in ` crore)
Particulars Amortized Financial assets / Financial assets / Total Total fair
cost liabilities at fair value liabilities at fair value carrying value
through profit or loss through OCI value
Designated Mandatory Equity Mandatory
upon initial instruments
recognition
designated
upon
initial
recognition
Assets:
Cash and cash equivalents (Refer
to Note 2.7) 2,274 – – – – 2,274 2,274
Investments (Refer to Note 2.3)
Non-convertible debentures (1) – – – – 473 473 473
Government bonds 8 – – – – 8 8
Liquid mutual fund units – – 66 – – 66 66
Fixed maturity plan securities – – 61 – – 61 61
Certificates of deposit – – – – 241 241 241
Trade receivables (Refer to Note
2.6) 935 – – – – 935 935
Loans (Refer to Note 2.4) 21 – – – – 21 21
Other financial assets (Refer to
Note 2.5) (2) 338 – – – – 338 338
Total 3,576 – 127 – 714 4,417 4,417
Liabilities:
Trade payables (Refer to Note
2.12) 55 – – – – 55 55
Lease liabilities (Refer to Note 2.2) 488 – – – – 488 488
Other financial liabilities (Refer to
Note 2.11) 407 – 18 – – 425 425
Total 950 – 18 – – 968 968
The carrying value of debentures approximates fair value as the instruments are at prevailing market rates.
(1)
Excludes unbilled revenue of fixed price development contract where contractual right to consideration is dependent on factors other than passage of
(2)
time.
The carrying value and fair value of financial instruments by categories as at March 31, 2019 are as follows:
(in ` crore)
recognition designated
upon initial
recognition
Assets:
Cash and cash equivalents (Refer to
Note 2.7) 1,837 – – – – 1,837 1,837
Investments (Refer to Note 2.3)
Non-convertible debentures (1) – – – – 310 310 310
Government bonds 6 – – – – 6 6
Liquid mutual fund units – – 70 – – 70 70
Fixed maturity plan securities – – 57 – – 57 57
Certificates of deposit – – – – 359 359 359

upon initial
recognition
Trade receivables (Refer to Note 2.6) 715 – – – – 715 715
Loans (Refer to Note 2.4) 19 – – – – 19 19
Other financial assets (Refer to Note
2.5) (2) 297 – 14 – – 311 311
Total 2,874 – 141 – 669 3,684 3,684
Liabilities
Trade payables (Refer to Note 2.12) 72 – – – – 72 72
Other financial liabilities (Refer to
Note 2.11) 345 – 1 – – 346 346
Total 417 – 1 – – 418 418
The carrying value of debentures approximates fair value as the instruments are at prevailing market rates.
(1)
Excludes unbilled revenue of fixed-price development contract where contractual right to consideration is dependent on factors other than passage of
(2)
time.
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 fair value hierarchy of assets and liabilities measured at fair value as at March 31, 2020 is as follows :
(in ` crore)
Particulars As at March Fair value measurement at end of the
31, 2020 reporting year using
Level 1 Level 2 Level 3
Assets
Investments in liquid mutual fund units (Refer to Note 2.3) 66 66 – –
Investment in non-convertible debentures (Refer to Note 2.3) (1) 473 473 – –
Investment in fixed maturity plan securities (Refer to Note 2.3) 61 – 61 –
Investment in certificates of deposit (Refer to Note 2.3) 241 – 241 –
Liabilities
Derivative financial instruments - Fair value loss on outstanding
foreign currency forward contracts (Refer to Note 2.11) 18 – 18 –
(1)
During the year ended March 31, 2020, the non-convertible debentures of ` 143 crore were transferred from Level 2 to Level 1, since they were valued
based on Quoted price.
The fair value hierarchy of assets and liabilities measured at fair value as at March 31, 2019 was as follows:
(in ` crore)
Particulars As at March Fair value measurement at end of the
31, 2019 reporting year using
Assets
Investments in liquid mutual fund units (Refer to Note 2.3) 70 70 – –
Investment in non-convertible debentures (Refer to Note 2.3) 310 167 143 –
Investment in fixed maturity plan securities (Refer to Note 2.3) 57 – 57 –
Investment in certificates of deposit (Refer to Note 2.3) 359 – 359 –
Derivative financial instruments - Fair value gain on outstanding
foreign currency forward contracts (Refer to Note 2.5) 14 – 14 –
Liabilities
Derivative financial instruments - Fair value loss on outstanding
foreign exchange forward contracts (Refer to Note 2.11) 1 – 1 –

Financial risk management
Financial risk factors
The Company’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company’s
primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its
financial performance. The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial
instruments to mitigate foreign exchange related risk exposures. The Company’s exposure to credit risk is influenced mainly
by the individual characteristic of each customer and the concentration of risk from the top few customers.
Market risk
The Company operates internationally and a major portion of the business is transacted in several currencies and consequently
the Company is exposed to foreign exchange risk through its sales and services in the United States and elsewhere, and purchases
from overseas suppliers in various foreign currencies. The Company holds derivative financial instruments such as foreign
exchange forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The exchange
rate between the rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially in
the future. Consequently, the results of the Company’s operations are adversely affected as the rupee appreciates/ depreciates
against these currencies.
The following table analyzes foreign currency risk from monetary assets and liabilities as at March 31, 2020:
(in ` crore)
Particulars US dollars Euro United Kingdom Australian Other Total
Pound Sterling dollars currencies
Cash and cash equivalents 65 21 3 6 14 109
Trade receivables 636 155 56 34 12 893
Other financial assets (including
loans) 145 15 6 3 10 179
Trade payables (27) (2) (4) (2) (1) (36)
Other financial liabilities (127) (62) (12) (14) (20) (235)
Lease liabilities (43) (25) (18) (8) (130) (224)
Net assets / (liabilities) 649 102 31 19 (115) 686
The following table analyzes foreign currency risk from monetary assets and liabilities as at March 31, 2019:
(in ` crore)
Particulars US dollars Euro United Australian Other Total
Kingdom dollars currencies
Pound
Sterling
Cash and cash equivalents 30 22 10 3 7 72
Trade receivables 498 48 83 44 10 683
Other financial assets (including loans) 121 13 8 6 8 156
Trade payables (31) (1) (7) (2) (3) (44)
Other financial liabilities (93) (17) (10) (11) (23) (154)
Net assets / (liabilities) 525 65 84 40 (1) 713
Sensitivity analysis between Indian Rupee and USD

Particulars Year ended March 31,
2020 2019
Impact on the Company’s incremental Operating Margins 0.36% 0.38%
Sensitivity analysis is computed based on the changes in the income and expenses in foreign currency upon conversion into
functional currency, due to exchange rate fluctuations between the previous reporting period and the current reporting period.

Derivative financial instruments
The Company holds derivative financial instruments such as foreign exchange forward contracts to mitigate the risk of changes
in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank. These derivative
financial instruments are valued based on inputs that are directly or indirectly observable in the marketplace.
The following table gives details in respect of outstanding foreign exchange forward contracts:
2020 2019
In million in ` crore In million in ` crore
Forward contracts
In USD 59 446 83 574
In EUR 4 33 5 39
In GBP – – 10 90
In AUD 2 9 8 37
In PHP 400 60 – –
Total forwards 548 740
The foreign exchange forward contracts mature within twelve months. The table below analyzes the derivative financial
instruments into relevant maturity groupings based on the remaining period as at the Balance Sheet date:
(in ` crore)
2020 2019
Not later than one month 123 351
Later than one month and not later than three months 425 389
Later than three months and not later than one year – –
548 740
The Company offsets a financial asset and a financial liability when it currently has a legally enforceable right to set off
the recognized amounts and the Company intends either to settle on a net basis, or to realize 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)
2020 2019
Derivative Derivative Derivative Derivative
financial asset financial liability financial asset financial liability
Gross amount of recognized financial asset/
liability – (18) 14 (1)
Amount set off – – – –
Net amount presented in the Balance Sheet – (18) 14 (1)
Credit risk
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure
to the credit risk at the reporting date is primarily from trade receivables amounting to ` 935 crore and ` 715 crore as March
31, 2020 and March 31, 2019, respectively and unbilled revenue amounting to ` 177 crore and ` 138 crore as at March 31,
2020 and March 31, 2019, 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 Company grants credit terms in the normal course of business. As per Ind AS 109, the Company
uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the
expected credit loss allowance for trade receivables and unbilled revenues. The provision matrix takes into account available
external and internal credit risk factors such as credit default swap quotes, credit ratings from international credit rating agencies
and the company’s historical experience for customers.

The following table gives details in respect of percentage of revenues generated from top customer and top ten customers:
in %
2020 2019
Revenue from top customer 13% 8%
Revenue from top ten customers 42% 40%
Credit risk exposure

The allowance for lifetime expected credit loss on customer balances is ` 4 crore and ` 6 crore for the year ended March 31,
2020 and March 31, 2019, respectively.
(in ` crore)
2020 2019
Balance at the beginning 15 8
Provisions recognized / (reversed) 4 6
Write-offs – –
Translation differences (1) 1
Balance at the end 18 15
Credit risk on cash and cash equivalents is limited as we generally invest in deposits with banks and financial institutions with
high credit ratings assigned by international and domestic credit rating agencies. Investment primarily include investment
in liquid mutual fund units, fixed maturity plan securities, quoted bonds issued by the government and quasi-government
organizations, non-convertible debentures issued by government aided institutions and certificates of deposit.
Liquidity risk
The Company’s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations.
The Company has no outstanding borrowing. The Company believes that the working capital is sufficient to meet its current
requirements. Accordingly, no liquidity risk is perceived.
As at March 31, 2020, the Company had a working capital of ` 3,260 crore including cash and cash equivalents of ` 2,274 crore
and current investments of ` 630 crore. As at March 31,2019, the Company had a working capital of ` 2,673 crore including
cash and cash equivalents of ` 1,837 crore and current investments of ` 535 crore.
As at March 31, 2020 and March 31,2019, the outstanding compensated absences were ` 99 crore and ` 81 crore, respectively,
which have been substantially funded. Accordingly, no liquidity risk perceived.
The table below provides details regarding the contractual maturities of significant financial liabilities as at March 31, 2020:
(in ` crore)
Particulars Less than 1 year 1-2 years 2-4 years 4-7 years Total
Trade payables 55 – – – 55
Other financial liabilities (Refer
to Note 2.11) 425 – – – 425
The table below provides details regarding the contractual maturities of significant financial liabilities as at March 31, 2019:
(in ` crore)
Trade payables 72 – – – 72
to Note 2.11) 346 – – – 346

2.10 Equity
Accounting Policy
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.
I) Equity share capital
(in ` crore), except as otherwise stated
2020 2019
Authorized
Equity shares, ` 10 par value
12,33,75,000 (12,33,75,000) equity shares 123 123
Issued, subscribed and paid-up
3,38,27,751 (3,38,27,751) equity shares fully paid-up
(Of the above 3,38,23,444 equity shares are held by the holding company, Infosys
Limited) 34 34
34 34
The Company has only one class of shares referred to as equity shares having a par value of ` 10. Each holder of equity shares
is entitled to one vote per 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 March 31, 2020 and March 31, 2019 are as follows:
Name of the shareholder As at March 31,
2020 2019
Number of % held Number of % held
shares* shares
Infosys Limited, the holding company 3,38,23,444 99.99 3,38,22,319 99.98
* Increase in shareholding of Infosys limited is due to transfer of 1125 equity shares from the other shareholders during year ended March 31, 2020.
II) Other equity 2.11 Other financial liabilities

(in ` crore), except as otherwise stated (in ` crore)
Particulars As at March 31, Particulars As at March 31,
2020 2019 2020 2019
i) Other reserves Non-current
Others Others
Securities premium (1) 25 25 Compensated absences 1 1
Capital reserve 1 1 Total non-current other
ii) Special economic zone financial liabilities 1 1
re-investment reserve 161 90 Current
187 116 Others
Accrued compensation to
The amount received in excess of par value has been classified as
(1)
employees (1) 188 171
securities premium Accrued expenses (1) (3) 157 141
Dividends Compensated absences 98 80
Capital creditors (1) 4 10
Final dividends on shares are recorded as a liability on the
Other payables (1) (4) * 58 23
date of approval by the shareholders and interim dividends
Foreign currency forward
are recorded as a liability on the date of declaration by the
contracts (2) 18 1
Company’s Board of Directors.
Total current other financial
The Company declares and pays dividends in Indian rupee. liabilities 523 426
Total other financial
liabilities 524 427

Particulars As at March 31, 2.14 Provisions
2020 2019
Accounting Policy
(1)
Financial liability carried
at amortized cost 407 345 A provision is recognized if, as a result of a past event, the
(2)
Financial liability carried Company has a present legal or constructive obligation that
at fair value through profit is reasonably estimable, and it is probable that an outflow of
or loss 18 1 economic benefits will be required to settle the obligation.
(3)
Includes dues to holding Provisions are determined by discounting the expected
company (Refer to Note future cash flows at a pre-tax rate that reflects current
2.22) – 2 market assessments of the time value of money and the risks
(4)
Includes dues to holding, specific to the liability.
subsidiaries and other group a. Post-sales client support
companies (Refer to Note
The Company provides its clients with a fixed-period post-
2.22) 7 6
sales support on its fixed-price, fixed-timeframe and time
*Includes contract cost
and material contracts. Costs associated with such support
liability of ` 19 crores for
services are accrued at the time related revenues are recorded
acquisition of a contract
and included in Statement of Profit or Loss. The Company
estimates such costs based on historical experience and
2.12 Trade payables estimates are reviewed on a periodic basis for any material
(in ` crore)
changes in assumptions and likelihood of occurrence.
2020 2019 The Company provides its clients with a fixed-period post-
Current sales support on its fixed-price, fixed-timeframe and time
Total outstanding dues and material contracts. Costs associated with such support
of micro enterprises and services are accrued at the time related revenues are recorded
small enterprises – – and included in Statement of Profit or Loss. The Company
Total outstanding dues of estimates such costs based on historical experience and
creditors other than micro estimates are reviewed on a periodic basis for any material
enterprises and small changes in assumptions and likelihood of occurrence.
enterprises (1) 55 72 b. Onerous contracts
55 72 Provisions for onerous contracts are recognized when the
Includes dues to holding,
(1)
expected benefits to be derived by the Company from a
subsidiaries and other group contract are lower than the unavoidable costs of meeting
companies (Refer to Note the future obligations under the contract. The provision is
2.22) 27 22 measured at the present value of the lower of the expected
cost of terminating the contract and the expected net cost of
2.13 Other liabilities continuing with the contract. Before a provision is established
(in ` crore)
the Company recognizes any impairment loss on the assets
Particulars As at March 31, associated with that contract.
2020 2019
The provision for post sales client support and others as at
Non-current
March 31, 2020 and March 31, 2019 is as follows:
Deferred rent* – 10 (in ` crore)
Total non-current other
liabilities – 10
2020 2019
Current
Others
Unearned revenue 293 184
Post-sales client support and
Others
others 28 28
Withholding taxes and
Total provisions 28 28
others 88 70
Deferred rent* – 2
Client deposits 1 5
Total current other liabilities 382 261
Total other liabilities 382 271
* On adoption of Ind AS 116, the balance in deferred rent has been
adjusted in retained earnings (Refer to Note 2.2).

Provision for post-sales client support and Income tax expense in the Statement of
others Profit And Loss comprises:
(in ` crore)
The movement in the provision for post-sales client support Particulars Year ended March 31,
and others is as follows : 2020 2019
(in ` crore)
Current taxes 244 195
Deferred taxes (34) (8)
2020 2019
Income tax expense 210 187
Provision recognized / Income tax expense for the year ended March 31, 2020
(reversed) 5 14 and March 31, 2019 includes reversal (net of additional
Provision utilized (5) (8) provisions) of ` 15 crore and ` 6 crore respectively,
Exchange difference – – pertaining to earlier periods.
Income tax expense for the year ended March 31, 2020 and
Provision for post-sales client support and others are expected March 31, 2019 includes MAT credit of less than ` 1 crore and
to be utilized over a period of six months to one year ` 4 crore, respectively, pertaining to earlier periods.
Entire deferred income tax for the year ended March 31, 2020
2.15 Income taxes and March 31, 2019 relates to origination and reversal of
Accounting policy temporary differences.
Income tax expense comprises current and deferred income A reconciliation of the income tax provision to the amount
tax. Income tax expense is recognized in net profit in the computed by applying the statutory income tax rate to the
Statement of Profit and Loss except to the extent that it income before income taxes is summarized below:
(in ` crore)
relates to items recognized directly in equity, in which case
it is recognized in other comprehensive income. Current Particulars Year ended March 31,
income tax for current and prior periods is recognized at 2020 2019
the amount expected to be paid to or recovered from the tax Profit before income taxes 858 783
authorities, using the tax rates and tax laws that have been Enacted tax rates in India 34.94% 34.94%
enacted or substantively enacted by the Balance Sheet date. Computed expected tax
Deferred income tax assets and liabilities are recognized for all expense 300 274
temporary differences arising between the tax bases of assets Tax effect due to non-taxable
and liabilities and their carrying amounts in the financial income for Indian tax
statements. Deferred tax assets are reviewed at each reporting purposes (84) (75)
date and are reduced to the extent that it is no longer probable Tax effect of non-deductible
that the related tax benefit will be realized. losses of 10AA units 3 –
Overseas taxes 14 11
Deferred income tax assets and liabilities are measured using
Tax provision (reversals) (15) (10)
tax rates and tax laws that have been enacted or substantively
Effect of non-deductible
enacted by the Balance Sheet date and are expected to apply
expenses (2) (6)
to taxable income in the years in which those temporary
Others (6) (7)
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 The applicable Indian statutory tax rates for fiscal 2020 and
that includes the enactment or the substantive enactment fiscal 2019 is 34.94% and 34.94% respectively.
date. A deferred income tax asset is recognized to the extent
In India, the Company has benefited from certain tax
that it is probable that future taxable profit will be available
incentives that the Government of India had provided for
against which the deductible temporary differences and tax
export of services from the units registered under the Special
losses can be utilized. Deferred income taxes are not provided
Economic Zones (SEZs) Act,2005. SEZ units which began
on the undistributed earnings of subsidiaries and branches
the provision of services on or after April1,2005 are eligible
where it is expected that the earnings of the subsidiary or
for a deduction of 100% of profits or gains derived from the
branch will not be distributed in the foreseeable future.
export of services for the first five years from the financial
The Company offsets current tax assets and current tax year in which the unit commenced the provision of services
liabilities, where it has a legally enforceable right to set and 50% of such profits or gains for further five years. Up
off the recognized amounts and where it intends either to to 50% of such profits or gains is also available for a further
settle on a net basis, or to realize the asset and settle the five years subject to creation of a Special Economic Zone re-
liability simultaneously. The income tax provision for the Investment Reserve out of the profit of the eligible SEZ units
interim period is made based on the best estimate of the and utilization of such reserve by the Company for acquiring
annual average tax rate expected to be applicable for the full new plant and machinery for the purpose of its business as
financial year. Tax benefits of deductions earned on exercise per the provisions of the Income Tax Act, 1961.
of employee share options in excess of compensation charged
to income are credited to securities premium.

The details of income tax assets and income tax liabilities as (in ` crore)
of March 31, 2020 and March 31, 2019 are as follows: Particulars Year ended March 31,
(in ` crore) 2020 2019
Particulars As at March 31, Net income tax asset /
2020 2019 (liability) at the beginning 80 65
Income tax assets 125 96 Translation differences 4 –
Current income tax liabilities (25) (16) Income tax paid 259 208
Net income tax assets/ Income tax expense (244) (199)
(liability) at the end 100 80 MAT credit utilization – 4
Income tax on other
The gross movement in the current income tax asset / comprehensive income 1 2
(liability) for the year ended March 31, 2020 and March Net income tax asset /
31, 2019 is as follows: (liability) at the end 100 80
The movement in gross deferred income tax assets and labilities for the year ended March 31, 2020 is as follows:
Particulars Carrying Changes Changes Impact on Translation Carrying
value as through through OCI account of difference value as
on April 1, profit and Ind AS 116 on March
2019 loss 31,2020
Deferred income tax assets
Property, plant and equipment 29 4 – – – 33
Lease liabilities 3 7 – 6 – 16
Compensated absences 23 5 – – – 28
Trade receivables 5 2 – – – 7
Derivative financial Instruments (5) 11 – – – 6
Others 3 5 (1) – – 7
Total deferred tax assets 58 34 (1) 6 – 97
The movement in gross deferred income tax assets and labilities for the year ended March 31, 2019 was as follows:
Particulars Carrying Changes Changes Impact on Translation Carrying
value as through through OCI account of difference value as
on April profit and Ind AS 116 on March
01,2018 loss 31,2019
Property, plant and equipment 22 7 – – – 29
Compensated absences 20 3 – – – 23
Trade receivables 3 2 – – – 5
Derivative financial Instruments – (5) – – – (5)
Others 5 1 – – – 6
Total deferred tax assets 50 8 – – – 58
Deferred tax assets and deferred tax liabilities have been offset the Company will realize the benefits of those deductible
wherever the Company has a legally enforceable right to set differences. The amount of the deferred income tax assets
off current tax assets against current tax liabilities and where considered realizable, however, could be reduced in the near
the deferred tax assets and deferred tax liabilities relate to term if estimates of future taxable income during the carry
income taxes levied by the same taxation authority. forward period are reduced.
In assessing the realizability of deferred income tax assets, The credits relating to temporary differences during the year
management considers whether some portion or all the ended March 31, 2020 and March 31, 2019 are primarily
deferred income tax assets will not be realized. The ultimate on account of property, plant and equipment, compensated
realization of deferred income tax assets is dependent upon absences, lease liability and others partially offset by reversal
the generation of future taxable income during the periods of credits pertaining to derivative financial instruments.
in which the temporary differences become deductible.
Management considers the scheduled reversals of deferred 2.16 Revenue from operations
income tax liabilities, projected future taxable income, and Accounting policy
tax planning strategies in making this assessment. Based on
The Company derives revenues primarily from business
the level of historical taxable income and projections for
process management services. Arrangements with customers
future taxable income over the periods in which the deferred
for business process management services are either on a
income tax assets are deductible, management believes that
fixed-timeframe, unit of work or on a time-and-material basis.

Revenues from customer contracts are considered for of the variable consideration and when it is probable that
recognition and measurement when the contract has been a significant reversal of cumulative revenue recognized will
approved by the parties, in writing, to the contract, the not occur when the uncertainty associated with the variable
parties to contract are committed to perform their respective consideration is resolved.
obligations under the contract, and the contract is legally Arrangements to deliver software products generally
enforceable. Revenue is recognized upon transfer of control have three elements: license, implementation and Annual
of promised products or services (“performance obligations”) Technical Services (ATS).When implementation services are
to customers in an amount that reflects the consideration provided in conjunction with the licensing arrangement and
the Company has received or expects to receive in exchange the license and implementation have been identified as two
for these products or services (“transaction price”). When distinct separate performance obligations, the transaction
there is uncertainty as to collectability, revenue recognition price for such contracts are allocated to each performance
is postponed until such uncertainty is resolved. obligation of the contract based on their relative standalone
The Company assesses the services promised in a contract selling prices. In the absence of standalone selling price
and identifies distinct performance obligations in the for implementation, the Group uses the expected cost plus
contract. The Company allocates the transaction price to margin approach in estimating the standalone selling price.
each distinct performance obligation based on the relative Where the license is required to be substantially customized
standalone selling price. The price that is regularly charged as part of the implementation service the entire arrangement
for an item when sold separately is the best evidence of its fee for license and implementation is considered to be a single
standalone selling price. In the absence of such evidence, the performance obligation and the revenue is recognized using
primary method used to estimate standalone selling price is the percentage-of-completion method as the implementation
the expected cost plus a margin, under which the Company is performed. Revenue from client training, support and
estimates the cost of satisfying the performance obligation and other services arising due to the sale of software products is
then adds an appropriate margin based on similar services. recognized as the performance obligations are satisfied. ATS
Revenue on time-and-material contracts are recognized as the revenue is recognized ratably over the period in which the
related services are performed. Fixed-price business process services are rendered.
management services revenue is recognized ratably either on The incremental costs of obtaining a contract (i.e., costs that
a straight-line basis when services are performed through an would not have been incurred if the contract had not been
indefinite number of repetitive acts over a specified period or obtained) are recognized as an asset if the Company expects
using a percentage of completion method when the pattern to recover them. Any capitalized contract costs are amortized,
of benefits from the services rendered to the customer and with the expense recognized as the Company transfers the
Company’s costs to fulfil the contract is not even through the related goods or services to the customer.
period of contract because the services are generally discrete Revenue from operations for the and year ended March 31,
in nature and not repetitive. 2020 and March 31, 2019 is as follows:
Revenue from other fixed-timeframe contracts, where the (in ` crore)
performance obligations are satisfied over time is recognized Particulars Year ended March 31,
using the percentage-of-completion method. Efforts or costs 2020 2019
expended have been used to determine progress towards Income from business
completion as there is a direct relationship between input process management services 4,595 3,932
and productivity. Progress towards completion is measured 4,595 3,932
as the ratio of costs or efforts incurred to date (representing
work performed) to the estimated total costs or efforts. The Company has evaluated the impact of COVID – 19
Estimates of transaction price and total costs or efforts are resulting from (i) the possibility of constraints to render
continuously monitored over the lives of the contracts and are services which may require revision of estimations of costs
recognized in profit or loss in the period when these estimates to complete the contract because of additional efforts;(ii)
change or when the estimates are revised. Revenues and the onerous obligations;(iii) penalties relating to breaches of
estimated total costs or efforts are subject to revision as the service level agreements, and (iv) termination or deferment
contract progresses. Provisions for estimated losses, if any, on of contracts by customers. The Company has concluded that
uncompleted contracts are recorded in the period in which the impact of COVID – 19 is not material based on these
such losses become probable based on the estimated efforts estimates. Due to the nature of the pandemic, the Company
or costs to complete the contract. will continue to monitor developments to identify significant
uncertainties relating to revenue in future periods.
The billing schedules agreed with customers include periodic
performance-based billing and / or milestone-based progress Disaggregate revenue information
billings. Revenues in excess of billing are classified as unbilled The table below presents disaggregated revenues from
revenue while billing in excess of revenues are classified as contracts with customers for year ended March 31, 2020 and
contract liabilities (which we refer to as unearned revenues). March 31, 2019 by offerings. The Company believe that this
The Company’s contracts may include variable consideration disaggregation best depicts how the nature, amount, timing
including rebates, volume discounts and penalties. The and uncertainty of our revenues and cash flows are affected
Company includes variable consideration as part of transaction by industry, market and other economic factors.
price when there is a basis to reasonably estimate the amount

(in ` crore) During the year ended March 31, 2020 and March 31, 2019, `
Particulars Year ended March 31, 11 crore and ` 4 crore of unbilled revenue pertaining to fixed
2020 2019 price development contracts as of April 1, 2019 and April 1,
Revenue by offerings 2018 respectively has been reclassified to Trade receivables
Digital 523 384 upon billing to customers on completion of milestones.
Core 4,072 3,548
Total 4,595 3,932 Performance obligations and remaining
performance obligations
Digital services The remaining performance obligation disclosure provides
Digital services comprise of service and solution offerings the aggregate amount of the transaction price yet to be
of Infosys BPM that enable our clients to digitally transform recognized as at the end of the reporting period and an
their business processes. These include offerings that enhance explanation as to when the Company expects to recognize
customer experience through innovative operating models these amounts in revenue. Applying the practical expedient
(business platforms), provide business insights that drive as given in Ind AS 115, the Company has not disclosed the
improved business outcomes (effectiveness), automate and remaining performance obligation related disclosures for
help accelerate efficiency and productivity and services that contracts where the revenue recognized corresponds directly
assure compliance (such as Sox, GDPR). These solutions with the value to the customer of the entity’s performance
leverage AI-based analytics, web-based automation, digital completed to date, typically those contracts where invoicing
interactive solutions, robotic process automation and is on time and material basis. Remaining performance
platform-based technologies. obligation estimates are subject to change and are affected by
several factors, including terminations, changes in the scope
Core services of contracts, periodic revalidations, adjustment for revenue
Infosys BPM is the business process management subsidiary that has not materialized and adjustments for currency.
of Infosys, providing end-to-end business processing services The aggregate value of performance obligations that are
for its clients across the globe. Core service offerings are in completely or partially unsatisfied as of March 31, 2020
the areas of industry-specific services (ex: mortgage, claim other than those meeting the exclusion criteria mentioned
processing, etc.) and enterprise services (ex: finance and above, is ` 2,800 crore. Out of this, the Company expects to
accounting, HRD, supply services, etc.) recognize revenue of around 30.20% within the next one year
and the remaining thereafter. This includes contracts that can
Trade receivables and contract balances be terminated for convenience without a substantive penalty
The timing of revenue recognition, billings and cash since, based on current assessment, the occurrence of the
collections results in receivables, unbilled revenue, and same is expected to be remote.
unearned revenue on the Company’s Balance Sheet. Amounts
are billed as work progresses in accordance with agreed-upon 2.17 Other income, net
contractual terms, either at periodic intervals (e.g., monthly Accounting policy
or quarterly) or upon achievement of contractual milestones.
Receivables are rights to consideration that are unconditional. 2.17.1 Other income
Unbilled revenues comprising revenues in excess of billings Other income is comprised primarily of interest income,
from time and material contracts and fixed price business dividend income and exchange gain / loss on investments
process management services are classified as financial asset and forward and options contracts and on translation of other
when the right to consideration is unconditional and is due assets and liabilities. Interest income is recognized using the
only after a passage of time. effective interest method. Dividend income is recognized
Invoicing to the clients for other fixed time frame contracts is when the right to receive payment is established.
based on milestones as defined in the contract and therefore 2.17.2 Foreign currency
the timing of revenue recognition is different from the timing
of invoicing to the customers. Therefore, unbilled revenues for a. Functional currency
other fixed-timeframe contracts are classified as non-financial The functional currency of the Company is the Indian rupee.
asset (contract asset) because the right to consideration is The standalone financial statements are presented in Indian
dependent on completion of contractual milestones. rupee (rounded off to crore; one crore equals ten million).
Invoicing in excess of earnings are classified
c. Transactions and translations
as unearned revenue.
Foreign-currency denominated monetary assets and liabilities
Trade receivables and unbilled revenues are presented net of
are translated into the relevant functional currency at exchange
impairment in the Balance Sheet.
rates in effect at the Balance Sheet date. The gains or losses
During the year ended March 31, 2020 and March 31, 2019, resulting from such translations are included in the Statement
the Company recognized revenue of ` 140 crore and ` 33 of Profit and Loss. Non-monetary assets and non-monetary
crore arising from opening unearned revenue as of April 1, liabilities denominated in a foreign currency and measured
2019 and April 1, 2018 respectively. 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 2.18 Expenses
currency and measured at historical cost are translated at the (in ` crore)
exchange rate prevalent at the date of transaction. Particulars Year ended March 31,
Transaction gains or losses realized upon settlement of foreign 2020 2019
currency transactions are included in determining net profit Employee benefit expenses
for the period in which the transaction is settled. Revenue, Salaries including bonus 2,796 2,309
expense and cash-flow items denominated in foreign currencies Contribution to provident
are translated into the relevant functional currencies using the and other funds 96 93
exchange rate in effect on the date of the transaction. Staff welfare 34 32
2,926 2,434
Effective April 1 2018, the Company has adopted Appendix
Cost of technical sub-
B to Ind AS 21, Foreign Currency Transactions and Advance
contractors and professional
Consideration which clarifies the date of transaction for the
charges
purpose of determining the exchange rate to use on initial
Cost of technical sub-
recognition of the related asset, expense or income when
contractors 332 246
an entity has received or paid advance consideration in a
Legal and professional 27 33
foreign currency. The effect on account of adoption of this
amendment was insignificant. Recruitment and training 26 23
385 302
Other income for the and year ended March 31, 2020 and Other expenses
March 31, 2019 is as follows: Consumables 5 7
(in ` crore)
Brand building and
advertisement 7 6
2020 2019
Marketing expenses 6 4
Interest received on financial
Rates and taxes 5 6
assets carried at amortized
Contribution towards
cost
Corporate Social
Government bonds – –
Responsibility 16 16
Deposit with banks and
Communication expenses 66 51
others 170 102
Power and fuel 29 29
Interest Income on
Repairs and maintenance 125 94
financial assets carried at
Bank charges and
fair value through other
commission 1 2
Impairment loss
Non-convertible debentures 26 26
recognized / (reversed)
Certificates of deposit 14 38
under expected credit loss
Income on investments
model 4 6
carried at fair value through
Professional membership
profit or loss
and seminar participation
Gains / (losses) on liquid
fees 1 1
mutual funds units 14 17
Provision for doubtful
Profit / (loss) on sale
loans and advances 2 2
of property, plant and
Provision for post sales
equipment 1 1
client support and others 1 6
Rental income from holding
Cost of software packages 71 40
company 3 3
Insurance 6 4
Exchange gains / (losses) on
Auditor’s remuneration
foreign currency forward
Statutory audit fees – 1
contracts (20) 7
Tax matters – –
Exchange gains / (losses) on
Reimbursement of
translation of other assets
expenses – –
and liabilities 37 4
Others 4 4
Miscellaneous income, net* 45 27
349 279
290 225
* Includes sale of duty scrips of `27 crore for the year ended March 31,
2020 (`25 crores for year ended March 31, 2019).

2.19 Employee benefits (a) Gratuity
Accounting policy The following tables set out the funded status of the gratuity
plan and the amounts recognized in the Company’s financial
2.19.1 Gratuity statements as of March 31, 2020 and March 31, 2019:
The Company provides for gratuity, a defined benefit (in ` crore)
retirement plan (“the Gratuity Plan”) covering eligible Particulars As at March 31,
employees. The Gratuity Plan provides a lump-sum payment 2020 2019
to vested employees at retirement, death, incapacitation Change in benefit obligations
or termination of employment, of an amount based Benefit obligations at the
on the respective employee’s salary and the tenure of beginning 94 78
employment with the Company. Service cost 12 11
Interest expense 6 6
Liabilities with regard to the Gratuity Plan are determined by
Transfer of obligation (1) (1)
actuarial valuation, performed by an independent actuary at
Remeasurements – Actuarial
each Balance Sheet date using the projected unit credit method.
(gains) / losses 4 8
The Company fully contributes all ascertained liabilities to
Benefits paid (12) (8)
the Infosys BPM Limited Employees’ Gratuity Fund Trust
Benefit obligations at the end 103 94
(“the Trust”). Trustees administer contributions made to the
Change in plan assets
Trusts and contributions are invested in a scheme with Life
Fair value of plan assets at
Insurance Corporation of India as permitted by Indian Law.
the beginning 98 83
The Company recognizes the net obligation of a defined Interest income 7 7
benefit plan in its Balance Sheet as an asset or liability. Gains Transfer of employees (1) (1)
and losses through re-measurements of the net defined benefit Remeasurements – Return
liability/asset are recognized in other comprehensive income. on plan assets excluding
The actual return of the portfolio of plan assets, in excess of amounts included in interest
the yields computed by applying the discount rate used to income – 1
measure the defined benefit obligation is recognized in other Contributions 11 16
comprehensive income. The effect of any plan amendments is Benefits paid (12) (8)
recognized in net profits in the Statement of Profit and Loss. Fair value of plan assets at
2.19.2 Superannuation the end 103 98
Certain employees of the Company are participants in a Funded status – 4
defined contribution plan. The Company has no further Prepaid gratuity asset – 4
obligations to the superannuation plan beyond the monthly The amount for the year ended March 31, 2020 and March
contribution to the Infosys BPM Limited Employees’ 31, 2019 recognized in the Statement of Profit and Loss under
Superannuation Fund Trust, the corpus of which is invested employee benefit expenses are as follows:
with the Life Insurance Corporation of India. (in ` crore)
2.19.3 Pension Particulars Year ended March 31,
2020 2019
Certain employees of the Company are participants in a defined
Service cost 12 11
contribution plan. The Company has no further obligations to
Net interest on the net
the pension plan beyond the monthly contributions.
2.19.4 Provident fund (asset) (1) (1)
Eligible employees of the Company are participants in Net gratuity cost 11 10
defined contribution plan. The Company has no further
The amount for the year ended March 31, 2020 and March 31,
obligations under the provident fund plan beyond its
2019 recognized in the Statement of Other Comprehensive
monthly contributions.
Income are as follows:
2.19.5 Compensated absences (in `crore)
The Company has a policy on compensated absences
2020 2019
which are both accumulating and non-accumulating in
Remeasurements of the net
nature. The expected cost of accumulating compensated
absences is determined by actuarial valuation performed
(asset)
by an independent actuary at each Balance Sheet date using
Actuarial (gains) / losses 4 8
projected unit credit method on the additional amount
(Return) / loss on plan assets
expected to be paid / availed as a result of the unused
excluding amounts included
entitlement that has accumulated at the Balance Sheet date.
in the net interest on the
Expense on non-accumulating compensated absences is
net defined benefit liability
recognized in the period in which the absences occur.
/ (asset) – (1)
4 7

(in `crore) Fund Trust. Trustees administer contributions made to the
Particulars Year ended March 31, trust. As of March 31, 2020 and March 31, 2019, the plan
2020 2019 assets have been primarily invested in insurer managed funds.
(Gain) / loss from change in Actual return on assets for the year ended March 31, 2020
demographic assumptions – – and March 31, 2019 were ` 7 crore and ` 7 crore respectively.
(Gain) / loss from change in
Maturity profile of defined benefit obligation:
financial assumptions 2 1 (in ` crore)
(Gain) / loss from change in Within 1 year 32
experience assumptions 2 7 1-2 year 28
4 8 2-3 year 24
The weighted-average assumptions used to determine 3-4 year 21
benefit obligations as of March 31, 2020 and March 31, 4-5 year 19
2019 are as follows: 5-10 years 51
in %
Particulars As at March 31, (b) Superannuation
2020 2019 The Company contributed ` 6 crore to the Superannuation
Discount rate 6.2 7.1 Trust for the year ended March 31, 2020 (` 6 crore for the
Weighted average rate of year ended March 31, 2019).
increase in compensation (c) Provident fund
levels 7.5 7.5
The Company contributed ` 78 crore towards Provident Fund
The weighted-average assumptions used to determine net for the year ended March 31, 2020 (` 72 crore for the year
periodic benefit cost for the year ended March 31, 2020 and ended March 31, 2019).
March 31, 2019 are as follows: (d) Pension fund
Particulars Year ended March 31, The Company contributed ` 9 crore to pension funds for
2020 2019 the year ended March 31, 2020 (` 9 crore for the year
Discount rate (%) 7.1 7.1 ended March 31, 2019).
Weighted average rate of
increase in compensation 2.20 Reconciliation of basic and diluted shares
levels (%) 7.5 7.5 used in computing earnings per share
Weighted average duration of
defined benefit obligation 5.9 years 5.9 years Accounting policy
Basic earnings per equity share is computed by dividing the
Assumptions regarding future mortality experience are set in net profit attributable to the equity holders of the Company
accordance with the published statistics by the Life Insurance by the weighted average number of equity shares outstanding
Corporation of India. during the period. Diluted earnings per equity share is
The Company assesses these assumptions with its projected computed by dividing the net profit attributable to the equity
long-term plans of growth and prevalent industry standards. holders of the Company by the weighted average number of
The discount rate is based on the government securities yield. equity shares considered for deriving basic earnings per equity
Sensitivity of significant assumptions used for valuation of share and also the weighted average number of equity shares
defined benefit obligations that could have been issued upon conversion of all dilutive
(in ` crore) potential equity shares. The dilutive potential equity shares
Impact of percentage point increase / As at March are adjusted for the proceeds receivable had the equity shares
decrease in 31, been actually issued at fair value (i.e. the average market value
2020 of the outstanding equity shares). Dilutive potential equity
Discount rate 3 shares are deemed converted as of the beginning of the period,
Weighted average rate of increase in unless issued at a later date. Dilutive potential equity shares
compensation level 2 are determined independently for each period presented.
The number of equity shares and potentially dilutive equity
Sensitivity for significant actuarial assumptions is computed shares are adjusted retrospectively for all periods presented for
by varying one actuarial assumption used for the valuation any share splits and bonus shares issues including for changes
of the defined benefit obligation by one percentage, keeping effected prior to the approval of the financial statements by
all other actuarial assumptions constant. the Board of Directors.
Gratuity is applicable only to employees drawing a salary A reconciliation of the equity shares used in the computation
in Indian rupees and there are no other foreign defined of basic and diluted earnings per equity share is as follows :
benefit gratuity plans.
The Company contributes all ascertained liabilities towards
gratuity to the Infosys BPM Limited Employees’ Gratuity

(in ` crore) Particulars As at March 31,
Particulars As at March 31, 2020 2019
2020 2019 [Amount paid to statutory
Basic earnings per equity authorities ` 49 crore (` 64
share – weighted average crore)]
number of equity shares Commitments
outstanding 3,38,27,751 3,38,27,751 Estimated amount of
Effect of dilutive common contacts remaining to be
equivalent shares – – executed on capital contracts
Diluted earnings per equity and not provided for (net of
share – weighted average advances and deposits) 34 36
number of equity shares and
common equivalent shares Claims against the Company not acknowledged as debts includes
(1)
demand from the Indian Income tax authorities for payment of tax
outstanding 3,38,27,751 3,38,27,751
including interest for fiscals 2007, 2008, 2009, 2010, 2011, 2012,
2013, 2015 and 2016. The above matters are pending before various
2.21 Contingent liabilities and commitments (to Appellate Authorities.
the extent not provided for) The Company is contesting the demand and the Management
(in ` crore) including its tax advisors believes that its position will likely
Particulars As at March 31, be upheld in the appellate process. The Management believes
2020 2019 that the ultimate outcome of these proceedings will not have
Contingent liabilities a material adverse effect on the Company’s financial position
Claims against the Company, and results of operations.
not acknowledged as debts (1) 126 134
2.22 Related party transactions

List of related parties
Name of subsidiaries Country Holding as at March 31,
2020 2019
Holding
Infosys Limited Holding Holding
India Company Company
Subsidiaries
Infosys (Czech Republic) Limited s.r.o. (1) Czech Republic 100% 100%
Infosys Poland Sp z.o.o (1) Poland 100% 100%
Infosys BPO Americas LLC. (1) US 100% 100%
Infosys McCamish Systems LLC (1) US 100% 100%
Portland Group Pty. Ltd (1) Australia 100% 100%
Infosys Consulting Sp. z.o.o. (32) Poland 100% –
Fellow subsidiaries Country
Infosys Technologies (China) Co. Limited (Infosys China) China
Infosys Technologies S. de R. L. de C. V. (Infosys Mexico) Mexico
Infosys Technologies (Sweden) AB (Infosys Sweden) Sweden
Infosys Technologies (Shanghai) Company Limited (Infosys Shanghai) China
Infosys Tecnologia Do Brasil Ltda. (Infosys Brasil) (25) Brazil
Infosys Nova Holdings LLC. (Infosys Nova) US
EdgeVerve Systems Limited (EdgeVerve) India
Infosys Austria GmbH (formerly Lodestone Management Consultants GmbH) (2) Austria
Skava Systems Pvt. Ltd. (Skava Systems) India
Kallidus Inc. (Kallidus) US
Infosys Chile SpA Chile
Infosys Arabia Limited (3) Saudi Arabia
Infosys Consulting Ltda. (3) Brazil
Infosys CIS LLC (2) (18) (26) Russia
Infosys Luxembourg S.a.r.l (2) (13) Luxembourg
Infosys Americas Inc., (Infosys Americas) US
Infosys Technologies (Australia) Pty.. Limited (Infosys Australia) (4) Australia
Infosys Public Services, Inc. USA (Infosys Public Services) US

Infosys Canada Public Services Inc (19) Canada
Infosys Consulting Holding AG (Infosys Lodestone) Switzerland
Lodestone Management Consultants Inc. (5) (11) US
Infosys Management Consulting Pty. Limited (5) Australia
Infosys Consulting AG (5) Switzerland
Infosys Consulting GmbH (5) Germany
Infosys Consulting S.R.L. (2) Romania
Infosys Consulting SAS (5) France
Infosys Consulting s.r.o. (5) Czech Republic
Infosys Consulting (Shanghai) Co. Ltd. (formerly Lodestone Management Consultants Co., Ltd) (5) China
Infy Consulting Company Ltd (5) UK
Infy Consulting B.V. (5) The Netherlands
Lodestone Management Consultants Portugal, Unipessoal, Lda. (5) Portugal
Infosys Consulting S.R.L. (5) Argentina
Infosys Consulting (Belgium) NV (formerly Lodestone Management Consultants (Belgium) S.A.) (6) Belgium
Panaya Inc. (Panaya) US
Panaya Ltd. (7) Israel
Panaya GmbH (7) Germany
Panaya Japan Co. Ltd (31) Japan
Brilliant Basics Holdings Limited (Brilliant Basics) (2) UK
Brilliant Basics Limited (8) UK
Brilliant Basics (MENA) DMCC (8) (26) UAE
Infosys Consulting Pte Limited (Infosys Singapore) (2) Singapore
Infosys Middle East FZ LLC (9) UAE
Fluido Oy (9) (14) Finland
Fluido Sweden AB (Extero) (15) Sweden
Fluido Norway A/S (15) Norway
Fluido Denmark A/S (15) Denmark
Fluido Slovakia s.r.o (15) Slovakia
Fluido Newco AB (15) Sweden
Infosys Compaz Pte. Ltd (formerly Trusted Source Pte. Ltd) (16) Singapore
Infosys South Africa (Pty.) Ltd (9) (17) South Africa
WongDoody Holding Company Inc. (WongDoody) (10) US
WDW Communications, Inc (12) US
WongDoody, Inc (12) US
HIPUS (20) Japan
Stater N.V. (21) The Netherlands
Stater Nederland B.V. (22) The Netherlands
Stater Duitsland B.V. (22) The Netherlands
Stater XXL B.V. (22) The Netherlands
HypoCasso B.V. (22) The Netherlands
Stater Participations B.V. (22) The Netherlands
Stater Deutschland Verwaltungs-GmbH (23) Germany
Stater Deutschland GmbH & Co. KG (23) Germany
Stater Belgium N.V./S.A. (24) Belgium
Outbox systems Inc. dba Simplus (US) (27) US
Simplus North America Inc. (28) Canada
Simplus ANZ Pty. Ltd. (28) Australia
Simplus Australia Pty. Ltd (30) Australia
Sqware Peg Digital Pty. Ltd (30) Australia
Simplus Philippines, Inc. (28) Philippines
Simplus Europe, Ltd. (28) UK
Simplus UK, Ltd. (29) UK
Simplus Ireland, Ltd. (29) Ireland
(1)
Wholly-owned subsidiary of Infosys BPM Limited
(2)
Wholly-owned subsidiary of Infosys Limited
(3)
Majority-owned and controlled subsidiary of Infosys Limited
(4)
Liquidated effective November 17, 2019

(5)
Wholly-owned Subsidiary of Infosys Consulting Holding AG (formerly Lodestone Holding AG)
(6)
Majority-owned and controlled Subsidiary of Infosys Consulting Holding AG (formerly Lodestone Holding AG)
(7)
Wholly-owned Subsidiary of Panaya Inc.
(8)
Wholly-owned Subsidiary of Brilliant Basics Holding Limited.
(9)
Wholly-owned Subsidiary of Infosys Consulting Pte Ltd
(10)
On May 22, 2018, Infosys acquired 100% of the voting interest in WongDoody
(11)
Liquidated effective May 4, 2018
(12)
Wholly-owned subsidiary of WongDoody
(13)
Incorporated effective August 6, 2018
(14)
On October 11, 2018, Infosys Consulting Pte. Ltd, acquired 100% of the voting interests in Fluido Oy and its subsidiaries
(15)
Wholly-owned subsidiary of Fluido Oy
(16)
On November 16, 2018, Infosys Consulting Pte. Ltd, acquired 60% of the voting interest in Infosys Compaz Pte. Ltd
(17)
Incorporated effective December 19,2018
(18)
Incorporated effective November 29, 2018
(19)
Incorporated effective November 27, 2018, wholly-owned subsidiary Infosys Public Services Inc
(20)
On April 1, 2019, Infosys Consulting Pte. Ltd, acquired 81% of the voting interests in HIPUS Co., Ltd, Japan
(21)
On May 23, 2019, Infosys Consulting Pte. Ltd, acquired 75% of the voting interests in Stater N.V.
(22)
Majority-owned and controlled subsidiaries of Stater N.V.
(23)
Majority-owned and controlled subsidiaries of Stater Duitsland B.V.
(24)
Majority-owned and controlled subsidiaries of Stater Participations B.V.
(25)
Effective October 1, 2019, merged into Infosys Consulting Ltda, a wholly-owned subsidiary of Infosys Limited
(26)
Under liquidation
(27)
On March 13, 2020, Infosys Nova Holdings LLC, acquired 100% of the voting interests in Outbox Systems Inc.
(28)
Wholly-owned subsidiary of Outbox Systems Inc.
(29)
Wholly-owned subsidiary of Simplus Europe, Ltd.
(30)
Wholly-owned subsidiary of Simplus ANZ Pty. Ltd..
(31)
Liquidated effective October 31, 2019
(32)
On February 20, 2020, Infosys Poland Sp z.o.o, acquired 100% of the voting interests in Infosys Consulting Sp. z.o.o from Infosys Consulting Holding
AG (formerly Lodestone Holding AG).
List of other related parties

Name of Trust Country Nature of relationship
Infosys BPM Limited Employees’ Superannuation
Fund Trust (formerly Infosys BPO Limited Employees Post-employment benefit plan of Infosys BPM
Superannuation Fund Trust) India (Formerly known as Infosys BPO)
Infosys BPM Limited Employees’ Gratuity Fund Trust
(formerly Infosys BPO Limited Employees’ Gratuity Post-employment benefit plan of Infosys BPM
Fund Trust) India (Formerly known as Infosys BPO)
The details of amounts due to or due from related parties as at March 31, 2020 and March 31, 2019 are as follows:
(in ` crore)
2020 2019
Trade receivables
Infosys Limited 59 54
Infosys Poland Sp z.o.o – –
EdgeVerve 1 1
Infosys McCamish Systems LLC 2 2
Portland Group Pty. Ltd. – –
Infosys Public Services 1 1
Infosys Mexico – 1
Infosys China 1 1
Stater N.V. 1 –
Infy Consulting Company Limited – –
65 60
Other financial assets
Infosys Limited 6 6
Infosys (Czech Republic) Limited s.r.o. – –
Infosys Mexico – –
EdgeVerve – 1
HIPUS 1 –

2020 2019
7 7
Trade payables
Infosys Poland Sp z.o.o 5 –
Infosys Management Consulting Pty. Limited 1 1
Infosys (Czech Republic) Limited s.r.o. – 1
Infy Consulting Company Limited – 1
EdgeVerve – –
Infosys China – –
27 22
Other financial liabilities
Infosys Limited 6 6
EdgeVerve 1 –
Infosys McCamish Systems LLC – –
Portland Group Pty. Ltd – –
Infosys Poland Sp. z.o.o – –
7 6
Accrued expense
Infosys Limited – 2
Stater N.V. – –
– 2
The details of the related parties transactions entered into by the Company for the year ended March 31, 2020 and March 31,
2019 are as follows:
(in ` crore)
2020 2019
Capital transactions
Equity
Infosys BPO Americas LLC – 13
– 13
Revenue transactions
Purchase of services
Infosys Poland Sp z.o.o 14 7
Infosys Management Consulting Pty. Limited 6 5
Infosys (Czech Republic) Limited s.r.o. 6 2
Portland Group Pty. Limited 1 6
Infy Consulting Company Limited 3 9
EdgeVerve 2 4
Infosys Consulting Pte. Ltd. – 4
Infosys China 2 –
WDW Communications, Inc. – –
257 192
Purchase of shared services including facilities and personnel
25 27
Sale of services
Infosys Public Services 14 20
EdgeVerve 4 4
Infy Consulting Company Limited – –
Infosys China – –

2020 2019
Portland Group Pty. Ltd 2 2
Infosys (Czech Republic) Limited s.r.o. – 1
Stater Nederland B.V. 2 –
Stater N.V. 1 –
HIPUS 1 –
785 713
Sale of shared services including facilities and personnel
Infosys Limited 3 3
3 3
List of key management personnel

Name of the related party Designation
Anantharaman Radhakrishnan Managing Director and Chief Executive Officer
Prof. Jayanth R. Varma (6) Independent Director
Ravikumar Singisetti Chairman and Director
Inderpreet Sawhney (3) Director
Sangita Singh (2) Director
D.N. Prahlad (1) Director
Prem Pereira (5) Chief Financial Officer
Nishit Ajitkumar Shah (4) Chief Financial Officer
Bindu Raghavan Company Secretary
Gopal Devanahalli (7) Additional Director
Michael Nelson Gibbs (7) Additional Director
(1)
Appointed as a Director effective January 6, 2017. Resigned effective April 15, 2019
(2)
Resigned as Director effective June 23, 2018
(3)
Appointed as a director effective October 13, 2018
(4)
Resigned as a Chief Financial Officer effective January 16, 2019
(5)
Appointed as a Chief Financial Officer effective January 17, 2019
(6)
Retired as director effective April 30, 2019
(7)
Appointed as an Additional Director effective July 10, 2019
Transaction with key management personnel

The table below describes the compensation to key managerial personnel which comprise directors and executive officers:
(in ` crore)
2020 2019
Salaries and other employee benefits to whole-time directors and executive officers 5 5
Commission and other benefits to non-executive / independent directors – –
Total 5 5
2.23 Segment reporting

The Company presents its standalone financial statements along with the consolidated financial statements. In accordance with
Ind AS 108, Operating Segments, the Company has disclosed the segment information in the consolidated financial statements.
2.24 Corporate social responsibility
As per Section 135 of the Companies Act, 2013, a CSR committee has been formed by the Company. The proposed areas for
CSR activities are eradication of hunger, poverty and malnutrition, promoting education and healthcare and rural development
projects. The funds will be allocated to a corpus and utilized through the year on these activities which are specified in Schedule
VII of the Companies Act, 2013.

(in ` crore)
Particulars In cash Yet to be paid in Total
Cash
(A) Gross amount required to be spent by the Company during the
year 16 – 16
16 – 16
(B) Amount spent during the year :
(i) Construction / acquisition of any asset – – –
(ii) On purposes other than (i) above 16 – 16
16 – 16
2.25 Function-wise classification of Statement of Profit and Loss

(in ` crore)
2020 2019
Revenue from operations 4,595 3,932
Cost of sales 3,439 2,856
Gross profit 1,156 1,076
Operating expenses
Selling and marketing expenses 219 200
General and administration expenses 337 318
Total operating expenses 556 518
Operating profit 600 558
Other income 290 225
Finance cost (32) –
Profit before tax 858 783
Tax expense:
Current tax 244 195
Deferred tax (34) (8)
Remeasurement of the net defined benefit liability / asset, net (3) (4)
(3) (4)
Items that will be reclassified to profit or loss
Fair value changes on investments, net 6 1
6 1
Total other comprehensive income, net of tax 3 (3)
Total comprehensive income for the year 651 593
for and on behalf of the Board of Directors of Infosys BPM Limited
Ravikumar Singisetti Anantharaman Radhakrishnan

Chairman and Director Managing Director and
Chief Executive Officer

Bengaluru
April 16, 2020

EdgeVerve Systems Limited
Independent Auditor’s Report
To The Members Of Edgeverve Systems Limited
Report on the Audit of the Financial Statements

Opinion
We have audited the accompanying financial statements of EDGEVERVE SYSTEMS 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 for the year ended on that date, and a summary of significant
accounting policies and other explanatory information (hereinafter referred to as “the financial statements”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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.
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs) specified under section
143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code
of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are
relevant to our audit of the financial statements under the provisions of the Act and the Rules made thereunder, and we have
fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that
the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion.
included in the Board’s Report including Annexures to Board’s Report, but does not include the financial statements and our
auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained
during the course of our audit or otherwise appears to be materially misstated.
Management’s Responsibilities for the Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the
preparation of these financial statements that give a true and fair view of the financial position, financial performance, including
other comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS and other
accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds
and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates
that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that
were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation
and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
48 | EdgeVerve Systems Limited Infosys Subsidiary Financials 2019-20

Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on
whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether
the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable
that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our
work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
1. As required by Section 143(3) of the Act, based on our audit we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our
examination of those books.
Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid financial statements comply with the Ind AS specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on March 31, 2020 taken on record by the Board
of Directors, none of the directors is disqualified as on March 31, 2020 from being appointed as a director in terms of
Section 164(2) of the Act.
Infosys Subsidiary Financials 2019-20 EdgeVerve Systems Limited | 49

g) With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of section
197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by
the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements.
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable
losses, if any, on long-term contracts including derivative contracts;
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the Central Government in terms of
Section 143(11) of the Act, we give in “Annexure B” a statement on the matters specified in paragraphs 3 and 4 of the Order.
For Deloitte Haskins & Sells Llp

Firm’s Registration number :117366W/W-100018
Gurvinder Singh
Partner
Membership number : 110128
UDIN: 20110128AAAAAV1332
Place: Bengaluru

Annexure “A” To The Independent Auditor’s Report
(Referred to in paragraph 1 (f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report to the Members
of EdgeVerve Systems Limited of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over financial reporting of EDGEVERVE SYSTEMS LIMITED (“the Company”)
as of March 31, 2020 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

The Board of Directors of the Company is responsible for establishing and maintaining internal financial controls based on the
internal control over financial reporting criteria established by the Company considering the essential components of internal
control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute
of Chartered Accountants of India (“ICAI”). These responsibilities include the design, implementation and maintenance of
adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to respective company’s policies, the safeguarding of its assets, the prevention and detection of frauds and
errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information,
as required under the Companies Act, 2013.
Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Company based on
our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting (the “Guidance Note”) issued by the ICAI and the Standards on Auditing prescribed under Section 143(10) of the
Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance
Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether adequate internal financial controls over financial reporting was established and maintained and if such controls
operated effectively in all material respects.
We believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis for our audit opinion on
Meaning of Internal Financial Controls Over Financial Reporting

of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition,
Inherent Limitations of Internal Financial Controls Over Financial Reporting


Opinion
financial reporting were operating effectively as at March 31, 2020, based on the internal financial control over financial
reporting criteria established by the Company considering the essential components of internal control stated in the Guidance

Gurvinder Singh
Partner
Place: Bengaluru

Annexure ‘B’ To The Independent Auditor’s Report
(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report to the Members
of EdgeVerve Systems Limited of even date)
(c) The Company does not have any immovable properties of freehold or leasehold land and building and hence reporting
under 3 (i) (c) of the Order is not applicable.
ii. The Company is in the business of sale of software licenses and providing related software services. The Company does not
have any physical inventories. Accordingly, reporting under Clause 3 (ii) of the Order is not applicable to the Company.
iii. The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or
other parties covered in the register maintained under section 189 of the Act.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the
provisions of Sections 185 and 186 of the Act in respect of grant of loans, making investments and providing guarantees
and securities, as applicable.
v. The Company has not accepted deposits during the year and does not have any unclaimed deposits as at March 31, 2020
and therefore, the provisions of the Clause 3 (v) of the Order are not applicable to the Company.
vi. The maintenance of cost records has not been specified by the Central Government under section 148(1) of the Companies
Act, 2013 for the business activities carried out by the Company. Thus reporting under Clause 3(vi) of the Order is not
applicable to the Company.
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund,
Employees’ State Insurance, Income Tax, Goods and Services Tax, Customs Duty, Cess and other material statutory
dues applicable to it with the appropriate authorities.
Goods and Services Tax, Customs Duty, Cess and other material statutory dues in arrears as at March 31, 2020 for a
(c) Details of dues of Income Tax, Sales Tax, Service Tax, Goods and Services Tax which have not been deposited as at
March 31, 2020 on account of dispute are given below:
Nature of the statute Nature of dues Forum where Dispute is Period to which the Amount
Pending Amount Relates ` Lakhs
The Income Tax Act,
1961 Income Tax Appellate Tribunal AY 2016-17 8
viii. In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment
of dues to debenture holders. The Company does not have any outstanding dues from any financial institution banks.
xi. In our opinion and according to the information and explanations given to us, the Company has paid/provided
managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read
with Schedule V to the Act.
xii. The Company is not a Nidhi Company and hence reporting under Clause 3 (xii) of the Order is not applicable to the Company.
xiii. In our opinion and according to the information and explanations given to us, the Company is in compliance with
Section 177 and 188 of the Companies Act, 2013 where applicable, for all transactions with the related parties and
the details of related party transactions have been disclosed in the financial statements as required by the applicable
accounting standards.

xiv. During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly
paid convertible debentures and hence reporting under Clause 3 (xiv) of the Order is not applicable to the Company.
section 192 of the Companies Act, 2013 are not applicable to the Company.

Gurvinder Singh
Partner
Place: Bengaluru

Balance Sheet
in ` lakh
Particulars Note No. As at March 31,
2020 2019
Assets
Non-current assets
Property, plant and equipment 2.1 4,357 4,599
Right-of-use assets 2.15 2,036 -
Capital work-in-progress 3 -
Financial assets
Loans 2.3 6 8
Other financial assets 2.4 2,590 3,800
Deferred tax assets (net) 2.14 1,035 1,191
Other non-current assets 2.7 981 1,351
Income tax assets (net) 2.14 31,636 22,696
Current assets
Financial assets
Investments 2.2 1,101 1,001
Trade receivables 2.5 14,624 13,186
Loans 2.3 356 443
Other current assets 2.7 13,099 14,693
Total assets 1,00,353 96,838
Equity and liabilities
Equity
Equity share capital 2.9 1,31,184 1,31,184
Other equity (1,91,925) (2,30,044)
Total equity (60,741) (98,860)
Liabilities
Other financial liabilities 2.10 1,18,469 1,48,273
Lease liabilities 2.15 1,328 –
Other non-current liabilities 2.12 – 396
Total non-current liabilities 1,19,797 1,48,669
Current liabilities
Trade payables 2.11
Total outstanding dues of micro enterprises and small
enterprises – –
Total outstanding dues of creditors other than micro enterprises
and small enterprises 3,627 2,324
Lease liability 2.15 1,028 –
Other financial liabilities 2.10 23,060 28,496
Other current liabilities 2.12 13,343 15,858
Provisions 2.13 239 351
Total current liabilities 41,297 47,029
Total equity and liabilities 1,00,353 96,838

The accompanying notes form an integral part of the financial statements
As per our report of even date attached
for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of EdgeVerve Systems Limited
Firm’s Registration No : 117366W/ W-100018
Gurvinder Singh Mohit Joshi Sanat Rao Atul Soneja

Partner Chairman Whole-time Director Whole-time Director
Bengaluru Rajesh Kini Sudhir Gaonkar

April 16, 2020 Chief Financial Officer Company Secretary

in ` lakh, except equity share and per equity share data
2020 2019
Revenue from operations 2.16 2,49,683 2,53,831
Other income, net 2.17 1,113 380
Total Income 2,50,796 2,54,211
Expenses
Employee benefit expenses 2.18 71,604 75,212
Cost of technical sub-contractors 59,722 45,264
Travel expenses 2.18 10,792 12,700
Cost of software packages and others 2.18 16,382 19,200
Consultancy and professional charges 9,817 10,248
Depreciation expense 2.1 & 2.15 2,644 2,234
Finance Cost 10,855 14,108
Other expenses 2.18 16,225 14,860
Total expenses 1,98,041 1,93,826
Profit before tax 52,755 60,385
Tax expense:
Current tax 2.14 14,725 19,398
Deferred tax 2.14 111 441
Profit for the year 37,919 40,546
Remeasurement of the net defined benefit liability / asset 124 327
Items that will be reclassified subsequently to profit or loss – –
Total other comprehensive income, net of tax 124 327
Total comprehensive income for the year 38,043 40,873
Equity shares of par value of ` 10 each
Basic and Diluted (`) 2.89 3.09
Weighted average equity shares used in computing earnings per
equity share
Basic and Diluted 1,31,18,40,000 1,31,18,40,000




Statement of Change in Equity
in ` lakh
Particulars Equity Other Equity Total
share Reserve and surplus Other
capital Retained Debenture Capital comprehensive
earnings redemption Reserve income
Reserve (1)
Business
Transfer
Adjustment
Reserve (2)
Balance as of April 1, 2018 1,31,184 25,810 48,750 (3,44,760) (717) (1,39,733)
Changes in equity for the year
ended March 31, 2019 –
Transfer to debenture
redemption reserve – – – – – –
Transfer from retained earnings – – – – – –
defined benefit liability / asset,
net of tax effect – – – – 327 327
Profit for the year – 40,546 – – – 40,546
Balance as of March 31, 2019 1,31,184 66,356 48,750 (3,44,760) (390) (98,860)
Balance as of April 1, 2019 1,31,184 66,356 48,750 (3,44,760) (390) (98,860)
Impact on account of adoption
of Ind AS 116 (Refer note 2.15) 76 76
Restated Balances as on April
1, 2019 1,31,184 66,432 48,750 (3,44,760) (390) (98,784)
ended March 31, 2020 –
Transfer from debenture
redemption reserve – 37,000 – – – 37,000
Transfer to retained earnings – – (37,000) – – (37,000)
defined benefit liability/asset,
net of tax effect – – – – 124 124
Profit for the year – 37,919 – – – 37,919
Balance as of March 31, 2020 1,31,184 1,41,351 11,750 (3,44,760) (266) (60,741)
(1)
The Company has created Debenture Redemption Reserve required under Sec 71 of Companies Act, 2013, from the profit.
(2)
Transfer of goodwill and intangible assets between entities under common control taken to Business Transfer Adjustment Reserve.




Accounting Policy
Cash flows are reported using the indirect method, where by profit for the period is adjusted for the effects of transactions
of the Company are segregated. The Company considers all highly liquid investments that are readily convertible to known
amount of cash to be cash equivalents.
in ` lakh
2020 2019
Adjustments to reconcile net profit to net cash generated by
Depreciation 2.1 & 2.15 2,644 2,234
Income tax expense 2.14 14,836 19,839
Impairment loss recognized on financial assets 2.18 362 162
Provision / (Reversal) for post-sales client support and others 2.18 (54) (684)
Profit / Loss on sale of fixed assets 2.17 (1) 45
Interest expenses 10,855 14,108
Interest income 2.17 (420) (434)
(Gain) / Loss on investments 2.17 (277) (413)
Exchange difference on translation of assets and liabilities 123 (25)
Trade receivables and unbilled revenue (114) (7,280)
Other financial assets and other assets 1,158 2,411
Trade payables 2.11 1,303 (7,658)
Other financial liabilities, other liabilities and provisions (8,978) 9,284
Cash generated from operations 59,356 72,135
Income taxes paid (23,665) (22,974)
Net cash from operating activities 35,691 49,161
Expenditure on property, plant and equipment (1,928) (1,507)
Loans to employees 2.3 89 86
Payments to acquire financial assets
Liquid mutual fund units (1,32,246) (1,14,067)
Liquid mutual fund units 1,32,422 1,17,741
Interest and dividend received on investments 93 429
Net cash (used in) / from investing activities (1,570) 2,682
Cash flow from financing activities:
Payment of lease liability (666) –
Debentures repaid to holding company (28,600) (33,500)
Payment of interest on debentures (10,730) (14,108)
Net cash used in financing activities (39,996) (47,608)
Effect of exchange differences on translation of foreign currency cash
and cash equivalents (123) 25
Net increase / (decrease) in cash and cash equivalents (5,998) 4,260
Cash and cash equivalents at the beginning of the year 8,070 3,810
Cash and cash equivalents at the end of the year 2,072 8,070
Restricted cash balance 19 19




Notes to the Financial Statements
1. Company overview and significant Actual results could differ from those estimates. Appropriate
changes in estimates are made as management becomes
accounting policies
aware of changes in circumstances surrounding the estimates.
1.1 Company overview Changes in estimates are reflected in the financial statements
EdgeVerve Systems Limited (“the Company”) is a limited in the period in which changes are made and, if material, their
company incorporated in India. It is a wholly-owned effects are disclosed in the notes to the financial statements.
subsidiary of Infosys Limited. The address of its registered Estimation uncertainty relating to COVID-19
office is Plot No. 44, Electronic City, Hosur Main Road,
The Company has assessed the recoverability of receivables
Bengaluru 560100, Karnataka, India. The Company defines,
and unbilled revenue based on internal and external
develops and operates innovative cloud-hosted business
information up to the date of approval of these financial
platforms and software products as part of the Edge Suite
statements. Based on current indicators of future economic
of products or Finacle product which can be deployed
conditions, the Company expects to recover the carrying
either on premises or on cloud environments depending
amount of these assets. The impact of the global pandemic
on its products. The Company provides implementation,
may be different from that estimated as at the date of
integration and support services to help its customers realize
approval of these financial statements. The Company will
benefits from software solutions.
continue to closely monitor any material changes to future
With effect from August 01, 2015, ‘Finacle’ and ‘Edge economic conditions.
Services’ business of Infosys Limited was transferred to the
Company. The purchase consideration for the transfer was 1.4 Critical accounting estimates
discharged by way of issue and allotment of equity shares and a. Revenue recognition
non-convertible unsecured debentures.”
The Company uses the percentage-of-completion method in
The financial statements are approved by the Company’s accounting for its fixed-price contracts. Use of the percentage-
Board of Directors on April 16, 2020. of-completion method requires the Company to estimate the
1.2 Basis of preparation of financial statements efforts or costs expended to date as a proportion of the total
efforts or costs to be expended. Efforts or costs expended
These financial statements are prepared in accordance with
have been used to measure progress towards completion as
Indian Accounting Standards (Ind AS), under the historical
there is a direct relationship between input and productivity.
cost convention on the accrual basis except for certain
financial instruments which are measured at fair values and Further, the Company uses significant judgments while
the provisions of the Companies Act, 2013 (“the Act”) (to determining the transaction price allocated to performance
the extent notified). The Ind AS are prescribed under Section obligations using the expected cost plus margin approach.
133 of the Act read with Rule 3 of the Companies (Indian Provisions for estimated losses, if any, on uncompleted
Accounting Standards) Rules, 2015 and Companies (Indian contracts are recorded in the period in which such losses
Accounting Standards) Amendment Rules, 2016. become probable based on the expected contract estimates
Accounting policies have been consistently applied except at the reporting date.
where a newly issued accounting standard is initially adopted b. Property, plant and equipment
or a revision to an existing accounting standard requires a
Property, plant and equipment represents a significant portion
change in the accounting policy hitherto in use.
of the asset base of the Company. The charge in respect of
As the year-end figures are taken from the source and rounded periodic depreciation is derived after determining an estimate
to the nearest digit, the figures already reported for the of an asset’s expected useful life and the expected residual
previous quarters might not always add up to the year figures value at the end of its life. The useful lives and residual values
reported in this statements. of the Company’s assets are determined by the Management
1.3 Use of estimates and judgments at the time the asset is acquired and reviewed periodically,
including at each financial year end. The lives are based on
The preparation of the financial statements in conformity historical experience with similar assets as well as anticipation
with Ind AS requires the Management to make estimates, of future events, which may impact their life, such as changes
judgments and assumptions. These estimates, judgments and in technology. (Refer to note 2.1)
assumptions affect the application of accounting policies and
the reported amounts of assets and liabilities, the disclosures c. Leases
of contingent assets and liabilities at the date of the financial Ind AS 116 requires lessees to determine the lease term as the
statements and reported amounts of revenues and expenses non-cancellable period of a lease adjusted with any option
during the year. The application of accounting policies that to extend or terminate the lease, if the use of such option is
require critical accounting estimates involving complex and reasonably certain. The Group makes an assessment on the
subjective judgments and the use of assumptions in these expected lease term on a lease-by-lease basis and thereby
financial statements have been disclosed in note no. 1.4. assesses whether it is reasonably certain that any options
Accounting estimates could change from period to period.

to extend or terminate the contract will be exercised. In Plant and machinery(1) 5 years
evaluating the lease term, the Company considers factors such Computer equipment(1) 3-5 years
as any significant leasehold improvements undertaken over Furniture and fixtures(1) 5 years
the lease term, costs relating to the termination of the lease Office equipment(1) 5 years
and the importance of the underlying asset to the Company’s Leasehold improvements Over lease term
operations taking into account the location of the underlying
asset and the availability of suitable alternatives. The lease Based on technical evaluation, the Management believes that the useful
(1)
lives as given above best represent the period over which management
term in future periods is reassessed to ensure that the lease expects to use these assets. Hence, the useful lives for these assets is
term reflects the current economic circumstances. different from the useful lives as prescribed under Part C of Schedule II
of the Companies Act 2013.
1.5 Intangible assets
Depreciation methods, useful lives and residual values are
Research costs are expensed as incurred. Software
reviewed periodically, including at each financial year end.
development costs are expensed as incurred unless technical
and commercial feasibility of the project is demonstrated, Advances paid towards the acquisition of property, plant and
future economic benefits are probable, the Company has an equipment outstanding at each Balance Sheet date is classified
intention and ability to complete and use or sell the software as capital advances under other non-current assets and the
and the costs can be measured reliably. The cost which can cost of assets not put to use before such date are disclosed
be capitalized include the cost of materials, direct labor, under ‘Capital work-in-progress’. Subsequent expenditures
overhead cost that are directly attributable to preparing the relating to property, plant and equipment is capitalized only
asset for intended use. when it is probable that future economic benefits associated
with these will flow to the Company and the cost of the item
1.6 Earnings per equity share can be measured reliably. Repairs and maintenance costs are
Basic earnings per equity share is computed by dividing the recognized in the Statement of Profit and Loss when incurred.
net profit attributable to the equity holders of the Company The cost and related accumulated depreciation are eliminated
by the weighted average number of equity shares outstanding from the financial statements upon sale or retirement of the
during the year. Diluted earnings per equity share is computed asset and the resultant gains or losses are recognized in the
by dividing the net profit attributable to the equity holders Statement of Profit and Loss.
of the Company by the weighted average number of equity Impairment
shares considered for deriving basic earnings per equity
Property, plant and equipment are evaluated for recoverability
share and also the weighted average number of equity shares
whenever events or changes in circumstances indicate that
that could have been issued upon conversion of all dilutive
their carrying amounts may not be recoverable. For the
potential equity shares. The dilutive potential equity shares
purpose of impairment testing, the recoverable amount (i.e.
are adjusted for the proceeds receivable had the equity shares
the higher of the fair value less cost to sell and the value-in-
been actually issued at fair value. Dilutive potential equity
use) is determined on an individual asset basis unless the asset
shares are deemed converted as of the beginning of the period,
does not generate cash flows that are largely independent
unless issued at a later date. Dilutive potential equity shares
of those from other assets. In such cases, the recoverable
are determined independently for each period presented.
amount is determined for the Cash Generating Unit (CGU)
The number of equity shares and potentially dilutive equity to which the asset belongs.
shares are adjusted retrospectively for all periods presented for
If such assets are considered to be impaired, the impairment to
any share splits and bonus shares issues including for changes
be recognized in the Statement of Profit and Loss is measured
effected prior to the approval of the financial statements by
by the amount by which the carrying value of the assets
the Board of Directors.
exceeds the estimated recoverable amount of the asset. An
1.7 Borrowing costs impairment loss is reversed in the Statement of Profit and Loss
Borrowing costs are charged to the Statement of Profit and if there has been a change in the estimates used to determine
Loss for the period in which they are incurred. the recoverable amount. The carrying amount of the asset is
2.1 Property, plant and equipment this amount does not exceed the carrying amount that would
have been determined (net of any accumulated amortization
Accounting policy
or depreciation) had no impairment loss been recognized for
Property, plant and equipment are stated at cost, less the asset in prior years.
accumulated depreciation and impairment, if any. Costs,
directly attributable to the acquisition are capitalized until
property, plant and equipment are ready for use as intended
by the management. The Company depreciates property,
plant and equipment over their estimated useful lives using
the straight-line method. The estimated useful lives of
assets are as follows:

Following are the changes in the carrying value of property, plant and equipment for the year ended March 31, 2020:
in ` lakh
Particulars Leasehold Plant and Office Computer Furniture Total
Improvements machinery equipment equipment and fixtures
Gross carrying value as of April
1, 2019 26 18 182 11,075 159 11,460
Additions – 2 13 1,768 33 1,816
Deletions – – – (47) – (47)
Gross carrying value as of March
31, 2020 26 20 195 12,796 192 13,229
Accumulated depreciation as of
April 1, 2019 (3) (8) (112) (6,655) (83) (6,861)
Depreciation (5) (4) (35) (1,973) (40) (2,057)
Accumulated depreciation on
deletions – – – 46 – 46
March 31, 2020 (8) (12) (147) (8,582) (123) (8,872)
Carrying value as of March 31,
2020 18 8 48 4,214 69 4,357
Following are the changes in the carrying value of property, plant and equipment for the year ended March 31, 2019:
in ` lakh
improvements machinery equipment equipment and fixtures
1, 2018 – 18 164 9,389 84 9,655
Additions 26 – 18 2,216 75 2,335
Deletions – – – (530) – (530)
Gross carrying value as of March
31, 2019 26 18 182 11,075 159 11,460
April 1, 2018 – (5) (78) (4,979) (41) (5,103)
Depreciation (3) (3) (34) (2,152) (42) (2,234)
deletions – – – 476 – 476
March 31, 2019 (3) (8) (112) (6,655) (83) (6,861)
2019 23 10 70 4,420 76 4,599

2.2 Investments 2.3 Loans
in ` lakh in ` lakh
2020 2019 2020 2019
Unquoted current Non-current
investments Other loans
Investments carried at fair Loans to employees 6 8
value through profit or loss Total non-current loans 6 8
Liquid mutual fund units 1,101 1,001 Current
Total investments 1,101 1,001 Unsecured, considered
Aggregate and market value doubtful
of unquoted investments 1,101 1,001 Loans to employees 9 7
Less: Allowances for
The fair value of liquid mutual fund units as on March doubtful loans to
31, 2020 and March 31, 2019 is ` 1,101 lakh and ` employees 9 7
1,001 lakh respectively. – –
Method of fair valuation: Other Loans
in ` lakh Loans to employees 356 443
Total current loans 356 443
Class of Method As at March 31,
Total Loans 362 451
investment 2020 2019
Mutual fund-
Liquid mutual 2.4 Other financial assets
in ` lakh
fund units Quoted price 1,101 1,001
Details of investments in liquid mutual fund units: 2020 2019
The balances held in liquid mutual fund units as at March 31, Non- current
2020 and March 31, 2019 are as follows: Other customer receivables 2,589 3,799
in ` lakh Security deposits 1 1
Particulars As at March 31, Total non-current other
2020 2019 financial assets 2,590 3,800
Units Amount Units Amount Current
Aditya Birla Sun Restricted deposits(3) 4,436 4,212
Life Liquid Fund- Unbilled revenues (1)(4) 21,395 21,578
Growth- Direct Interest accrued but not due 337 10
Plan 1,56,530 500 – – Others (2) 289 –
ICICI Prudential Total current other financial
Liquid– Growth– assets 26,457 25,800
Direct plan 2,04,349 601 – Total other financial assets 29,047 29,600
HDFC Liquid Financial assets carried at
Fund - Direct - amortized cost 29,047 29,600
Growth – – 27,214 1,001
(1)
Includes dues from fellow
Total investments subsidiaries (Refer to Note
in liquid mutual 2.21) 1,668 –
fund units 3,60,879 1,101 27,214 1,001
(2)
Includes dues from fellow
subsidiaries (Refer to Note
2.21) 2 32
* Restricted deposits represent deposit with financial institutions to settle
employee compensated absence benefit related obligations as and when
they arise during the normal course of business.
(1)
Classified as financial asset as right to consideration is unconditional
upon passage of time.

2.5 Trade receivables 2.7 Other assets
in ` lakh in ` lakh
2020 2019 2020 1, 2019
Unsecured Non-current
Considered good(1) 14,624 13,186 Prepaid expenses 54 25
Considered doubtful 597 224 54 25
15,221 13,410 Advance other than capital
Less: Allowances for credit advances
losses 597 224 Prepaid gratuity (Refer to
Total trade receivables 14,624 13,186 Note 2.19) 927 1,326
(1)
Includes dues from fellow Total non-current other
subsidiaries (Refer to Note assets 981 1,351
2.21) 285 416 Current
Advance other than capital
2.6 Cash and cash equivalents advances
in ` lakh Payment to vendors for
Particulars As at March 31, supply of goods / services 249 201
2020 2019 Balance with government
Balances with banks authorities 5 130
In current and deposit Others
accounts 2,072 8,070 Unbilled revenues(1) 5,901 7,404
Total cash and cash Prepaid expenses 2,712 4,016
equivalents 2,072 8,070 Withholding taxes and
Deposit accounts with more others* 4,232 2,942
than 12 months maturity 19 19 Total current other assets 13,099 14,693
Balances with banks held Total other assets 14,080 16,044
as margin money deposits
against guarantees 19 19 Classified as non-financial asset as the contractual right to consideration
(1)
is dependent on completion of contractual milestones.

Cash and cash equivalents as of March 31, 2020 and March 31, * Withholding taxes and others primarily consist of input tax credits
2019 include restricted cash and bank balances of ` 19 lakh,
2.8 Financial instruments
respectively. The restrictions are primarily on account of bank
balances held as margin money deposits against guarantees. Accounting policy
The deposits which are maintained by the Company with 2.8.1 Initial recognition
banks and financial institutions comprises time deposits, The Company recognizes financial assets and financial
which can be withdrawn by the Company at any point liabilities when it becomes a party to the contractual
without prior notice or penalty on the principal. provisions of the instrument. All financial assets and liabilities
trade receivables which are initially measured at transaction
price. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities,
that are not at fair value through profit or loss, are added
to the fair value on initial recognition and transaction costs
that are directly attributable to the acquisition or issue of
financial assets and financial liabilities, that are at fair value
are recognized immediately in the Statement of Profit or
Loss. Regular way purchase and sale of financial assets are
accounted for at trade date.

2.8.2 Subsequent measurement Derivatives not designated as hedges are recognized initially
at fair value and attributable transaction costs are recognized
a. Non-derivative financial instruments in net profit in the consolidated Statement of Profit and
(i) Financial assets carried at amortized cost Loss when incurred. Subsequent to initial recognition, these
A financial asset is subsequently measured at amortized cost if derivatives are measured at fair value through profit or loss
it is held within a business model whose objective is to hold and the resulting exchange gains or losses are included in
the asset in order to collect contractual cash flows and the other income. Assets / liabilities in this category are presented
contractual terms of the financial asset give rise on specified as current assets / current liabilities if they are either held for
dates to cash flows that are solely payments of principal and trading or are expected to be realized within 12 months after
interest on the principal amount outstanding. the Balance Sheet date.
(ii) Financial assets at fair value through other 2.8.3 Derecognition of financial instruments
The Company derecognizes a financial asset when the
A financial asset is subsequently measured at fair value contractual rights to the cash flows from the financial asset
through other comprehensive income if it is held within a expire or it transfers the financial asset and the transfer
business model whose objective is achieved by both collecting qualifies for derecognition under Ind AS 109. A financial
contractual cash flows and selling financial assets and the liability (or a part of a financial liability) is derecognized from
contractual terms of the financial asset give rise on specified the Company’s Balance Sheet when the obligation specified in
dates to cash flows that are solely payments of principal and the contract is discharged or cancelled or expires.
interest on the principal amount outstanding.
2.8.4 Fair value of financial instruments
(iii) Financial assets at fair value through profit or loss
A financial asset which is not classified in any of the above
Company uses a variety of methods and assumptions that
are based on market conditions and risks existing at each
(iv) Financial liabilities reporting date. The methods used to determine fair value
Financial liabilities are subsequently carried at amortized include discounted cash flow analysis, available quoted
cost using the effective interest method. For trade and other market prices and dealer quotes. All methods of assessing
payables maturing within one year from the Balance Sheet fair value result in general approximation of value, and such
date, the carrying amounts approximate fair value due to the value may never actually be realized.
short maturity of these instruments. Refer to table below for the disclosure on carrying value and
b. Share capital fair value of financial assets and liabilities. For financial assets
and liabilities maturing within one year from the Balance
Ordinary shares are classified as equity. Incremental costs
Sheet date and which are not carried at fair value, the carrying
directly attributable to the issuance of new ordinary shares
amounts approximate fair value due to the short maturity
and share options are recognized as a deduction from equity,
of these instruments.
net of any tax effects.
2.8.5 Impairment
c. Derivative financial instruments
The Company recognizes loss allowances using the expected
The Company holds derivative financial instruments
credit loss (ECL) model for the financial assets which are
such as foreign exchange forward and option contracts to
not fair valued through profit or loss. Loss allowance for
mitigate the risk of changes in exchange rates on foreign
trade receivables with no significant financing component is
currency exposures. The counterparty for these contracts
measured at an amount equal to lifetime ECL. For all other
is generally a bank.
financial assets, ECL are measured at an amount equal to the
(i) Financial assets or financial liabilities, at fair value 12-month ECL, unless there has been a significant increase
through profit or loss in credit risk from initial recognition in which case those are
This category has derivative financial assets or liabilities measured at lifetime ECL. The amount of ECL (or reversal) that
which are not designated as hedges. is required to adjust the loss allowance at the reporting date to
Although the Company believes that these derivatives the amount that is required to be recognized is recognized as
constitute hedges from an economic perspective, they may an impairment gain or loss in the Statement of Profit or Loss.
not qualify for hedge accounting under Ind AS 109, Financial
Instruments. Any derivative that is either not designated as
hedge, or is so designated but is ineffective as per Ind AS 109,
is categorized as a financial asset or financial liability, at fair
value through profit or loss.

The carrying value and fair value of financial instruments by categories as of March 31, 2020 are as follows:
in ` lakh
Particulars Note Amortized Financial assets / Financial assets/liabilities Total Total fair
cost liabilities at fair value at fair value through OCI carrying value
through profit or loss value
upon initial
recognition
Assets:
Cash and cash
equivalents 2.6 2,072 – – – – 2,072 2,072
Investments-
Liquid mutual
funds units 2.2 – – 1,101 – – 1,101 1,101
Trade receivables 2.5 14,624 – – – – 14,624 14,624
Loans 2.3 362 – – – – 362 362
Other financial
assets 2.4 29,047 – – – – 29,047 29,047
Total 46,105 – 1,101 – – 47,206 47,206
Liabilities:
Trade payables 2.11 3,627 – – – – 3,627 3,627
Non-convertible
debentures (1) 2.10 1,15,900 – – – – 1,15,900 1,15,900
Other financial
liabilities 2.10 25,629 – – – – 25,629 25,629
Total 1,45,156 – – – – 1,45,156 1,45,156
The carrying value of debentures approximates fair value as the instruments are at prevailing market rates
(1)
The carrying value and fair value of financial instruments by categories as of March 31, 2019 are as follows:
(in ` lakh)
Particulars Note Amortized Financial assets / Financial assets/liabilities Total Total fair
cost liabilities at fair value at fair value through OCI carrying value
through profit or loss value
upon initial
recognition
Assets
Cash and cash
equivalents 2.6 8,070 – – – – 8,070 8,070
Investments- Liquid
mutual funds units 2.2 – – 1,001 – – 1,001 1,001
Trade receivables 2.5 13,186 – – – – 13,186 13,186
Loans 2.3 451 – – – – 451 451
Other financial assets 2.4 29,600 – – – – 29,600 29,600
Total 51,307 – 1,001 – – 52,308 52,308
Liabilities
Trade payables 2.11 2,324 – – – – 2,324 2,324
Non-convertible
debentures (1) 2.10 1,44,500 – – – – 1,44,500 1,44,500
Other financial
liabilities 2.10 32,269 – – – – 32,269 32,269
Total 1,79,093 – – – – 1,79,093 1,79,093
The carrying value of debentures approximates fair value as the instruments are at prevailing market rates
(1)

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
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 financial assets and financial liabilities as at March 31, 2020.
in ` lakh
Particulars As on Fair value measurement at end
March of the reporting period / year
31, 2020 using
Assets
Investment in liquid mutual fund units (Refer to Note 2.2) 1,101 1,101 – –
Liabilities
Derivative financial instruments - loss on outstanding foreign currency forward
contracts (Refer to Note no. 2.10) 510 – 510 –
The following table presents fair value hierarchy of financial assets as at March 31, 2019.
Particulars As on Fair value measurement at end
March of the reporting period / year
31, 2019 using
Assets
Investment in liquid mutual fund units (Refer to Note 2.2) 1,001 1,001 – –
The following table analyzes foreign currency risk from financial instruments as of March 31, 2020:
in ` lakh
Particulars US dollar Euro United Australian Other Total
Kingdom dollar currencies
Pound
Sterling
Cash and cash equivalents 813 – – – – 813
Trade receivables 10,031 65 32 – 282 10,410
Other financials assets (including
loans) 10,151 531 470 (480) 3,943 14,615
Trade payables (192) (146) (10) – (39) (387)
Other financial liabilities (5,559) (22) (10) (10) (283) (5,884)
Net assets / (liabilities) 15,244 428 482 (490) 3,903 19,567
The following table analyzes foreign currency risk from financial instruments as of March 31, 2019:
in ` lakh
Particulars US dollar Euro United Australian Other Total
Kingdom dollar currencies
Pound
Sterling
Cash and cash equivalents 325 – – – – 325
Trade receivables 9,455 46 14 – 387 9,902
Other financials assets (including
loans) 8,556 3,246 514 173 1,400 13,889
Trade payables (442) (86) (26) (1) (31) (586)
Other financial liabilities (4,837) (2) (29) (774) (402) (6,044)
Net assets / (liabilities) 13,057 3,204 473 (602) 1,354 17,486

Derivative financial instruments
The Company holds the derivative financial instruments such as foreign currency forward and options contracts to mitigate
the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is the bank. These
derivative financial instruments are valued based on quoted prices for similar assets and liabilities in active market or inputs
that are directly or indirectly observable in the marketplace.
in million in ` lakh in million in ` lakh
Forward Contracts
In US dollar 13 9,837 – –
The foreign exchange forward and options contracts mature within 12 months. The table below analyzes the derivative financial
instruments into relevant maturity groupings based on the remaining period as at the Balance Sheet date:
(in ` lakh)
2020 2019
Not later than one month 6,053 –
Later than one month and not later than three months 3,784 –
Total 9,837 –
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 ` 14,624 lakh and ` 13,186 lakh as of
March 31, 2020 and March 31, 2019 respectively and unbilled revenue amounting to ` 27,296 lakh and ` 28,982 lakh as of
March 31, 2020 and March 31, 2019, respectively. Credit risk has always been managed through credit approvals, establishing
credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in
the normal course of business. The Company uses a provision matrix to compute the expected credit losses on the customer
balances based on internal and external factors.
The allowance for lifetime expected credit loss on customer balances for the years ended March 31, 2020 and March 31, 2019
was ` 357 lakh and ` 162 lakh respectively.
Movement in credit loss allowance:(in ` lakh)
2020 2019
Provisions recognized 357 162
Write-offs (34) –
Translation differences 55 3
Credit risk on cash and cash equivalent is limited as the Company generally invest in deposits with banks and in
liquid mutual fund units.
Liquidity risk
The Company’s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from
operations. The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, no
liquidity risk is perceived.
As of March 31, 2020, the Company had a working capital of ` 16,412 lakh including cash and cash equivalents of ` 2,072
lakh and current investments of ` 1,101 lakh. As of March 31, 2019, the Company had a working capital of ` 16,164 lakh
including liquid assets such as cash and cash equivalents of ` 8,070 lakh and current investments of ` 1,001 lakh.
As of March 31, 2020 and March 31, 2019, the outstanding compensated absences were ` 3,027 lakh and ` 2,794 lakh,
respectively, which have been substantially funded. Accordingly, no liquidity risk is perceived.

The table below provides details regarding the contractual maturities of significant financial liabilities as of March 31, 2020:
(in ` lakh)
Particulars Less than 1 1-2 years 2-4 years 4-7 years Total
year
Trade payables 3,627 – – – 3,627
Other liabilities excluding non- convertible
debentures 20,033 1,876 693 – 22,602
23,660 1,876 693 – 26,229
The table below provides details regarding the contractual maturities of significant financial liabilities as of March 31, 2019:
(in ` lakh)
Particulars Less than 1 1-2 years 2-4 years 4-7 years Total
year
Trade payables 2,324 – – – 2,324
Other liabilities excluding non- convertible
debentures(1) 26,098 1,887 1,886 – 29,871
28,422 1,887 1,886 – 32,195
The term of redemption of the debentures would be any date as may be decided mutually between the parties but will not exceed 10 years from the
(1)
date of issue.
2.9 Equity
Share capital
in ` lakh, except as otherwise stated
2020 2019
Authorized
Equity shares, `10 par value 4,10,000 4,10,000
4,10,00,00,000 (4,10,00,00,000) equity shares
Equity shares, `10 par value 1,31,184 1,31,184
1,31,18,40,000 (1,31,18,40,000) equity shares
1,31,184 1,31,184
The Company has only one class of shares referred to as equity shares having a par value of `10. Each holder of equity shares
is entitled to one vote per 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 March 31, 2020 and March 31, 2019 are set out below:
Name of the shareholder As at March 31, 2020 As at March 31, 2019

shares shares
Infosys Limited, holding company 1,31,18,40,000 100% 1,31,18,40,000 100%
The reconciliation of the number of shares outstanding and the amount of share capital as at March 31, 2020 and March 31,
2019 is set out below:
Number of Amount Number of Amount
shares shares
Number of shares at the beginning and end of the
year 1,31,18,40,000 13,11,84,00,000 1,31,18,40,000 13,11,84,00,000

2.10 Other financial liabilities 2.12 Other liabilities
in ` lakh in ` lakh
2020 2019 2020 2019
Non-current Non-current
Non-convertible debentures *(1) 1,15,900 1,44,500 Deferred rent – 396
Other payables 2,569 3,773 Total non-current other
Total non-current other liabilities – 396
financial liabilities 1,18,469 1,48,273 Current
Current Unearned revenue 8,815 9,920
Accrued compensation to Withholding taxes and other
employees 3,617 4,413 taxes 4,528 5,938
Capital creditors 764 875 Total current other liabilities 13,343 15,858
Foreign currency forward Total other liabilities 13,343 16,254
contracts 510 –
Compensated absences 3,027 2,794 2.13 Provisions
Accrued expenses (2) 14,420 15,786 Accounting policy
Other payables (3) 722 4,628
A provision is recognized if, as a result of a past event, the
Company has a present legal or constructive obligation that
liabilities 23,060 28,496
can be estimated reliably, and it is probable that an outflow
Total other financial liabilities 1,41,529 1,76,769
of economic benefits will be required to settle the obligation.
Financial liability carried at
Provisions are determined by discounting the expected
amortized cost 1,41,529 1,76,769
future cash flows at a pre-tax rate that reflects current
*The interest rate for the debentures as of March 31, 2020 is 10 years market assessments of the time value of money and the risks
Government Bond rate plus 1% premium to be reset annually. Currently specific to the liability.
the interest rate is 8.349%. The interest payment term would be as may
be decided mutually between the parties. The term of redemption of a. Post-sales client support and others
the debentures would be any date as may be decided mutually between
the parties but will not exceed 10 years. The Company provides its clients with a fixed-period post-
sales support for corrections of errors and support on all
(1)
Includes dues to holding its fixed-price, fixed-timeframe contracts. Costs associated
company (Refer to Note 2.21) 1,15,900 1,44,500 with such support services are accrued at the time related
(2)
Includes dues to holding revenues are recorded in the Statement of Profit and Loss. The
company (Refer to Note 2.21) 4,450 4,048 Company estimates such costs based on historical experience
(3)
Includes dues to fellow and estimates are reviewed on a periodic basis for any material
subsidiaries (Refer to Note 2.21) 6 51 changes in assumptions and likelihood of occurrence.
2.11 Trade payables b. Onerous contracts
in ` lakh
Provisions for onerous contracts are recognized when the
Particulars As at March 31, expected benefits to be derived by the Company from a
2020 2019 contract are lower than the unavoidable costs of meeting
Trade payables (1) 3,627 2,324 the future obligations under the contract. The provision is
Total trade payables 3,627 2,324 measured at the present value of the lower of the expected
(1)
Includes dues to holding cost of terminating the contract and the expected net cost of
company / fellow subsidiaries continuing with the contract. Before a provision is established,
(Refer to Note 2.21) 1,805 440 the Company recognizes any impairment loss on the assets
associated with that contract.
As at March 31, 2020 and March 31, 2019, there are no
outstanding dues to Micro, Small and Medium Enterprises. Provision for post-sales client support and others
in ` lakh
There is no interest due or outstanding on the same. During
the year ended March 31, 2020, an amount of ` 130 lakh was Particulars As at March 31,
paid beyond the appointed day as defined in the Micro, Small 2020 2019
and Medium Enterprises Development Act 2006, which has Current
been paid as of March 31, 2020. Others
Post-sales client support
and others 239 351
Total provisions 239 351

The movement in provision for post-sales client support and During the year ended March 31, 2020 the Company has
warranties and others is as follows: opted for new lower tax regime of 22% Corporate Tax (plus
in ` lakh applicable surcharge and cess) as per the Taxation Laws
Particulars As at March 31, (Amendment) Act, 2019.
2020 ,2019 Income tax expense for the years ended March 31, 2020
Balance at the beginning 351 936 and March 31, 2019 includes Provision / (reversal) (Net
Provisions recognized / of provisions) amounting to ` 463 lakh and ` (217) lakh
(reversal) (112) (684) respectively pertaining to prior periods.
Provision utilized – 98
These net of provisions majorly pertain to prior periods
Translation differences – 1
on account of earlier years overseas tax cost net of tax
relief claimed in India.
Provision for post-sales client support and others are expected A reconciliation of the income tax provision to the amount
to be utilized over a period of 6 months to 1 year. computed by applying the statutory income tax rate to the
income before income taxes is summarized below:
2.14 Income taxes (in ` lakh)
Accounting policy Particulars As at March 31,
Income tax expense comprises current and deferred income 2020 2019
tax. Income tax expense is recognized on net profit in the Profit before income taxes 52,755 60,385
Statement of Profit and Loss except to the extent that it Enacted tax rates in India 25.17% 34.94%
relates to items recognized directly in equity, in which case it Computed expected tax
is recognized in other comprehensive income. Income tax for expense 13,277 21,101
current and prior year is recognized at the amount expected Overseas taxes, net of foreign
to be paid to or recovered from the tax authorities, using the tax credit 638 733
tax rates and tax laws that have been enacted or substantively Prior year taxes 463 (217)
enacted by the Balance Sheet date. Deferred income tax assets Effect of non-deductible
and liabilities are recognized for all temporary differences expenses 134 55
arising between the tax bases of assets and liabilities and their Additional deduction on
carrying amounts in the financial statements. Deferred tax research and development
assets are reviewed at each reporting date and are reduced expense – (2,090)
to the extent that it is no longer probable that the related tax Others* 324 257
benefit will be realized. Income tax expense 14,836 19,839
Deferred income tax assets and liabilities are measured using * Includes deferred tax impact of ` 321 lakh due to adoption of new lower
tax rates and tax laws that have been enacted or substantively tax rate regime.
enacted by the Balance Sheet date and are expected to apply
The applicable Indian statutory tax rates for fiscal year 2020
to taxable income in the years in which those temporary
is 25.168% and fiscal year 2019 is 34.944%
of changes in tax rates on deferred income tax assets and The following table provides the details of income
liabilities is recognized as income or expense in the period tax assets and income tax liabilities as of March 31,
that includes the enactment or the substantive enactment 2020 and March 31, 2019
in ` lakh
2020 2019
losses can be utilized. The Company offsets current tax assets Income tax assets 91,619 69,829
and current tax liabilities, where it has a legally enforceable Current income tax liabilities 59,983 47,133
right to set off the recognized amounts and where it intends Net current income tax assets
either to settle on a net basis, or to realize the asset and settle at the end 31,636 22,696
the liability simultaneously.
Income tax expense in the Statement of Profit and Loss comprises:
in ` lakh
2020 2019
Current taxes 14,725 19,398
Deferred taxes 111 441
Income tax expense 14,836 19,839
Entire deferred income tax for the year ended March 31, 2020
and March 31, 2019, relates to origination and reversal of
temporary differences.

The gross movement in the current income tax asset for the 2.15 Leases
years ended March 31, 2020 and March 31, 2019 are as follows:
in ` lakh Accounting policy
Particulars As at March 31, The Company as a lessee
2020 2019 The Company’s lease asset classes consist of leases for
Net current income tax assets buildings. The Company assesses whether a contract contains
at the beginning 22,696 19,120 a lease, at inception of a contract. A contract is, or contains,
Income tax paid 23,707 23,228 a lease if the contract conveys the right to control the use
Tax on other comprehensive of an identified asset for a period of time in exchange for
income (42) (254) consideration. To assess whether a contract conveys the right
Current income tax expense to control the use of an identified asset, the Company assesses
(Refer to Note 2.14) (14,725) (19,398) whether: (1) the contact involves the use of an identified asset
Net current income tax assets (2) the Company has substantially all of the economic benefits
at the end 31,636 22,696 from use of the asset through the period of the lease and (3)
the Company has the right to direct the use of the asset.
The tax effects of significant temporary differences that resulted
At the date of commencement of the lease, the Company
in deferred income tax assets and liabilities are as follows:
in ` lakh
recognizes a right-of-use asset (“ROU assets”) and a
corresponding lease liability for all lease arrangements in
Particulars As at March 31, which it is a lessee, except for leases with a term of twelve
2020 2019 months or less (short-term leases) and low value leases.
Deferred income tax assets For these short-term and low value leases, the Company
Trade receivables 179 115 recognizes the lease payments as an operating expense on a
Compensated absences 763 977 straight-line basis over the term of the lease.
Others 184 246
Certain lease arrangements include the options to extend or
Total deferred income tax
terminate the lease before the end of the lease term. ROU
assets 1,126 1,338
assets and lease liabilities includes these options when it is
Deferred income tax
reasonably certain that they will be exercised.
liabilities
Property, plant and The ROU assets are initially recognized at cost, which
equipment 91 147 comprises the initial amount of the lease liability adjusted for
Total deferred income tax any lease payments made at or prior to the commencement
liabilities 91 147 date of the lease plus any initial direct costs less any lease
Deferred income tax assets incentives. They are subsequently measured at cost less
after set off 1,035 1,191 accumulated depreciation and impairment losses.
Deferred income tax ROU assets are depreciated from the commencement date
liabilities after set off – – on a straight-line basis over the shorter of the lease term and
useful life of the underlying asset.
The gross movement in the deferred income tax account for the
The lease liability is initially measured at amortized cost using
years ended March 31, 2020 and March 31, 2019 is as follows:
in ` lakh
the effective interest rate method at the present value of the
future lease payments. The lease payments are discounted
Particulars As at March 31, using the interest rate implicit in the lease or, if not readily
2020 2019 determinable, incremental borrowing rates in the countries
Net deferred income tax asset of domicile of the leases. Lease liabilities are remeasured
at the beginning 1,191 1,631 with a corresponding adjustment to the related right-of-use
Credits relating to temporary asset if the Company changes its assessment if whether it will
differences (Refer to Note exercise an extension or a termination option.
2.14) (156) (441)
Effective April 1, 2019, the Company adopted Ind AS 116
Temporary differences on
“Leases” and applied the standard to all lease contracts existing
other comprehensive income – 1
on April 1, 2019 using the modified retrospective method and
Net deferred income tax asset
has taken the cumulative adjustment to retained earnings, on
at the end 1,035 1,191
the date of initial application. Consequently, the Company
Deferred tax assets and deferred tax liabilities have been offset recorded the lease liability at the present value of the lease
wherever the Company has a legally enforceable right to set payments discounted at the incremental borrowing rate and
off current tax assets against current tax liabilities and where the right-of-use asset at its carrying amount as if the standard
the deferred tax assets and deferred tax liabilities relate to had been applied since the commencement date of the lease,
income taxes levied by the same taxation authority. but discounted at the Company’s incremental borrowing
rate at the date of initial application. Comparatives for the
year ended March 31, 2019 have not been retrospectively
adjusted and therefore will continue to be reported under the

accounting policies included as part of our Annual Report for Rental expense recorded for short-term leases was ` 3,474
year ended March 31, 2019. lakh for the year ended March 31, 2020.
On transition, the adoption of the new standard resulted in The obligations on long term, non-cancellable operating
recognition of ROU asset of ` 867 lakh and a lease liability of leases payable as per the rentals stated in the respective
` 1,141 lakh. The cumulative effect of applying the standard agreements are as follows:
of ` 76 lakh was adjusted in retained earnings, net of taxes. in ` lakh
Ind AS 116 will result in an increase in cash inflows from Particulars Year ended
operating activities and an increase in cash outflows from March 31, 2020
financing activities on account of lease payments. Not later than 1 year 1,160
The following is the summary of practical expedients elected Later than 1 year and not later than 5
on initial application: years 1,498
1. Applied a single discount rate to a portfolio of leases of Later than 5 years –
similar assets in similar economic environment with a Balance as of March 31, 2020 2,658
similar end date
2. Applied the exemption not to recognize ROU assets and 2.16 Revenue from operations
liabilities for leases with less than 12 months of lease term Accounting policy
on the date of initial application. The Company derives revenues primarily from business
3. Excluded the initial direct costs from the measurement of IT services comprising software development and related
the ROU asset at the date of initial application. services, consulting and package implementation and
4. Applied the practical expedient to grandfather the from the licensing of software products and platforms
assessment of which transactions are leases. Accordingly, across our core and digital offerings (“together called as
Ind AS 116 is applied only to contracts that were previously software-related services”).
identified as leases under Ind AS 17. Effective April 1, 2018, the Company adopted Ind AS
Following are the changes in the carrying value of ROU assets 115 “Revenue from Contracts with Customers” using
for the year ended March 31, 2020: the cumulative catch-up transition method applied to
in ` lakh contracts that were not completed as of April 1, 2018. The
following is a summary of new and / or revised significant
Particulars Year ended
accounting policies related to revenue recognition. Refer to
March 31, 2020
Note 1 “Significant Accounting Policies,” in the Company’s
Balance at the beginning 867
2018 Annual Report for the policies in effect for revenue
Additions 1,756
prior to April 1, 2018. The effect on adoption of Ind AS
Deletions –
115 was insignificant.
Depreciation (587)
Translation difference – Revenue is recognized upon transfer of control of promised
Balance as of March 31, 2020 2,036 products or services to customers in an amount that reflects
the consideration we expect to receive in exchange for those
The following is the break-up of current and non-current products or services.
lease liability as of March 31, 2020: The Company derives revenues primarily from business IT
in ` lakh services comprising of software development and related
Particulars Year ended services, consulting and package implementation and from
March 31, 2020 the licensing of software products and platforms across our
Non-current lease liability 1,328 core and digital offerings (“together called as software-related
Current lease liability 1,028 services”). Revenue is recognized upon transfer of control of
Total 2,356 promised products or services to customers in an amount that
reflects the consideration we expect to receive in exchange for
The following is the movement in lease liability during the those products or services.
year ended March 31, 2020:
in ` lakh
Arrangements with customers for software-related services
are either on a fixed-price, fixed-timeframe or on a
Particulars Year ended time-and-material basis.
March 31, 2020
Revenue on time-and-material contracts are recognized as
Balance at the beginning 1,141
the related services are performed and revenue from the end
Additions 1,756
of the last invoicing to the reporting date is recognized as
Deletions –
contract asset (unbilled revenue). Revenue from fixed-price,
Interest accrued during the period 125
fixed-timeframe contracts, where the performance obligations
Lease payments (666)
are satisfied over time and where there is no uncertainty as to
Translation difference –
measurement or collectability of consideration, is recognized
Balance as of March 31, 2020 2,356
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 existing contract are distinct and whether the pricing is at the
progress towards completion as there is a direct relationship standalone selling price. Services added that are not distinct
between input and productivity. Revenues in excess of are accounted for on a cumulative catchup basis, while those
invoicing are classified as contract asset while invoicing in that are distinct are accounted for prospectively, either as a
excess of revenues are classified as contract liability (unearned separate contract, if the additional services are priced at the
revenues). Fixed-timeframe revenue is recognized ratably standalone selling price, or as a termination of the existing
over the term of the underlying timeframe arrangement. contract and creation of a new contract if not priced at the
In arrangements for software development and related standalone selling price
services and maintenance services, the Company has applied The Company presents revenues net of indirect taxes in its
the guidance in Ind AS 115, Revenue from contract with Statement of Profit and Loss.
customer, by applying the revenue recognition criteria for Revenue from operations for the years ended March 31, 2020
each distinct performance obligation. The arrangements with and March 31, 2019 are as follows :
customers generally meet the criteria for considering software in ` lakh
development and related services as distinct performance Particulars Year ended March 31,
obligations. For allocating the transaction price, the Company 2020 2019
has measured the revenue in respect of each performance Revenue from operations 2,49,683 2,53,831
obligation of a contract at its relative standalone selling Total revenue from
price. The price that is regularly charged for an item when operations 2,49,683 2,53,831
sold separately is the best evidence of its standalone selling
price. In cases where the Company is unable to determine the Trade receivables and contract balances
standalone selling price, the Company uses the expected cost The Company classifies the right to consideration in exchange
plus margin approach in estimating the standalone selling for deliverables as either a receivable or as unbilled revenue.
price. For software development and related services, the
A receivable is a right to consideration that is unconditional
performance obligations are satisfied as and when the services
upon passage of time. Revenue for time and material contracts
are rendered since the customer generally obtains control of
are recognized as related service are performed. Revenue for
the work as it progresses.
fixed price maintenance contracts is recognized on a straight
Revenue from licenses where the customer obtains a “right to line basis over the period of the contract. Revenues in excess
use” the licenses is recognized at the time the license is made of billings is recorded as unbilled revenue and is classified
available to the customer. Revenue from licenses whether the as a financial asset for these cases as right to consideration is
customer obtains a “right to access” is recognized over the unconditional upon passage of time.
access period. Arrangements to deliver software products
Revenue recognition for fixed price development contracts
generally have three elements: license, implementation and
is based on percentage of completion method. Invoicing to
Annual Technical Services (ATS). The Company has applied
the clients is based on milestones as defined in the contract.
the principles under Ind AS 115 to account for revenues
This would result in the timing of revenue recognition being
from these performance obligations. When implementation
different from the timing of billing the customers. Unbilled
services are provided in conjunction with the licensing
revenue for fixed price development contracts is classified as
arrangement and the same have been identified as two
non-financial asset as the contractual right to consideration is
separate performance obligations, the transaction price for
such contracts are allocated to each performance obligation of
the contract based on their relative standalone selling prices. Invoicing in excess of earnings are classified
In the absence of standalone selling price for implementation, as unearned revenue.
the performance obligation is estimated using the expected Trade receivable and unbilled revenues are presented net of
cost plus margin approach. Where the license is required to be impairment in the Balance Sheet.
substantially customized as part of the implementation service A receivable is a right to consideration that is unconditional
the entire arrangement fee for license and implementation upon passage of time. Revenue for time and material contracts
is considered to be a single performance obligation and the are recognized as related service are performed. Revenue for
revenue is recognized using the percentage-of-completion fixed price maintenance contracts is recognized on a straight
method as the implementation is performed. Revenue from line basis over the period of the contract. Revenues in excess
client training, support and other services arising due to the of billings is recorded as unbilled revenue and is classified
sale of software products is recognized as the performance as a financial asset for these cases as right to consideration is
obligations are satisfied. ATS revenue is recognized ratably unconditional upon passage of time.
over the period in which the services are rendered. Revenue recognition for fixed price development contracts
Advances received for services and products are reported is based on percentage of completion method. Invoicing to
as contract liabilities until all conditions for revenue the clients is based on milestones as defined in the contract.
recognition are met. This would result in the timing of revenue recognition being
Contract modifications are accounted for when additions, different from the timing of billing the customers. Unbilled
deletions or changes are approved either to the contract revenue for fixed price development contracts is classified as
scope or contract price. The accounting for modifications of non-financial asset as the contractual right to consideration is
contracts involves assessing whether the services added to an dependent on completion of contractual milestones.

Invoicing in excess of earnings are classified Foreign currency-Accounting policy
as unearned revenue. Functional currency
Trade receivable and unbilled revenues are presented net of The functional currency of the Company is the Indian rupee.
impairment in the Balance Sheet. These financial statements are presented in Indian rupees
During the years ended March 31, 2020 and March 31, 2019, (rounded off to lakh).
the Company recognized revenue of ` 9,407 lakh and ` 7,774 Transactions and translations
lakh arising from opening unearned revenue as of April 1,
2019 and April 1, 2018, respectively.
are translated into the relevant functional currency at exchange
During the years ended March 31, 2020 and March 31, rates in effect at the Balance Sheet date. The gains or losses
2019, the Company recognized revenue of ` 6,395 lakh resulting from such translations are included in net profit in
and ` 11,690 lakh of unbilled revenue pertaining to fixed the Statement of Profit and Loss. Non-monetary assets and
price development contracts as of April 1, 2019 and April 1, liabilities denominated in a foreign currency and measured
2018, respectively has been classified to trade receivable upon at fair value are translated at the exchange rate prevalent at
billing to customers on completion of milestones. the date when the fair value was determined. Non-monetary
Performance obligations and remaining assets and liabilities denominated in a foreign currency and
performance obligations measured at historical cost are translated at the exchange rate
The remaining performance obligation disclosure provides prevalent at the date of transaction.
the aggregate amount of the transaction price yet to be Transaction gains or losses realized upon settlement of foreign
recognized as at the end of the reporting period and an currency transactions are included in determining net profit
explanation as to when the Company expects to recognize for the period in which the transaction is settled. Revenue,
these amounts in revenue. Applying the practical expedient expense and cash-flow items denominated in foreign currencies
as given in Ind AS 115, the Company has not disclosed the are translated into the relevant functional currencies using the
remaining performance obligation related disclosures for exchange rate in effect on the date of the transaction.
contracts where the revenue recognized corresponds directly During the three months ended June 30, 2018, the Company
with the value to the customer of the entity’s performance has adopted Appendix B to Ind AS 21- Foreign Currency
completed to date, typically those contracts where invoicing Transactions and Advance Consideration which clarifies
is on time and material basis. Remaining performance the date of transaction for the purpose of determining the
obligation estimates are subject to change and are affected by exchange rate to use on initial recognition of the related
several factors, including terminations, changes in the scope asset, expense or income when an entity has received or paid
of contracts, periodic revalidations, adjustment for revenue advance consideration in a foreign currency. The effect on
that has not materialized and adjustments for currency. account of adoption of this amendment was insignificant.
The aggregate value of performance obligations that are Other Income for the years ended March 31, 2020 and March
completely or partially unsatisfied as of March 31, 2020, 31, 2019 are as follows:
other than those meeting the exclusion criteria mentioned in ` lakh
above, is ` 21,845 lakh. Out of this, the Company expects to
recognize revenue of around 92.2% within the next one year
2020 2019
and the remaining thereafter. This includes contracts that can
Interest received on financial
be terminated for convenience without a substantive penalty
assets- carried at amortized
since, based on current assessment, the occurrence of the
cost
same is expected to be remote.
Deposits with banks and
The impact on account of applying the erstwhile Ind AS 18 others 420 434
Revenue instead of Ind AS 115 Revenue from contract with Profit on sale of fixed assets 1 –
customers on the financials results of the Company for the Exchange gain / (loss) on
year ended is insignificant. On account of adoption of Ind AS translation of assets and
115, unbilled revenue of ` 5,901 lakh as at March 31, 2020 liabilities 858 (473)
has been considered as a non-financial asset. Gain / (loss) on investment
carried at fair value through
2.17 Other income, net
profit or loss 277 413
Other income is comprised primarily of interest income, Exchange gains / (losses) on
dividend income, gain / loss on investments and exchange foreign currency forward and
gain / loss on forward and options contracts and on translation options contracts (503) –
of other assets and liabilities. Interest income is recognized Miscellaneous income 60 6
using the effective interest method. Dividend income is Total other income 1,113 380
recognized when the right to receive payment is established.

2.18 Expenses each Balance Sheet date using the projected unit credit method.
in ` lakh The Company fully contributes all ascertained liabilities to
Particulars Year ended March 31, the EdgeVerve Systems Limited Employees Gratuity Fund
2020 2019 Trust (“the Trust”). Trustees administer contributions made to
Employee benefit expenses the Trust and contributions are invested in a scheme with Life
Salaries including bonus 67,688 70,790 Insurance Corporation of India as permitted by Indian Law.
Contribution to provident The Company recognizes the net obligation of a defined
and other funds 3,133 3,107 benefit plan in its Balance Sheet as an asset or liability. Gains
Staff welfare 783 1,315 and losses through re-measurements of the net defined benefit
71,604 75,212 liability / (asset) are recognized in other comprehensive
Travel expenses income, net of taxes. The actual return of the portfolio of
Overseas travel expenses 9,697 11,813 plan assets, in excess of the yields computed by applying the
Travelling and conveyance 1,095 887 discount rate used to measure the defined benefit obligation
10,792 12,700 is recognized in Other Comprehensive Income. The effect
Cost of software packages of any plan amendments are recognized in net profits in the
and others Statement of Profit and Loss.
For own use 4,506 4,016
2.19.2 Superannuation
Third-party items bought
for service delivery to Certain employees of EdgeVerve are participants in a defined
clients 11,876 15,184 contribution plan. The Company has no further obligations
16,382 19,200 to the Plan beyond its monthly contributions which are
Other expenses periodically contributed to a trust fund, the corpus of which
Repairs and maintenance 2,217 2,314 is invested with the Life Insurance Corporation of India.
Brand and marketing 4,292 3,307 2.19.3 Provident fund
Eligible employees receive benefits from a provident fund,
Operating lease payments 3,474 4,506
which is a defined contribution plan. Both the eligible
Rates and taxes 88 84 employee and the Company make monthly contributions
Commission charge 2,808 2,521 to the provident fund plan equal to a specified percentage
Fuel and power 642 681 of the covered employee’s salary. Amounts collected under
Consumables 208 125 the provident fund plan are deposited in a Government
Provision / (Reversal) for administered provident fund. The Company has no further
post-sales client support obligations under the provident fund plan beyond its
and others (54) (684) monthly contributions.
Commission to non-whole
time directors 1 40 2.19.4 Compensated absences
Impairment loss The employees of the Company are entitled to compensated
recognized on financial absences which are both accumulating and non-accumulating
assets 362 162 in nature. The expected cost of accumulating compensated
Contributions towards absences is determined by actuarial valuation performed by
corporate social an independent actuary using projected unit credit method
responsibility 960 520 on the additional amount expected to be paid as a result of the
Auditor’s remuneration unused entitlement that has accumulated at the Balance Sheet
Statutory audit fees 30 31 date. Expenses on non-accumulating compensated absences
Others 512 393 is recognized in the period in which the absences occur.
16,225 14,860 a.Gratuity
The following tables set out the funded status of the gratuity
2.19 Employee benefits plans and the amounts recognized in the Company’s financial
Accounting policy statements as of March 31, 2020 and March 31, 2019:
2.19.1 Gratuity
The Company provides for gratuity, a defined benefit
retirement plan (“the Gratuity Plan”) covering eligible
employees. The Gratuity Plan provides a lump-sum payment
to vested employees at retirement, death, incapacitation
or termination of employment, of an amount based
on the respective employee’s salary and the tenure of
employment with the Company.
Liabilities with regard to the Gratuity Plan are determined by
actuarial valuation, performed by an independent actuary, at

in ` lakh in ` lakh
Particulars As at March 31, Particulars Year ended March 31,
2020 2019 2020 2019
Change in benefit obligations (Gain) / loss from change in
Benefit obligations at the financial assumptions 389 160
beginning 6,744 6,720 (Gain) / loss from change in
Service cost 608 738 experience (500) (313)
Interest expense 461 481 (Gain) / loss from change in
Transfer of obligation 53 (63) demographic assumptions – (402)
Remeasurements - Actuarial (111) (555)
(gains) / losses (111) (554)
Benefits paid (547) (578) The weighted-average assumptions used to determine
Benefit obligations at the end 7,209 6,744 benefit obligations as at March 31, 2020 and March 31,
Change in plan assets 2019 are set out below:
Fair value of plan assets at Particulars As at March 31,
the beginning 8,070 8,148 2020 2019
Interest income 554 587 Discount rate 6.2% 7.1%
Transfer of assets 4 (113) Weighted average rate of
Remeasurements- Return increase in compensation
on plan assets excluding levels 10.0% 10.0%
amounts included in interest
income 55 26 The weighted-average assumptions used to determine net
Contributions – – periodic benefit cost for the years ended March 31, 2020
Benefits paid (547) (578) and March 31, 2019 are set out below:
Fair value of plan assets at Particulars As at March 31,
the end 8,136 8,070 2020 2019
Funded status 927 1,326 Discount rate 7.1% 7.1%
Prepaid gratuity benefit 927 1,326 Weighted average rate of
increase in compensation
Amount for the years ended March 31, 2020 and March 31, levels 10.0% 10.0%
2019 recognized in the Statement of Profit and Loss under Weighted average duration of
employee benefit expenses: defined benefit obligation 5.9 years 5.9 years
in ` lakh
Particulars Year ended March 31, Sensitivity of significant assumptions used for valuation of
2020 2019 defined benefit obligations:
Service cost 608 738 in ` lakh
Net interest on the net Impact from percentage point increase As at
defined benefit liability / / decrease in March 31, 2020
asset (93) (106) Discount rate 458
Net gratuity cost 516 632 Weighted average rate of increase in
compensation level 398
Amount for the years ended March 31, 2020 and March 31,
2019 recognized in statement of other comprehensive income: Sensitivity to significant actuarial assumptions is computed
(in ` lakh) by varying one actuarial assumption used for the valuation of
Particulars Year ended March 31, the defined benefit obligation by one percentage, keeping all
2020 2019 other actuarial assumptions constant. The sensitivity analysis
Remeasurements of the net is based on a change in an assumption while holding all other
defined benefit liability / assumptions constant. In practice, this is not probable, and
(asset) changes in some of the assumptions may be correlated.
Actuarial (gains) / losses (111) (554) Gratuity is applicable only to employees drawing a
(Return) / loss on plan assets salary in Indian rupees and there are no other foreign
excluding amounts included defined benefit plans.
in the net interest on the The Company contributes all ascertained liabilities towards
net defined benefit liability / gratuity to the EdgeVerve Systems Limited Employees’ Gratuity
(asset) (55) (26) Fund Trust. Trustees administer contributions made to the
(165) (580) trust. As of March 31, 2020 and March 31, 2019, the plan
assets have been primarily invested in insurer managed funds.
Actual return on assets for the years ended March 31, 2020 and
March 31, 2019 were ` 608 lakh and ` 624 lakh respectively.

The Company assesses these assumptions with its projected 2.20 Contingent liabilities and commitments (to
long-term plans of growth and prevalent industry standards. the extent not provided for)
The discount rate is based on the government securities yield. in ` lakh
Maturity profile of defined benefit obligation: Particulars As at March 31,
in ` lakh 2020 2019
Within 1 year 907 Contingent liabilities
1-2 year 976 Claims against the Company,
2-3 year 949 not acknowledged as debts (1) 4,653 8
3-4 year 972 Commitments
4-5 year 1,072 Estimated amount of
5-10 years 5,315 unexecuted capital contracts 626 321
(Net of advances and
Assumptions regarding future mortality experience are set in deposits)
accordance with the published statistics by the Life Insurance
Corporation of India. As at March 31, 2020, claims against the Company not acknowledged
(1)
as debts in respect of income tax matters amounted to ` 4,653 lakh.

b.Provident Fund Majority of the matters are pending before various Appellate Authorities
The Company contributed ` 1,846 lakh during the and the Management including its tax advisors expect that its position
will likely be upheld on ultimate resolution and will not have a material
year ended March 31, 2020 (` 1,823 lakh for the year
adverse effect on the Company’s financial position and results of
ended March 31, 2019). operations.
c.Superannuation Amount paid to statutory authorities against the above tax
The Company contributed ` 662 lakh during the year ended claims is ` 7,462 lakh.
March 31, 2020 (` 628 lakh for the year ended March 31, 2019). 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.

List of related parties
Name of Holding company Country Holding as at March 31,
2020 2019
Infosys Limited India 100% 100%
Name of fellow subsidiaries Country
Infosys Tecnologia DO Brasil LTDA. (Infosys Brasil)(25) Brazil
Infosys Arabia Limited(2) Saudi Arabia
Infosys Consulting Ltda.(1) Brazil
Infosys CIS LLC(1) (18) (26) Russia
Infosys Technologies (Australia) Pty. Limited (Infosys Australia)(3) Australia
Infosys Canada Public Services Inc(19) Canada
Infosys BPM Limited India
Infosys (Czech Republic) Limited s.r.o.(4) Czech Republic
Infosys Poland Sp z.o.o(4) Poland
Infosys McCamish Systems LLC (4) US
Portland Group Pty Ltd(4) Australia
Infosys BPO Americas LLC.(4) US
Lodestone Management Consultants Inc.(5) (11) US
Infosys Management Consulting Pty Limited(5) Australia
Infosys Consulting AG(5) Switzerland
Infosys Consulting GmbH(5) Germany
Infosys Consulting S.R.L.(1) Romania
Infosys Consulting SAS(5) France
Infosys Consulting s.r.o.(5) Czech Republic
Infosys Consulting (Shanghai) Co., Ltd. (formerly Lodestone Management Consultants Co., Ltd)(5) China
Infy Consulting Company Ltd(5) UK
Infy Consulting B.V.(5) The Netherlands
Infosys Consulting Sp. z.o.o(32) Poland
Lodestone Management Consultants Portugal, Unipessoal, Lda.(5) Portugal
Infosys Consulting S.R.L.(5) Argentina
Infosys Consulting (Belgium) NV (formerly Lodestone Management Consultants (Belgium) S.A.)(6) Belgium
Panaya Ltd.(7) Israel
Panaya GmbH(7) Germany
Panaya Japan Co. Ltd(7)(31) Japan
Brilliant Basics Holdings Limited (Brilliant Basics) UK
Brilliant Basics Limited(8) UK
Brilliant Basics (MENA) DMCC(8) (26) UAE
Infosys Consulting Pte Limited (Infosys Singapore)(1) Singapore
Infosys Middle East FZ LLC(9) UAE
Fluido Oy(9) (14) Finland
Fluido Sweden AB (Extero)(15) Sweden
Fluido Norway A/S(15) Norway
Fluido Denmark A/S(15) Denmark

Fluido Slovakia s.r.o(15) Slovakia
Fluido Newco AB(15) Sweden
Infosys Compaz Pte. Ltd (formerly Trusted Source Pte. Ltd)(16) Singapore
Infosys South Africa (Pty) Ltd(9) (17) South Africa
WongDoody Holding Company Inc. (WongDoody)(10) US
WDW Communications, Inc(12) US
WongDoody, Inc(12) US
HIPUS Co., Ltd (formerly Hitachi Procurement Service Co. Ltd.)(20) Japan
Stater N.V.(21) The Netherlands
Stater Nederland B.V.(22) The Netherlands
Stater Duitsland B.V.(22) The Netherlands
Stater XXL B.V.(22) The Netherlands
HypoCasso B.V.(22) The Netherlands
Stater Participations B.V.(22) The Netherlands
Stater Deutschland Verwaltungs-GmbH(23) Germany
Stater Deutschland GmbH & Co. KG(23) Germany
Stater Belgium N.V./S.A.(24) Belgium
Outbox systems Inc. dba Simplus (US)(27) US
Simplus North America Inc.(28) Canada
Simplus ANZ Pty Ltd.(28) Australia
Simplus Australia Pty Ltd(30) Australia
Sqware Peg Digital Pty Ltd(30) Australia
Simplus Philippines, Inc.(28) Philippines
Simplus Europe, Ltd.(28) UK
Simplus UK, Ltd.(29) UK
Simplus Ireland, Ltd.(29) Ireland
(1)
(2)
(3)
(4)
(5)
Wholly-owned subsidiary of Infosys Consulting Holding AG (formerly Lodestone Holding AG)
(6)
Majority-owned and controlled subsidiary of Infosys Consulting Holding AG (formerly Lodestone Holding AG)
(7)
Wholly-owned subsidiary of Panaya Inc
(8)
Wholly-owned subsidiary of Brilliant Basics Holding Limited.
(9)
Wholly-owned subsidiary of Infosys Consulting Pte Ltd
(10)
(11)
(12)
(13)
(14)
(15)
(16)
On November 16, 2018 , Infosys Consulting Pte. Ltd, acquired 60% of the voting interest in Infosys Compaz Pte. Ltd
(17)
Incorporated effective December 19, 2018
(18)
(19)
Incorporated effective November 27, 2018, wholly owned subsidiary of Infosys Public Services Inc
(20)
(21)
(22)
Majority-owned and controlled subsidiary of Stater N.V.
(23)
Majority-owned and controlled subsidiary of Stater Duitsland B.V.
(24)
Majority-owned and controlled subsidiary of Stater Participations B.V.
(25)
(26)
Under Liquidation
(27)
(28)
(29)
(30)
Wholly-owned subsidiary of Simplus ANZ Pty Ltd.
(31)
(32)

List of other related parties
Particulars Country Nature of relationship
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
List of key management personnel Particulars As at March 31,

Directors 2020 2019
• Srinivasan Rajam (resigned on July 7, 2019) Brilliant Basics Limited 4 –
Infosys BPM Limited 2 –
• D.N. Prahlad (resigned on April 15, 2019)
6 51
• Deepak Raghunath Padaki Unbilled revenue
• Inderpreet Sawhney Infosys Public Services 7 –
• Sanat Rao (appointed as whole-time director Infosys Mexico 1,562 –
from April 11, 2018) Infosys BPM Limited 99 –
1,668 –
• Nitesh Banga (resigned on June 4, 2018)
Accrued expenses
• Mohit Joshi (appointed as director from January 22, 2019) Infosys Public Services – 27
• Atul Soneja (appointed as whole-time director Infosys BPM Limited – 63
from July 20, 2018) Infosys Limited 4,450 3,958
Executive officers 4,450 4,048
• Prem Pereira (resigned on January 16, 2019) Note: Excludes certain balances due to / from Infosys, which are
pertaining to contracts pending novation upon business transfer
• Rajesh Kini (appointed as Chief Financial Officer
and held in trust by Infosys.
from January 17, 2019) in ` lakh
• Sudhir Shridhar Gaonkar, Company Secretary Particulars Year ended March 31,
The details of amounts due to or due from related parties as 2020 2019
at March 31, 2020 and March 31, 2019 are as follows: Capital transactions:
in ` lakh Financing transactions
Particulars As at March 31, Debentures
2020 2019 Infosys Limited (28,600) (33,500)
Trade receivables Revenue transactions:
Infosys Public Services – 43 Sale of services
Infosys BPM Limited 3 11 Infosys Public Services 213 131
Infosys China 282 362 Infosys China 1 39
285 416 Infosys Mexico 1,562 –
Other financial assets Infosys BPM Limited 320 426
Infosys BPM Limited 2 10 2,096 596
Infosys Poland – 22 Purchase of shared services
2 32 including facilities and
Non-convertible debentures personnel
Infosys Limited 1,15,900 1,44,500 Infosys Limited 62,979 50,469
1,15,900 1,44,500 Infosys Mexico 173 159
Trade payables Brilliant Basics 15 122
Infosys Limited 1,605 319 Infosys Consulting
Infosys Consulting 98 86 (Singapore) – 5
Infosys Mexico 34 – Infosys Poland – 3
Infosys BPM Limited 68 35 Infosys Consulting 308 312
1,805 440 Infosys BPM Limited 488 369
Other current financial Panaya Ltd. 33 56
Infosys China – 9 Finance cost
Infosys Public Services – 9 Infosys Limited 10,730 14,108
Note: Excludes certain transactions with Infosys, which are pertaining
to contracts pending novation upon business transfer and held
in trust by Infosys.

Transaction with key managerial personnel 2.22 Corporate social responsibility
The table below describes the compensation to key managerial As per Section 135 of the Companies Act 2013, a corporate
personnel which comprise directors and executive officers: social responsibility (CSR) committee was formed by
in ` lakh the Company. The proposed areas for CSR activities are
Particulars Year ended March 31, eradication of hunger, poverty and malnutrition, promoting
2020 2019 education and healthcare and rural development projects.
Salaries and other employee The funds will be allocated to a corpus and utilized through
benefits to whole-time directors the year on these activities which are specified in Schedule
and executive officers 862 765 VII of the Companies Act, 2013.
Commission and other benefits a) Gross amount required to be spent by the Company during
to non-executive / independent the year is ` 945 lakh.
directors 1 40
Total 863 805
b) The details of the amount spent during the year on CSR activities are as follows:
in ` lakh
Sl. No Particulars In cash Yet to be paid in Total
cash
(i) Construction / acquisition of any asset – – –
(ii) On purposes other than (i) above 960 – 960
2.23 Research and development expenditure

in ` lakh
2020 2019
Expenditure at Department of Scientific and Industrial Research (DSIR) approved
R&D centers (eligible for weighted deduction) (1)
Capital expenditure – –
Revenue expenditure 12,048 11,960
Other R&D expenditure
Total R&D expenditure
During the fiscal year ended on March 31, 2020 the Company has opted for new lower tax regime of 22% corporate tax (plus applicable surcharge and
(1)
cess) as per the taxation laws(Amendment) Act, 2019. Thus, weighted deduction on eligible research and development expenditure are not claimed
during the fiscal year 2019-20.
Earlier during the fiscal year 2018-19, the Company had claimed weighted tax deduction on eligible research and development
expenditure based on the approval received from Department of Scientific and Industrial Research (DSIR) which is valid up to
March 31, 2020. The weighted tax deduction is equal to 150% of such expenditure incurred.
The Company’s business activity, falls within a single primary business segment, i.e. providing products and platforms and
related services. Accordingly, disclosures as required under Ind AS 108, ‘Segment Reporting’, has not been separately presented
in the financial statements since the information is available directly from the Statement of Profit and Loss.
2.25 Function-wise classification of Statement of Profit and Loss
in ` lakh
2020 2019
Revenue from operations 2,49,683 2,53,831
Cost of sales 1,47,341 1,40,233
Gross profit 1,02,342 1,13,598
Operating expenses
Selling and marketing expenses 19,609 19,055
General and administration expenses 20,236 20,430
Total operating expenses 39,845 39,485

2020 2019
Operating profit 62,497 74,113
Other income, net 1,113 380
Profit before interest and tax 63,610 74,493
Finance cost 10,855 14,108
Profit before tax 52,755 60,385
Tax expense
Current tax 14,725 19,398
Deferred tax 111 441
Remeasurement of the net defined benefit liability / asset 124 327
Total other comprehensive income, net of tax 124 327
for and on behalf of the Board of Directors of Edgeverve Systems Limited
Mohit Joshi Sanat Rao Atul Soneja

Chairman Whole-time Director Whole-time Director
Rajesh Kini Sudhir Gaonkar

Bengaluru
April 16, 2020

Infosys McCamish Systems, LLC
To the Board of Directors of Infosys McCamish Systems, LLC.
Report on the Special Purpose Financial Statements

Opinion
We have audited the accompanying special purpose financial statements of INFOSYS MCCAMISH SYSTEMS LLC (“the
Company”), which comprise the Balance Sheet as at December 31, 2019, the Statement of Profit and Loss (including Other
Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date,
and a summary of significant accounting policies and other explanatory information (hereinafter referred to as “the special
purpose financial statements”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid special purpose
financial statements gives a true and fair view in conformity with the basis of preparation referred to in Note 1.2 of the special
purpose financial statements, of the state of affairs of the Company as at December 31, 2019, the profit and total comprehensive
income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the special purpose financial statements in accordance with the Standards on Auditing (SAs) issued
by the Institute of Chartered Accountants of India (ICAI). Our responsibilities under those Standards are further described in the
Auditor’s Responsibilities for the Audit of the Special purpose Financial Statements section of our report. We are independent
of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India
(ICAI) together with the ethical requirements that are relevant to our audit of the special purpose financial statements and
we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We
believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the
special purpose financial statements.
Management’s Responsibilities for the Special Purpose Financial Statements
The Company’s Board of Directors are responsible for the preparation of these special purpose financial statements that give a
true and fair view of the financial position, financial performance, including other comprehensive income, changes in equity
and cash flows of the Company in accordance with the basis described in Note 1.2 of the special purpose financial statement.
This responsibility also includes maintenance of adequate accounting records for safeguarding the assets of the Company
and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies;
making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the special purpose financial statements that give a true and fair view and are
free from material misstatement, whether due to fraud or error.
In preparing the special purpose financial statements, the Company’s Board of Directors are responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has
no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Special Purpose Financial Statements
Our objectives are to obtain reasonable assurance about whether the special purpose financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect
special purpose financial statements.
• Identify and assess the risks of material misstatement of the special purpose financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations,
or the override of internal control.
86 I Infosys McCamish Systems, LLC Infosys Subsidiary Financials 2019-20

appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the company’s
internal control.
attention in our auditor’s report to the related disclosures in the special purpose financial statements or, if such disclosures
• Evaluate the overall presentation, structure and content of the special purpose financial statements, including the disclosures,
and whether the special purpose financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
Materiality is the magnitude of misstatements in the special purpose financial statements that, individually or in aggregate,
makes it probable that the economic decisions of a reasonably knowledgeable user of the special purpose financial statements
may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work
and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the special purpose
Basis of Accounting
We draw attention to Note 1.2 to the special purpose financial statements, which describes the basis of accounting. As a result,
the special purpose financial statements may not be suitable for another purpose.
Restriction on Use and distribution
Our report is intended solely for the use of Company’s management for the above purpose and should not be distributed to
or used by any other parties.
For Deloitte Haskins and Sells LLP

(Firm Registration number. No. 117366W/W-100018)
Gurvinder Singh
Partner
Membership Number: 110128
UDIN : 20110128AAAABB9687
Bengaluru, May 13, 2020
Infosys Subsidiary Financials 2019-20 Infosys McCamish Systems, LLC I 87

Balance Sheet
in US $
Particulars Note no. As at December 31,
2019 2018
ASSETS
Non-current assets
Property, plant and equipment 2.1 5,696,605 1,295,055
Capital work-in-progress – 38,254
Goodwill 696,400 696,400
Other intangible assets 2.3 185,133 927,700
Financial assets
Loans 2.4 – –
Other financial assets 2.5 22,738,717 11,927,923
Deferred tax assets (net) 2.15 1,716,045 1,007,054
Other non-current assets 2.8 11,971,125 11,440,112
Total non-current assets 43,004,025 27,332,498
Current assets
Financial assets
Trade receivables 2.6 40,706,238 25,702,958
Cash and cash equivalents 2.7 44,019,452 23,518,789
Loans 2.4 9,509 7,902
Other current assets 2.8 21,841,938 24,667,964
Total current assets 137,481,831 99,285,566
Total assets 180,485,856 126,618,064
EQUITY
Equity capital 2.10 36,070,038 36,070,038
Other equity 16,574,652 (3,017,176)
Total equity 52,644,690 33,052,862
LIABILITIES
Other non-current liabilities 2.13 2,089,830 42,581
Total non-current Liabilities 28,652,799 12,236,727
Current liabilities
Borrowings 2.20 – 5,716,233
Trade payables 2.12 22,251,795 18,088,097
Other current liabilities 2.13 30,453,695 27,357,245
Provisions 2.14 705,620 941,614
Income tax liabilities (net) 2.15 2,704,356 667,094
Total current liabilities 99,188,367 81,328,475
Total equity and liabilities 180,485,856 126,618,064

As per our report of even date attached for and on behalf of Infosys McCamish Systems, LLC
Gurvinder Singh Rich Magner Kapil Jain

Partner Chief Executive Officer Director
Membership number: 110128
Bengaluru Thothathri V
May 13, 2020 Director

in US $
Particulars Note no. Year ended December 31,
2019 2018
Other income, net 2.17 395,735 9,179
Total Income 224,339,302 158,636,171
Expenses
Employee benefit expenses 2.18 37,266,146 31,480,400
Cost of technical sub-contractors and professional charges 2.18 54,353,610 39,908,665
Travel expenses 539,678 528,587
Cost of software packages 97,035,777 60,818,930
Rent 2.2 1,259,864 1,225,796
Depreciation and amortization expense 2.1 & 2.3 2,299,763 1,115,335
Other expenses 2.18 6,884,034 6,879,813
Total expenses 199,643,769 142,095,025
Profit before tax 24,695,533 16,541,146
Tax expense
Current tax 2.15 5,812,696 2,181,285
Deferred tax 2.15 (708,991) 2,621,963
Profit for the year 19,591,828 11,737,898
Items that will not be reclassified subsequently to profit or loss – –
Total other comprehensive income / (loss), net of tax – –
Total comprehensive income for the year 19,591,828 11,737,898




in US $
Particulars Equity share Other equity Total equity
capital Retained Other
earnings comprehensive
income
Balance as at January 1, 2018 36,070,038 (14,755,074) – 21,314,964
Changes in equity for the year ended December
31, 2018 –
Total comprehensive income for the year – 11,737,898 – 11,737,898
Balance as at December 31, 2018 36,070,038 (3,017,176) – 33,052,862
Balance as at January 1, 2019 36,070,038 (3,017,176) – 33,052,862
31, 2019
Total comprehensive income for the year – 19,591,828 – 19,591,828
Balance as at December 31, 2019 36,070,038 16,574,652 – 52,644,690



in US $
2019 2018
Profit for the period 19,591,828 11,737,898
Income tax expense 2.15 5,103,705 4,803,248
Depreciation and amortization 2.1 & 2.3 2,299,763 1,115,335
Exchange difference on translation of assets and liabilities 2.17 5,597 16,471
Allowance for credit losses, doubtful loans and advances 806,315 111,829
Provision for service level risk on revenue contracts 125,835 8,551
Interest expense 2.20 4,897 137,500
Trade receivables and unbilled revenue (31,742,813) (3,205,549)
Loans and other financial assets and other assets 1,592,216 (24,375,669)
Trade payables 4,163,697 5,046,416
Other financial liabilities, other liabilities and provisions 33,592,543 18,261,308
Cash generated by operations 35,543,583 13,657,338
Income taxes paid (3,775,433) (1,493,581)
Net cash generated by operating activities 31,768,150 12,163,757
Expenditure on property, plant and equipment including intangible
assets net of sale proceeds, including changes in retention money
and capital creditors (5,546,357) (2,096,059)
Net cash used in investing activities (5,546,357) (2,096,059)
Loan repaid (5,721,130) –
Net cash used in financing activities (5,721,130) –
Net increase in cash and cash equivalents 20,500,663 10,067,698
Cash and cash equivalents at the beginning 23,518,789 13,451,091
Cash and cash equivalents at the end 2.7 44,019,452 23,518,789
Restricted cash balance 2.7 5,000 5,000



1. Overview 1.3 Use of estimates and judgments
1.1 Company overview The preparation of the financial statements in conformity
with Ind AS requires the Management to make estimates,
Infosys McCamish Systems LLC, (‘the Company’) is a
judgments and assumptions. These estimates, judgments and
platform-based Business Process Outsourcer (BPO) that
assumptions affect the application of accounting policies and
provides end-to-end administrative services to the financial
the reported amounts of assets and liabilities, the disclosures
services industry in support of life insurance and annuity
of contingent assets and liabilities at the date of the financial
products, non-qualified retirement plans and the distribution
statements and reported amounts of revenues and expenses
organizations that sell these products. The Company
during the period. The application of accounting policies
leverages its suite of proprietary intellectual property and
that require critical accounting estimates involving complex
deep domain expertise to provide services through a myriad
and subjective judgments and the use of assumptions in
of deployment options including comprehensive BPO, SaaS
the financial statements have been disclosed in Note 1.4.
(Software-as-a-Service), license and other hybrid service
Accounting estimates could change from period-to-period.
models. The Company’s clients, which include many of the
Actual results could differ from those estimates. Appropriate
largest financial services companies in the United States of
changes in estimates are made as management becomes
America and a growing number outside of the United States,
hire the Company to support single products, a single line of
Changes in estimates are reflected in the financial statements
business or the client’s entire product portfolio. The Company
in the period in which changes are made and, if material, their
is also a software reseller for various industry specific clients.
effects are disclosed in the notes to the financial statements.
The Company was formed in December 1994 as a limited
liability company under the provisions of the Georgia Limited 1.4 Critical accounting estimates
Liability Company Act (“the Act”), limited by member’s a. Revenue recognition
interest. The Company was acquired by Infosys BPM Limited
(formerly Infosys BPO Limited), a subsidiary of Infosys Revenues from customer contracts are considered for
Limited, on December 4, 2009. recognition and measurement when the contract has been
approved, in writing, by the parties to the contract, the
The financial statements are approved by the Company’s parties to contract are committed to perform their respective
Board of Directors on May 13, 2020. obligations under the contract, and the contract is legally
1.2 Basis of preparation of financial statements enforceable. The Company assesses the services promised in a
contract and identifies distinct performance obligations in the
These special purpose financial statements are prepared
contract. Identification of distinct performance obligations to
for inclusion in the annual report of the Holding Company
determine the deliverables and the ability of the customer to
Infosys BPM Limited and Ultimate Holding Company Infosys
benefit independently from such deliverables, and allocation
Limited under the requirements of section 129 (3) of the
of transaction price to these distinct performance obligations
Companies Act 2013.
involves significant judgment.
Fixed-price business process management services revenue is
Indian Accounting Standards (Ind AS), under the historical
recognized ratably on a straight-line basis when services are
performed through an indefinite number of repetitive acts
financial instruments which are measured at fair values, the
over a specified period. Revenue from fixed-price business
provisions of the Companies Act, 2013 (‘the Act’) (to the
process management services contract is recognized ratably
extent notified). The Ind AS are prescribed under Section
using a percentage-of-completion method when the pattern
133 of the Act read with Rule 3 of the Companies (Indian
of benefits from the services rendered to the customer and
Accounting Standards) Rules, 2015 and relevant amendment
company’s costs to fulfil the contract is not even through
rules issued thereafter.
the period of the contract because the services are generally
Items included in the financial statements of the Company discrete in nature and not repetitive. The use of method
are measured using the currency of the primary economic to recognize the business process management revenues
environment in which the entity operate (i.e. the “functional services requires judgment and is based on the promises in
currency”). The functional currency of the Company is the contract and nature of the deliverables.
United States Dollars and the financial statements are also
The Company uses the percentage-of-completion method in
presented in US Dollars. All amounts included in the financial
accounting for its fixed-price contracts. Use of the percentage-
statements are reported in US Dollars, unless otherwise stated.
of-completion method requires the Company to determine
Accounting policies have been applied consistently to all the actual efforts or costs expended to date as a proportion of
periods presented in these financial statements except where the estimated total efforts or costs to be incurred. Efforts or
a newly-issued accounting standard is initially adopted or a costs expended have been used to measure progress towards
revision to an existing accounting standard requires a change completion as there is a direct relationship between input and
in the accounting policy hitherto in use. productivity. The estimation of total efforts or costs involves
significant judgment and is assessed throughout the period

of the contract to reflect any changes based on the latest ii. An amount equal to the lease liability, adjusted by the
available information. amount of any prepaid or accrued lease payments related to
Provisions for estimated losses, if any, on uncompleted that lease recognized under Ind AS 17 immediately before
contracts are recorded in the period in which such losses the date of initial application.
become probable based on the estimated efforts or costs to Certain practical expedients are available under both the
complete the contract. Also, refer to Note 2.16. methods. The Company is proposing to use the ‘Modified
Retrospective Approach’ for transitioning to Ind AS 116, and
b. Income taxes
take the cumulative adjustment to retained earnings, on the
The Company’s tax jurisdiction is the United States of date of initial application (January 1, 2020). Upon adoption
America. Significant judgments are involved in determining of the new standard, the Company anticipates recording
the provision for income taxes, including amount expected lease-related assets and liabilities of approximately US $ 10-
to be paid / recovered for uncertain tax positions. 12 million on its Balance Sheet.
Also, refer to Note 2.15.
c. Property, plant and equipment
Property, plant and equipment represent a significant Accounting policy
proportion of the asset base of the Company. The charge in Property, plant and equipment are stated at cost, less
respect of periodic depreciation is derived after determining accumulated depreciation and impairment, if any. Costs
an estimate of an asset’s expected useful life and the expected directly attributable to acquisition are capitalized until the
residual value at the end of its life. The useful lives and property, plant and equipment are ready for use, as intended
residual values of the Company’s assets are determined by the by the Management. The Company depreciates property,
Management at the time the asset is acquired and reviewed plant and equipment over their estimated useful lives using
periodically, including at each financial year end. The lives the straight-line method. The estimated useful lives of
are based on historical experience with similar assets as well assets are as follows:
as anticipation of future events, which may impact their life, Computer equipment (1) 3-5 years
such as changes in technology. Also, refer to Note 2.1. Furniture and fixtures (1) 5 years
1.5 Recent accounting pronouncements Office equipment (1) 5 years
Leasehold improvements Over the lease term or 5
Ind AS 116, Leases: On March 30, 2019, the Ministry of
years whichever is lower
Corporate Affairs (MCA) has notified Ind AS 116, Leases.
Ind AS 116 will replace the existing leases Standard, Ind AS Based on technical evaluation, the Management believes that the
(1)
17, Leases and related Interpretations. The Standard sets out useful lives as given above best represent the period over which the
the principles for the recognition, measurement, presentation Management expects to use these assets. Hence, the useful lives for
and disclosure of leases for both parties to a contract i.e., these assets is different from the useful lives as prescribed under Part C
the lessee and the lessor. Ind AS 116 introduces a single of Schedule II of the Companies Act, 2013.
lessee accounting model and requires a lessee to recognize Depreciation methods, useful lives and residual values are
assets and liabilities for all leases with a term of more than 12 reviewed periodically, including at each financial year end.
months, unless the underlying asset is of low value. Currently, Advances paid towards the acquisition of property, plant and
operating lease expenses are charged to the Statement of Profit equipment outstanding at each Balance Sheet date is classified
and Loss. The Standard also contains enhanced disclosure as capital advances under other non-current assets and the
requirements for lessees. Ind AS 116 substantially carries cost of assets not put to use before such date are disclosed
forward the lessor accounting requirements in Ind AS 17. The under ‘Capital work-in-progress’. Subsequent expenditures
effective date for adoption of Ind AS 116 is annual periods relating to property, plant and equipment is capitalized only
beginning on or after April 1, 2019. The standard permits two when it is probable that future economic benefits associated
possible methods of transition: with these will flow to the Company and the cost of the item
A. Full retrospective: Retrospectively to each prior period can be measured reliably. Repairs and maintenance costs are
presented applying Ind AS 8, Accounting Policies, Changes recognized in the Statement of Profit and Loss when incurred.
in Accounting Estimates and Errors. The cost and related accumulated depreciation are eliminated
B. Modified retrospective: Retrospectively, with the from the financial statements upon sale or retirement of the
cumulative effect of initially applying the standard asset and the resultant gains or losses are recognized in the
recognized at the date of initial application either by: Statement of Profit and Loss.
Under modified retrospective approach, the lessee records
Impairment
the lease liability as the present value of the remaining lease
payments, discounted at the incremental borrowing rate and Property, plant and equipment are evaluated for recoverability
the right-of-use asset either as: whenever events or changes in circumstances indicate that
i. Its carrying amount as if the standard had been applied their carrying amounts may not be recoverable. For the
since the commencement date, but discounted at lessee’s purpose of impairment testing, the recoverable amount (i.e.
incremental borrowing rate at the date of initial application. or the higher of the fair value less cost to sell or 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 increased to its revised recoverable amount, provided that
amount is determined for the cash generated unit (“CGU”) this amount does not exceed the carrying amount that would
to which the asset belongs. have been determined (net of any accumulated amortization
If such assets are considered to be impaired, the impairment to or depreciation) had no impairment loss been recognized for
be recognized in the Statement of Profit and Loss is measured the asset in prior years.
by the amount by which the carrying value of the assets The changes in the carrying value of property, plant
exceeds the estimated recoverable amount of the asset. An and equipment for the year ended December 31,
impairment loss is reversed in the Statement of Profit and Loss 2019 are as follows :
if there has been a change in the estimates used to determine
the recoverable amount. The carrying amount of the asset is
in US $
Particulars Leasehold Office Computer Furniture Total
improvement equipment equipment and
fixtures
Gross carrying value as at January 1, 2019 394,481 340,732 6,798,992 869,933 8,404,138
Additions 3,435,002 10,639 1,841,787 671,318 5,958,746
Deletions – – (42,573) – (42,573)
Gross carrying value as at December 31, 2019 3,829,483 351,371 8,598,206 1,541,251 14,320,311
Accumulated depreciation as at January 1, 2019 193,634 217,436 5,888,341 809,672 7,109,083
Depreciation 515,157 43,656 890,733 107,650 1,557,196
Accumulated depreciation on deletions – – (42,573) – (42,573)
Accumulated depreciation as at December 31, 2019 708,791 261,092 6,736,501 917,322 8,623,706
Carrying value as at December 31, 2019 3,120,692 90,279 1,861,705 623,929 5,696,605
Carrying value as at January 1, 2019 200,847 123,296 910,651 60,261 1,295,055
The changes in the carrying value of property, plant and equipment for the year ended December 31, 2018 were as follows :
in US $
Particulars Leasehold Office Computer Furniture Total
improvement equipment equipment and
fixtures
Gross carrying value as at January 1, 2018 394,481 330,907 7,037,929 860,602 8,623,919
Additions – 9,825 437,396 9,331 456,552
Deletions – – (676,333) – (676,333)
Gross carrying value as at December 31, 2018 394,481 340,732 6,798,992 869,933 8,404,138
Accumulated depreciation as at January 1, 2018 111,907 175,372 5,999,940 755,148 7,042,367
Depreciation 81,727 42,064 564,720 54,524 743,035
Accumulated depreciation on deletions – – (676,319) – (676,319)
Accumulated depreciation as at December 31, 2018 193,634 217,436 5,888,341 809,672 7,109,083
Carrying value as at December 31, 2018 200,847 123,296 910,651 60,261 1,295,055
Carrying value as at January 1, 2018 282,574 155,535 1,037,989 105,454 1,581,552
The aggregate depreciation has been included under depreciation and amortization expense in the Statement of Profit and Loss.
2.2 Leases Obligations on long-term, non-cancellable operating

leases
Accounting policy
The lease rentals charged during the period is as under:
Leases under which the Company assumes substantially all in US $
the risks and rewards of ownership are classified as finance
Particulars Year ended December 31,
leases. When acquired, such assets are capitalized at fair
2019 2018
value or present value of the minimum lease payments at the
Lease rentals recognized
inception of the lease, whichever is lower. Lease payments
during the period 1,259,864 1,225,796
under operating leases are recognized as an expense on a
straight-line basis in net profit in the Statement of Profit and
Loss over the lease term.

The obligations on long-term, non-cancellable operating The changes in the carrying value of acquired intangible
leases payable as per the rentals stated in the respective assets for the year ended December 31, 2019 are as follows:
agreements are as follows: in US $
in US $ Particulars Software
Lease obligations payable As at December Gross carrying value as of January 1, 2019 1,300,000
31, 2019 Additions during the year –
Not later than 1 year 1,587,217 Deletions during the year –
Later than 1 year and not later than 5 Gross carrying value as of December 31,
years 5,829,436 2019 1,300,000
Later than 5 years 2,356,757 Accumulated amortization as of January 1,
2019 372,300
The operating lease arrangements, are renewable on a periodic Amortization expense 742,567
basis and for most of the leases extend up to a maximum of Deletion during the year –
ten years from their respective dates of inception and relates Accumulated amortization as of December
to rented premises. Some of these lease agreements have 31, 2019 1,114,867
price escalation Clauses. Carrying value as of December 31, 2019 185,133
2.3 Other intangible assets Carrying value as of January 1, 2019 927,700
Total estimated useful life (in years) 2
Accounting policy
Intangible assets are stated at cost less accumulated The changes in the carrying value of acquired intangible
amortization and impairment. Intangible assets are amortized assets for the year ended December 31, 2018 were as follows:
in US $
over their respective individual estimated useful lives on a
straight-line basis, from the date that they are available for Particulars Software
use. The estimated useful life of an identifiable intangible Gross carrying value as of January 1, 2018 –
asset is based on a number of factors including the effects Additions during the year 1,300,000
of obsolescence, demand, competition, and other economic Deletions during the year –
factors (such as the stability of the industry, and known Gross carrying value as of December 31,
technological advances), and the level of maintenance 2018 1,300,000
expenditures required to obtain the expected future cash Accumulated amortization as of January 1,
flows from the asset. Amortization methods and useful lives 2018 –
are reviewed periodically including at each financial year end. Amortization expense 372,300
Deletion during the year –
Impairment Accumulated amortization as of December
Intangible assets are evaluated for recoverability whenever 31, 2018 372,300
events or changes in circumstances indicate that their Carrying value as of December 31, 2018 927,700
carrying amounts may not be recoverable. For the purpose Carrying value as of January 1, 2018 –
of impairment testing, the recoverable amount (i.e. the Total estimated useful life (in years) 2
higher of the fair value less cost to sell or the value-in-use) is
determined on an individual asset basis unless the asset does The amortization expense has been included under depreciation
not generate cash flows that are largely independent of those and amortization expense in the Statement of Profit and Loss.
from other assets. In such cases, the recoverable amount is 2.4 Loans
determined for the CGU to which the asset belongs. in US $
If such assets are considered to be impaired, the impairment Particulars As at December 31,
to be recognized in the Statement of Profit and Loss is 2019 2018
measured by the amount by which the carrying value of Non-current
the assets exceeds the estimated recoverable amount of the Unsecured, considered
asset. An impairment loss is reversed in the Statement of doubtful
Profit and Loss if there has been a change in the estimates Loans to employees 18,075 12,166
used to determine the recoverable amount. The carrying Less: Allowance for
amount of the asset is increased to its revised recoverable doubtful loans to
amount, provided that this amount does not exceed the employees (18,075) (12,166)
carrying amount that would have been determined (net of Total non-current loans – –
any accumulated amortization) had no impairment loss been Current
recognized for the asset in prior years. Unsecured, considered good
Loans to employees 9,509 7,902
Total current loans 9,509 7,902
Total loans 9,509 7,902

2.5 Other financial assets Particulars As at December 31,
in US $ 2019 2018
Particulars As at December 31, Total non-current other
2019 2018 assets 11,971,125 11,440,112
Non-current Current
Security deposits (1) 127,260 89,760 Advances other than capital
Unbilled revenues (1) * 22,611,457 11,838,163 advance
Total non-current other Payment to vendors for
financial assets 22,738,717 11,927,923 supply of goods 11,470 23,552
Current Others
Security deposits (1) – 37,500 Prepaid expenses 20,837,602 23,331,688
Unbilled revenues (1) * 30,789,931 25,310,624 Withholding taxes and
Others (1) (2) 114,763 39,829 others 905 1,690
Total current other financial Unbilled revenues(1) 990,337 1,309,410
assets 30,904,694 25,387,953 Others(2) 1,624 1,624
Total other financial assets 53,643,411 37,315,876 Total current other assets 21,841,938 24,667,964
Total other assets 33,813,063 36,108,076
Financial assets carried at amortized cost
(1)
Includes dues from related parties (Refer to Note 2.20)

(2) (1)
Classified as non-financial asset as contractual right to consideration is
* Classified as financial asset as right to consideration is conditional upon dependent on completion of contractual milestones.
passage of time. (2)
2.6 Trade receivables 2.9 Financial instruments
in US $
Particulars As at December 31, Accounting policy
2019 2018 2.9.1 Initial recognition
Current
The Company recognizes financial assets and financial
Unsecured
liabilities when it becomes a party to the contractual
Considered good (1) 40,706,238 25,702,958
provisions of the instrument. All financial assets and liabilities
Considered doubtful 458,616 136,685
41,164,854 25,839,643
Less: Allowances for credit
losses (458,616) (136,685)
Total trade receivables 40,706,238 25,702,958
that are not at fair value through profit or loss, are added to
(1) the fair value on initial recognition. Regular way purchase
2.7 Cash and cash equivalents
in US $ 2.9.2 Subsequent measurement
Particulars As at December 31, (i)Financial assets carried at amortized cost
2019 2018 A financial asset is subsequently measured at amortized
Balances with banks cost if it is held within a business model whose objective is
In current and deposit to hold the asset in order to collect contractual cash flows
accounts 44,019,452 23,518,789 and the contractual terms of the financial asset give rise on
44,019,452 23,518,789 specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
Cash and cash equivalents as at December 31, 2019 and (ii)Financial assets at fair value through other
December 31, 2018 include restricted bank balances of comprehensive income
US $ 5,000 each. This represents restricted bank balance, A financial asset is subsequently measured at fair value
in trust account, in accordance with collection agency through other comprehensive income if it is held within
licensing requirements. a business model whose objective is achieved by both
collecting contractual cash flows and selling financial
2.8 Other assets
in US $ assets and the contractual terms of the financial asset
give rise on specified dates to cash flows that are solely
Particulars As at December 31, payments of principal and interest on the principal amount
2019 2018 outstanding. Further, in cases where the Company has made
Non-current an irrevocable election based on its business model, for its
Capital advances – 301,270 investments which are classified as equity instruments, the
Prepaid expenses 11,971,125 11,138,842 subsequent changes in fair value are recognized in other
comprehensive income.

(iii) Financial assets at fair value through profit or loss Particulars As at December 31,
A financial asset which is not classified in any of the above 2019 2018
categories are subsequently fair valued through profit or loss. Other financial assets (Refer
(iv) Financial liabilities to Note 2.5) 53,643,411 37,315,876
Financial liabilities are subsequently carried at amortized cost Total 138,378,610 86,545,525
using the effective interest method, except for contingent Liabilities
consideration recognized in a business combination which Borrowings (Refer to Note
is subsequently measured at fair value through profit or loss. 2.20) – 5,716,233
For trade and other payables maturing within one year from Trade payables (Refer to
the Balance Sheet date, the carrying amounts approximate fair Note 2.12) 22,251,795 18,088,097
value due to the short maturity of these instruments. Other financial liabilities
(Refer to Note 2.11) 69,070,366 40,368,029
2.9.3 Derecognition of financial instruments Total 91,322,161 64,172,359
contractual rights to the cash flows from the financial asset All the above financial assets and financial liabilities
expire or it transfers the financial asset and the transfer are carried at amortized cost and the carrying values
qualifies for derecognition under Ind AS 109. A financial approximates their fair values.
liability (or a part of a financial liability) is derecognized from Financial risk management
the Company’s Balance Sheet when the obligation specified in
the contract is discharged or cancelled or expires. Financial risk factors
The Company’s activities expose it to a variety of financial
2.9.4 Fair value of financial instruments
risks: market risk, credit risk and liquidity risk. The
In determining the fair value of its financial instruments, the Company’s focus is to foresee the unpredictability of
Company uses a variety of methods and assumptions that financial markets and seek to minimize potential adverse
are based on market conditions and risks existing at each effects on its financial performance. The primary market risk
reporting date. The methods used to determine fair value to the Company is foreign exchange risk. The Company’s
include discounted cash flow analysis, available quoted exposure to credit risk is influenced mainly by the individual
market prices and dealer quotes. All methods of assessing characteristic of each customer and the concentration of risk
fair value result in general approximation of value, and such from the top few customers.
value may never actually be realized.
Credit risk
2.9.5 Impairment
Credit risk refers to the risk of default on its obligation by
The Company recognizes loss allowances using the expected the counterparty resulting in a financial loss. The maximum
credit loss (ECL) model for the financial assets and unbilled exposure to the credit risk at the reporting date is primarily
revenues which are not fair valued through profit or loss. from trade receivables amounting to US $ 40,706,238 and US
Loss allowance for trade receivables and unbilled revenues $ 25,702,958 as at December 31, 2019 and December 31,
with no significant financing component is measured at an 2018, respectively. Trade receivables are typically unsecured.
amount equal to lifetime ECL. For all other financial assets, Credit risk has always been managed by the Company
expected credit losses are measured at an amount equal through credit approvals, establishing credit limits and
to the 12-month ECL, unless there has been a significant continuously monitoring the creditworthiness of customers
increase in credit risk from initial recognition in which case to which the Company grants credit terms in the normal
those are measured at lifetime ECL. The amount of expected course of business. On account of adoption of Ind AS 109,
credit losses (or reversal) that is required to adjust the loss the Company uses ECL model to assess the impairment loss
allowance at the reporting date to the amount that is required or gain. The Company uses a provision matrix to compute
to be recognized is recognized as an impairment gain or loss the ECL allowance for trade receivables. The provision matrix
in Statement of Profit and Loss. takes into account available external and internal credit risk
Financial instruments by category factors such as credit default swap quotes, credit ratings
from international credit rating agencies and the Company’s
The carrying value and fair value of financial instruments by historical experience for customers.
categories were as follows:
in US $ The following table gives details in respect of percentage of
revenues generated from top ten customers:
Particulars As at December 31, in %
2019 2018
Assets Particulars Year ended December 31,
Cash and cash equivalents 2019 2018
(Refer to Note 2.7) 44,019,452 23,518,789 Revenue from top customer 22 21
Trade receivables (Refer to Revenue from top ten
Note 2.6) 40,706,238 25,702,958 customers 68 66
Loans (Refer to Note 2.4) 9,509 7,902

Credit risk exposure 2.13 Other liabilities
in US $
The allowance for lifetime expected credit loss on customer
balances is US $ 458,616 crore and US $ 136,685 for Particulars As at December 31,
the year ended December 31, 2019 and December 2019 2018
31, 2018, respectively. Non-current
Credit risk on cash and cash equivalents is limited as we Deferred rent(1) 2,089,830 42,581
generally invest in deposits with banks and financial institutions Total non-current other
with high credit ratings assigned by credit rating agencies. liabilities 2,089,830 42,581
Current
Liquidity risk Unearned revenue 29,932,512 27,036,183
The Company’s principal sources of liquidity are cash and cash Others
equivalents. The Company has no outstanding borrowings Withholding taxes and
as at December 31, 2019. The Company believes that the others 241,180 299,511
working capital is sufficient to meet its current requirements. Deferred rent(1) 280,003 21,551
Accordingly, no liquidity risk is perceived. Total current other liabilities 30,453,695 27,357,245
As of December 31, 2019, the Company had a working capital Total other liabilities 32,543,525 27,399,826
of US $ 38,293,464 including cash and cash equivalents of US (1)
Includes unamortized leasehold improvement allowance of US $
$ 44,019,452. As of December 31, 2018, the Company had a 1,702,402 received in respect of Cumberland, Atlanta lease, of which
working capital of US $ 17,957,091 including cash and cash US $ 258,593 is classified as current as on December 31, 2019.
equivalents of US $ 23,518,789.
2.14 Provisions
2.10 Equity Accounting policy
At December 31, 2019, the Company had one member,
Infosys BPM Limited (“the Member”). The Member owns
100% of the interests of the Company. Upon liquidation,
is reasonably estimable, and it is probable that an outflow of
dissolution or winding-up of the Company, the Member
economic benefits will be required to settle the obligation.
is entitled to receive 100% of the available net assets of
the Company. No contribution was made during the year
ended December 31, 2019
market assessments of the time value of money and the risks
2.11 Other financial liabilities specific to the liability.
in US $
a. Post-sales client support
Particulars As at December 31,
2019 2018
sales support on its fixed-price, fixed-timeframe and time
Non-current
and material contracts. Costs associated with such support
Accrued expenses (1) 26,562,969 12,194,146
services are accrued at the time related revenues are recorded
Total non-current other
and included in Statement of Profit or Loss. The Company
financial liabilities 26,562,969 12,194,146
estimates such costs based on historical experience and
Current
estimates are reviewed on a periodic basis for any material
Accrued compensation to
changes in assumptions and likelihood of occurrence.
employees (1) 2,505,805 1,828,543
Accrued expenses (1) 39,760,190 26,218,850 b. Onerous contracts
Compensated absences 565,504 384,309 Provisions for onerous contracts are recognized when the
Capital creditors (1) 132,458 59,590 expected benefits to be derived by the Company from a
Other payables (1) (2) 108,944 66,900 contract are lower than the unavoidable costs of meeting
Total current other financial the future obligations under the contract. The provision is
liabilities 43,072,901 28,558,192 measured at the present value of the lower of the expected
Total other financial cost of terminating the contract and the expected net cost of
liabilities 69,635,870 40,752,338 continuing with the contract. Before a provision is established
Financial liability carried at amortized cost
(1) the Company recognizes any impairment loss on the assets
Includes dues to related parties (Refer to Note 2.20)
(2) associated with that contract.
The provision for post sales client support and others as at
2.12 Trade payables December 31, 2019 and December 31, 2018 is as follows:
in US $ in US $
Particulars As at December 31, Particulars As at December 31,
2019 2018 2019 2018
Current Others
Trade payables (1) 22,251,795 18,088,097 Post-sales client support
Total trade payables 22,251,795 18,088,097 and others 705,620 941,614
Includes dues to related parties (Refer to Note 2.20)
(1) Total provisions 705,620 941,614

Provision for post-sales client support and Entire deferred income tax for the year ended December
others 31, 2019 relates to origination and reversal of
temporary differences.
The movement in the provision for post-sales client support
and others is as follows : A reconciliation of the income tax provision to the amount
in US $ computed by applying the statutory income tax rate to the
Particulars As at December 31, income before income taxes is summarized below:
in US $
2019 2018
Balance at the beginning 941,614 817,281 Particulars Year ended December 31,
Provision recognized / 2019 2018
(reversed) (229,642) 149,008 Profit before incomes taxes 24,695,533 16,541,146
Provision utilized (6,352) (24,675) Statutory tax rate 21% 21%
Balance at the end 705,620 941,614 Computed expected tax
expense 5,186,062 3,473,641
State taxes 1,369,569 732,900
2.15 Income taxes
Withholding taxes 50,505 –
Accounting policy Disallowed items 11,661 12,797
Income tax expense comprises current and deferred income Base erosion and anti-abuse
tax. Income tax expense is recognized in net profit in the tax (BEAT) liability(1) (1,477,520) 1,375,596
Statement of Profit and Loss except to the extent that it Deferred tax – change in tax
relates to items recognized directly in equity, in which case rates – 174,739
it is recognized in other comprehensive income. Current Effect of true up of previous
income tax for current and prior periods is recognized at year taxes 67,574 21,968
the amount expected to be paid to or recovered from the tax Other adjustments (104,146) (988,393)
authorities, using the tax rates and tax laws that have been Income tax expense 5,103,705 4,803,248
enacted or substantively enacted by the Balance Sheet date. (1)
Internal Revenue Service (“IRS”) issued final regulation on December 6,
Deferred income tax assets and liabilities are recognized for all 2019 providing further clarification on Base Erosion and Anti-abuse Tax
temporary differences arising between the tax bases of assets (BEAT) computation. Consequent to the issuance of the final regulation,
and liabilities and their carrying amounts in the financial there has been reversal of tax expenses pertaining to the prior period.
statements. Deferred tax assets are reviewed at each reporting The applicable US federal tax rates for 2019 and 2018 is 21%
date and are reduced to the extent that it is no longer probable and 21% respectively.
that the related tax benefit will be realized.
The types of temporary differences that give rise to significant
Deferred income tax assets and liabilities are measured using portions of the Company’s deferred tax assets and liability as
tax rates and tax laws that have been enacted or substantively of December 31 are set forth below:
enacted by the Balance Sheet date and are expected to apply in US $
to taxable income in the years in which those temporary Particulars Year ended December 31,
differences are expected to be recovered or settled. The effect 2019 2018
of changes in tax rates on deferred income tax assets and Deferred tax assets:
liabilities is recognized as income or expense in the period Carry forward business
that includes the enactment or the substantive enactment losses – 1,359,923
date. A deferred income tax asset is recognized to the extent Accruals 598,908 412,268
Accrued compensation 233,840 146,010
Deferred rent 253,423 16,033
losses can be utilized.
Property, plant and
The Company offsets current tax assets and current tax equipment and intangible
liabilities, where it has a legally enforceable right to set assets 553,016 1,102,349
off the recognized amounts and where it intends either to Accrued vacation 141,376 96,078
settle on a net basis, or to realize the asset and settle the Unearned revenue 2,245,082 –
liability simultaneously. The income tax provision for the Others 90,400 274,393
interim period is made based on the best estimate of the 4,116,045 3,407,054
annual average tax rate expected to be applicable for the Deferred tax liability:
full financial year. Accruals including
Income tax expense in the statement of profit and loss comprises: contingent consideration
in US $ reversal (2,400,000) (2,400,000)
Particulars Year ended December 31, Total deferred tax liability (2,400,000) (2,400,000)
2019 2018 Deferred tax asset /
Current taxes 5,812,696 2,181,285 (liability), net 1,716,045 1,007,054
Deferred taxes (708,991) 2,621,963
Income tax expense 5,103,705 4,803,248

The ultimate realization of deferred tax assets is dependent a straight-line basis when services are performed through an
upon the Management’s assessment of the Company’s indefinite number of repetitive acts over a specified period or
ability to generate taxable income during the periods in using a percentage-of-completion method when the pattern
which the temporary differences become deductible. The of benefits from the services rendered to the customer and
Management’s assessment in the near term is subject to Company’s costs to fulfil the contract is not even through the
change if estimates of future taxable income during the carry period of contract because the services are generally discrete
forward period are reduced. in nature and not repetitive.
In assessing the realizability of deferred tax assets, the Revenue from other fixed-timeframe contracts, where the
Management considers whether it is more likely than not performance obligations are satisfied over time is recognized
that some portion or all of the deferred tax assets will not be using the percentage-of-completion method. Efforts or costs
realized. The Management considers the scheduled reversals expended have been used to determine progress towards
of deferred tax liabilities, projected future taxable income, completion as there is a direct relationship between input
and tax planning strategies in making this assessment. Based and productivity. Progress towards completion is measured
on the level of historical taxable income and projections for as the ratio of costs or efforts incurred to date (representing
future taxable income over the periods in which the deferred work performed) to the estimated total costs or efforts.
tax assets are deductible, the Management believes that it is Estimates of transaction price and total costs or efforts are
more likely than not the Company will realize the benefit of continuously monitored over the lives of the contracts and are
any deductible differences at December 31, 2019. recognized in profit or loss in the period when these estimates
change or when the estimates are revised. Revenues and the
2.16 Revenue from operations estimated total costs or efforts are subject to revision as the
Accounting policy contract progresses. Provisions for estimated losses, if any, on
uncompleted contracts are recorded in the period in which
The Company is a leading developer of solutions and
such losses become probable based on the estimated efforts
services in the insurance industry. The Company offers
or costs to complete the contract.
flexible solutions through business process management,
software-as–a-service, and license models. The Company The billing schedules agreed with customers include periodic
leverages its proprietary VPAS®, PMACS®, NGIN and performance-based billing and / or milestone-based progress
Deferral+® platforms, as well as VPAS® BPA, to offer the billings. Revenues in excess of billing are classified as unbilled
retirement and financial services industries integrated sales revenue while billing in excess of revenues are classified as
and administration support solutions. The Company is also a contract liabilities (referred to as unearned revenues).
software reseller for various industry-specific clients. The Company’s contracts may include variable consideration
Arrangements with customers are either on a fixed-timeframe including rebates, volume discounts and penalties. The
or on a time-and-material basis. Company includes variable consideration as part of transaction
price when there is a basis to reasonably estimate the amount
Revenues from customer contracts are considered for
of the variable consideration and when it is probable that
recognition and measurement when the contract has been
a significant reversal of cumulative revenue recognized will
approved by the parties, in writing, to the contract, the
not occur when the uncertainty associated with the variable
parties to contract are committed to perform their respective
consideration is resolved.
obligations under the contract, and the contract is legally
enforceable. Revenue is recognized upon transfer of control Disaggregate revenue information
of promised products or services (“performance obligations”)
The table below presents disaggregated revenues from
to customers in an amount that reflects the consideration
contracts with customers for year ended December 31, 2019
the Company has received or expects to receive in exchange
and December 31, 2018 by offerings. The Company believe
for these products or services (“transaction price”). When
that this disaggregation best depicts how the nature, amount,
there is uncertainty as to collectability, revenue recognition
timing and uncertainty of our revenues and cash flows are
is postponed until such uncertainty is resolved.
affected by industry, market and other economic factors.
The Company assesses the services promised in a contract in US $
and identifies distinct performance obligations in the Particulars Year ended December 31,
contract. The Company allocates the transaction price to 2019 2018
each distinct performance obligation based on the relative Revenue by offerings
standalone selling price. The price that is regularly charged Core services 67,284,889 54,821,174
for an item when sold separately is the best evidence of its Sale of third-party software
standalone selling price. In the absence of such evidence, the and services 156,658,678 103,805,818
primary method used to estimate standalone selling price is Total 223,943,567 158,626,992
the expected cost plus a margin, under which the Company
estimates the cost of satisfying the performance obligation and
then adds an appropriate margin based on similar services.
Trade receivables and contract balances
The timing of revenue recognition, billings and cash
Revenue on time-and-material contracts are recognized as the
collections results in receivables, unbilled revenue, and
related services are performed. Fixed-price business process
unearned revenue on the Company’s Balance Sheet. Amounts
management services revenue is recognized ratably either on
are billed as work progresses in accordance with agreed-upon

contractual terms, either at periodic intervals (e.g., monthly b. Transactions and translations
or quarterly) or upon achievement of contractual milestones. Foreign-currency denominated monetary assets and liabilities
Receivables are rights to consideration that are unconditional. are translated into the relevant functional currency at exchange
Unbilled revenues comprising revenues in excess of billings rates in effect at the Balance Sheet date. The gains or losses
from time and material contracts and fixed price business resulting from such translations are included in the Statement
process management services are classified as financial asset of Profit and Loss. Non-monetary assets and non-monetary
when the right to consideration is unconditional and is due liabilities denominated in a foreign currency and measured
only after a passage of time. at fair value are translated at the exchange rate prevalent at
Invoicing to the clients for other fixed-time frame contracts is the date when the fair value was determined. Non-monetary
based on milestones as defined in the contract and therefore assets and non-monetary liabilities denominated in a foreign
the timing of revenue recognition is different from the timing currency and measured at historical cost are translated at the
of invoicing to the customers. Therefore, unbilled revenues for exchange rate prevalent at the date of transaction.
other fixed timeframe contracts are classified as non-financial Transaction gains or losses realized upon settlement of foreign
asset (contract asset) because the right to consideration is currency transactions are included in determining net profit
dependent on completion of contractual milestones. for the period in which the transaction is settled. Revenue,
Invoicing in excess of earnings are classified expense and cash-flow items denominated in foreign currencies
as unearned revenue. are translated into the relevant functional currencies using the
exchange rate in effect on the date of the transaction.
Trade receivables and unbilled revenues are presented net of
impairment in the Balance Sheet. Other income for the year ended December 31, 2019 and
December 31, 2018 is as follows:
2.17 Other income, net in US $
Accounting policy Particulars Year ended December 31,

2019 2018
2.17.1 Other income Interest on deposits with
Other income is comprised primarily of interest income, banks 393,112 –
exchange gain/loss on translation of other assets and liabilities. Exchange gains / (losses) on
2.17.2 Foreign currency and liabilities (5,597) (16,471)
a. Functional currency Miscellaneous income 8,220 25,650
395,735 9,179
The functional currency of the Company is the United
States Dollars. The financial statements are presented in
United States Dollars.
2.18 Expenses
in US $
2019 2018
Employee benefit expenses
Salaries including bonus 37,157,691 31,427,497
Staff welfare 108,455 52,903
37,266,146 31,480,400
Cost of technical sub-contractors and professional charges
Cost of technical sub-contractors 53,189,334 37,620,951
Legal and professional 848,618 2,114,726
Recruitment and training 315,658 172,988
54,353,610 39,908,665
Other expenses
Consumables 67,058 12,571
Brand building and advertisement 45,032 16,453
Rates and taxes 192,731 187,211
Communication expenses 565,794 1,729,180
Power and fuel 10,399 21,059
Office maintenance 1,184,946 1,144,857
Bank charges and commission 75,049 26,253
Impairment loss recognized / (reversed) under expected credit loss model 800,406 111,379
Provision for doubtful loans and advances 5,909 450
Provision for post-sales client support and others 125,835 8,551

2019 2018
Postage and couriers 2,867,155 3,376,053
Insurance 67,742 126,422
Auditor’s remuneration
Statutory audit fees 35,000 33,273
Reimbursement of expenses 5,447 2,428
Donations 775,000 10,000
Professional membership and seminar participation fees 43,224 56,552
Others 17,307 17,121
6,884,034 6,879,813
2.19 Contingent liabilities and commitments (to the extent not provided for)
in US $
2019 2018
Contingent liabilities* – –
Commitments :
Estimated amount of contacts remaining to be executed on capital contracts and not
provided for (net of advances and deposits) 489,370 767,962
* The Company is currently not involved in any significant lawsuits, claims, investigations and proceedings, including patent and commercial matters,
which arises in the ordinary course of business. There are no such pending matters that are expected to have material effect on these financial statements.

List of related parties:
Name of subsidiaries Country Holding as at December 31,
2019 2018
Ultimate Holding
Infosys Limited India Ultimate Ultimate
Holding Holding
Company Company
Holding
Infosys BPM Limited India Holding Holding
company company
Infosys BPO Americas LLC (1) US
Infosys Public Services Inc US
(1)
Wholly-owned subsidiary of Infosys BPM
(2)
(3)
The details of amounts due to or due from related parties as at December 31, 2019 and December 31, 2018 are as follows:
in US $
2019 2018
Loan taken
Infosys Public Services Inc. (1) – 5,716,233
– 5,716,233
Trade payables
Infosys Limited 16,462,101 8,950,854
Infosys BPM Limited 293,016 330,313
16,755,117 9,281,167
Trade receivables
Infosys Limited 61,743 94,214

2019 2018
Infosys BPM Limited 1,516,756 842,431
1,578,499 936,645
Infosys BPO Americas LLC 25,211 –
67,211 4,383
Other assets
1,624 1,624
Infosys BPM Limited 312 5,472
102,562 63,387
(1)
On May 16, 2017, Company entered into a loan agreement with Infosys Public Services Inc. to finance the Company’s operations, for the amount of
US $ 5,500,000. The loan was processed on June 6, 2017 and is subject to a market rate of interest set at 2.50% p.a. for the period from loan inception
date to repayment. The maturity date for principal amount is set at twelve months from the effective date of the loan agreement and extended by written
consent of both the parties for further period of twelve months. The interest is payable at repayment of loan or anniversary date each year, whichever
is earlier.The Company has repaid the entire loan along with the accrued interest to Infosys Public Services Inc in January, 2019.
The details of the related parties transactions entered into by the Company for year ended December 31, 2019 and December
31, 2018 are as follows:
in US $
2019 2018
Capital transactions:
Repayment of loan to Infosys Public Services Inc. 5,716,233 –
Purchase of software (Skytree) from Kallidus Inc. – 1,300,000
5,716,233 1,300,000
Infosys Limited 45,376,237 29,686,913
Infosys BPM Limited 4,023,670 4,318,977
Brilliant Basics Limited. – 103,836
WDW Communications, Inc. 89,351 –
WongDoody Inc. 119,981 –
49,609,239 34,109,726
Sale of services
Infosys BPM Limited 13,059,159 5,083,604
13,942,222 5,977,273
Finance cost
Infosys Public Services Inc. 4,897 137,500
4,897 137,500

Richard Magner Chief Executive Officer and Director
Kapil Jain Director
Thothathri V Director

The compensation to key managerial personnel which comprise directors and executive officers is as follows:
in US $
2019 2018
Salaries and other employee benefits to whole-time directors and executive officers 561,807 527,555
Total 561,807 527,555
2.21 Compensated absences

The employees of the Company are entitled to compensated absences which is non-accumulating in nature. Expense on non-
accumulating compensated absences is recognized in the period in which the absences occur.
Based on the ‘management approach’, as defined in Ind AS 108, Segment Reporting, the Chief Operating Decision Maker
(CODM) evaluates the performance and allocates resources based on the analysis of the performance of the Company as a
whole. The Company’s operations are considered to constitute a single segment in the context of Ind AS 108 Segment Reporting.
for and on behalf of Infosys McCamish Systems, LLC
Rich Magner Kapil Jain Thothathri V

Chief Executive Officer Director Director
Bengaluru
May 13, 2020

Infosys Public Services Inc.
To the Board of Directors of Infosys Public Services, inc.
Report on the Special Purpose Consolidated Financial Statements
Opinion
We have audited the accompanying special purpose consolidated financial statements of INFOSYS PUBLIC SERVICES, INC.
(“the Company”), which comprise the Consolidated Balance Sheet as at March 31, 2020, the Consolidated Statement of Profit
and Loss (including Other Comprehensive Income), the Consolidated Statement of Changes in Equity and the Consolidated
Statement of Cash Flows for the year ended on that date, and a summary of significant accounting policies and other explanatory
information (hereinafter referred to as “the special purpose consolidated financial statements”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid special purpose
consolidated financial statements gives a true and fair view in conformity with the basis of preparation referred to in Note 1.2
of the special purpose consolidated financial statements, 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.
Basis for Opinion
We conducted our audit of the special purpose consolidated financial statements in accordance with the Standards on Auditing
(SAs) issued by the Institute of Chartered Accountants of India (ICAI). Our responsibilities under those Standards are further
described in the Auditor’s Responsibilities for the Audit of the Special purpose consolidated Financial Statements section of
our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of
Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the special purpose
consolidated financial statements and we have fulfilled our other ethical responsibilities in accordance with these requirements
and the ICAI’s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis
for our audit opinion on the special purpose consolidated financial statements.
Management’s Responsibilities for the Special Purpose Consolidated Financial Statements
The Company’s Board of Directors are responsible for the preparation of these special purpose consolidated financial statements
that give a true and fair view of the financial position, financial performance, including other comprehensive income, changes
in equity and cash flows of the Company in accordance with the basis described in Note 1.2 of the special purpose consolidated
financial statement.
This responsibility also includes maintenance of adequate accounting records for safeguarding the assets of the Company
and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies;
making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the special purpose consolidated financial statements that give a true and fair
view and are free from material misstatement, whether due to fraud or error.
In preparing the special purpose consolidated financial statements, the Company’s Board of Directors are responsible for
assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations,
or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Special purpose Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the special purpose consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these special purpose consolidated financial statements.
• Identify and assess the risks of material misstatement of the special purpose consolidated financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations,
or the override of internal control.
106 I Infosys Public Services Inc. Infosys Subsidiary Financials 2019-20

appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the company’s
internal control.
draw attention in our auditor’s report to the related disclosures in the special purpose consolidated financial statements or,
if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a
going concern.
• Evaluate the overall presentation, structure and content of the special purpose consolidated financial statements, including
the disclosures, and whether the special purpose consolidated financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the special purpose consolidated financial statements that, individually or in
aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the special purpose consolidated
financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope
of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in
the special purpose consolidated financial statements.
Basis of Accounting
We draw attention to Note 1.2 to the special purpose consolidated financial statements, which describes the basis of accounting.
As a result, the special purpose consolidated financial statements may not be suitable for another purpose.
Restriction on Use and distribution
Our report is intended solely for the use of Company’s management for the above purpose and should not be distributed to
or used by any other parties.

Gurvinder Singh
Partner
UDIN: 20110128AAAABG6429
Bengaluru
May 15, 2020
Infosys Subsidiary Financials 2019-20 Infosys Public Services Inc. I 107

Consolidated Balance Sheet
in US$
2020 2019
Assets
Non-current assets
Right-of-use assets 2.12 2,233,626 –
Financial assets
Loans 2.2 10,003,696 12,003,696
Deferred tax assets (net) 2.13 2,599,011 2,502,552
Income tax assets (net) 2.13 4,160,319 1,528,076
Current assets
Financial assets
Loans 2.2 15,023,817 3,047,149
Total assets 110,947,850 90,683,722
Equity
Other equity 59,231,500 48,419,476
Total equity attributable to equity holders of the Company 76,731,500 65,919,476
Non-controlling interests – –
Total equity 76,731,500 65,919,476
Liabilities
Lease liabilities 2.12 2,074,601 –
Total non-current liabilities 2,074,601 –
Current liabilities
Trade payables 2.8 11,491,049 9,214,162
Lease liabilities 2.12 276,145 –
Provisions 2.11 1,515,481 970,176
Income tax liabilities (net) 2.13 548,283 148,615
The accompanying notes form an integral part of the consolidated financial statements
As per our report of even date attached for and on behalf of the Board of Directors of Infosys Public
for Deloitte Haskins & Sells LLP Services Inc.
Gurvinder Singh Ravi Kumar S Eric Paternoster

Partner Director CEO
Bengaluru
May 15, 2020

Consolidated Statement of Profit and Loss
in US$, except equity share data
Particulars Note no. Years ended March 31,
2020 2019
Other income, net 2.15 (193,097) (19,473)
Total income 156,092,261 150,512,193
Expenses
Travel expenses 1,046,874 1,169,232
Cost of software packages and others 2.16 2,376,902 1,820,725
Communication expenses 94,792 67,247
Depreciation and amortization expense 2.1 and 2.12 485,086 50,178
Finance cost 2.12 43,114 –
Other expenses 2.16 1,367,326 1,052,573
Total Expenses 148,073,185 151,207,084
Profit / (Loss) before tax 8,019,076 (694,891)
Tax (benefit) / Expense:
Current tax 2.13 (2,881,848) 5,041,933
Deferred tax 2.13 (96,458) (631,201)
Profit/ (Loss) for the period 10,997,382 (5,105,622)
Remeasurement of the net defined benefit (liability)/asset, net – –
Equity instruments through other comprehensive income, net – –
Exchange differences on translation of foreign operations, net – –
Fair value changes on investments, net – –
Total other comprehensive income/(loss), net of tax – –
Total comprehensive income / (loss) for the period 10,997,382 (5,105,622)
Profit / (Loss) attributable to:
Owners of the Company 10,997,382 (5,105,622)
10,997,382 (5,105,622)
Total comprehensive income / (Loss) attributable to:
Owners of the Company 10,997,382 (5,105,622)
10,997,382 (5,105,622)
Earnings per equity share of US$ 0.5 each
Basic and diluted 0.31 (0.15)
equity share
Basic and diluted 35,000,000 35,000,000


Bengaluru
May 15, 2020

Consolidated Statement of Changes in Equity
in US$
capital -Retained attributable to
earnings equity holders
of the Company
Balance as at April 1, 2018 17,500,000 53,525,098 71,025,098
Changes in equity for the year ended March 31, 2019
Loss for the period – (5,105,622) (5,105,622)
Balance as at March 31, 2019 17,500,000 48,419,476 65,919,476
Balance as at April 1, 2019 17,500,000 48,419,476 65,919,476
Impact on account of adoption of Ind AS 116 (Refer to Note 2.12) – (185,358) (185,358)
Profit for the period – 10,997,382 10,997,382
Balance as at March 31, 2020 17,500,000 59,231,500 76,731,500

Bengaluru
May 15, 2020

Consolidated Statement of Cash Flows
Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions
of the Group are segregated. The Group considers all highly liquid investments that are readily convertible to known amounts
of cash to be cash equivalents.
in US$
Particulars Note no. Years ended March 31,
2020 2019
Cash flow from operating activities
Profit/ (Loss) for the period 10,997,382 (5,105,622)
operating activities
Income tax expense 2.13 (2,978,306) 4,410,732
Depreciation and amortization 2.1 and 2.12 485,086 50,178
Finance cost 2.12 43,114 -
Interest income on loan to fellow subsidiaries 2.18 (c) (680,104) (375,842)
Provision for post-sales client support 2.16 382,032 384,880
Impairment loss recognized/(reversed) under expected credit loss
model 2.16 380,263 (175,568)
Exchange difference on translation of assets and liabilities (95,496) 469,984
Trade receivables and unbilled revenue (20,757,879) (4,996,506)
Loans, other financial assets and other assets (808,462) 594,146
Trade payables 2.8 2,276,887 48,190
Other financial liabilities, other liabilities and provisions 4,018,932 (4,368,768)
Cash generated/(used) from operations (6,736,551) (9,064,197)
Income taxes paid 649,274 (6,427,852)
Net cash used in operating activities (6,087,277) (15,492,050)
Cash flow from investing activities
Expenditure on property, plant and equipment (710,949) (168,917)
Loan given to fellow subsidiaries 2.18 (c) (10,000,000) (6,500,000)
Interest received on loan from fellow subsidiaries 78,562 281,575
Loans to employees 23,332 49,611
Cash flow from financing activities
Payment of lease liability (445,182) –
Net cash used in financing activities (445,182) –
Effect of exchange rate on translation of foreign currency cash and
cash equivalents 95,496 (469,984)
Net increase / (decrease) in cash and cash equivalents (17,141,514) (21,829,781)
Cash and cash equivalents at the beginning of the period 36,990,838 59,290,602
Cash and cash equivalents at the end of the period 19,944,820 36,990,838

Bengaluru
May 15, 2020

Notes to the consolidated financial statements
1 Overview liabilities and disclosures relating to contingent liabilities as

at the date of the financial statements and reported amounts
1.1 Company overview of income and expenses during the period.
Infosys Public Services together with its subsidiaries is Accounting estimates could change from period to period.
hereinafter referred to as ‘the Group’. The Group’s operations Actual results could differ from those estimates. Appropriate
are to provide solutions that span the entire software lifecycle changes in estimates are made as the Management becomes
encompassing technical consulting, design, development, aware of changes in circumstances surrounding the estimates.
re-engineering, maintenance, systems integration, package Changes in estimates are reflected in the financial statements
evaluation and implementation, testing and infrastructure in the period in which changes are made and, if material, their
management services. The Company controls Infosys Canada effects are disclosed in the notes to the financial statements.
Public Services Inc. In this financial year, Infosys Canada
Public Services Inc. has not commenced its operations. Examples of such estimates include computation of
percentage-of-completion which requires the Company to
1.2 Basis of preparation of financial statements estimate the efforts or costs expended to date as a proportion
These special purpose consolidated financial statements are of the total efforts to be expended, impairment losses on
prepared for inclusion in the Annual Report of the holding financial assets, future obligations under employee benefit
Company Infosys Limited under the requirements of Section plans, income taxes, post-sales customer support and the
129 (3) of the Companies Act 2013. useful lives of property, plant and equipment.
These consolidated financial statements are prepared in 1.5 Critical accounting estimates
accordance with Indian Accounting Standards (Ind AS)
under the historical cost convention on the accrual basis, 1.5.1 Revenue recognition
the provisions of the Companies Act, 2013 (‘the Act’) (to the Revenues from customer contracts are considered for
extent notified). The Ind AS are prescribed under Section recognition and measurement when the contract has been
133 of the Act read with Rule 3 of the Companies (Indian approved, in writing, by the parties to the contract, the
Accounting Standards) Rules, 2015 and relevant amendments parties to contract are committed to perform their respective
rules issued thereafter. obligations under the contract, and the contract is legally
Items included in the consolidated financial statements of enforceable. The Group assesses the services promised in a
the Group are measured using the currency of the primary contract and identifies distinct performance obligations in the
economic environment in which the entity operates (i.e. contract. Identification of distinct performance obligations to
the “functional currency”). The functional currency of the determine the deliverables and the ability of the customer to
Company is United States Dollars (“US Dollars”) and the benefit independently from such deliverables, and allocation
financial statements are also presented in US Dollars. All of transaction price to these distinct performance obligations
amounts included in the financial statements are reported in involves significant judgment.
US Dollars, unless otherwise stated. Fixed-price maintenance revenue is recognized ratably on a
Accounting policies have been applied consistently to all straight-line basis when services are performed through an
periods presented in these consolidated financial statements indefinite number of repetitive acts over a specified period.
except where a newly-issued accounting standard is initially Revenue from fixed-price business process management
adopted or a revision to an existing accounting standard services contract is recognized ratably using a percentage-
requires a change in the accounting policy hitherto in use. of-completion method when the pattern of benefits from the
services rendered to the customer and Group’s costs to fulfil
1.3 Basis of consolidation the contract is not even through the period of the contract
Infosys Public Services consolidates entities which it owns because the services are generally discrete in nature and not
or controls. The consolidated financial statements comprise repetitive. The use of method to recognize the maintenance
the financial statements of the Company, its subsidiary, as revenue requires judgment and is based on the promises in
disclosed in Note no.1.1. Control exists when the parent has the contract and nature of the deliverables.
power over the entity, is exposed, or has rights to variable The Group uses the percentage-of-completion method
returns from its involvement with the entity and has the ability in accounting for other fixed-price contracts. Use of the
to affect those returns by using its power over the entity. percentage-of-completion method requires the Group to
Power is demonstrated through existing rights that give the determine the actual efforts or costs expended to date as a
ability to direct relevant activities, those which significantly proportion of the estimated total efforts or costs to be incurred.
affect the entity’s returns. The subsidiary is consolidated from Efforts or costs expended have been used to measure progress
the date control commences until the date control ceases. towards completion as there is a direct relationship between
input and productivity. The estimation of total efforts or costs
1.4 Use of estimates and judgments
involves significant judgment and is assessed throughout the
The preparation of the financial statements in conformity period of the contract to reflect any changes based on the
with Ind AS requires the Management to make estimates and latest available information.
assumptions that affect the reported balances of assets and

Provisions for estimated losses, if any, on uncompleted that no changes are required to lease period relating to the
contracts are recorded in the period in which such losses existing lease contracts. Refer to (Note 2.12.)
1.5.5 Loss allowance for receivables and unbilled
complete the contract.
revenues
1.5.2 Income taxes The Group determines the allowance for credit losses based
The Company’s major tax jurisdictions is the US, though on historical loss experience adjusted to reflect current and
the Company also files tax returns in other jurisdictions. estimated future economic conditions. The Group considered
Significant judgments are involved in determining the current and anticipated future economic conditions relating
provision for income taxes, including amount expected to industries the Group deals with and the countries where
to be paid / recovered for uncertain tax positions. it operates. In calculating expected credit loss, the Group
Also, refer to Note 2.13. has also considered credit reports and other related credit
In assessing the realizability of deferred income tax assets, information for its customers to estimate the probability of
the Management considers whether some portion or all the default in future and has taken into account estimates of
deferred income tax assets will not be realized. The ultimate possible effect from the pandemic relating to COVID -19.
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. The Accounting policy
Management considers the scheduled reversals of deferred Property, plant and equipment are stated at cost, less
income tax liabilities, projected future taxable income and accumulated depreciation and impairment, if any. Costs
tax planning strategies in making this assessment. directly attributable to acquisition are capitalized until the
Based on the level of historical taxable income and projections property, plant and equipment are ready for use, as intended
for future taxable income over the periods in which the by management. The Company depreciates property, plant
deferred income tax assets are deductible, the Management and equipment over their estimated useful lives using
believes that the Group will realize the benefits of those the straight-line method. The estimated useful lives of
deductible differences. The amount of the deferred income assets are as follows:
tax assets considered realizable, however, could be reduced Computer equipment(1) 3-5 years
in the near term if estimates of future taxable income during Plant and Machinery(1) 5 years
the carry forward period are reduced. Furniture and fixtures(1) 5 years
1.5.3 Property, plant and equipment Office equipment(1) 5 years
Leasehold improvements Lower of lease term or
Property, plant and equipment represent a significant
Useful life
proportion of the asset base of the Group. The charge in
respect of periodic depreciation is derived after determining (1)
an estimate of an asset’s expected useful life and the expected useful lives as given above best represent the period over which the
residual value at the end of its life. The useful lives and Management expects to use these assets. Hence, the useful lives for
residual values of Group’s assets are determined by the
of Schedule II of the Companies Act, 2013.
Management at the time the asset is acquired and reviewed
periodically, including at each financial year end. The lives Leasehold improvements are amortized over the lower of the
are based on historical experience with similar assets as well lease term or the useful life of the asset.
as anticipation of future events, which may impact their lives, Depreciation methods, useful lives and residual values are
such as changes in technology. Refer to (Note 2.1.) reviewed periodically, including at each financial year end.
1.5.4 Leases Repairs and maintenance costs are recognized in the
Consolidated Statement of Profit and Loss when incurred.
Ind AS 116 requires lessees to determine the lease term as the
The cost and related accumulated depreciation are eliminated
non-cancellable period of a lease adjusted with any option
from the financial statements upon sale or retirement of the
to extend or terminate the lease, if the use of such option is
asset and the resultant gains or losses are recognized in the
reasonably certain. The Group makes an assessment on the
Consolidated Statement of Profit and Loss.
expected lease term on a lease-by-lease basis and thereby
assesses whether it is reasonably certain that any options Impairment
to extend or terminate the contract will be exercised. In Property, plant and equipment and Intangible assets are
evaluating the lease term, the Company considers factors such evaluated for recoverability whenever events or changes in
as any significant leasehold improvements undertaken over circumstances indicate that their carrying amounts may not
the lease term, costs relating to the termination of the lease and be recoverable. For the purpose of impairment testing, the
the importance of the underlying asset to Infosys’s operations recoverable amount (i.e. the higher of the fair value less cost
taking into account the location of the underlying asset and to sell or the value-in-use) is determined on an individual
the availability of suitable alternatives. The lease term in future asset basis unless the asset does not generate cash flows that
periods is reassessed to ensure that the lease term reflects the are largely independent of those from other assets. In such
current economic circumstances. After considering current cases, the recoverable amount is determined for the cash
and future economic conditions, the Group has concluded generated unit (“CGU”) to which the asset belongs. If such

assets are considered to be impaired, the impairment to be amount of the asset is increased to its revised recoverable
recognized in the Consolidated Statement of Profit and Loss amount, provided that this amount does not exceed the
is measured by the amount by which the carrying value of the carrying amount that would have been determined (net of
assets exceeds the estimated recoverable amount of the asset. any accumulated depreciation) had no impairment loss been
An impairment loss is reversed in the Consolidated Statement recognized for the asset in prior years.
of Profit and Loss if there has been a change in the estimates
used to determine the recoverable amount. The carrying
in US$
Particulars Office Plant and Computer Furniture Leasehold Total
equipment machinery equipment and fixtures improvement
1, 2019 47,411 10,053 549,571 195,508 – 802,543
Additions 67,928 – 234,833 87,912 333,834 724,507
Deletions – (51,972) – – (51,972)
Gross carrying value as of
March 31, 2020 115,340 10,053 732,431 283,420 333,834 1,475,077
April 1, 2019 (34,529) (10,053) (495,143) (188,606) – (728,331)
Depreciation (13,208) – (86,649) (11,765) (39,634) (151,256)
deletions – 51,972 – – 51,972
March 31, 2020 (47,737) (10,053) (529,820) (200,371) (39,634) (827,615)
Carrying value as of April 1,
2019 12,882 – 54,427 6,903 – 74,212
2020 67,602 – 202,611 83,049 294,200 647,462
The changes in the carrying value of property, plant and equipment for the year ended March 31, 2019 were as follows:
in US$
Particulars Office Plant and Computer Furniture Leasehold Total
equipment machinery equipment and fixtures improvement
1, 2018 37,701 10,053 547,109 174,363 - 769,226
Additions 9,710 – 49,242 21,145 – 80,098
Deletions – (46,781) – – (46,781)
March 31, 2019 47,411 10,053 549,571 195,508 – 802,543
April 1, 2018 (28,099) (10,053) (512,419) (174,363) – (724,934)
Depreciation (6,430) – (29,505) (14,242) – (50,178)
deletions – 46,781 – – 46,781
March 31, 2019 (34,529) (10,053) (495,143) (188,606) – (728,331)
Carrying value as of April 1,
2018 9,602 – 34,690 – – 44,292
2019 12,882 – 54,427 6,903 – 74,212
The aggregate depreciation has been included under depreciation and amortization expense in the Consolidated
Statement of Profit and Loss.

2.2 Loans 2.5 Other financial assets
in US$ in US$
2020 2019 2020 2019
Non-current Non-current
Loan receivables considered Interest accrued on loan to
good – Unsecured fellow subsidiaries (1) 299,134 192,349
Loans to fellow Current
subsidiaries 10,000,000 12,000,000 Unbilled revenues (1)(3) 1,448,467 1,851,547
Other loans Interest accrued on loan to
Loans to employees 3,696 3,696 fellow subsidiaries(1) 521,640 26,884
10,003,696 12,003,696 Other receivables from
Unsecured, considered related party(1) 16,502 23,156
doubtful Others(2) 15,089 6,633
Other loans Total 2,300,832 2,100,569
Loans to employees 8,654 9,194 (1)
Financial assets carried at amortized cost.
10,012,350 12,012,890 (2)
Includes dues from holding company and other group companies
Less: Allowance for (3)
Classified as financial asset as right to consideration is unconditional
doubtful loans to and is due only after a passage of time
employees 8,654 9,194
Total non-current loans 10,003,696 12,003,696 2.6 Other current assets
Current in US$
Loan receivables Particulars As at March 31,
considered good – 2020 2019
Unsecured Current
Loans to fellow Payment to vendors for
subsidiaries 15,000,000 3,000,000 supply of goods 9,608 10,346
Other loans Others
Loans to employees 23,817 47,149 Prepaid expenses 1,152,330 138,647
Total current loans 15,023,817 3,047,149 Unbilled revenue(1) 22,907,137 14,960,339
Total loans 25,027,513 15,050,845 Withholding taxes(2) 236,488 435,086
Other receivables 9,475 6,880
2.3 Trade receivables Total Current other assets 24,315,038 15,551,298
in US$
(1)
Classified as a non-financial asset as the contractual right to consideration
Particulars As at March 31, is dependent on completion of contractual milestones.
2020 2019 (2)
Withholding taxes related to employees and VAT
Current
Unsecured 2.7 Equity
Considered good(1) 29,719,229 16,885,331 Equity share capital
Considered doubtful 528,129 355,569 in US$
30,247,358 17,240,900
Less: Allowances on for
2020 2019
credit losses 528,129 355,569
Authorized
Equity shares, USD 0.5 (USD
(1)
includes dues from holding
0.5) par value
company 381,133 621,363
40,000,000 (40,000,000)
equity shares 40,000,000 40,000,000
2.4 Cash and cash equivalents Issued, subscribed and paid-
in US$
up
Particulars As at March 31, Equity shares, USD 0.5 (USD
2020 2019 0.5) par value 17,500,000 17,500,000
Balances with bank 35,000,000 (35,000,000)
In current and deposit equity shares fully paid-up
accounts 19,944,820 36,990,838 17,500,000 17,500,000
19,944,820 36,990,838

The Company has only one class of shares referred to as assets of the Company in proportion to the number of equity
equity shares having a par value of USD 0.5. Each holder of shares held by the shareholders, after distribution of all
equity shares is entitled to one vote per share. preferential amounts.
In the event of liquidation of the Company, the holders of
equity shares will be entitled to receive any of the remaining
The details of shareholder holding more than 5% shares as at March 31, 2020 is as follows :
Name of the shareholder As at March 31,
2020 2019
Number of Number of
shares % held shares % held
Infosys Limited, the holding company 35,000,000 100.00 35,000,000 100.00
The reconciliation of the number of shares outstanding and the amount of share capital as at March 31, 2020 is as follows:
in US$, except as stated otherwise
2020 2019
Number of Number of
shares Amount shares Amount
At the beginning of the period 35,000,000 17,500,000 35,000,000 17,500,000
Add: Shares issued during the period – – – –
At the end of the period 35,000,000 17,500,000 35,000,000 17,500,000

Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Group by the
weighted average number of equity shares outstanding during the period.
2.8 Trade payables
in US $
2020 2019
Trade payables(1) 11,491,049 9,214,162
11,491,049 9,214,162
Includes dues to the holding company and other Group Companies (Refer to Note
(1)
2.18(b)) 9,209,287 8,510,979
2.9 Other financial liabilities

in US $
2020 2019
Current
Others
Compensated absences 922,034 895,014
Accrued compensation to employees (1) 1,651,633 2,026,390
Retention monies (1) 8,535 –
Payable to related parties (1)(2) 190,798 457,847
Others payables (1) 13,438 40,667
12,690,624 11,165,327
Financial liability carried at amortized cost
(1)
Includes dues to the holding company and other Group Companies (Refer to Note 2.18(b))
(2)

2.10 Other current liabilities The movement in provision for post-sales client support and
in US $ other provisions is as follows:
Particulars As at March 31, in US$
2020 2019 Particulars As at March 31,
Current 2020 2019
Unearned revenue 4,677,250 2,798,941 Balance at the beginning 970,176 589,745
Client deposit 122,320 110,000 Provision recognized /
Others (reversed) 613,020 384,880
Withholding taxes Provision utilized 44,565 –
payable 820,597 357,025 Exchange difference (23,150) (4,449)
Total current other liabilities 5,620,167 3,265,966 Balance at the end 1,515,481 970,176
2.11 Provisions Provision for post-sales client support and other provisions are
expected to be utilized over a period of six months to one year.
Accounting policy
2.12 Leases
Group has a present legal or constructive obligation that is Accounting policy
reasonably estimable, and it is probable that an outflow of The Company’s lease asset classes consist of leases for
economic benefits will be required to settle the obligation. buildings. The Company assesses whether a contract contains
Provisions are determined by discounting the expected a lease, at inception of a contract. A contract is, or contains,
future cash flows at a pre-tax rate that reflects current a lease if the contract conveys the right to control the use
market assessments of the time value of money and the risks of an identified asset for a period of time in exchange for
specific to the liability. consideration. To assess whether a contract conveys the right
a. Post sales client support and others to control the use of an identified asset, the Company assesses
whether: (1) the contact involves the use of an identified asset
The Group provides its clients with a fixed-period post-sales
(2) the Company has substantially all of the economic benefits
support on its fixed-price and fixed-timeframe contracts.
from use of the asset through the period of the lease and (3)
Costs associated with such support services are accrued at
the time related revenues are recorded. The Group estimates
such costs based on historical experience and estimates are At the date of commencement of the lease, the Company
reviewed on a periodic basis for any material changes in recognizes a right-of-use asset (“ROU asset”) and a
assumptions and likelihood of occurrence. corresponding lease liability for all lease arrangements in
which it is a lessee, except for leases with a term of 12 months
b. Onerous contracts or less (short-term leases) and low value leases. For these
Provisions for onerous contracts are recognized when short-term and low value leases, the Company recognizes
the expected benefits to be derived by the Group from a the lease payments as an operating expense on a straight-line
contract are lower than the unavoidable costs of meeting basis over the term of the lease.
the future obligations under the contract. The provision is Certain lease arrangements include the options to extend or
measured at the present value of the lower of the expected terminate the lease before the end of the lease term. ROU
cost of terminating the contract and the expected net assets and lease liabilities includes these options when it is
cost of continuing with the contract. Before a provision is reasonably certain that they will be exercised.
established, the Group recognizes any impairment loss on
The ROU assets are initially recognized at cost, which
the assets associated with that contract.
comprises the initial amount of the lease liability adjusted for
Other liabilities consists of the following: any lease payments made at or prior to the commencement
in US$ date of the lease plus any initial direct costs less any lease
Particulars As at March 31, incentives. They are subsequently measured at cost less
2020 2019 accumulated depreciation and impairment losses.
Current ROU assets are depreciated from the commencement date
Others on a straight-line basis over the shorter of the lease term and
Post-sales client support useful life of the underlying asset. ROU assets are evaluated for
and other provisions 1,515,481 970,176 recoverability whenever events or changes in circumstances
Total provisions 1,515,481 970,176 indicate 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 as cash generating unit
(CGU) to which the asset belongs.

The lease liability is initially measured at amortized cost using The break-up of current and non-current lease liability as at
the effective interest rate method at the present value of the March 31, 2020 is as follows:
future lease payments. The lease payments are discounted in US$
using the interest rate implicit in the lease or, if not readily Particulars As at March 31,
determinable, incremental borrowing rates in the countries 2020
of domicile of the leases. Lease liabilities are remeasured with Current lease liability 276,145
a corresponding adjustment to the related ROU asset if the Non-current lease liability 2,074,601
Company changes its assessment if whether it will exercise Total 2,350,746
an extension or a termination option.
Lease liability and ROU asset have been separately presented The movement in lease liability during the year ended March
in the Balance Sheet and lease payments have been classified 31, 2020 is as follows:
as financing cash flows. in US$
Particulars For the year
Transition ended March 31,
Effective April 1, 2019, the Company adopted Ind AS 116, 2020
Leases and applied the standard to all lease contracts existing
on April 1, 2019 using the modified retrospective method and Balance as of April 1, 2019 1,334,938
has taken the cumulative adjustment to retained earnings, on Additions 1,417,876
the date of initial application. Consequently, the Company Deletions –
recorded the lease liability at the present value of the lease Interest accrued during the period 43,114
payments discounted at the incremental borrowing rate and Lease payments (375,729)
the right-of-use asset at its carrying amount as if the standard Translation differences (69,454)
had been applied since the commencement date of the lease, Balance as of March 31, 2020 2,350,746
but discounted at the Company’s incremental borrowing
rate at the date of initial application. Comparatives for the The details regarding the contractual maturities of
year ended March 31, 2019 have not been retrospectively lease liabilities on undiscounted basis as at March
adjusted and therefore will continue to be reported under the 31, 2020 is as follows:
accounting policies for year ended March 31, 2019. in US$
On transition, the adoption of the new standard resulted in Particulars As at March 31,
recognition of ROU asset of US$ 1,149,580 and a lease liability 2020
of US$ 1,334,938. The cumulative effect of applying the
standard of US$ 185,358 was adjusted in retained earnings, Less than one year 314,233
net of taxes. The effect of this adoption is insignificant on the One to five years 1,307,529
profit before tax, profit for the period and earnings per share. More than five years 976,530
Ind AS 116 will result in an increase in cash inflows from Total 2,598,291
operating activities and an increase in cash outflows from
financing activities on account of lease payments. The Company does not face a significant liquidity risk
The following is the summary of practical expedients elected with regard to its lease liabilities as the current assets are
on initial application: sufficient to meet the obligations related to lease liabilities as
1. Applied a single discount rate to a portfolio of leases of similar assets in and when they fall due.
similar economic environment with a similar end date. The aggregate depreciation on ROU assets has been included
2. Applied the exemption not to recognize right-of-use assets and liabilities under depreciation and amortization expense in the
for leases with less than 12 months of lease term on the date of initial consolidated Statement of Profit and Loss.
application.
3. Excluded the initial direct costs from the measurement of the ROU asset 2.13 Income taxes
at the date of initial application.
4. Applied the practical expedient to grandfather the assessment of which Accounting policy
transactions are leases. Accordingly, Ind AS 116 is applied only to Income tax expense comprises current and deferred income
contracts that were previously identified as leases under Ind AS 17.
tax. Income tax expense is recognized in the condensed
The weighted average incremental borrowing rate applied to Consolidated Statement of Profit and Loss except to the extent
lease liabilities as at April 1, 2019 is 1.69%. that it relates to items recognized directly in equity, in which
The changes in the carrying value of right-of-use assets for case it is recognized in other comprehensive income. Current
the year ended March 31, 2020 are as follows: income tax for current and prior periods is recognized at the
in US$ amount expected to be paid to or recovered from the tax
Particulars Buildings Total authorities, using the tax rates and tax laws that have been
Balance as of April 1, 2019 1,149,580 1,149,580 enacted or substantively enacted by the Balance Sheet date.
Additions 1,417,876 1,417,876 Deferred income tax assets and liabilities are recognized for all
Deletions – – temporary differences arising between the tax bases of assets
Depreciation 333,830 333,830 and liabilities and their carrying amounts in the financial
Translation differences – – statements. Deferred tax assets are reviewed at each reporting
Balance as of March 31, 2020 2,233,626 2,233,626
date and are reduced to the extent that it is no longer probable Particulars For the year ended
March 31,
Deferred income tax assets and liabilities are measured using 2020 2019
tax rates and tax laws that have been enacted or substantively Disallowed items – meals
enacted by the Balance Sheet date and are expected to apply and entertainment 133,535 81,656
to taxable income in the years in which those temporary Change in tax rate – –
differences are expected to be recovered or settled. The effect Tax pertaining to prior year (5,603,579) (1,122,882)
of changes in tax rates on deferred income tax assets and Others (40,117) 22,083
liabilities is recognized as income or expense in the period Income tax expense (2,978,306) 4,410,732
that includes the enactment or the substantive enactment
date. A deferred income tax asset is recognized to the extent Tax Cuts and Jobs Act (H.R. 1)” was signed into law on
that it is probable that future taxable profit will be available December 22, 2017 (“US Tax Reforms”). The US tax reforms
against which the deductible temporary differences and tax has added a new tax, the ‘Base Erosion and Anti-abuse Tax’
losses can be utilized. Deferred income taxes are not provided (“BEAT”) effective for tax years beginning after December
on the undistributed earnings of subsidiaries and branches 31, 2017. The Internal Revenue Service (“IRS”) issued
where it is expected that the earnings of the subsidiary or final regulation on December 6, 2019 providing further
branch will not be distributed in the foreseeable future. The clarification on the BEAT computation. Based on the final
Company offsets current tax assets and current tax liabilities, regulation, there is an income tax reversal of US$ 5,459,934,
where it has a legally enforceable right to set off the recognized pertaining to prior year.
amounts and where it intends either to settle on a net basis, or The details of income tax assets and income tax
to realize the asset and settle the liability simultaneously. The liabilities are as follows:
income tax provision for the interim period is made based on in US$
the best estimate of the annual average tax rate expected to Particulars For the year ended
be applicable for the full financial year. March 31,
Income tax expense in the consolidated statement of 2020 2019
profit and loss comprises: Income tax assets 4,160,318 1,528,075
in US$ Current income tax liabilities (548,283) (148,615)
Particulars For the year ended Net income tax assets/
March 31, (liability) at the end 3,612,035 1,379,460
2020 2019
The gross movement in the current income tax asset/
Current tax (2,881,848) 5,041,933
(liability) for the year ended March 31, 2020 and March
Deferred tax (96,458) (631,201)
31, 2019 is as follows:
Income tax (benefit)/ in US$
expense (2,978,306) 4,410,732
Particulars For the year ended
Income tax expense for the year ended March 31, 2020 March 31,
and March 31, 2019 includes reversals (net of provisions) 2020 2019
of US$ 5,603,579 and US$ 1,122,882, respectively, Net income tax asset/
pertaining to prior years. (liability) at the beginning 1,379,460 (6,458)
Entire deferred income tax for the year ended March 31, 2020 Income tax paid/ (refund) (649,274) 6,427,852
and March 31, 2019 respectively relates to origination and Income tax benefit/(expense) 2,881,848 (5,041,933)
reversal of temporary differences. Net income tax asset/
A reconciliation of income tax provision to the amount (liability) at the end 3,612,035 1,379,460
computed by applying the statutory income tax rate to the
income before taxes is summarized below:
in US$
March 31,
2020 2019
Profit before incomes taxes 8,019,076 (694,891)
Enacted tax rate 21% 21%
Computed expected tax
expense 1,684,006 (145,927)
BEAT tax – 5,459,934
State taxes 677,097 (24,484)
Overseas taxes 170,752 140,353

The movement in gross deferred income tax assets for the year ended March 31, 2020 is as follows:
in US$
Particulars Carrying value Changes Carrying Value
as on April 1, through Profit as on March 31,
2019 and loss 2020
Property, plant and equipment 778,590 2,398 780,988
Compensated absences 259,554 156,753 416,307
Accrued compensation 505,141 (174,790) 330,351
Provision for post-sales customer support 281,351 158,138 439,489
Trade receivables 167,363 52,675 220,038
Others 510,553 (98,716) 411,837
Total deferred income tax assets 2,502,552 96,458 2,599,011
The movement in gross deferred income tax assets for the year ended March 31, 2019 was as follows:
in US$
Particulars Carrying value Changes Carrying value
as on April 1, through profit as on March 31,
2018 and loss 2019
Property, plant and equipment 400,343 378,247 778,590
Compensated absences 232,044 27,510 259,554
Accrued compensation 410,096 95,045 505,141
Provision for post-sales customer support 171,026 110,325 281,351
Trade receivables 218,351 (50,988) 167,364
Others 439,492 71,061 510,553
Total deferred income tax assets 1,871,352 631,201 2,502,552
The tax effects of significant temporary differences that resulted 2.14 Revenue
in deferred income tax assets and liabilities are as follows: Revenues from customer contracts are considered for
in US$
recognition and measurement when the contract has been
Particulars For the year ended approved by the parties, in writing, to the contract, the
March 31, parties to contract are committed to perform their respective
2020 2019 obligations under the contract, and the contract is legally
Deferred income tax assets enforceable. Revenue is recognized upon transfer of control
after set-off 2,599,011 2,502,552 of promised products or services (“performance obligations”)
to customers in an amount that reflects the consideration
Deferred tax assets and deferred tax liabilities have been offset
the Group has received or expects to receive in exchange
wherever the Group has a legally enforceable right to set-off
for these products or services (“transaction price”). When
current tax assets against current tax liabilities and where the
there is uncertainty as to collectability, revenue recognition
deferred tax assets and deferred tax liabilities relate to income
is postponed until such uncertainty is resolved.
taxes levied by the same taxation authority.
The Group assesses the services promised in a contract and
In assessing the realizability of deferred tax assets, the
identifies distinct performance obligations in the contract.
Management considers whether it is more likely than not
The Group allocates the transaction price to each distinct
that some portion or all of the deferred tax assets will not
performance obligation based on the relative standalone
be realized. The ultimate realization of deferred tax assets
selling price. The price that is regularly charged for an item
is dependent upon the generation of future taxable income
when sold separately is the best evidence of its standalone
during the periods in which the temporary differences
selling price. In the absence of such evidence, the primary
become deductible. The Management considers the
method used to estimate standalone selling price is the
scheduled reversals of deferred tax liabilities, projected future
expected cost plus a margin, under which the Group estimates
taxable income, and tax planning strategies in making this
the cost of satisfying the performance obligation and then
assessment. Based on the level of historical taxable income
adds an appropriate margin based on similar services.
and projections for future taxable income over the periods in
which the deferred tax assets are deductible, the Management The Group’s contracts may include variable consideration
believes that it is more likely than not that the Company will including rebates, volume discounts and penalties. The
realize the benefit of the deductible differences at March 31, Group includes variable consideration as part of transaction
2020. Accordingly, the Management has recorded deferred price when there is a basis to reasonably estimate the amount
tax asset in its financial statements. of the variable consideration and when it is probable that
a significant reversal of cumulative revenue recognized will

not occur when the uncertainty associated with the variable Particulars For the years ended
consideration is resolved.
March 31,
Revenue on time-and-material contracts are recognized as 2020 2019
the related services are performed. Fixed-price maintenance Europe 9,963 –
revenue is recognized ratably either on a straight-line basis Rest of the world 693,487 –
when services are performed through an indefinite number of Total 156,285,358 150,531,666
repetitive acts over a specified period or using a percentage-
of-completion method when the pattern of benefits from the geographical revenue is based on the domicile of customer.
(1)
services rendered to the customer and Group’s costs to fulfil Trade receivables and contract balances
the contract is not even through the period of contract because The timing of revenue recognition, billings and cash
the services are generally discrete in nature and not repetitive. collections results in receivables, unbilled revenue, and
Revenue from other fixed-price and other fixed-timeframe unearned revenue on the Group’s Balance Sheet. Amounts
contracts, where the performance obligations are satisfied are billed as work progresses in accordance with agreed-upon
over time is recognized using the percentage-of-completion contractual terms, either at periodic intervals (e.g., monthly
method. Efforts or costs expended have been used to determine or quarterly) or upon achievement of contractual milestones.
progress towards completion as there is a direct relationship Receivables are rights to consideration that are unconditional.
between input and productivity. Progress towards completion Unbilled revenues comprising revenues in excess of billings
is measured as the ratio of costs or efforts incurred to date from time and material contracts and fixed-price maintenance
(representing work performed) to the estimated total costs or are classified as financial asset when the right to consideration
efforts. Estimates of transaction price and total costs or efforts is unconditional and is due only after a passage of time.
are continuously monitored over the lives of the contracts
Invoicing to the clients for other fixed price contracts is based
and are recognized in profit or loss in the period when these
on milestones as defined in the contract and therefore the
estimates change or when the estimates are revised. Revenues
timing of revenue recognition is different from the timing of
and the estimated total costs or efforts are subject to revision
invoicing to the customers. Therefore, unbilled revenues for
as the contract progresses. Provisions for estimated losses, if
other fixed-timeframe contracts are classified as non-financial
any, on uncompleted contracts are recorded in the period in
asset (contract asset) because the right to consideration is
which such losses become probable based on the estimated
efforts or costs to complete the contract.
The billing schedules agreed with customers include periodic
performance-based billing and / or milestone-based progress
billings. Revenues in excess of billing are classified as unbilled Trade receivables and unbilled revenues are presented net of
revenue while billing in excess of revenues are classified as impairment in the Balance Sheet.
contract liabilities (referred to as unearned revenues). 2.15 Other income
The Group presents revenues net of indirect taxes in its
Consolidated Statement of Profit and Loss. Accounting policy
Revenues for the year ended March 31, 2020 and March 31, Other income is comprised primarily of interest income and
2019 are as follows: on translation of other assets and liabilities. Interest income
in US$ is recognized using the effective interest method.
Particulars For the years ended Foreign currency
March 31, Functional currency
2020 2019
Revenue from software The functional currency of the Company is the US Dollar. The
services 156,285,358 150,531,666 functional currency for Infosys Canada Public Services Inc is
Total the respective local currencies. These consolidated financial
156,285,358 150,531,666 statements are presented in the US Dollar.
Other income / (expense) consists of the following:
in US$
Disaggregate revenue information
The disaggregated revenues from contracts with customers Particulars For the years ended
for the years ended March 31, 2020 and March 31, 2019 by March 31,
geography are as follows: 2020 2019
Interest income on financial
assets carried at amortized
Particulars For the years ended cost
March 31, Deposits with banks and
2020 2019 others 390,254 317,471
Revenue by geography(1) Loan to fellow subsidiaries 680,104 375,842
North America Exchange gains / (losses)
155,581,908 150,531,666 on translation of other
assets and liabilities (1,265,079) (715,862)
Particulars For the years ended dates to cash flows that are solely payments of principal and
March 31,
2020 2019 (ii) Financial assets at fair value through other
Other miscellaneous comprehensive income (FVOCI)
income net 1,624 3,075 A financial asset is subsequently measured at fair value
Total (193,097) (19,473) through other comprehensive income if it is held within a
business model whose objective is achieved by both collecting
2.16 Expenses contractual cash flows and selling financial assets and the
in US$ contractual terms of the financial asset give rise on specified
Particulars For the years ended dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding. The Group has
March 31,
made an irrevocable election for its investments which are
2020 2019
classified as equity instruments to present the subsequent
changes in fair value in other comprehensive income based
Salaries including bonus 19,310,518 16,977,319
on its business model.
Share-based payments to
employees 258,671 213,071 (iii) Financial assets at fair value through profit or loss
Staff welfare 32,888 44,018 A financial asset which is not classified in any of the above
19,602,077 17,234,408 categories are subsequently fair valued through profit or loss.
Cost of software packages (iv) Financial liabilities
and others Financial liabilities are subsequently carried at amortized cost
For own use 2,376,901 1,820,725 using the effective interest method, except for contingent
2,376,901 1,820,725 consideration recognized in a business combination which
Other expenses is subsequently measured at fair value through profit and loss.
Rates and taxes 81,580 80,966 For trade and other payables maturing within one year from
Branding and marketing the Balance Sheet date, the carrying amounts approximate fair
expenses 153,054 105,623 value due to the short maturity of these instruments.
Provision/(reversal) for
post-sales client support 382,032 384,880 2.17.3 Derecognition of financial instruments
Impairment loss under The Group derecognizes a financial asset when the contractual
expected credit loss model 380,263 (175,568) rights to the cash flows from the financial asset expire or
Rent 17,409 434,876 it transfers the financial asset and the transfer qualifies for
Commission to non- derecognition under Ind AS 109. A financial liability (or a
executive director – (1,667) part of a financial liability) is derecognized from the Group’s
Others 352,987 223,464 Balance Sheet when the obligation specified in the contract
Total 1,367,326 1,052,573 is discharged or cancelled or expires.
2.17.4 Impairment
2.17 Financial Instruments
The Group recognizes loss allowances using the expected
Accounting policy credit loss (ECL) model for the financial assets and unbilled
2.17.1 Initial recognition revenue which are not fair valued through profit or loss.
Loss allowance for trade receivables and unbilled revenue
The Group recognizes financial assets and financial liabilities with no significant financing component is measured at an
when it becomes a party to the contractual provisions of the amount equal to lifetime ECL. For all other financial assets,
instrument. All financial assets and liabilities are recognized expected credit losses are measured at an amount equal to the
at fair value on initial recognition, except for trade receivables 12-month ECL, unless there has been a significant increase
which are initially measured at transaction price. Transaction in credit risk from initial recognition in which case those are
costs that are directly attributable to the acquisition or issue measured at lifetime ECL. The amount of expected credit
of financial assets and financial liabilities, that are not at fair losses or (reversal) that is required to adjust the loss allowance
value through profit or loss, are added to the fair value on at the reporting date to the amount that is required to be
initial recognition. Regular way purchase and sale of financial recognized is recognized as an impairment gain or loss in
assets are accounted for at trade date. interim condensed consolidated Statement of Profit and Loss.
2.17.2 Subsequent measurement
a. Non-derivative financial instruments
(i) Financial assets carried at amortized cost
A financial asset is subsequently measured at amortized cost if
it is held within a business model whose objective is to hold
the asset in order to collect contractual cash flows and the
contractual terms of the financial asset give rise on specified

Financial instruments by category Particulars Canadian Others Total
The carrying value and fair value of financial instruments as Dollar
of March 31, 2020 and March 31, 2019 are as follows: Other
in US$ financial
Particulars As at March 31, liabilities 8,067,349 203,024 8,270,373
2020 2019 Net assets /
Assets: (liabilities) 7,364,192 (202,688) 7,161,504
Cash and cash equivalents
The following table analyzes foreign currency risk from
(Refer to Note 2.4) 19,944,820 36,990,838
financial instruments as of March 31, 2019:
Trade receivables (Refer to in US$
Note 2.3) 29,719,229 16,885,331
Particulars Canadian others Total
Loans (Refer to Note 2.2) 25,027,514 15,050,845
Dollar
Other financial assets (Refer
Cash and cash
to Note 2.5) 2,300,832 2,100,569
equivalents 15,565,280 – 15,565,280
Total 76,992,395 71,027,583
Trade
Liabilities:
receivables 3,361,472 – 3,361,472
Trade payables (Refer to
Other
Note 2.8) 11,491,049 9,214,163
financial assets
Lease liabilities (Refer to
(including
Note 2.12) 2,350,746 -
loans) 24,354 179 24,534
Trade payables 180,243 651 180,894
(Refer to Note 2.9) 12,690,624 11,165,327
Other
Total 26,532,419 20,379,490
financial
Financial risk management liabilities 7,011,180 51,523 7,062,703
Net assets /
Financial risk factors (liabilities) 11,759,683 (51,995) 11,707,689
The Group’s activities expose it to a variety of financial
risks: market risk, credit risk and liquidity risk. The Group’s Credit risk
primary focus is to foresee the unpredictability of financial
markets and seek to minimize potential adverse effects on
the counterparty resulting in a financial loss. The maximum
its financial performance. The primary market risk to the
exposure to the credit risk at the reporting date is primarily
Group is foreign exchange risk. The Group uses derivative
from trade receivables amounting to US$ 29,719,229 and
financial instruments to mitigate foreign exchange related risk
US$ 16,885,331 as of March 31, 2020 and March 31,
exposures. The Group’s exposure to credit risk is influenced
2019, respectively and unbilled revenue amounting to US$
mainly by the individual characteristic of each customer and
24,355,604 and US$ 16,811,886 as of March 31, 2020 and
the concentration of risk from the top few customers.
March 31, 2019, respectively. Trade receivables and unbilled
Market risk revenue are typically unsecured and are derived from revenue
The Group operates internationally and a major portion of the earned from customers primarily located in the United
business is transacted in several currencies and consequently States. Credit risk is managed through credit approvals,
the Group is exposed to foreign exchange risk through its sales establishing credit limits and continuously monitoring the
and services in the United States and elsewhere, and purchases creditworthiness of customers to which the Group grants
from overseas suppliers in various foreign currencies. credit terms in the normal course of business. As per Ind
AS 109, the Group uses expected credit loss model to assess
The following table analyzes foreign currency risk from the impairment loss or gain. The Group uses a provision
financial instruments as of March 31, 2020: matrix to compute the expected credit loss allowance for
in US$
trade receivables and unbilled revenues. The provision matrix
Particulars Canadian Others Total takes into account available external and internal credit risk
Dollar factors such as credit default swap quotes, credit ratings from
Cash and cash international credit rating agencies and the Group’s historical
equivalents 6,296,400 – 6,296,400 experience for customers.
Trade
The following table gives details in respect of percentage of
receivables 10,048,672 – 10,048,672
revenues generated from top customer and top ten customers:
Other in %
financial assets
(including
loans) 777,131 709 777,840 2020 2019
Trade payables 911,307 373 911,679 Revenue from top customer 18 23
Lease liability 779,355 – 779,355 Revenue from top ten
customers 80 84

Credit risk exposure Liquidity risk
The allowance for lifetime expected credit loss on customer The Group’s principal sources of liquidity are cash and
balances for the year ended March 31, 2020 was US$ 172,560. cash equivalents and the cash flow that is generated from
The allowance for lifetime expected credit loss on customer operations. The group believes that the working capital is
balances for the year ended March 31, 2019 was US$ (18,829). sufficient to meet its current requirements.
in US$
As of March 31, 2020, the Group had a working capital
Particulars Year ended March 31, of US$ 58,862,853 including cash and cash equivalents of
2020 2019 US$ 19,944,820 As of March 31, 2019, the Group had a
Balance at the beginning 355,569 374,398 working capital of 49,618,591 including cash and cash
Impairment loss recognized / equivalents of US$ 36,990,838.
(reversed) 172,560 (18,829) As of March 31, 2020 and March 31, 2019, the outstanding
Write-offs – – employee benefit obligations were US$ 922,034 and US$
Translation differences – – 895,014, respectively, which have been substantially funded.
Balance at the end 528,129 355,569 Further, as of March 31, 2020 and March 31, 2019, the
Group had no outstanding bank borrowings. Accordingly,
Credit risk on cash and cash equivalents is limited as we
no liquidity risk is perceived.
generally invest in deposits with banks and financial
institutions with high credit ratings assigned by international
and domestic credit rating agencies.
The details regarding the contractual maturities of significant financial liabilities as of March 31, 2020 are as follows:
in US$
Trade payables 11,491,049 – – – 11,491,049
Other liabilities (Refer to Note 2.9) 11,768,590 – – – 11,768,590
The details regarding the contractual maturities of significant financial liabilities as of March 31, 2019 were as follows:
in US$
Trade payables 9,214,162 – – – 9,214,162
Other liabilities (Refer to Note
2.9) 10,270,313 – – – 10,270,313

(a) List of related parties:
Name of subsidiaries Country Holding as at March 31,
2020 2019
Holding
Infosys Limited Holding Holding
India Company Company
Name of subsidiaries
Infosys Canada Public Services Inc. (19) Canada 100% 100%
Fellow subsidiaries

Stater N.V..(21) The Netherlands

(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
Incorporated effective November 27, 2018.
(20)
(21)
(22)
(23)
(24)
(25)
(26)
Under Liquidation
(27)
(28)
(29)
(30)
(31)
(32)
(b) The details of amounts due to or due from as at March 31, 2020 and March 31, 2019 are as
follows:
in US$
2020 2019
Trade receivables
381,133 621,363
Trade payables
Infosys Limited 9,102,739 8,267,459
Infosys BPM 100,729 173,909
EdgeVerve – 62,512
Infosys China 5,818 7,099
9,209,287 8,510,979
EdgeVerve – 51,475
16,501 62,136

2020 2019
Panaya Inc. 66,284 –
EdgeVerve 9,269 –
190,792 489,003
Loans
Brilliant Basics – 1,000,000
BPO Americas – 500,000
Infosys Middle East FZ - LLC – 1,500,000
Kallidus Inc. 13,000,000 7,500,000
Panaya Inc. 10,000,000 4,000,000
Infosys Austria – 500,000
Outbox System Inc. 2,000,000 –
25,000,000 15,000,000
Accrued Interest on Loan to Fellow Subsidiaries
Brilliant Basics – 4,041
BPO Americas – 13,596
Infosys Middle East FZ - LLC – 9,247
Kallidus Inc. 521,442 147,288
Panaya Inc. 299,134 38,493
Infosys Austria – 6,568
Outbox System Inc. 198 –
820,774 219,233
(c) The details of the related party transactions entered into by the Company for the year ended Mar 31, 2020
and March 31, 2019 are as follows:
In US$
2020 2019
Revenue transactions:
Sale of services
3,760,470 3,660,697
Infosys Limited 105,375,793 109,382,815
Infosys BPM 1,984,399 2,848,255
EdgeVerve 294,966 182,577
Panaya 100,190 58,481
Infosys China 77,827 115,720
Infosys Shanghai – 33,056
107,833,175 112,620,904
In US$
2020 2019
Capital transaction
Loans given / (refund)
BPO Americas (500,000) –
McCamish Systems – (5,500,000)
Kallidus Inc. 5,500,000 7,500,000
Panaya Inc. 6,000,000 4,000,000
Brilliant Basics (1,000,000) –
Infosys Middle East FZ - LLC (1,500,000) –
Infosys Austria (500,000) 500,000
Outbox System Inc. 2,000,000 –
10,000,000 6,500,000

2020 2019
Interest income on loan
McCamish Systems – 108,493
Brilliant Basics 10,000 25,000
BPO Americas 4,329 12,500
Infosys Middle East FZ - LLC 19,233 37,500
Kallidus Inc. 374,154 147,288
Panaya Inc. 260,641 38,493
Infosys Austria 11,549 6,568
Outbox System Inc. 198 –
680,104 375,842

Eric Paternoster Whole-time Director and Chief Executive Officer
Ravikumar Singisetti Director

The table below describes the compensation to key managerial personnel which comprise directors.
In US$
2020 2019
Salaries and other employee benefits to whole-time directors and executive officers 1,191,221 1,093,217
Total 1,191,221 1,093,217

Infy Consulting Company Limited
Strategic Report
The directors present their strategic report for the year ended December 31, 2019.
Principal activity
The principal activity of the Company during the year was the provision of management consultancy services.
Business review and key performance indicators

The results for the year and the financial position at the year-end were considered satisfactory by the directors.
The total turnover increased from £41,329,311 in the year ended December 31, 2018 to £49,760,235 in the year under review.
Pre-tax profits have increased from £3,139,662 to £4,045,468 in 2019. A dividend of £2.6 million (2018: £2.2 million) was
declared and paid in the year.
There has been a continued focused effort to improve profitability during the year, revamp the service offerings to align to the
new-age digital economy and also manage utilization at much higher levels than in prior years, which has helped the overall
financial performance. The utilization rates of employees and staff retention levels are actively reviewed on an ongoing basis
by management who strive for continuous improvement.
As at December 2019, the Company had net assets of £4,072,255 (2018: £2,875,431). The Company’s cash at bank balance
as at December 31, 2019 was £7,174,350 (2018: £6,123,098).
The directors view the future positively despite the ongoing global economic and financial uncertainty. The demand environment
continues to be strong, and with the Company investing in the right-skilled team members, revenues in the year ending
December 31, 2020 are expected to grow whilst profitability levels are maintained. The future revenue portfolio will span
across digital transformation, change management, ERP implementation and advisory services.
The directors are committed to promoting the health, safety and welfare of the staff at the Company’s premises.
The directors are mindful of the environment and has adopted responsible policies to maximize reuse and recycling.
Principal risks and uncertainties

Operating risk
The principal operating risk is the competitive environment of the market in which the Company operates. The Company
manages this risk by providing an independent, high quality and proactive service on a consistent basis to all clients.
Retention and motivation of staff continues to be a priority. The Company manages this by continuing to engage actively with
employees, providing avenues for training and upskilling and an ongoing review of compensation packages, including share-
based retention schemes.
Given the current COVID-19 (“coronavirus”) outbreak, the future economic outlook remains uncertain. Local and
group management are monitoring the situation and are developing contingency plans to mitigate the impact on the
Company where possible.
Liquidity risk
The directors monitor liquid resources on an ongoing basis to ensure the operating needs of the business are met.
Foreign currency risk

The Company undertakes transactions in foreign currencies and the directors are aware of the foreign currency risks. The
directors monitor these risks on a regular basis.
Brexit risk
The Company is exploring potential exposure and will communicate risk to clients proactively for affected programs for UK staff
in EU and vice versa. They will proactively review existing agreements for impact of removing key onsite resources at short notice.
The report was approved by the board and signed on its behalf by:
A Duncan
Director
March 3, 2020
132 | Infy Consulting Company Limited Infosys Subsidiary Financials 2019-20

Directors’ Report
The directors present their report and the financial statements for the year ended December 31, 2019.
Results and dividends

The profit for the year, after taxation, amounted to £3,796,824(2018: £2,595,236).
A dividend of £2,600,000 (2018: £2,200,000) was declared and paid in the financial year.
Directors
The directors who served during the year were:
SP Kingston (resigned December 31, 2019)
MG Livingston (appointed June 6, 2019)
A Duncan (appointed November 11, 2019)
Disabled employees
Disabled persons are employed by the Company where they appear to be suited to a particular position. The aptitude and
abilities of disabled persons are more easily met in certain aspects of the Company’s affairs and every effort is made to ensure
that they are given full and fair consideration.
Matters covered in the strategic report

As permitted by s414c (11) of the Companies Act 2006, the directors have elected to disclose information, required to be in
the directors’ report by Schedule 7 of the ‘Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations
2008’, in the strategic report.
Disclosure of information to auditors

Each of the persons who are directors at the time when this directors’ report is approved has confirmed that:
• so far as the director is aware, there is no relevant audit information of which the company’s auditors are unaware, and
• the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit
information and to establish that the company’s auditors are aware of that information.
Approved by the board and signed on its behalf.
A Duncan
Director
March 3, 2020
Infosys Subsidiary Financials 2019-20 Infy Consulting Company Limited | 133

Directors’ Responsibilities
The directors are responsible for preparing the strategic report, the directors’ report and the financial statements in accordance
with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have
elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United
Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 ‘The Financial Reporting
Standard applicable in the UK and Republic of Ireland’. Under company law the directors must not approve the financial
statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit
or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgments and accounting estimates that are reasonable and prudent;
• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will
continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s
transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to
ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the
assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Independent Auditors’ Report
To the members, as a body, of Infosys Consulting Company Limited
Opinion
We have audited the financial statements of Infosys Consulting Company Limited (the ‘company’) for the year ended December
31, 2019, which comprise the Balance Sheet, the profit and loss account, the statement of changes in equity and the notes to
the financial statements, including a summary of significant accounting policies. The financial reporting framework that has
been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting
Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally
Accepted Accounting Practice).
In our opinion the financial statements:
• give a true and fair view of the state of the Company’s affairs as at December 31, 2019 and of its profit for the year then ended;
• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
• have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial
statements section of our report. We are independent of the Company in accordance with the ethical requirements that are
relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council’s Ethical
Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
•the directors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
•the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt
about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months
from the date when the financial statements are authorized for issue.
Other information
The directors are responsible for the other information. The other information comprises the information included in the
annual report, other than the financial statements and our auditors’ report thereon. Our opinion on the financial statements
does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any
form of assurance conclusion thereon.
in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material
misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material
misstatement of the other information. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:
• the information given in the strategic report and the directors’ report for the financial year for which the financial statements
are prepared is consistent with the financial statements; and
• the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we
have not identified material misstatements in the strategic report or the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to
report to you if, in our opinion:
• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches
not visited by us; or
• the financial statements are not in agreement with the accounting records and returns; or
• certain disclosures of directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement on page 5, the directors are responsible for the preparation of
the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors
determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether
In preparing the financial statements, the directors are responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements

misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting
Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.
Use of our report

This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act
2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required
to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company and the Company’s members, as a body, for our audit work, for this
report, or for the opinions we have formed.
Christopher Shepherd (senior statutory auditor) for and on behalf of

Blick Rothenberg Audit LLP
Chartered Accountants Statutory Auditor
16 Great Queen Street Covent Garden London
WC2B 5AH

Profit and Loss Account
In £
Note 2019 2018
Turnover 3 49,760,235 41,329,311
Cost of sales (43,954,332) (36,788,389)
Gross profit 5,805,903 4,540,922
Administrative expenses (2,073,120) (2,097,210)
Other operating income 284,365 580,309
Operating profit 4 4,017,148 3,024,021
Interest receivable and similar income 7 28,720 115,641
Interest payable and similar expenses 8 (400) -
Profit before taxation 4,045,468 3,139,662
Tax on profit 9 (248,644) (544,426)
Profit for the financial year 3,796,824 2,595,236

Balance Sheet
In £
Particulars Note As at December 31,
2019 2018
Fixed assets
Tangible assets 11 64,973 19,283
Current assets
Debtors: amounts falling due within one year 12 11,678,838 10,399,339
Cash at bank and in hand 7,174,350 6,123,098
18,853,188 16,522,437
Creditors: amounts falling due within one year 13 (14,845,906) (13,666,289)
Net current assets 4,007,282 2,856,148
Net assets 4,072,255 2,875,431
Capital and reserves
Called up share capital 15 50,000 50,000
Profit and loss account 16 4,022,255 2,825,431
Total equity 4,072,255 2,875,431
The financial statements were approved and authorized for issue by the sole director.
A. Duncan
Director
London
March 3, 2020

In £
Particulars Called up share Profit and loss Total equity
capital account
At January 1, 2018 50,000 2,430,195 2,480,195
Comprehensive income for the financial year
Profit for the financial year - – 2,595,236 2,595,236
Total comprehensive income for the year - – 2,595,236 2,595,236
Contributions by and distributions to owners –
Dividends: Equity capital - – (2,200,000) (2,200,000)
Total transactions with owners - – (2,200,000) (2,200,000)
At December 31, 2018 and January 1, 2019 50,000 2,825,431 2,875,431
Comprehensive income for the financial year
Profit for the financial year - – 3,796,824 3,796,824
Total comprehensive income for the year - – 3,796,824 3,796,824
Contributions by and distributions to owners –
Dividends: Equity capital - – (2,600,000) (2,600,000)
Total transactions with owners - – (2,600,000) (2,600,000)
At December 31, 2019 50,000 4,022,255 4,072,255
The notes on pages 140 to 145 form part of these financial statements.

Notes to the financial statements
1 General information Rendering of services

Infosys Consulting Company Limited provides management Revenue from a contract to provide services is recognized in
consultancy services. the period in which the services are provided in accordance
The Company is a private company limited by shares and with the terms of the contract. At each year end revenue
is incorporated in England and Wales. The address of its from unbilled services provided are included within accrued
registered office and principal place of business is 14th Floor, income and any amounts invoiced in advance are deferred to
10 Upper Bank Street, Canary Wharf, London, E14 5NP. the accounting period when those services will be provided.
The financial statements are presented in Pound Sterling (£). The stage of completion is determined on the basis of the
actual completion of a proportion of the total services to
2 Accounting policies be rendered. An expected loss on a contract is recognized
immediately in the profit and loss account.
2.1 Basis of preparation of financial statements
The financial statements have been prepared under the 2.4 Other operating income
historical cost convention unless otherwise specified within Other operating income relates to management fees receivable
these accounting policies and in accordance with Financial and is accounted for on an accruals basis.
Reporting Standard 102, the Financial Reporting Standard
applicable in the UK and the Republic of Ireland (‘FRS102’) 2.5 Tangible fixed assets
and the Companies Act 2006. Tangible fixed assets under the cost model are stated at
The Company has taken advantage of the following disclosure historical cost less accumulated depreciation and any
exemptions in preparing these financial statements, as accumulated impairment losses. Historical cost includes
permitted by FRS 102: expenditure that is directly attributable to bringing the asset
to the location and condition necessary for it to be capable of
• Section 3 Financial Statement Presentation paragraph operating in the manner intended by management.
3.17(d) (inclusion of statement of cash flows);
Depreciation is charged so as to allocate the cost of assets less
• Section 7 Statement of Cash Flows (inclusion of their residual value over their estimated useful lives, using the
statement of cash flows); straight-line method.
• Section 11 Financial Instruments paragraphs 11.41, 11.42, Depreciation is provided on the following basis:
11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b)
and 11.48(c) (disclosures relating to financial instruments); Computer equipment 33%
• Section 26 Share based payments (disclosure of The assets’ residual values, useful lives and depreciation
share based payments); methods are reviewed, and adjusted prospectively if
• Section 33 Related Party Disclosures paragraph 33.7 appropriate, or if there is an indication of a significant change
(disclosures of key management personnel compensation). since the last reporting date.
• The Company’s financials will be included in the Gains and losses on disposals are determined by comparing
consolidated financial statements of Infosys Limited for the the proceeds with the carrying amount and are recognized in
year ended March 31, 2020 and these financial statements the profit and loss account.
may be obtained from www.infosys.com.
The following principal accounting policies have been applied:
The Company has elected to apply Sections 11 and 12 of FRS
2.2 Going concern 102 in respect of financial instruments.
After making enquiries, the directors have a reasonable Financial assets and financial liabilities are recognized
expectation that the Company has adequate resources to when the Company becomes party to the contractual
continue in operational existence and meet its liabilities as provisions of the instrument.
they fall due for the foreseeable future, being a period of at Financial liabilities and equity instruments are classified
least twelve months from the date these financial statements according to the substance of the contractual arrangements
were approved. Accordingly, they continue to adopt the going entered into. An equity instrument is any contract that
concern basis in preparing the financial statements. evidences a residual interest in the assets of the Company
after deducting all of its liabilities.
2.3 Revenue
The Company’s policies for its major classes of financial assets
Revenue is recognized to the extent that it is probable that
and financial liabilities are set out below.
the economic benefits will flow to the Company and the
revenue can be reliably measured. Revenue is measured as
the fair value of the consideration received or receivable,
excluding discounts, rebates, value added tax and other
sales taxes. The following criteria must also be met before
revenue is recognized:

Financial assets the asset are transferred to another party or (c) despite having
Basic financial assets, including trade and other debtors, cash retained some significant risks and rewards of ownership,
and bank balances, intercompany working capital balances control of the asset has been transferred to another party
and intercompany financing, are initially recognized at who has the practical ability to unilaterally sell the asset to an
transaction price, unless the arrangement constitutes a unrelated third party without imposing additional restrictions.
financing transaction, where the transaction is measured at Financial liabilities are derecognized when the liability
the present value of the future receipts discounted at a market is extinguished, that is when the contractual obligation is
rate of interest for a similar debt instrument. Financing discharged, cancelled or expires.
transactions are those in which payment is deferred beyond
Offsetting of financial assets and financial liabilities
normal business terms or is financed at a rate of interest that
is not a market rate. Financial assets and liabilities are offset and the net amount
reported in the Balance Sheet when there is an enforceable
Such assets are subsequently carried at amortized cost using
right to set off the recognized amounts and there is an
the effective interest method, less any impairment.
intention to settle on a net basis or to realize the asset and
Financial liabilities settle the liability simultaneously.
Basic financial liabilities, including trade and other creditors, 2.8 Cash and cash equivalents
and intercompany working capital balances, are initially
recognized at transaction price, unless the arrangement Cash is represented by cash in hand and deposits with financial
constitutes a financing transaction, where the debt instrument institutions repayable without penalty on notice of not more
is measured at the present value of the future payments than 24 hours. Cash equivalents are highly liquid investments
discounted at a market rate of interest for a similar debt that mature in no more than three months from the date of
instrument. Financing transactions are those in which acquisition and that are readily convertible to known amounts
payment is deferred beyond normal business terms or is of cash with insignificant risk of change in value.
financed at a rate of interest that is not a market rate. 2.9 Share capital
Debt instruments are subsequently carried at amortized cost, Ordinary shares are classified as equity.
using the effective interest rate method.
2.10 Foreign currency translation
Impairment of financial assets
Financial assets measured at cost and amortized cost Functional and presentation currency
are assessed at the end of each reporting period for The Company’s functional and presentational currency
objective evidence of impairment. If objective evidence of is Pound Sterling (£).
impairment is found, an impairment loss is recognized in the
Transactions and balances
profit and loss account.
Foreign currency transactions are translated into the
For financial assets measured at cost less impairment, the
functional currency using the spot exchange rates at the dates
impairment loss is measured as the difference between the
of the transactions.
asset’s carrying amount and the best estimate of the amount
the Company would receive for the asset if it were to be sold At each period end foreign currency monetary items are
at the reporting date. translated using the closing rate. Non-monetary items
measured at historical cost are translated using the exchange
For financial assets measured at amortized cost, the
rate at the date of the transaction and non-monetary items
measured at fair value are measured using the exchange rate
asset’s carrying amount and the present value of estimated
when fair value was determined.
cash flows discounted at the asset’s original effective interest
rate. If the financial asset has a variable interest rate, the Foreign exchange gains and losses resulting from the
discount rate for measuring any impairment loss is the settlement of transactions and from the translation at
current effective interest rate determined under the contract. period-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognized in the
If there is a decrease in the impairment loss arising from
an event occurring after the impairment was recognized,
the impairment is reversed. The reversal is such that Foreign exchange gains and losses that relate to borrowings
the current carrying amount does not exceed what the and cash and cash equivalents are presented in the profit and
carrying amount would have been had the impairment not loss account within ‘interest receivable and similar income
previously been recognized. The impairment reversal is or interest payable and similar expenses’. All other foreign
recognized in profit or loss. exchange gains and losses are presented in the profit and loss
account within ‘administrative expenses’.
Derecognition of financial assets and financial liabilities
Financial assets are derecognized when (a) the contractual
rights to the cash flows from the asset expire or are settled, or
(b) substantially all the risks and rewards of the ownership of

2.11 Finance costs 2.15 Holiday pay accrual
Finance costs are charged to the profit and loss account over A liability is recognized to the extent of any unused holiday
the term of the debt using the effective interest method so pay entitlement which is accrued at the Balance Sheet date
that the amount charged is at a constant rate on the carrying and carried forward to future periods. This is measured at the
amount. Issue costs are initially recognized as a reduction in undiscounted salary cost of the future holiday entitlement so
the proceeds of the associated capital instrument. accrued at the Balance Sheet date.
2.12 Dividends 2.16 Interest income
Equity dividends are recognized when they become legally Interest income is recognized in the profit and loss account
payable. Interim equity dividends are recognized when paid. using the effective interest method.
Final equity dividends are recognized when approved by the
shareholders at an annual general meeting. 2.17 Current and deferred taxation
The tax expense for the year comprises current and deferred
2.13 Share based payments tax. Tax is recognized in the profit and loss account, except
Where share options are awarded to employees, the fair value that a charge attributable to an item of income and expense
of the options at the date of grant is charged to the profit recognized as other comprehensive income or to an item
and loss account over the vesting period. Non-market vesting recognized directly in equity is also recognized in other
conditions are taken into account by adjusting the number comprehensive income or directly in equity respectively.
of equity instruments expected to vest at each Balance Sheet Current tax is the amount of income tax payable in respect of
date so that, ultimately, the cumulative amount recognized taxable profit for the year or prior years.
over the vesting period is based on the number of options that
The current income tax charge is calculated on the basis of
eventually vest. Market vesting conditions are factored into the
tax rates and laws that have been enacted or substantively
fair value of the options granted. The cumulative expense is
enacted by the Balance Sheet date in the countries where the
not adjusted for failure to achieve a market vesting condition.
Company operates and generates income.
The fair value of the award also takes into account non-vesting
Deferred tax arises from timing differences that are differences
conditions. These are either factors beyond the control of
between taxable profits and total comprehensive income as
either party (such as a target based on an index) or factors
stated in the financial statements. These timing differences
which are within the control of one or other of the parties (such
arise from the inclusion of income and expenses in tax
as the Company keeping the scheme open or the employee
assessments in periods different from those in which they
maintaining any contributions required by the scheme).
are recognized in the financial statements.
Where the terms and conditions of options are modified before
Deferred tax balances are recognized in respect of all timing
they vest, the increase in the fair value of the options, measured
differences that have originated but not reversed by the
immediately before and after the modification, is also charged
Balance Sheet date, except that:
to profit and loss account over the remaining vesting period.
• the recognition of deferred tax assets is limited to the
Where equity instruments are granted to persons other than
extent that it is probable that they will be recovered
employees, the profit and loss account is charged with fair
against the reversal of deferred tax liabilities or other future
value of goods and services received.
taxable profits; and
2.14 Pensions • any deferred tax balances are reversed if and
when all conditions for retaining associated tax
Defined contribution pension plan
allowances have been met.
The Company operates a defined contribution plan for its
Deferred tax balances are not recognized in respect of
employees. A defined contribution plan is a pension plan
permanent differences. Deferred tax is determined using
under which the Company pays fixed contributions into a
tax rates and laws that have been enacted or substantively
separate entity. Once the contributions have been paid the
enacted by the Balance Sheet date.
Company has no further payment obligations.
The contributions are recognized as an expense in the profit
and loss account when they fall due. Amounts not paid are
shown in accruals as a liability in the Balance Sheet. The
assets of the plan are held separately from the Company in
independently administered funds.

3. Turnover 7. Interest receivable
In £
The whole of the turnover is attributable to the provision of
services. Analysis of turnover by country of destination: Particulars 2019 2018
In £ Interest receivable from
group companies
Particulars 2019 2018
28,720 115,641
United Kingdom 1,011,346 96,317
Rest of Europe 914,361 992,556
Rest of the world 47,834,528 40,240,438 8. Interest payable and similar expenses
In £
49,760,235 41,329,311
2019 2018
4. Operating profit Other interest payable 400 -
The operating profit is stated after charging:
In £
9. Taxation
In £
Particulars 2019 2018 2019 2018
Depreciation of tangible Corporation tax
fixed assets 30,511 36,904 Current tax on profit for
Fees payable to the the financial year 803,802 680,461
company’s auditor and its Adjustments in respect of
associates for the audit of the previous periods (535,199) (139,011)
company’s annual financial Total current tax 268,603 541,450
statements 17,900 17,000 Deferred tax
Fees payable to the Origination and reversal of
company’s auditor and its timing differences (19,959) 2,976
associates for other services Total deferred tax (19,959) 2,976
to the company 2,295 1,525
Tax on profit 248,644 544,426
Exchange differences 23,182 23,969
Factors affecting tax charge for the year
5. Employees
The tax assessed for the year is lower than (2018 -lower than)
Staff costs, including directors’ remuneration, were as follows the standard rate of corporation tax in the UK of 19% (2018
In £
- 19%). The differences are explained below:
Particulars 2019 2018 In £
Wages and salaries 24,035,504 22,917,593
Social security costs 3,086,363 3,251,061
Cost of defined contribution
Profit multiplied by standard
scheme
rate of corporation tax in the
1,023,526 969,321
UK of 19% (2018 - 19%) 768,639 596,536
28,145,393 27,137,975
Effects of:
The average monthly number of employees, including the Expenses not deductible
directors, during the year was as follows: for tax purposes 15,204 15,396
In numbers Capital allowances for year
Particulars 2019 2018 in excess of depreciation (23,239) (4,630)
Consultants 215 205 Adjustments to tax charge
Management 11 11 in respect of prior periods (535,199) (139,011)
226 216 Other timing differences
leading to an increase in
taxation 23,239 76,135
6. Directors’ remuneration
In £
Total tax charge for the
financial year 248,644 544,426
Directors’ emoluments 442,633 420,414
The highest paid director
received remuneration of
£442,633 (2018 -£420,414).

Factors that may affect future tax charges Amounts owed by group undertakings, including a loan that
A reduction to the UK corporation tax rate to 17%, effective carries interest at a rate of 1.75%, have no fixed repayment
from April 1, 2020, was substantively enacted as part of the date and are repayable on demand.
Finance (No. 2) Act 2016 on September 6, 2016. Deferred 13. Creditors amounts falling due within one
taxes at the Balance Sheet date have been measured using
year
the enacted tax rates based on when the timing difference is In £
expected to reverse and reflected in these financial statements.
10. Dividends Trade creditors 602,857 1,129,816
In £ Amounts owed to group
2019 2018 undertakings 6,346,897 5,330,927
Dividends declared and paid 2,600,000 2,200,000 Corporation tax 423,005 829,548
Taxation and social insurance 1,662,587 1,534,252
11. Tangible fixed assets Other creditors 469,111 151,926
Accruals and deferred
Computer equipment income 5,341,449 4,689,820
In £
14,845,906 13,666,289
Particulars 2019
Cost Amounts owed to group undertakings are interest free, have
At January 1, 2019 400,907 no fixed repayment date and are repayable on demand.
Additions 77,206
14. Deferred taxation
Disposals (1,268) In £
At December 31, 2019 476,845
2019
Depreciation
At beginning of year 42,091
At January 1, 2019 381,624
Charged to profit or loss 19,958
Charge for the year 30,511
At end of year 62,049
Disposals (263)
At December 31, 2019 411,872 The deferred tax asset is made up as follows:
Net book value In £
At December 31, 2019 64,973
2019 2018
At December 31, 2018 19,283
Accelerated capital
allowances 29,006 32,286
12. Debtors Other timing differences 33,043 9,805
In £
62,049 42,091
Trade debtors 331,431 34,308 Allotted, called up and fully paid
Amounts In £
owed by group 2019 2018
undertakings 10,487,432 9,595,042 50,000 (2018:50,000)
Other debtors 8,387 100,304 Ordinary shares of £1.00
Prepayments and each 50,000 50,000
accrued income 254,830 158,377
Tax recoverable 534,709 469,217 There is a single class of ordinary share. There are no
Deferred taxation 62,049 42,091 restrictions on the distribution of dividends and the
11,678,838 10,399,339 repayment of capital.

15. Reserves 17. Related party transactions
Profit and loss account The Company has taken advantage of the exemption
The profit and loss account includes all current and prior contained in FRS 102 Section 33 “Related Party Disclosures”
period retained profits and losses. from disclosing transactions with entities which are a wholly-
owned part of the group.
16. Share based payments
18. Parent undertaking and controlling party
Equity-settled share-based payments
The immediate parent undertaking is Infosys Consulting
Employees of the Company participate in the share option
Holding AG, a company incorporated in Switzerland.
plan established by the ultimate parent undertaking, Infosys
Group financial statements are prepared but are not
Limited. The ultimate parent undertaking’s current share
available to the public.
option plans include the 2015 Stock Incentive Compensation
Plan, (“the 2015 plan”). The ultimate parent undertaking is Infosys Limited, whose
registered office is Electronics City, Hosur Road, Bengaluru,
The maximum number of shares to be issued in the ultimate
560100, India. Group financial statements are available
parent undertaking under the 2015 Plan shall not exceed
from www.infosys.com.
24,038,883 equity shares. 17,038,883 equity shares will be
issued as restricted stock units at par value and 7,000,000 The immediate controlling party is Infosys Consulting
equity shares will be issued as stock options at market price. Holding AG, a company incorporated in Switzerland. In the
These instruments will vest over a period of four years and opinion of the director there is no ultimate controlling party.
the group expects to grant the options under the 2015 Plan
over the period of four to seven years.
The vesting conditions are:
• The vesting period is four years and shares vest in equal
amounts at the end of each year.
• In case of an employee leaving due to death or disability
any unvested shares will vest in full at the time of
the employee leaving.
• In case of employees leaving for any other reason (resignation,
termination etc.), any unvested shares will lapse.
• In case of an employee transferring to another company
within the Infosys Group there will be no effect on his /
her vesting schedule.
• In case an employee being on long term leave in excess of
one year, the vesting period shall also be extended for the
duration of leave exceeding one year.

Infosys Technologies (China) Co. Limited
Auditor’s Report
The Board of Directors of Infosys Technologies (China) Co. Limited
1. Opinion
We have audited the accompanying financial statements of Infosys Technologies (China) Co. Limited (the “Company”), which
comprise the Balance Sheet as at 31 December 2019, the Statement of Income, the Statement of Cash Flow, and the Statement
of Changes in Owners’ equity for the year then ended, and notes to the financial statements.
In our opinion, the accompanying financial statements of the Company is prepared and present fairly, in all material respects,
the Company’s financial position as of 31 December 2019, and the Company’s results of operation and cash flow for the year
ended in accordance with Accounting Standards for Business Enterprises.
2. Basis for Opinion

We conducted our audit in accordance with China Standards on Auditing. Our responsibilities under those standards are further
described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent
of the Company in accordance with the code of ethics for Chinese Certified Public Accountants, and we have fulfilled our other
ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
3. Responsibilities of the Management and Those Charged with Governance for the
Financial Statements
The Management of the Company is responsible for the preparation and fair presentation of the financial statements in
accordance with Accounting Standards for Business Enterprises, and designing, implementing and maintaining internal control
that is necessary to enable the financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Management is responsible for assessing the Company’s ability to continue as a going
the Management either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
4. Auditor’s Responsibilities for the Audit of the Financial Statements

misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion solely to you. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with China Standards
on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these financial statements.
As part of an audit in accordance with China Standards on Auditing, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
(4) Conclude on the appropriateness of the management’s use of the going concern basis of accounting and, based on the audit
the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
(5) Evaluate the overall presentation, structure and content of the financial statements (including the disclosures), and whether
148 | Infosys Technologies (China) Co. Limited Infosys Subsidiary Financials 2019-20
We communicated with those charged with governance regarding, among other matters, the planned scope and timing of the
Deloitte Touche Tohmatsu Chinese Certified Public Accountant

Certified Public Accountants LLP
Shanghai, China
21 May 2020
The auditor’s report and the accompanying financial statements are English translations of the Chinese auditors’ report and
statutory financial statements prepared under accounting principles and practices generally accepted in the People’s Republic
of China. These financial statements are not intended to present the financial position and results of operations and cash flows
in accordance with accounting principles and practices generally accepted in other countries and jurisdictions. In case the
English version does not conform to the Chinese version, the Chinese version prevails
Infosys Subsidiary Financials 2019-20 Infosys Technologies (China) Co. Limited | 149
Balance Sheet
In RMB
Note VIII As at December 31,
2019 2018
ASSETS
Current assets
Cash and bank balances 1 29,112,402.41 74,259,889.67
Accounts receivable 2 293,629,386.14 233,068,983.43
Prepayments 3,023,652.84 4,429,168.54
Other receivables 3 62,054,363.30 62,873,945.42
Other current assets 239,279.22 5,164,474.16
Total current assets 388,059,083.91 379,796,461.22
Non-current assets
Fixed assets 4 3,498,864.77 6,974,601.62
Construction in progress 5 39,380.53 –
Long-term deferred expenses 6 190,460.95 131,562.18
Total non-current assets 3,728,706.25 7,106,163.80
TOTAL ASSETS 391,787,790.16 386,902,625.02
LIABILITIES AND OWNERS’ EQUITY
Current liabilities
Short-term loans 7 74,645,340.00 73,397,319.66
Accounts payable 64,214,824.86 65,295,786.37
Employee benefits payable 8 24,627,593.81 29,137,238.94
Taxes payable 9 3,029,187.13 2,668,415.74
Other payables 30,175,627.64 28,544,288.18
Other current liabilities 43,371,052.36 38,183,123.83
Total current liabilities 240,063,625.80 237,226,172.72
Total liabilities 240,063,625.80 237,226,172.72
Owners’ equity
Paid in capital 10 398,980,400.00 398,980,400.00
Capital reserve 11 51,575,614.42 51,575,614.42
Accumulated losses (298,831,850.06) (300,879,562.12)
Total owners’ equity 151,724,164.36 149,676,452.30
TOTAL LIABILITIES AND OWNERS’ EQUITY 391,787,790.16 386,902,625.02
The accompanying notes form part of the financial statements.
Stone Zhu Subrata Das

Legal representative Head of Accounting Department
Statement of Income
In RMB
Particulars Note VIII For the year ended December 31,
2019 2018
I.Operating income 12 720,350,028.47 724,792,740.78
Less: Operating costs 646,552,845.09 659,612,655.38
Taxes and surcharges 120,000.13 215,597.00
Selling expenses 11,918,993.74 18,762,108.47
Administrative expenses 61,278,866.10 54,914,778.63
Financial expenses 13 3,898,722.09 6,313,939.92
Add: Other income 14 3,836,289.87 11,409,404.20
Impairment losses of assets 15 1,526,280.38 1,345,863.18
Impairment losses on disposal of assets 104,540.49 (1,159,943.98)
II.Operating Income (loss) 2,047,712.06 (3,431,015.22)
III. Total Income (loss) 2,047,712.06 (3,431,015.22)
Less: Income tax expense 16 – –
IV.Net profit (loss) for the year 2,047,712.06 (3,431,015.22)
V.Other comprehensive loss, net of tax – –
VI.Total comprehensive income (loss) for the year 2,047,712.06 (3,431,015.22)
The accompanying notes form part of the financial statements
In RMB
Particulars Note VIII For the year ended December 31,
2019 2018
I. Cash Flows from Operating Activities
Cash receipts from the sale of goods and the rendering of
services 688,722,218.77 778,797,778.78
Receipts of tax refunds 118,589.24 384,121.99
Proceeds from other operating activities 8,162,600.14 16,252,205.79
Sub-total of cash inflows from operating activities 697,003,408.15 795,434,106.56
Payments for goods purchased and services received 394,687,608.28 364,224,677.07
Payments to and on behalf of employees 305,142,871.75 389,033,327.70
Payments of various types of taxes 4,107,767.42 10,028,645.48
Other cash payments relating to operating activities 37,651,231.22 52,632,736.23
Sub-total of cash outflows from operating activities 741,589,478.67 815,919,386.48
Net Cash Flow used in Operating Activities 18 (44,586,070.52) (20,485,279.92)
II. Cash Flows from Investing Activities
Net cash receipts from disposals of fixed assets,
intangible assets and other long-term assets 104,540.49 36,500.00
Sub-total of cash inflows from investing activities 104,540.49 36,500.00
Payments for acquisition of fixed assets and other
long-term deferred expenses 868,150.81 2,836,044.68
Sub-total of cash outflows from investing activities 868,150.81 2,836,044.68
Net Cash Flow used in Investing Activities (763,610.32) (2,799,544.68)
III . Effect of Foreign Exchange Rate Changes
on Cash and Cash Equivalents 202,193.58 838,729.85
IV . Net Increase in Cash and Cash Equivalents 18 (45,147,487.26) (22,446,094.75)
Add: Opening balance of Cash and Cash Equivalents 74,259,889.67 96,705,984.42
V. Closing Balance of Cash and Cash Equivalents 18 29,112,402.41 74,259,889.67
Statement of Changes in Owner’s Equity
In RMB
Particulars Paid-in capital Capital reserve Accumulated Total owners’
losses equity
I. Balance at 1 January 2019 398,980,400.00 51,575,614.42 (300,879,562.12) 149,676,452.30
II.Changes in equity during the year
(1)
Total comprehensive income – – 2,047,712.06 2,047,712.06
III.Balance at 31 December 2019 398,980,400.00 51,575,614.42 (298,831,850.06) 151,724,164.36
I. Balance at 1 January 2018 398,980,400.00 51,575,614.42 (297,448,546.90) 153,107,467.52
II.Changes in equity during the year
(1)
Total comprehensive income – – (3,431,015.22) (3,431,015.22)
III.Balance at 31 December 2018 398,980,400.00 51,575,614.42 (300,879,562.12) 149,676,452.30
The accompanying notes form part of the financial statements
I. Basic information II. Basis for the preparation of financial

Infosys Technologies (China) Co. Limited (the “Company”), statements
formerly known as Infosys Technologies (Shanghai) Co.
Limited, is a wholly foreign-owned enterprise established in Going concern
Shanghai in the People’s Republic of China (PRC) by Infosys The Management has assessed the Company’s ability to
Limited (formerly Infosys Technologies Limited) registered in continue as a going concern for the 12 months commencing
India. The Company obtained an approval certificate Wai Jing from 31 December 2019, and noticed no items will raise
Mao Hu Zhang Du Zi Zi (2003) No. 2893 from the Shanghai substantial doubt about its ability to continue as a going
Municipal Government on September 25, 2003, and a concern. Therefore, the financial statements have been
business license (Qi Du Hu Pu Zong Zi No.317745 (Pudong)) prepared on the going concern basis.
on October 10, 2003, issued by Shanghai Administration of
Industry & Commerce of the PRC. The original registered III. Statements of compliance with the ASBE
capital was USD 5,000,000. The financial statements of the Company have been prepared
In 2006, the Company’s Board of Directors resolved to change in accordance with Accounting Standards for Business
the Company’s name from Infosys Technologies (Shanghai) Enterprises (“ASBE”), and present truly and completely,
Co. Limited to Infosys Technologies (China) Co. Limited the Company’s financial position as of 31 December
and to increase the Company’s registered capital from USD 2019, and the Company’s results of operations and cash
5,000,000 to USD 10,000,000. The Company obtained a flows for the year ended.
revised approval certificate Wai Jing Mao Hu Zhang Du Zi
Zi (2003) No.2893 and a revised business licence (Qi Du IV. Significant accounting policies and
Hu Pu Zong Zi No.317745 (Pudong)) on July 14, 2006 and accounting estimates
December 14, 2006, respectively. The following significant accounting policies and accounting
The Company’s Board of Directors resolved to increase estimates are determined in accordance with ASBE.
the Company’s registered capital by USD 13,000,000. The
registered capital was increased from USD 10,000,000 to 1. Accounting year
USD 23,000,000. The Company obtained approval from the The Company has adopted the calendar year as its accounting
Shanghai Municipal Government for the change on January year, i.e. from 1 January to 31 December.
15, 2009. The Company also obtained a revised approval
certificate Shang Wai Zi Hu Pu Du Zi Zi (2003) No.2893 and 2. Functional currency
a revised business license No.310115400134785 (Pudong) Renminbi (‘RMB’) is the currency of the primary economic
on January 15, 2009 and March 13, 2009, respectively. environment in which the Company operates. Therefore, the
In 2015, the Company’s Board of Directors resolved to increase Company chooses RMB as its functional currency and adopts
the Company’s registered capital from USD 23,000,000 to RMB to prepare its financial statements.
USD 33,000,000. The Company obtained approval from the 3. Basis of accounting and principle of
Shanghai Municipal Government for the change on March
measurement
5, 2015. The Company also obtained a revised approval
certificate Shang Wai Zi Hu Pu Du Zi Zi (2003) No.2893 and The Company has adopted the accrual basis of accounting.
a revised business license No.310115400134785 (Pudong) Except for certain financial instruments which are measured
on March 5, 2015 and May 18, 2015, respectively. at fair value, the Company has adopted the historical cost
as the principle of measurement of the financial statements.
In 2016, the Company’s Board of Directors resolved to increase
Where assets are impaired, provisions for asset impairment
the Company’s registered capital from USD 33,000,000 to
are made in accordance with relevant requirements.
USD 58,000,000. The Company obtained approval from the
China (Shanghai) Free Trade Zone Management Committee Where the historical cost is adopted as the measurement
for the change on June 1, 2016. The Company also obtained basis, assets are recorded at the amount of cash or cash
a renewed business licence with the unified social credit code equivalents paid or the fair value of the consideration given
of 913101157547751363 on June 7, 2016. to acquire them at the time of their acquisition. Liabilities
are recorded at the amount of proceeds or assets received or
The Company’s period of operation is 50 years and its
the contractual amounts for assuming the present obligation,
principal activities are to carry out research, develop, design
or, at the amounts of cash or cash equivalents expected to be
and produce software; sell self-produced products; provide
paid to settle the liabilities in the normal course of business.
related technology consulting services and after sale services;
develop computer and network technology; provide testing Fair value is the price that would be received to sell an asset
and maintenance of software solutions; provide business or paid to transfer a liability in an orderly transaction between
consulting services and business process management; export market participants at the measurement date, regardless
and import computer hardware and software, wholesale, of whether that price is directly observable or estimated
commission agency (excluding auction); offshore call using valuation technique. Fair value measurement and/
center service and etc.
or disclosure in the financial statements are determined financial assets. All regular way purchases or sales of financial
according to the above basis. assets are recognized and derecognized on a trade date basis.
Fair value measurements are categorized into Level 1, 2 or The financial assets held by the Company are mainly classified
3 based on the degree to which the inputs to the fair value to loans and receivables.
measurements are observable and the significance of the Loans and receivables
inputs to the fair value measurement in its entirety, which
Loans and receivables are non-derivative financial assets
are described as follows:
with fixed or determinable payments that are not quoted
Level 1 inputs are unadjusted quoted prices in active in an active market. Financial assets classified as loans and
markets for identical assets or liabilities that the entity can receivables by the Company include accounts receivable.
access at the measurement date;
Loans and receivables are subsequently measured at
Level 2 inputs are inputs, other than quoted prices included amortized cost using the effective interest method. Gain or
within Level 1, that are observable for the asset or liability, loss arising from derecognition, impairment or amortization
either directly or indirectly; and is recognized in profit or loss.
Level 3 inputs are unobservable inputs for the asset or liability.
5.3. Impairment of financial assets
4. Cash and cash equivalents The Company assesses at each Balance Sheet date the carrying
Cash comprises cash on hand and deposits that can be readily amounts of financial assets other than those at fair value
withdrawn on demand. Cash equivalents are the Company’s through profit or loss. If there is objective evidence that a
short-term, highly liquid investments that are readily financial asset is impaired, the Company determines the
convertible to known amounts of cash and which are subject amount of any impairment loss. Objective evidence that a
to an insignificant risk of changes in value. financial asset is impaired is evidence that, arising from one
or more events that occurred after the initial recognition of
5. Financial instruments the asset, the estimated future cash flows of the financial asset,
which can be reliably measured, have been affected.
Financial assets and financial liabilities are recognized when
the Company becomes a party to the contractual provisions Objective evidence that a financial asset is impaired includes
of the instrument. Financial assets and financial liabilities the following observable events:
are initially measured at fair value. For financial assets 1. Significant financial difficulty of the issuer or obligor;
and financial liabilities at fair value through profit or loss, 2. A breach of contract by the borrower, such as a default or
transaction costs are immediately recognized in profit or loss. delinquency in interest or principal payments;
For other financial assets and financial liabilities, transaction 3. The lender, for economic or legal reasons relating to the
costs are included in their initial recognized amounts. borrower’s financial difficulty, granting a concession to the
5.1. Effective interest method borrower;
The effective interest method is a method of calculating the 4. It becoming probable that the borrower will enter
amortized cost of a financial asset or a financial liability bankruptcy or other financial reorganization;
(including a group of financial assets or financial liabilities) 5. The disappearance of an active market for that financial
and of allocating the interest income or interest expense asset because of financial difficulties of the issuer;
over the relevant period, using the effective interest rate. 6. Upon an overall assessment of a group of financial assets,
The effective interest rate is the rate that exactly discounts observable data indicates that there is a measurable
estimated future cash flows through the expected life of the decrease in the estimated future cash flows from the
financial asset or financial liability or, where appropriate, a group of financial assets since the initial recognition of
shorter period to the net carrying amount of the financial those assets, although the decrease cannot yet be identified
asset or financial liability. with the individual financial assets in the group. Such
When calculating the effective interest rate, the Company observable data includes:
estimates future cash flows considering all contractual - Adverse changes in the payment status of
terms of the financial asset or financial liability (without borrowers in the group;
considering future credit losses), and also considers all fees
- Economic conditions in the country or region of
paid or received between the parties to the contract giving
the borrower which may lead to a failure to pay
rise to the financial asset and financial liability that are an
the group of assets;
integral part of the effective interest rate, transaction costs,
and premiums or discounts, etc. 7. Significant adverse changes in the technological, market,
economic or legal environment in which the issuer
5.2. Classification, recognition and operates, indicating that the cost of the investment in the
measurement of financial assets equity instrument may not be recovered by the investor;
On initial recognition, the Company’s financial assets are 8. A significant or prolonged decline in the fair value of an
classified into one of the four categories, including financial investment in an equity instrument below its cost;
assets at fair value through profit or loss, held-to-maturity 9. Other objective evidence indicating there is an impairment
investments, loans and receivables, and available-for-sale of a financial asset.
Impairment of financial assets measured at (an existing borrower) and an existing lender to replace
amortized cost the original financial liability with a new financial liability
If financial assets carried at amortized cost are impaired, the with substantially different terms is accounted for as an
carrying amounts of the financial assets are reduced to the extinguishment of the original financial liability and the
present value of estimated future cash flows (excluding future recognition of a new financial liability.
credit losses that have not been incurred) discounted at the When the Company derecognizes a financial liability or a
financial asset’s original effective interest rate. The amount part of it, it recognizes the difference between the carrying
of reduction is recognized as an impairment loss in profit amount of the financial liability or part of the financial
or loss. If, subsequent to the recognition of an impairment liability derecognized and the consideration paid (including
loss on financial assets carried at amortized cost, there is any non-cash assets transferred or new financial liabilities
objective evidence of a recovery in value of the financial assumed) in profit or loss.
assets which can be related objectively to an event occurring
after the impairment is recognized, the previously recognized
5.6. Offsetting financial assets and financial
impairment loss is reversed. However, the reversal is made liabilities
to the extent that the carrying amount of the financial asset When the Company has a legal right that is currently
at the date the impairment is reversed does not exceed what enforceable to set off the recognized financial assets and
the amortized cost would have been had the impairment financial liabilities, and intends either to settle on a net basis,
not been recognized. or to realize the financial asset and settle the financial liability
For a financial asset that is individually significant, the simultaneously, financial assets and financial liabilities
Company assesses the asset individually for impairment. For a are offset with the net amounts presented on the Balance
financial asset that is not individually significant, the Company Sheet. Otherwise, financial assets and financial liabilities are
assesses the asset individually for impairment or includes the separately presented on the Balance Sheet without offsetting.
asset in a group of financial assets with similar credit risk
characteristics and collectively assesses them for impairment. 6. Fixed assets
If the Company determines that no objective evidence of Fixed assets are tangible assets that are held for use in the
impairment exists for an individually assessed financial asset production or supply of goods or services, for rental to others,
(whether significant or not), it includes the asset in a group or for administrative purposes, and have useful lives of more
of financial assets with similar credit risk characteristics than one accounting year. A fixed asset is recognized only
and collectively reassesses them for impairment. Assets for when it is probable that economic benefits associated with the
which an impairment loss is individually recognized are not asset will flow to the Company and the cost of the asset can be
included in a collective assessment of impairment. measured reliably. Fixed assets are initially measured at cost.
Subsequent expenditures incurred for the fixed asset are
5.4. Classification, recognition and
included in the cost of the fixed asset and if it is probable that
measurement of financial liabilities economic benefits associated with the asset will flow to the
Financial instruments issued by the Company are classified Company and the subsequent expenditures can be measured
in accordance with the economic substance of the contractual reliably. Meanwhile the carrying amount of the replaced part is
arrangements instead of the legal form as well as the derecognized. Other subsequent expenditures are recognized
definitions of a financial liability and an equity instrument; in profit or loss in the period in which they are incurred.
on initial recognition, financial instruments or their A fixed asset is depreciated over its useful life using the straight-
component parts are classified as either financial liabilities line method since the month subsequent to the one in which
or equity instruments. it is ready for intended use. The depreciation method, useful
On initial recognition, financial liabilities are classified into life, estimated net residual value rate and annual depreciation
financial liabilities at fair value through profit or loss and rate of each category of fixed assets are as follows:
other financial liabilities. The Company’s financial liabilities
Category Useful life Estimated Annual
mainly represent other financial liabilities.
net residual depreciation
The financial liabilities held by the Company mainly include value rate rate
other financial liabilities. Electronic
Other financial liabilities equipment 1-5 years 0% 20%-100%
Office
Other financial liabilities, except liabilities of financial equipment 1-5 years 0% 20%-100%
guarantee contracts, are subsequently measured at
Transport
amortized cost using the effective interest method, with
equipment 5 years 0% 20%
gain or loss arising from derecognition or amortization
recognized in profit or loss. Estimated net residual value of a fixed asset is the estimated
amount that the Company would currently obtain from
5.5. Derecognition of Financial Liabilities
disposal of the asset, after deducting the estimated costs
The Company derecognizes a financial liability (or part of of disposal, if the asset were already of the age and in the
it) only when the underlying present obligation (or part condition expected at the end of its useful life.
of it) is discharged. An agreement between the Company
If a fixed asset is upon disposal or no future economic benefits Payment made by the Company of social security contributions
are expected to be generated from its use or disposal, the fixed for employees such as premiums or contributions on medical
asset is derecognized. When a fixed asset is sold, transferred, insurance, work injury insurance and maternity insurance,
retired or damaged, the amount of any proceeds on disposal etc. and payments of housing funds, as well as trade union
of the asset net of the carrying amount and related taxes is fund and employee education fund provided in accordance
recognized in profit or loss for the period. with relevant requirements, are calculated according to
The Company reviews the useful life and estimated net prescribed bases and percentages in determining the amount
residual value of a fixed asset and the depreciation method of employee benefits and recognized as relevant liabilities,
applied at least once at each financial year-end, and account with a corresponding charge to the profit or loss for the
for any change as a change in an accounting estimate. period or the costs of relevant assets in the accounting period
in which employees provide services.
7. Construction in progress During the accounting period of rendering service to employees
Construction in progress is measured at its actual costs. The of the Company, amount which should be paid according to
actual costs include various construction expenditures during defined contribution plans is recognized as liabilities, and
the construction period and other relevant costs. Construction recognized in profit or loss or related costs of assets.
in progress is not depreciated. Construction in progress is A liability for a termination benefit is recognized in profit
transferred to a fixed asset when it is ready for intended use. or loss for the period at the earlier of when the Company
cannot unilaterally withdraw from the termination plan or
8. Long-term deferred expenses the redundancy offer and when the Company recognizes any
Long-term prepaid expenses represent expenses incurred related restructuring costs or expenses.
that should be borne and amortized over the current and
subsequent periods (together of more than one year). 11. Revenue recognition
Long-term prepaid expenses are amortized using the 11.1. Income from rendering of services
straight-line method over the expected periods in which
benefits are derived. Revenue is recognized when the amount of revenue can be
measured reliably; it is probable that the associated economic
9. Impairment of non-financial assets benefits will flow to the enterprise; the stage of completion of
the transaction can be determined reliably; and the associated
The Company reviews the fixed assets and other long-term costs incurred or to be incurred can be measured reliably.
assets at each Balance Sheet date to determine whether there Revenue from rendering of services is recognized using the
is any indication that they have suffered an impairment loss. percentage of completion method at the Balance Sheet date.
If an impairment indication exists, the recoverable amount The stage of completion of a transaction for rendering for
is estimated. Intangible assets with indefinite useful life services is determined based on work performed.
and intangible assets not yet available for use are tested for
impairment annually, irrespective of whether there is any When the outcome of the transaction involving the rendering
indication that the assets may be impaired. of services cannot be estimated reliably, revenue is recognized
only to the extent of the costs incurred that will be recoverable,
Recoverable amount is estimated on individual basis. If it and the costs incurred are recognized as expenses for the
is not practical to estimate the recoverable amount of an period. When it is not probable that the costs incurred will
individual asset, the recoverable amount of the asset group be recovered, revenue is not recognized.
to which the asset belongs will be estimated. The recoverable
amount of an asset or asset group is the higher of its fair value 12. Government grants
less costs of disposal and the present value of the future cash Government grants are monetary assets and non-monetary
flows expected to be derived from the asset. assets from the government to the Company at no
If such recoverable amount is less than its carrying amount, consideration. A government grant is recognized only when
a provision for impairment losses in respect of the deficit is the Company can comply with the conditions attaching to the
recognized in profit or loss for the period. grant and the Company will receive the grant.
Once the impairment loss of such assets is recognized, it is If a government grant is in the form of a transfer of a monetary
not be reversed in any subsequent period. asset, it is measured at the amount received or receivable.
A government grant related to an asset is recognized as
10. Employee benefits deferred income and included in profit or loss over the useful
Actually occurred short-term employee benefits are recognized life of the related asset.
as liabilities, with a corresponding charge to the profit or For a government grant related to income, if the grant is a
loss for the period or in the costs of relevant assets in the compensation for related expenses or losses to be incurred
accounting period in which employees provide services to the in subsequent periods, the grant is recognized as deferred
Company. Staff welfare expenses incurred by the Company income over the periods in which the related costs or losses
are recognized in profit or loss for the period or the costs of are recognized; If the grant is a compensation for related
relevant assets based on the actually occurred amounts when expenses or losses already incurred, the grant is recognized
it actually occurred. Non-monetary staff welfare expenses are immediately in profit or loss.
measured at fair value.
A government grant related to the Company’s daily activities 13.3. Income tax offsetting
is recognized in other income or written off related cost When the Company has a legal right to settle on a net basis
and expense based on the nature of economic activities; and intends either to settle on a net basis or to realize the assets
a government grant is not related to the Company’s daily and settle the liabilities simultaneously, current tax assets and
activities is recognized in non-operating income and expenses. current tax liabilities are offset and presented on a net basis.
13. Income taxes When the Company has a legal right to settle current tax
assets and liabilities on a net basis, and deferred tax assets
Tax expense comprises current income tax and and deferred tax liabilities relate to income taxes levied by the
deferred income tax. same taxation authority on either the same taxable entity or
13.1. Current income taxes different taxable entities which intend either to settle current
tax assets and liabilities on a net basis or to realize the assets
At the Balance Sheet date, current income tax liabilities (or
and liabilities simultaneously, in each future period in which
assets) for the current and prior periods are measured at the
significant amounts of deferred tax assets or liabilities are
amount expected to be paid (or recovered) according to the
expected to be reversed, deferred tax assets and deferred tax
requirements of tax laws.
liabilities are offset and presented on a net basis.
13.2. Deferred tax assets and deferred tax
liabilities 14. Transactions denominated in foreign
For temporary differences between the carrying amounts of currencies
certain assets or liabilities and their tax base, or between the A foreign currency transaction is recorded, on initial
nil carrying amount of those items that are not recognized as recognition, by applying the spot exchange rate on the
assets or liabilities and their tax base that can be determined date of the transaction.
according to tax laws, deferred tax assets and liabilities are At the Balance Sheet date, foreign currency monetary items
recognized using the Balance Sheet liability method. are translated into RMB using the spot exchange rates at the
Deferred tax is generally recognized for all temporary Balance Sheet date. Exchange differences arising from the
differences. Deferred tax assets for deductible temporary differences between the spot exchange rates prevailing at the
differences are recognized to the extent that it is probable that Balance Sheet date and those on initial recognition or at the
taxable profits will be available against which the deductible previous Balance Sheet date are recognized in profit or loss for
temporary differences can be utilized. However, for temporary the period, except that (1) exchange differences related to a
differences associated with the initial recognition of goodwill specific-purpose borrowing denominated in foreign currency
and the initial recognition of an asset or liability arising from that qualify for capitalization are capitalized as part of the
a transaction (not a business combination) that affects neither cost of the qualifying asset during the capitalization period;
the accounting profit nor taxable profits (or deductible (2) exchange differences related to hedging instruments
losses) at the time of transaction, no deferred tax asset or for the purpose of hedging against foreign currency risks
liability is recognized. are accounted for using hedge accounting; (3) exchange
For deductible losses and tax credits that can be carried differences arising from available-for-sale non-monetary
forward, deferred tax assets are recognized to the extent that it items (such as shares) denominated in foreign currencies and
is probable that future taxable profits will be available against changes in the carrying amounts (other than the amortized
which the deductible losses and tax credits can be utilized. cost) of available-for-sale monetary items are recognized as
other comprehensive income and included in capital reserve.
At the Balance Sheet date, deferred tax assets and liabilities
are measured at the tax rates, according to tax laws, that are Foreign currency non-monetary items measured at historical
expected to apply in the period in which the asset is realized cost are translated to the amounts in functional currency
or the liability is settled. at the spot exchange rates on the dates of the transactions
and the amounts in functional currency remain unchanged.
Current and deferred tax expenses or income are recognized Foreign currency non-monetary items measured at fair value
in profit or loss for the period, except when they arise from are re-translated at the spot exchange rate on the date the
transactions or events that are directly recognized in other fair value is determined. Difference between the re-translated
comprehensive income or in owners’ equity, in which case they functional currency amount and the original functional
are recognized in other comprehensive income or in owners’ currency amount is treated as changes in fair value (including
equity; and when they arise from business combinations, in changes of exchange rate) and is recognized in profit and loss
which case they adjust the carrying amount of goodwill. or as other comprehensive income.
At the Balance Sheet date, the carrying amount of deferred
tax assets is reviewed and reduced if it is no longer probable
that sufficient taxable profits will be available in the future
to allow the benefit of deferred tax assets to be utilized. Such
reduction in amount is reversed when it becomes probable
that sufficient taxable profits will be available.
15. Leases assets with similar nature and function and may be changed
significantly due to technical renovation. The Company will
Leases are classified as finance leases whenever the terms
change accounting estimate when the expected useful life
of the lease transfer substantially all the risks and rewards
and expected net residual value of fixed assets are different
of ownership to the lessee. All other leases are classified
from the previous ones.
as operating leases.
15.1 The Company as lessee under operating VI. Changes in accounting policy
leases The Group started adopting the Notice of the Revised Format
of 2019 Financial Statements for General Business Enterprise
Operating lease payments are recognized on a straight-line
(Cai Kuai (2019) No. 6, hereinafter referred to as the “Cai Kuai
basis over the term of the relevant lease, and are either
No.6 Document”) released by the MoF on 30 April 2019 since
included in the cost of related asset or charged to profit or
the preparation of financial statements for the year of 2019.
loss for the period. Initial direct costs incurred are charged to
Cai Kuai No.6 Document revised the presenting accounts in
profit or loss for the period. Contingent rents are charged to
the Balance Sheet and income statement, split “Notes and
profit or loss in the period in which they are actually incurred.
Accounts Receivable” into “Notes receivable” and “Accounts
V. Basis of determining significant accounting receivable”, and split “Notes and Accounts Payable” into
policies and key assumptions and uncertainties in “Notes payable” and “Accounts payable”, specified or revised
accounting estimates the presenting contents of “Non-current assets due within
one year” “Deferred income”, “Other equity instruments”,
In the application of the Company’s accounting policies,
“Research and Development Expenditure”, “Interest Income”
which are described in Note IV, the Company is required
“Other Income”, and “Income from disposal of assets”, under
to make judgments, estimates and assumptions about
“Financial expenses”, “Non-operating income” and “Non-
the carrying amounts of items in the financial statements
operating income” and adjusted the presenting location of
that cannot be measured accurately, due to the internal
“ Loss from impairment of assets”, and specified presenting
uncertainty of the operating activities. These judgments,
content of the line item of “capital contribution from other
estimates and assumptions are based on historical experience
equity holder. The Company has accounted for the above
of the Company’s management as well as other factors that
changes in presenting accounts retrospectively, and adjusted
are considered to be relevant. Actual results may differ
comparable data for prior year.
from these estimates.
The aforementioned judgments, estimates and assumptions VII. Taxation
are reviewed regularly on a going concern basis. The effect of
Value-added tax
a change in accounting estimate is recognized in the period
of the change, if the change affects that period only; or Value added tax (‘VAT’) on sales is calculated at 6% on revenue
recognized in the period of the change and future periods, if of rendering of services according to the relevant requirements
the change affects both. of tax laws and paid after deducting input VAT on purchases.
- Key assumptions and uncertainties in accounting estimates Based on the zero VAT rate policy, the oversea revenue of the
Company is exempted from VAT.
The following are the key assumptions and uncertainties in
accounting estimates at the Balance Sheet date, which have Income tax
a significant risk of causing a material adjustment to the The statutory income tax rate of the Company is 25%. The
carrying amounts of assets and liabilities in future periods. applicable income tax rate for the year is a preferential rate
Deferred tax assets of 15% (in 2018: 15%). Pursuant to Pu Shui Jiu Suo [2011]
071 issued by Shanghai Pudong State Administration of
The Management of the Company considers that it is
Tax No. 9 Branch on December 27, 2011, the Company is
uncertain for the Company to obtain enough income tax
entitled a preferential tax treatment for software company.
payable in the future, so the Company did not recognize RMB
According to the notice, the Company was exempted from
248,592,741.01 of deductible losses as deferred tax assets at
corporate income tax for 2010 and 2011. Further, the
the end of this year according to Note VIII. 16.
Company is entitled to a preferential tax rate of 12.5% for
Impairment of receivables 2012-2014 and a preferential tax rate of 15% for 2015-2018.
According to Note IV. 5, the Company will examine the book The Company obtains the certificate of advanced technology
value of receivables at each Balance Sheet date to recognize service enterprise on December 16, 2019, and the Company
impairment loss when it is higher than the expected cash is entitiled to tax rate of 15% in 2019. The accumulated
flow which is recognized by applying judgment and estimate. tax loss of the Company on December 31, 2019 has not
been fully deducted, therefore, the income tax of this year
Useful life and expected residual value of fixed has not been accrued.
assets
Other taxes
According to Note IV. 6, the Company reviews the useful
life and expected residual value of fixed assets at the end Urban maintenance and construction tax is levied at 1% of
of each year at least. The useful life and expected residual the VAT actually paid.
value of fixed assets are estimated based on historical Educational surcharge is levied at 3% of the VAT actually paid.
experience in actual useful life and residual value of fixed Local educational tax is levied at 2% of the VAT actually paid.
VIII. Notes to the financial statements
1. Cash and bank balances
In RMB
2019 2018
Deposits with banks 29,112,402.41 74,259,889.67
2. Accounts receivable
(1)The customer analysis of accounts receivable is as follows:
In RMB
160 | Infosys Technologies (China) Co. Limited

2019 2018
Amounts due from related parties 55,516,595.40 48,971,949.97
Amounts due from other customers 252,442,043.34 200,125,026.82
Sub-total 307,958,638.74 249,096,976.79
Less: Bad debt provision (14,329,252.60) (16,027,993.36)
Total 293,629,386.14 233,068,983.43
(2)The ageing analysis of accounts receivable is as follows:

In RMB
Aging As at December 31,
2019 2018
Amount Ratio Bad debt Book value Amount Ratio Bad debt provision Book value
provision
Within 1 year 262,352,798.74 85.19 (2,213,259.05) 260,139,539.69 231,488,731.18 92.92 (447,785.79) 231,040,945.39
1 to 2 years 31,494,958.95 10.23 (121,224.54) 31,373,734.41 14,386,491.32 5.78 -12,358,453.28 2,028,038.04
2 to 3 years 13,025,888.46 4.23 (10,909,776.42) 2,116,112.04 193,919.89 0.08 (193,919.89) –
More than 3 years 1,084,992.59 0.35 (1,084,992.59) – 3,027,834.40 1.22 (3,027,834.40) –
Total 307,958,638.74 100 (14,329,252.60) 293,629,386.14 249,096,976.79 100 (16,027,993.36) 233,068,983.43
(3)The analysis of the movements of bad debt provision for accounts receivable is as follows:
In RMB
2019 2018
Opening balance 16,027,993.36 21,561,322.81
Provision during the year 14,525,405.94 16,027,993.36
Reversals during the year (16,051,686.32) (17,373,856.54)
Written-off during the year – (4,709,836.00)
Exchange difference (172,460.38) 522,369.73
Closing balance 14,329,252.60 16,027,993.36

3. Other receivables
The ageing analysis of other receivables is as follows:
In RMB
2019 2018
Amount Ratio Bad debt Book value Amount Ratio Bad debt Book value
provision provision
Within 1 year 4,553,198.56 7.34 – 4,553,198.56 57,093,290.44 90.81 – 57,093,290.44
1 to 2 years 54,498,958.91 87.82 – 54,498,958.91 687,171.46 1.09 – 687,171.46
2- 3 years 494,078.72 0.8 – 494,078.72 690,300.00 1.1 – 690,300.00
More than 3
years 2,508,127.11 4.04 – 2,508,127.11 4,403,183.52 7 – 4,403,183.52
Total 62,054,363.30 100 – 62,054,363.30 62,873,945.42 100 – 62,873,945.42
Note:
Other receivables due within 1 year include loans of RMB 50,000,000.00 to Infosys Technologies (Shanghai) Co. Limited in
2017, out of which RMB 15,000,000.00 was originally due on 11 May 2018 and then was extended until the lender requires
repayment, and RMB 35,000,000.00 was originally due on 27 July 2018 and then was extended until the lender requires
repayment. As at the Balance Sheet date, RMB 7,490,958.91 of interest income has been recognized. For more details please
refer to Notes IX. (3)(b)(c).
Other receivables due over 3 years are lease deposits.
4. Fixed assets
In RMB
Electronic Office equipment Transport Total
equipment equipment
Cost
January 1, 2019 99,554,251.74 50,231,900.84 248,000.00 150,034,152.58
Additions during the year 392,317.94 84,832.13 – 477,150.07
Decrease (9,432,549.36) (7,273,958.77) (248,000.00) (16,954,508.13)
Balance at 31 December 2019 90,514,020.32 43,042,774.20 – 133,556,794.52
January 1, 2019 (93,591,728.98) (49,219,821.98) (248,000.00) (143,059,550.96)
Charge for the year (3,528,723.73) (424,163.19) – (3,952,886.92)
Decrease 9,432,549.36 7,273,958.77 248,000.00 16,954,508.13
Balance at 31 December 2019 (87,687,903.35) (42,370,026.40) – (130,057,929.75)
Carrying amounts
December 31, 2019 2,826,116.97 672,747.80 – 3,498,864.77
December 31, 2018 5,962,522.76 1,012,078.86 – 6,974,601.62
5. Construction in progress
In RMB
Balance at 1 January 2018 and 31 December 2018 –

Additions during the year 1,675,994.85
Transfer to fixed assets (477,150.07)
Other transfer out (1,159,464.25)
Balance at 31 December 2019 39,380.53
6. Long-term deferred expenses

In RMB
2019 2018
Leasehold improvement 190,460.95 131,562.18
7. Short-term loans
In RMB
2019 2018
Unsecured loans 74,645,340.00 73,397,319.66
Short-term loans include a loan from Infosys Limited for the purposes of business operation. The principal of the loan is USD
10,000,000.00 (equivalent to RMB 69,762,000.00), bearing interest per annum at 6.00%. The term of loan was 1 year. The
loan was subsequently extended to February 2020.
Another short-term loan is from Infosys Poland Sp. z o.o. for the purpose of business operation. The principal of the loan is
USD 700,000.00 (equivalent to RMB 4,883,340.00 ), bearing interest per annum at 3.50%. The loan was subsequently extended
to 29 December 2020.
8. Employee benefits payable
In RMB
Item 1/1/2019 Provision for the Provision for the 31/12/2019
year year
Wages or salaries, bonus,
allowances, subsidies 29,137,238.94 237,228,626.98 (241,738,272.11) 24,627,593.81
Social security contributions – 19,352,236.11 (19,352,236.11) –
Including: Medical insurance – 16,120,746.44 (16,120,746.44) –
Unemployment insurance – 860,401.73 (860,401.73) –
Maternity and work injury
insurance – 2,371,087.94 (2,371,087.94) –
Defined contribution plans (Note) – 27,291,304.31 (27,291,304.31) –
Housing funds – 16,761,059.22 (16,761,059.22) –
Total 29,137,238.94 300,633,226.62 (305,142,871.75) 24,627,593.81
Note: Defined contribution plans

The Company participates in basic pension insurance plan established by government in accordance with the relevant
requirements. According to the plan, the Company makes a monthly contribution equivalent to the ratio of 16%, 14%, 16%
and 16%, in Shanghai, Hangzhou, Beijing and Dalian respectively, of the employee’s monthly basic wage based on last year’s
salary. The Company no longer undertake further payment obligation. The corresponding cost charges to the profit or loss for
the current period or the cost of a relevant asset when occur.
9. Taxes payable
In RMB
Category As at December 31,
2019 2018
Individual income tax 572,084.22 881,868.94
Withholding income tax and VAT 2,457,102.91 1,786,546.80
Total 3,029,187.13 2,668,415.74
10. Paid in capital

The registered capital of the Company is USD 58,000,000.00 which has been in place as at 31 December 2019. The contribution
by the investor according to the Articles of Association is as follows:
As at December 31,
2019 2018
USD Ratio % Equivalent to USD Ratio % Equivalent to
RMB RMB
Infosys Limited 58,000,000.00 100 398,980,400.00 58,000,000.00 100 398,980,400.00
11. Capital reserve

Capital reserve represents accounts payable that was waived by the Parent Company and other Infosys companies.
12. Operating income
In RMB
2019 2018
Income from principal activities
Rendering of services 720,350,028.47 724,792,740.78
Total 720,350,028.47 724,792,740.78
13. Financial expenses

In RMB
2019 2018
Interest expenses 4,616,866.84 4,699,611.57
Interest income (3,506,728.15) (3,976,873.01)
Exchange gains (losses) 2,788,583.40 5,591,201.36
Total 3,898,722.09 6,313,939.92
14. Other income

In RMB
2019 2018
Government grants (Note 1) 3,836,289.87 11,409,404.20
Total 3,836,289.87 11,409,404.20
(1) Government grants

In RMB
2019 2018
Income tax service charges refund 351,490.84 384,122.00
Government grant for training 128,100.00 68,000.00
Subsidy on import and export contract 1,070,000.00 1,600,000.00
Support fund – 8,730,000.00
Subsidy on job stabilization 160,915.43 627,282.20
Financial Subsidy 1,270,000.00 –
10% additional deduction of VAT in of Service Industry 775,916.36 –
Subsidy for disabled employment 70,805.69 –
Others 9,061.55 –
Total 3,836,289.87 11,409,404.20
15. Impairment Losses of assets

In RMB
2019 2018
Bad debt losses 1,526,280.38 1,345,863.18
16. Income tax expense

2019 2018
Current income tax expenses – –
Deferred income tax expenses – –
Total – –
No provision for income tax has been made as the Company had a tax loss for the year.
As described in Note V, the Company’s management is uncertain that there will be sufficient taxable profit in future periods, so
the deferred tax assets related to the accumulated deductible losses as at 31 December 2019 amounting to RMB 248,592,741.01
is not recognized. Among the accumulated deductible losses, RMB 41,463,934.32, RMB 54,149,412.24, RMB 135,839,954.14
and RMB 17,139,440.31 will expire in 2020, 2021, 2022 and 2023 respectively.
Reconciliation of income tax expenses to the accounting profit is as follows:
In RMB
2019 2018
Accounting losses 2,047,712.06 (3,431,015.22)
Expected income tax expense at tax rate of 15% 307,156.81 (514,652.28)
Tax effect of non-deductible expenses 282,287.22 269,900.38
Unused deductible loss – 4,297,647.31
Temporary differences for deferred tax assets not recognized 394,769.33 (4,052,895.41)
Tax effect of using unrecognized deductible loss and deductible temporary
difference in previous years (984,213.36) –
Income tax expense – –
17. Supplement to statement of income

Expenses in the income statement are analyzed by their nature:
In RMB
2019 2018
Employee benefits expenses 312,660,047.11 378,610,722.14
Depreciation and amortization expenses 5,053,452.40 7,265,864.71
Rental payments 11,297,922.98 19,244,133.45
Financial expense 3,898,722.09 6,313,939.92
Other expenses 390,739,282.44 328,198,499.98
Total expenses 723,649,427.02 739,633,160.20
18. Supplement to cash flow statement

(1) Reconciliation of net loss to cash flows from operating activities
In RMB:
2019 2018
Net loss 2,047,712.06 (3,431,015.22)
Add: (Reverse) Provisions on bad debt (1,526,280.38) (1,345,863.18)
Depreciation of fixed assets 3,952,886.92 6,356,484.15
Amortization of long-term 292,721.44 909,380.56
deferred expenses
Financial expenses 5,662,693.60 7,342,261.38
Losses (Income) on disposal of fixed assets (104,540.49) 1,159,943.98
Decrease (Increase) in operating receivables (56,809,024.51) 33,466,856.30
Increase (Decrease) in operating payables 1,897,760.84 (64,943,327.89)
Net cash flow from operating activities (44,586,070.52) (20,485,279.92)
(2) Net change in cash and cash equivalents

2019 2018
Cash and cash equivalents at the end of the year 29,112,402.41 74,259,889.67
Less: Cash and cash equivalents at the beginning of the year 74,259,889.67 96,705,984.42
Net increase / (decrease) in cash and cash equivalents (45,147,487.26) (22,446,094.75)
IX. Related party relationships and transactions
(1) Information about the parent company of the Company is as follows:
Name of the Parent Registered Nature of business Registered Shareholding Voting ratio
Company address capital ratio
Infosys Limited India Rendering of information
technical consultation service INR 11.48
and management consultation billion 100% 100%
(2) The following are other related parties which have transactions with the Company while no control
relationship exists:
Name Relationship with the Company
Infosys Poland Sp. z o.o. Controlled by the same parent company
Infosys Consulting AG Controlled by the same parent company
EdgeVerve Systems Limited Controlled by the same parent company
Infosys Public Services Inc Controlled by the same parent company
Infosys Consulting GmbH Controlled by the same parent company
Panaya Ltd Controlled by the same parent company
Infosys BPM Ltd Controlled by the same parent company
Infosys Technologies S.De.R.L Controlled by the same parent company
Infosys Consulting (Shanghai) Co,ltd (Lodostone Management Consultants
(China) Co. Ltd) Controlled by the same parent company
Infosys Technologies (Shanghai) Co. Limited Controlled by the same parent company
(3) Significant transactions between the Company and the related parties in current year:
(a) Sales and purchase
The details of sales and purchases between the Company and its related parties are as
In RMB
2019 2018
Sales
Infosys Limited 78,102,076.69 78,859,975.44
Infosys Technologies (Shanghai) Co. Limited 13,011,438.85 26,133,524.62
Infosys BPM Limited 1,573,469.63 –
Infosys Public Services Inc 563,218.53 891,030.77
Panaya Ltd – 613,634.36
Infosys Technologies S.De.R.L – 3,386,346.65
93,250,203.70 109,884,511.84
Purchases
Infosys Limited 24,354,244.60 29,152,894.25
Panaya Ltd 1,017,143.02 1,931,666.09
Infosys BPM Limited 394,527.68 385,841.44
Infosys Consulting (Shanghai) Co,ltd (Lodostone Management Consultants
(China) Co. Ltd) 370,984.94 1,747,994.84
EdgeVerve Systems Limited 5,634.75 1,405,831.20
Infosys Consulting AG – 7,489.14
320,374,826.78 264,510,329.97
(b) Loans and borrowings
The details of loans and borrowings between the Company and related parties are as follows:
In RMB
Incurred As at 31 Incurred amount As at 31 Annual interest rate
amount in 2019 December 2019 in 2018 December 2018
Borrowings from
Infosys Limited – 69,762,000.00 – 68,632,000.00 6.00%
Infosys Poland Sp. z o.o. – 4,883,340.00 – 4,765,319.66 3.50%
– 74,645,340.00 – 73,397,319.66
Lends to
Infosys Technologies
(Shanghai) Co. Limited – 15,000,000.00 – 15,000,000.00 6.00%
(Shanghai) Co. Limited – 35,000,000.00 – 35,000,000.00 6.00%
– 50,000,000.00 – 50,000,000.00
Note: The Company lent RMB 50,000,000.00 to Infosys Technologies (Shanghai) Co. Limited in 2017 in total bearing interest at
6% per annum. RMB 15,000,000.00 and RMB 35,000,000.00 will fall due in May and July 2018 respectively. Both borrowings
have been extended until the lender requires repayment. The incurred amount in 2018 is the exchange rate impact.
2019 2018
Interest expenses
Infosys Limited 4,441,707.57 4,578,154.02
Infosys Poland Sp. z o.o. 175,159.27 121,457.55
4,616,866.84 4,699,611.57
Interest income
(c) Amounts due to/from related companies

In RMB
Accounts Name of the related parties 2019 2018
Accounts receivable Infosys Technologies (Shanghai) Co. Limited 51,354,550.05 37,562,424.89
Infosys Limited 3,888,964.38 7,971,254.25
Infosys BPM Limited 229,993.94 –
Infosys Public Services Inc 43,087.03 51,924.18
Infosys Technologies S.De.R.L – 3,386,346.65
55,516,595.40 48,971,949.97
Prepayment Panaya Ltd 438,991.93 1,456,134.95
Accounts payable Infosys Technologies (Shanghai) Co. Limited 34,610,991.87 26,730,978.47
Infosys Limited 19,205,009.64 24,488,303.01
EdgeVerve Systems Limited 2,646,974.37 3,485,998.32
Infosys BPM Limited 1,211,631.02 779,267.04
Infosys Consulting (Shanghai) Co,ltd (Lodostone
Management Consultants (China) Co. Ltd) 2,436.94 918,232.83
Infosys Consulting AG – 7,489.14
57,677,043.84 56,410,268.81
Other payables Infosys Limited 16,094,953.52 11,716,328.56
Infosys Poland Sp. z o.o. 561,918.52 423,588.56
16,656,872.04 12,139,917.12
Other receivables Infosys Technologies (Shanghai) Co. Limited 7,490,958.91 4,490,958.91
X. Financial instruments and risk management

The Company’s major financial instruments include accounts receivable, other receivables, short-term loans, accounts payable
and other payables. Details of these financial instruments are disclosed in Note VII. The risks associated with these financial
instruments and the policies on how to mitigate these risks are set out below. The Management manages and monitors these
exposures to ensure appropriate measures are implemented on a timely and effective manner.
The Company adopts sensitivity analysis technique to analyze how the profit and loss for the period and owners’ equity would
have been affected by reasonably possible changes in the relevant risk variables. As it is unlikely that risk variables will change
in an isolated manner, and the interdependence among risk variables will have significant effect on the amount ultimately
influenced by the changes in a single risk variable, the following are based on the assumption that the change in each risk
variable is on a stand-alone basis.
1. Risk management objectives and policies
The Company’s risk management objectives are to achieve proper balance between risks and yield, minimize the adverse
impacts of risks on the Company’s operation performance, and maximize the benefits of the shareholders and other equity
investors. Based on these risk management objectives, the Company’s basic risk management strategy is to identify and analyse
the industry’s exposure to various risks, establish appropriate bottom line for risk tolerance, implement risk management, and
monitors these exposures to ensure appropriate measures are implemented on a timely and effective manner.
1.1 Market risk
1.1.1 Foreign currency risk
Foreign currency risk is the risk that losses will occur because of changes in foreign exchange rates. The Company’s exposure to
the foreign currency risk is primarily associated with USD, INR, HKD and TWD. The Company’s principal activities are settled
in RMB. As at 31 December 2019, the balance of the Company’s assets and liabilities are both denominated in RMB except that
the assets and liabilities set out below are denominated in foreign currencies. Foreign currency risk arising from the assets and
liabilities denominated in foreign currencies may have impact on the Company’s performance.
In RMB
2019 2018
Cash and bank balances 10,909,383.51 13,828,299.23
Accounts receivable 68,145,668.21 58,107,041.85
Short-term loans (74,645,340.00) (73,397,319.66)
Interest payable (16,656,872.04) (12,139,917.12)
Accounts payable (20,416,640.66) (24,874,712.56)
(32,663,800.98) (38,476,608.26)
Sensitivity analysis on currency risk

The assumption for the sensitivity analysis on currency risk is that all hedges of net investments in foreign operations and the
cash flow hedges are highly effective.
On the basis of the above assumption, where all other variables are held constant, the reasonably possible changes in the foreign
exchange rate may have the following pre-tax effect on the profit or loss for the period and owners’ equity:
Item Changes in 2019 2018
exchange rate Effect on Effect on Effect on Effect on
profit Owners’ equity profit Owners’ equity
Foreign currencies 10% increase
against RMB (3,266,380.10) (3,266,380.10) (3,847,660.83) (3,847,660.83)
Foreign currencies 10% decrease
against RMB 3,266,380.10 3,266,380.10 3,847,660.83 3,847,660.83
1.2 Credit risk

As at 31 December 2019, the Company’s maximum exposure to credit risk which will cause a financial loss to the Company
due to failure to discharge an obligation by the counterparties.
The Company reviews the recoverable amount of each individual trade debt at each Balance Sheet date to ensure that adequate
impairment losses are made for irrecoverable amounts. In this regard, the Management of the Company consider that the
Company credit risk is significantly reduced.
The credit risk on liquid funds is limited because the counterparties are banks with high credit rating.
1.3 Liquidity risk
In the Management of the liquidity risk, the Company monitors and maintains a level of cash and cash equivalents deemed
adequate by the Management to finance the Company’s operations and mitigate the effects of fluctuations in cash flows. The
Management monitors use of loans and ensures to observe loan agreements.
XI. Capital management
The Company’s primary objectives when managing capital are to safeguard the Company’s ability to continue as a going concern.
The Company defines “capital” as including all components of equity. The balance of related party transactions are not regarded
by the Company as capital.
The Company’s capital structure is regularly reviewed and managed with due regard to the capital management practices of
the Infosys Limited Group to which the Company belongs. Adjustments are made to the capital structure in light of changes
in economic conditions affecting the Company. The results of the Board of Directors’ review of the Company’s capital structure
are used as a basis for the determination of the level of dividends, if any, that are declared.
The Company is not subject to externally imposed capital requirements.
XII. Commitments
(1) Capital commitments
In RMB
31/12/2019 31/12/2018
Capital commitments that have been entered into but
have not been recognised in the financial statements: Contracts for purchasing fixed
assets 1,405,635.39 –
(2) Operating Lease Commitments

As of the Balance Sheet date, the Company had the following commitments in respect of non-cancellable operating leases:
In RMB
Within 1 year 8,661,009.04 11,829,625.16
1 to 2 years 3,694,088.04 6,275,167.00
2 to 3 years 2,855,277.91 775,917.60
Over 3 years – –
Total 15,210,374.99 18,880,709.76
XIII. Comparative data

Partial comparative data for 2018 in the financial statements has been reclassified according to year 2019 presentation.
XIV. Other matters
From January 1, 2020, the Company will start to adopt the revised “Accounting Standards for Business Enterprises No. 22 -
Recognition and Measurement of Financial Instruments”, “Accounting Standards for Business Enterprises No. 23 - Transfer
of Financial Assets” and “Accounting Standards for Business Enterprises No. 24 - Hedging Accounting” released by the MoF
in March 2017, the revised “Accounting Standards for Business Enterprises No. 37 - Presentation of Financial Instruments”
released in May 2017, and the revised “Accounting Standards for Business Enterprises No. 14 – Revenue” released in July 2017.
Infosys Poland Sp. z o.o.
Financial statements for the financial year ended March 31, 2020
To the Shareholder of Infosys Poland Sp. z o. o.
Report on the Audit of the Annual Financial Statements
Opinion
We have audited the annual financial statements of Infosys Poland Sp. z o.o. (the “Company”), which comprise the Balance
Sheet as at March 31, 2020, and the profit and loss account, statement of changes in equity and cash flow statement for the
year then ended, and notes to the financial statements (the “financial statements”).
In our opinion, the accompanying financial statements:
• give a true and fair view of the economic and financial position of the Company as at March 31, 2020, and of its financial
performance and its cash flows for the year then ended in accordance with the applicable provisions of the Accounting
Act of 29 September 1994 (the “Accounting Act”, Journal of Laws of 2019, item 351, as amended) and the adopted
accounting policies;
• comply, as regards their form and content, with the applicable laws and the articles of association of the Company;
• have been prepared based on properly kept accounting records, in accordance with Section 2 of the Accounting Act.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (“ISAs”) in a version adopted by the National
Council of Statutory Auditors as the Polish Standards on Auditing (“PSAs”) and in compliance with the Act on Statutory
Auditors, Audit Firms and Public Oversight of 11 May 2017 (the “Act on Statutory Auditors”, Journal of Laws of 2019, item
1421, as amended). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report.
We are independent of the Company in accordance with the International Federation of Accountants’ Code of Ethics for
Professional Accountants (“IFAC Code”), adopted by resolution of the National Council of Statutory Auditors, together with
the ethical requirements that are relevant to the audit of the financial statements in Poland, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the IFAC Code. Throughout the audit, both the key statutory
auditor and the audit firm remained independent of the Company in accordance with the independence requirements set out
in the Act on Statutory Auditors.
Responsibilities of the Management Board for the Financial Statements
The Company’s Management Board is responsible for the preparation – based on properly kept accounting records – of
financial statements which give a true and fair view of the economic and financial position of the Company and of its financial
performance in accordance with the provisions of the Accounting Act, the adopted accounting policies as well as the applicable
laws and articles of association, and for such internal control as the Management Board determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Management Board is responsible for assessing the Company’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
the Management Board either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Management Board of the Company is obliged to ensure that the financial statements meet the requirements of
the Accounting Act.
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with PSAs will always detect a
The scope of an audit does not include an assurance about the future profitability of the Company or the effectiveness or
efficiency of the Management Board in managing the Company’s affairs at present or in the future.
As part of an audit in accordance with PSAs, we exercise professional judgment and maintain professional scepticism throughout
the audit. We also:
• identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design
of internal control;
170 | Infosys Poland Sp. z o.o. Infosys Subsidiary Financials 2019-20

• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control;
• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the Company’s Management Board;
• conclude on the appropriateness of the Company’s Management Board’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date
of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern;
• evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether
We provide the Company’s persons exercising supervision with information regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control
identified during our audit.
Other Information, Including the Report on the Activities
Other information includes a report on the Company’s activities in the financial year ended March 31, 2020 (the “Report
on the Activities”).
Responsibilities of the Management Board
The Company’s Management Board is responsible for the preparation of the Report on the Activities in accordance with
the applicable laws.
The Management Board of the Company is obliged to ensure that the Report on the Activities, meet the requirements of
the Accounting Act.
Auditor’s Responsibilities
Our opinion on the financial statements does not cover the Report on the Activities. In connection with our audit of the financial
statements, our responsibility is to read the Report on the Activities and, in doing so, consider whether the Report on the
Activities is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears
to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this
Report on the Activities, we are required to report that fact in our auditor’s report. Additionally, under the Act on Statutory
Auditors we are obliged to express an opinion on whether the Report on the Activities has been prepared in accordance with
the applicable laws and whether it is consistent with the information contained in the financial statements.
Opinion on the Report on the Activities
Based on our work performed during the audit, we are of the opinion that the Report on the Activities:
• has been prepared in accordance with Article 49 of the Accounting Act;
• is consistent with the information contained in the financial statements.
Furthermore, in the light of the knowledge and understanding of the Company and its environment obtained in the course
of the audit, we have not identified any material misstatements of the Report on the Activities.
The key statutory auditor on the audit resulting in this independent auditor’s report is Emilia Ostrowska.
Acting on behalf of Deloitte Audyt Spółka z ograniczoną odpowiedzialnością Sp. k. with its registered seat in Warsaw,
entered under number 73 on the list of audit firms, in the name of which the financial statements have been audited by the
key statutory auditor:
Emilia Ostrowska
Registered under number: 12507
Warsaw, June 03, 2020
This document is a foreign language version of the original Independent Auditor’s Report issued in Polish version and only the
original version is binding. This document has been prepared for information purposes and could be used only for company’s
internal purposes. In case of any discrepancies between the Polish and English version, the Polish version shall prevail.
Infosys Subsidiary Financials 2019-20 Infosys Poland Sp. z o.o. | 171

Introduction to the Financial Statements
Financial statements for the financial year ended March 31, 2020
Details of the Company 2. Major accounting principles

These financial statements have been prepared using the
1.1 Company’s name
following accounting principles:
Infosys Poland Sp. z o.o., hereinafter referred to as the Company
2.1 Basis for preparation of the financial
1.2 Registered office statements
ul. Pomorska 106A The financial statements have been prepared in accordance
91-402 Łódź with the accounting principles applicable in the Republic
of Poland, as set forth in the Polish Accountancy Act of
1.3 Entry in the National Court Register September 29, 1994. (Journal of Laws of 2019, Item 351)
Court: District Court for Łódź–Śródmieście and implementing regulations issued on its basis.
in Łódź, 20th Division of the National
2.2 Revenue and expenses
Court Register
Date: August 3, 2007 Revenues and expenses are recognized using the accrual
Register number: KRS 0000285868 method, i.e. in the year when they were generated or incurred,
irrespective of the date of receiving or making the payment.
1.4 Core business and duration of the The Company records expenses by nature of expense and
prepares the profit and loss account in single-step variant.
Company
In accordance with its Articles of Association, the Sales revenue
Company’s core business is: The Company derives revenue primarily from the Management
• accounting, bookkeeping and auditing activities; tax of business processes, both on the basis of allocation of
consultancy (PKD 69, 20, Z) staff, fixed price agreed with the client, number of hours or
based on the unit price for a given activity. Revenue based
• computer programming activities (PKD 62, 01, Z) on the allocation of staff is recognized when realized and
• computer consultancy activities (PKD 62, 02, Z) the revenue realized from the date of the last invoice to the
• computer facilities management activities (PKD 62, 03, Z) date of the Balance Sheet are recognized as unbilled revenue.
• other information technology and computer service Revenue based on the fixed price agreed with the client or the
activities (PKD 62, 09, Z) number of hours is recognized at a reliable amount, if they
are probable. Revenue based on the unit price for a given
• data processing, hosting and related activities (PKD 63, 11, Z) activity are recognized as transactions based on measurable
• other information service activities not elsewhere deliverables. Provisions for expected losses, if any, on
classified (PKD 63, 99, Z) unfulfilled contracts are recognized in the period in which
• business and other management consultancy the loss is probable, based on current estimates.
activities (PKD 70, 22, Z) 2.3 Interest income
• research and experimental development on social sciences Interest income is recognized using the effective interest rate.
and humanities (PKD 72, 20, Z)
2.4 Dividends
• other professional, scientific and technical activities not
elsewhere classified (PKD 74, 90, Z) Dividends due are included in financial income as at the
date of adoption by the General Meeting of Shareholders
The Company has been incorporated for an
of the Company in which the undertaking has invested,
unlimited period of time.
of a resolution on profit distribution, unless the resolution
1.5 Period covered by the financial statements specifies other dates for the right to dividend.
These financial statements cover the period from April 1 2019 2.5 Cash Flow Statement
to March 31 2020 and the comparative information is for the The cash flow statement has been prepared using
period from April 1 2018 to March 31 2019. the indirect method.
1.6 Going concern 2.6 Intangible assets
These financial statements have been prepared on the basis Intangible assets are valued in the books at their purchase
that the Company is a going concern. prices or costs incurred for their generation, less amortization
There are no circumstances indicating a threat to the charges and impairment losses.
Company’s ability to continue as a going concern. Events Intangible assets are amortized using the straight-line method
after the Balance Sheet date do not affect the validity of the and the following rates:
going concern assumption. Events after the Balance Sheet Intangible assets of more than PLN 3,500 50%
date are described in Note 31. Goodwill 20%

The correctness of the amortization periods and rates applied Lease payments are apportioned between finance income and
to intangible assets should be periodically verified by the reduction of the receivable balance in such a way as to obtain
entity, which should lead to appropriate adjustment of the a constant rate of return on the outstanding receivable.
amortization expenses recognized in future periods.
2.10 Stocks
2.7 Fixed assets Inventories are valued at their purchase prices or
Fixed assets are valued in the books at purchase price or manufacturing costs not higher than their net selling prices
production cost (initial value) taking into account the effects as at the Balance Sheet date.
of revaluation (update), less depreciation write-offs, as well
Stocks are evaluated on the basis of:
as write-offs for permanent loss of value.
Materials — purchase price, where the expenditure is
The cost of fixed assets and fixed assets under construction
valued using the [weighted average; first in, first out; last
comprises total expenses incurred by the entity throughout
in, first out] method.
the construction, assembly, adaptation and improvement of
the assets until the date of their commissioning, including Goods — purchase price, where the outflow is valued
respective borrowing costs and exchange differences, less using the [weighted average; first in, first out; last in, last
revenue generated on that basis. in, first out] method
The initial amount of a fixed asset is increased by the costs Finished products — manufacturing costs, which include
of its improvement consisting in remodeling, extension, costs directly related to a given product and a reasonable part
modernization or reconstruction, following which the value of costs indirectly related to the manufacture of that product.
in use of the fixed asset after improvement exceeds its value A reasonable part of indirect costs, appropriate to the period
in use at the time when it was first made available for use. of manufacture of the product, includes variable production
overheads and that part of fixed, indirect production costs
Fixed assets are depreciated on a straight-line basis.
which correspond to the level of those costs under normal
Depreciation begins in the month in which the fixed asset
use of the production capacity. The normal level of capacity
becomes available for use.
utilization shall be considered to be the average, as expected
The Company applies the following depreciation rates: under normal conditions, of production volumes for a
Computers 33.33% given number of periods or seasons, taking into account
Furniture 20.00% planned renovations.
Office equipment 20.00% Work in progress — direct manufacturing costs
Leasehold improvements Until the end of the [direct material costs].
contract, no longer than five
Stocks are recognized in the Balance Sheet at net value,
years
i.e. less the value of write-offs. Revaluation write-offs are
The correctness of the depreciation periods and rates recognized in other operating costs.
applied to fixed assets should be periodically verified by the 2.11 Receivables, claims and liabilities not
entity, which should lead to appropriate adjustment of the
depreciation expenses recognized in future periods.
classified as financial assets and financial
liabilities
2.8 Investments Receivables are recognized at the amount due using the
Investments are assets held in order to achieve economic prudence principle. Receivables are revalued based on the
benefits arising from an increase in their value, generate probability of their repayment through recognition of an
interest income, dividends (profit sharing) or other benefits, impairment loss which is charged to other operating expenses
including from trading transactions, in particular financial or financial expenses, depending on the type of receivable
assets, real property and intangible assets not used by the concerned. As a rule, receivables which are outstanding for
entity but held only in order to obtain these benefits. more than 180 days of a respective invoice are subject to
a valuation allowance charged to other operating expenses.
2.9 Financial leasing
In the case of receivables outstanding for more than 180 days
When the Company is a party to lease agreements, on the after the date of invoice issuance, the Company makes an
basis of which it has accepted for use foreign fixed assets additional revaluation write-off, which is included in other
and intangible assets, under which substantially all risks and operating expenses respectively.
benefits resulting from the possession of assets being the
subject of the agreement are transferred, the subject of the Liabilities are recognized in the books at the amount due.
lease is included in the Balance Sheet. Receivables and liabilities expressed in foreign currencies
When the Company is a party to lease agreements, based are recognized when incurred at the average exchange rate
on which it gives away its own fixed assets and intangible determined for a given currency by the National Bank of
assets for use, under which substantially all risks and benefits Poland as of the date immediately preceding that date.
resulting from the possession of assets being the subject of the As at the Balance Sheet date, foreign currency receivables
agreement are transferred, the subject of the lease ceases to be and liabilities are measured at the average exchange rate
recognized in the Balance Sheet. However, a receivable equal determined for a given currency by the National Bank of
to the current value of the lease instalments is recognized. Poland at that date.

2.12 Impairment of assets the Polish Classification of Goods and Services of the
As at each Balance Sheet date, it is verified whether there is Central Statistical Office:
any objective indication of impairment of an asset or a group 1. Financial auditing services (69.20.1)
of assets. If such an indication exists, the Company makes an 2. Accounting services (69.20.2)
estimate of the recoverable amount of the asset and recognizes 3. Research and experimental development services in social
an impairment loss at an amount of the difference between sciences and humanities (kategoria 72.2)
the recoverable amount and the carrying amount. Impairment
losses are recognized in profit or loss. If the effects of the 4. Computer programming, consultancy and related services
previous revaluation of assets were charged to the revaluation (62.0) excluding computer games software originals
reserve, the loss reduces the reserve and the remaining (62.01.21)
portion of the loss is recognized in the profit and loss account. The Company started the calculation of eligible expenses
which make up the limit of the tax exemption in
2.13 Prepaid expenses and accruals Łódź SEZ in May 2015.
The Company recognizes prepaid expenses if they are On December 30, 2016 the Company was granted a new
related to future reporting periods. Accruals are recognized permit No. 302 to carry out extended operations in Łódź
at the amount of probable liabilities pertaining to the SEZ. In the audited period the Company did not start the
current reporting period. fulfilment of the requirements set out in the permit.
2.14 Provisions for liabilities 2.16 Income tax
Provisions are liabilities with an uncertain due date or amount. Income tax is recognized in the profit and loss account and it
Provisions for liabilities resulting from the restructuring of the includes the current and the deferred portion.
Company are established when the Company has formally The current income tax liability is calculated in accordance
adopted a detailed restructuring plan and the restructuring with the applicable tax regulations. The deferred portion
has begun or information about the restructuring has been recognized in the profit and loss account is the difference
publicly disclosed. And restructuring plans allow to reliably between the opening and closing balances of the deferred tax
determine the value of these future liabilities. No reserves are liability and assets.
established for future operational costs.
The assets and reserves for deferred income tax related to
Retirement benefits transactions charged to equity are also charged to equity.
Under the Company’s remuneration rules, employees are The deferred tax asset is recognized at the amount to be
entitled to retirement benefits. Liabilities due to retirement deducted from the income tax in the future, due to deductible
benefits have been measured using the actuarial method and temporary differences that will reduce the income tax basis in
the discount rate based on market rate of return as at the end the future and the deductible loss, determined in accordance
of the reporting period. Staff turnover is estimated based on with the prudence principle. The deferred income tax is
historical data and expected staff levels. recognized in line with the National Accounting Standard 2.
The reserve for deferred income tax is established in the
2.15 Economic activity in Łódź Special
amount of income tax that will be payable in the future,
Economic Zone due to the occurrence of positive temporary differences,
On July 4, 2013 the Company was granted permit No. 225 to i.e. differences that will increase the basis for calculating
operate in Łódź Special Economic Zone (“SEZ”) and therefore income tax in the future.
is exempt from CIT due to the expenditures incurred in the The deferred tax assets and reserves are determined by
Zone. The Company has fulfilled all the terms and conditions reference to the income tax rates effective in the year when
to become eligible for the tax exemption. the tax obligation arises.
The income generated from the economic activities set out The deferred tax reserves and assets are not set off for the
in the permit to operate in the economic zone is tax-exempt purposes of presentation in the financial statements.
under Article 17.1.34 of the Corporate Income Tax Act.
The Company enjoys the tax exemption due to the new jobs it 2.17 Exchange differences
creates, in line with §3.1.2 of the Ordinance of the Council of Exchange differences as at the Balance Sheet date arising
Ministers on the criteria which need to be fulfilled to establish from the measurement of assets and liabilities denominated
a special economic zone in a given area (Journal of Laws in foreign currencies and resulting from payment of
of 244, item 1477, as amended). The maximum amount receivables or liabilities denominated in foreign currencies
of eligible expenses is PLN 45,460,396.80. The maximum and sale of currency are classified to financial revenue or
amount of two-year labor costs is calculated based on the cost expenses, respectively, and — where reasonable — to the cost
of labor of 390 newly hired employees. of products, goods, as well fixed assets, fixed assets under
In accordance with the permit, in Łódź SEZ the construction and intangible assets.
Company provides the following services set out in

Exchange rate differences arising in connection with the Financial assets available for sale
valuation as at the Balance Sheet date of long-term investments • Financial liabilities comprise:
expressed in foreign currencies are settled as follows:
• financial liabilities held for trading
- positive exchange differences increase revaluation reserve
• other financial liabilities
- negative exchange rate differences reduce the revaluation
reserve to the amount by which the revaluation reserve was 2.18.2 Principles of measurement and recognition of
increased on that account. In other cases, negative exchange financial instruments
rate differences are included in financial costs. An increase Financial assets are recognized in the accounting records
in the value of a given investment resulting from positive at the contract date at cost, i.e. the fair value of expenses
exchange rate differences from assets, the value of which incurred or other assets transferred in exchange, whereas
was reduced by negative exchange rate differences included financial liabilities — at the fair value of the amount
in financial costs, is included in the amount of these costs obtained or the value of other assets received. The fair value
as financial income. is determined as at that date considering the transaction costs
Exchange rates applied to the measurement of items incurred by the Company.
denominated in foreign currencies as follows: Transactions to buy and sell financial instruments made in
regulated trading shall be recorded in the books on the date
Balance Sheet
in PLN of their conclusion.
Particulars 2020 2019 2.18.3 Financial assets held for trading
AUD 2.5481 2.7174 Financial assets held for trading include assets acquired for
CHF 4.3001 3.8513 the purpose of obtaining economic benefits resulting from
CZK 0.1665 0.1666 short-term price changes and fluctuations in other market
EUR 4.5523 4.3013 factors or the short duration of the acquired instrument, as
DKK 0.6096 0.5761 well as other financial assets, regardless of the intentions
GBP 5.1052 4.9960 behind the conclusion of the contract, if they are part of a
INR 0.0550 0.0554 portfolio of similar financial assets which are highly probable
NOK 0.3953 0.4433 to derive the expected economic benefits in a short term.
HRK 0.5976 0.5789 Financial assets held for trading include derivative
MXN 0.1734 0.1986 financial instruments.
SEK 0.4114 0.4130
USD 4.1466 3.8365 Financial assets held for trading are measured at fair value
ZAR 0.2306 0.2639 whereas the effects of periodic measurement of financial
assets are classified as financial revenues or expenses of
RON 0.9429 0.9029
the reporting period during which the revaluation took
SGD 2.9087 2.8292
place, respectively.
HUF 0.0127 0.0134
NOK 0.3953 0.4433 2.18.4 Financial assets held to maturity
RUB 0.0528 0.0593 Financial assets held to maturity include financial assets not
TRY 0.6314 0.6802 recognized as loans granted and receivables, for which the
concluded contracts set the maturity date for repayment of
2.18 Financial instruments the nominal value and define the right to receive economic
2.18.1 Classification of financial instruments benefits at agreed time limits, for example interest, in a fixed
Financial instruments are recognized and measured in or determinable amount, provided that the Company intends
line with the Ordinance of the Minister of Finance of and may hold these assets until they become due.
December 12, 2001 on detailed principles of recognition, Financial assets held to maturity are measured at amortized
measurement methods, scope of disclosure and presentation cost using the effective interest rate method.
of financial instruments. The financial asset measurement
and disclosure principles as described below do not apply 2.18.5 Loans and receivables
to financial instruments which do not fall within the Loans and receivables include — regardless of their maturity
scope of the Ordinance, including, in particular, shares in — financial assets arising as a result of direct provision of cash
controlled entities, rights and obligations arising from lease to the other party to a contract.
and insurance contracts, trade receivables and liabilities and Loans and receivables are measured at the amount due.
financial instruments issued by the entities and classified as
their equity instruments. 2.18.6 Financial assets available for sale
Financial assets available for sale are assets, other than
Breakdown of financial instruments derivatives, which have been classified to this category or
Financial assets comprise: have not been classified to any other category. Financial
• financial assets held for trading
• loans and receivables
• financial assets held to maturity

assets available for sale, whose fair value cannot be reliably The fair value is calculated by estimation of the
determined, are measured at cost. price of the financial instrument using generally
accepted estimation methods.
2.18.7 Short-term financial assets
• the valuation of a financial instrument at a price set on
Deposits with a maturity over three months from the date when
an active regulated market where financial instruments
they are made are recognized as short-term financial assets.
are publicly traded, and information on that price
2.18.8 Financial liabilities is publicly available,
Financial liabilities held for trading, including derivatives • valuation of debt financial instruments by a specialized,
which have not been designated as hedging instruments, are independent entity providing such services, and it is
recognized at fair value, whereas gains and losses resulting possible to reliably estimate the cash flows associated
from their measurement are recognized directly in the with these instruments,
profit and loss account. • application of an appropriate financial instrument pricing
Financial liabilities held for trading also include the obligation model, and the inputs introduced to that model are taken
to deliver borrowed securities and other financial instruments from an active regulated market,
in the case the Company concludes a short sale contract. • estimation of the price of a financial instrument for
Other financial liabilities are measured at adjusted purchase which there is no active market on the basis of a publicly
price, calculated using the effective interest rate method. announced, quoted on an active regulated market price
that does not differ materially from a similar financial
2.19 Methods and key assumptions underlying instrument or prices of components of a complex
the calculation of the fair value of financial financial instrument,
assets and liabilities measured at such fair
value
The fair value is the amount for which an asset could be
exchanged, and a liability settled on arm’s length terms
between willing and well-informed parties.
Arindam Roy Chowdhury

Member of the Board
Anup Kapoor
Member of the Board
Management Board
Person in charge of the accounting records
Łódź, June 3, 2020 .

Balance Sheet
in PLN
No. Item As at March 31,
2020 2019
ASSETS
TOTAL ASSETS 370,486,231.27 350,799,079.46
A FIXED ASSETS 98,357,469.56 43,928,413.47
I Intangible assets – –
1 Cost of research and development – –
2 Goodwill – –
3 Other intangible assets – –
4 Advances for intangibles – –
II Tangible assets 4,306,940.49 5,190,308.06
1 Fixed assets 4,306,940.49 5,190,308.06
a land (of which: perpetual usufruct of land) – –
b buildings, premises, rights to premises and civil engineering structures 317,579.76 565,998.34
c plant and machinery 3,758,123.67 4,151,615.65
d means of transport – –
e other fixed assets 231,237.06 472,694.07
2 Fixed assets under construction – –
3 Advances on fixed assets under construction – –
III Long term receivables – 11,407,178.00
3 Amounts due from other undertakings – 11,407,178.00
IV Long-term investments 79,610,770.73 12,974,676.25
1 Immovable property – –
2 Intangible assets – –
3 Long-term financial assets 79,610,770.73 12,974,676.25
a in related undertakings 61,800,000.00 –
– shares 61,800,000.00 –
– loans – –
c in other undertakings 17,810,770.73 12,974,676.25
– other long-term financial assets 17,810,770.73 12,974,676.25
4 Other long-term investments – –
V Long-term prepayments and accruals 14,439,758.34 14,356,251.16
1 Deferred income tax assets 14,439,758.34 14,356,251.16
2 Other prepayments and accruals – –
B CURRENT ASSETS 272,128,761.71 306,870,665.99
I Stocks – –
1 Materials – –
2 Semi-finished products and work in progress – –
3 Finished products – –
4 Goods – –
5 Advances on supplies – –
II Short-term receivables 85,714,424.63 51,426,644.26
1 Amounts due from related undertakings 5,968,395.98 985,616.13
a trade receivables with a maturity of: 5,968,395.98 985,616.13
– up to 12 months 5,953,734.20 985,373.09
– over 12 months 14,661.78 243.04
b other – –
3 Amounts due from other undertakings 79,746,028.65 50,441,028.13
a trade receivables with a maturity of: 59,489,874.13 39,988,719.48
– up to 12 months 59,389,417.76 39,988,719.48
– over 12 months 100,456.37 –
b receivables relative to taxes, subsidies, customs duties, social and health
insurance, and other benefits 5,337,875.31 2,208,372.20
c other 14,918,279.21 8,243,936.45
d receivables under litigation – –
III Short-term investments 185,521,113.65 254,741,815.45
1 Short-term financial assets 185,521,113.65 254,741,815.45

2020 2019
a in related undertakings 48,251,030.41 43,157,865.78
- loans 48,251,030.41 43,157,865.78
b in other undertakings 76,667,638.12 45,148,130.14
– other short term financial assets 76,667,638.12 45,148,130.14
c other cash and cash equivalents 60,602,445.12 166,435,819.53
– cash in hand and at bank 10,547,979.12 10,947,029.13
– other cash and cash equivalents 50,054,466.00 155,488,790.40
– other money assets – –
2 Other short-term investments – –
IV Short-terms prepayments and accruals 893,223.43 702,206.28

Balance Sheet
in PLN
2020 2019
LIABILITIES 370,486,231.27 350,799,079.46
A EQUITY (OWN FUNDS) 296,251,028.03 284,808,052.18
I Primary capital (fund) 2,500,000.00 2,500,000.00
II Capital reserve (fund), of which: 287,827,329.70 276,103,333.02
III Revaluation reserve (fund), of which: – –
IV Other capital reserves (funds), of which: – –
– for own shares – –
V Profits (losses) brought forward (5,519,277.52) (5,519,277.52)
VI Net profit (loss) 11,442,975.85 11,723,996.68
VII Write-offs from net profit during the financial year (negative amount) – –
B LIABILITIES AND RESERVES FOR LIABILITIES 74,235,203.24 65,991,027.28
I Reserves for liabilities 31,625,664.74 25,001,456.34
1 Reserves for deferred income tax 1,500,711.51 714,050.69
2 Reserves for pensions and similar benefits 26,258,965.23 21,073,717.65
– long-term 1,015,441.00 826,101.00
– short-term 25,243,524.23 20,247,616.65
3 Other reserves 3,865,988.00 3,213,688.00
– long-term – –
– short-term 3,865,988.00 3,213,688.00
II Long-term liabilities – –
1 Amounts due to related undertakings – –
3 Amounts due to other undertakings – –
a credits and loans – –
b relative to debt securities issued – –
c other financial liabilities – –
e other – –
III Short-term creditors 27,646,369.96 22,358,727.67
1 Related undertakings 237,451.81 278,426.04
a trade liabilities with maturity of: 237,451.81 278,426.04
– up to 12 months 237,451.81 278,426.04
b other – –
3 Amounts due to other undertakings 27,510,439.89 22,008,977.65
a credits and loans – –
b relative to debt securities issued – –
c other financial liabilities 930,000.00 548,900.00
d trade liabilities with maturity of: 8,820,700.07 3,875,415.07
– up to 12 months 8,820,700.07 3,875,415.07
e advances received for supplies – –
f commitments under bills of exchange – –
g taxes, subsidies, customs duties, social and health insurance, and other public
liabilities 5,417,443.58 9,172,254.51
h wages and salaries 12,325,889.55 8,412,408.07
i other 16,406.69 –
4 Special funds (101,521.74) 71,323.98
IV Accruals 14,963,168.54 18,630,843.27
1 Negative goodwill – –
2 Other accruals 14,963,168.54 18,630,843.27
– long-term 5,160,018.17 6,990,214.89
– short-term 9,803,150.37 11,640,628.38

in PLN
2020 2019
A Net income from sales and equivalent oncome, of which: 282,268,148.16 269,013,692.06
– from related undertakings 25,624,109.37 19,663,688.02
I Net income from sale of products 282,268,148.16 269,013,692.06
II Change in stocks of products (increase – positive figure, decrease —
negative figure) – –
III Costs of work performed by the undertaking for its own purposes – –
IV Net income from sale of goods and materials – –
B Operating costs (263,444,693.77) (239,630,196.28)
I Amortization and depreciation (2,654,364.16) (3,322,446.99)
II Consumption of materials and energy (768,449.83) (752,670.56)
III Outsourcing (38,746,653.91) (31,565,682.36)
IV Taxes and charges, of which: (3,731,938.73) (2,985,946.92)
- excise duty – –
V Wages and salaries (171,495,980.46) (163,227,322.46)
VI Social insurance and other benefits, of which: (39,808,919.26) (33,384,593.24)
VII Other costs (6,238,387.42) (4,379,833.89)
VIII Value of goods and materials sold – (11,699.86)
C Profit (loss) on sale (A-B) 18,823,454.39 29,383,495.78
D Other operating income 1,956,742.03 136,283.70
I Profit on sale of non-financial fixed assets – 1,080.00
III Revaluation of non-financial assets – –
IV Other operating income 1,956,742.03 135,203.70
E Other operating charges (505,750.38) (943,483.93)
I Loss on sale of non-financial fixed assets – –
II Revaluation of non-financial assets – –
III Other operating costs (505,750.38) (943,483.93)
F Operating profit (loss) (C+D-E) 20,274,446.04 28,576,295.55
G Financial income 10,126,687.11 7,033,284.32
I Dividends and shares in the profits, of which: – –
a from related undertakings, of which: – –
II Interest received, of which: 3,798,686.00 3,797,162.11
- from related undertakings 1,609,283.85 1,071,765.41
III Profit on sale of financial fixed assets, of which: – –
IV Revaluation of financial assets – –
V Other 6,328,001.11 3,236,122.21
H Financial costs (13,841,074.27) (16,857,980.62)
I Interest, of which: (22,817.55) (15,658.67)
II Loss on sale of financial fixed assets, of which: (12,360,656.72) (12,818,021.95)
III Revaluation of financial assets – –
IV Other (1,457,600.00) (4,024,300.00)
I Gross profit (loss) (F+G-H) 16,560,058.88 18,751,599.25
J Income tax 5,117,083.03 7,027,602.57
K Other obligatory reductions of profit (increase of loss) – –
L Net profit (loss) (I-J-K) 11,442,975.85 11,723,996.68

Funds flow statement
in PLN
2020 2019
A Equity (own funds) at the beginning of period (opening balance) 284,808,052.18 278,603,333.02
- changes in adopted accounting principles (policies) – –
- adjustments for basic errors – –
Equity (own funds) at the beginning of the period (opening balance)
after adjustments 284,808,052.18 278,603,333.02
I Primary capital (own funds) at the beginning of the period 2,500,000.00 2,500,000.00
1 Changes in primary capital (fund) – –
a increase (as a result of) – –
- issue of shares – –
b increase (as a result of) – –
- redemption of shares – –
2 Primary capital (own funds) at the end of period 2,500,000.00 2,500,000.00
II Capital reserve (fund) at the beginning of period 276,103,333.02 241,336,404.63
1 Changes in capital reserve (fund) 11,723,996.68 34,766,928.39
a increase (as a result of) 11,723,996.68 34,766,928.39
- issue of shares at a premium – –
- distribution of profits (statutory) – –
- distribution of profits (above the minimum statutory value) 11,723,996.68 34,766,928.39
b decrease (as a result of) – –
- coverage of losses – –
2 Capital reserve (fund) at the end of period 287,827,329.70 276,103,333.02
III Revaluation reserve (fund) at the beginning of period - changes in
adopted accounting principles (policies) – –
1 Changes in revaluation reserve (fund) – –
- sale of fixed assets – –
2 Revaluation reserve (fund) at the end of period – –
IV Other reserve capitals (funds) at the beginning of the period – –
1 Changes in other reserves (funds) – –
2 Other reserves (funds) at the end of period – –
V Profit (loss) brought forward at the beginning of period (5,519,277.52) –
2 Profit brought forward at the beginning of period, after adjustments – –
3 Profit brought forward at the end of period – –
4 Loss brought forward at the beginning of period (5,519,277.52) –
- changes in adopted accounting principles (policies) – –
- error corrections – –
5 error correction Loss brought forward at the beginning of the period,
after adjustments (5,519,277.52) –
a changes in accounting policy – (5,519,277.52)
6 Loss brought forward at the end of period (5,519,277.52) (5,519,277.52)
7 Profit (loss) brought forward at the end of period (5,519,277.52) (5,519,277.52)
VI Net result 11,442,975.85 11,723,996.68
a net profit 11,442,975.85 11,723,996.68
b net loss – –
c write-offs from profit – –
B Equity (own funds) at the end of period (closing balance) 296,251,028.03 284,808,052.18
C Equity (own funds) after adjustments for the proposed distribution of
profit (coverage of loss) 296,251,028.03 284,808,052.18

Cash flow statement
in PLN
2020 2019
A Operating cash flows
I Net profit (loss) 11,442,975.85 11,723,996.68
II Total adjustments (2,380,795.13) 24,577,564.06
1 Amortization and depreciation 2,654,364.16 3,322,446.99
2 Foreign exchange gains (losses) 1,496,104.30 (3,220,450.10)
3 Interest and profit sharing (dividends) (3,798,686.34) (3,742,409.23)
4 Investment profits (losses) 12,521,608.00 12,817,055.57
5 Movements in reserves 6,624,208.41 4,781,653.83
6 Movements in stock – –
7 Movements in receivables (22,880,602.37) 19,320,000.05
8 Movements in short-term liabilities, with the exception of loans and
credits 5,287,642.29 (1,421,666.51)
9 Movements in prepayments and accruals (3,942,199.06) (1,759,789.01)
10 Other adjustments (343,234.52) (5,519,277.53)
III Net operating cash flows (I ± II) 9,062,180.72 36,301,560.74
B Investment cash flows
I Inflows 45,615,428.51 34,329,605.14
1 Sale of intangible assets and tangible fixed assets – 1,080.00
2 Sale of investments in immovable property and intangible assets – –
3 From financial assets, of which: 45,615,428.51 34,328,525.14
a in related undertakings – 959,049.29
b in other undertakings 45,615,428.51 33,369,475.85
– sale of financial assets – –
– repayment of long-term loans 43,711,730.14 25,000,000.00
– interest 1,903,698.37 2,670,643.82
4 Other investment inflows – –
II Outflows (160,510,983.64) (79,010,107.98)
1 Purchase of intangible assets and tangible fixed assets (1,770,996.59) (2,849,449.43)
2 Investments in immovable property and intangible assets – –
3 On financial assets, of which: (157,243,882.75) (76,160,658.55)
a in related undertakings (61,800,000.00) (19,907,524.58)
b in other undertakings (95,443,882.75) (56,253,133.97)
– purchase of financial assets (90,350,718.12) (56,253,133.97)
– long-term loans (5,093,164.63) –
4 Other investment outlays (1,496,104.30) –
III Net cash flows from investing activities (I-II) (114,895,555.13) (44,680,502.84)
C Financial cash flows
I Inflows – 497,700.00
1 Net inflows from issue of shares and other instruments, and additional
contributions to equity – –
3 Issue of debt securities – –
4 Other financial inflows – 497,700.00
II Outflows – –
1 Purchase of own shares – –
2 Dividends and other payments to shareholders – –
5 Redemption of debt securities – –
6 Other financial liabilities – –

2020 2019
7 Payments under finance lease contracts – –
8 Interest – –
9 Other financial outflows – –
III Net cash flows from financial activities (I-II) – 497,700.00
D Total net cash flows (A.III ± B.III ± C.III) (105,833,374.41) (7,881,242.10)
E Balance Sheet movements in cash and cash equivalents, of which: (105,833,374.41) (7,881,242.10)
movements due to foreign exchange gains/losses – –
F Cash and cash equivalents at the beginning of period 166,435,819.53 174,317,061.63
G Cash and cash equivalents at the end of period (F±D), of which: 60,602,445.12 166,435,819.53
not fully disposable – –

Tax note
in PLN
No. Title Legal grounds Current year Previous year
Legal basis Amount Value
art. item point let. Total from profit on from other Total from profit on from other
capital income sources capital income sources
A. Gross profit (loss) for a given year 16,560,058.88 18,751,599.25
184 | Infosys Poland Sp. z o.o.

B. Tax-exempt income (permanent
differences between profit/loss for
accounting purposes and profit/
loss for tax purposes), of which: – – – – – –
C. Non-taxable income in the
current year, of which: (26,069,293.28) – (26,069,293.28) (12,332,543.05) – (12,332,543.05)
- provisions for income 12 (16,194,418.00) (16,194,418.00)
- provisions for rent free period 12 (8,616,807.49) (8,616,807.49)
- unrealized interest 12 (1,258,067.79) (1,258,067.79)
D. Taxable income in the current
year, recognized in the accounting
books of previous years, of which: – – – (5,892,036.57) – (5,892,036.57)
E. Non-deductible costs (permanent
differences between profit/loss for
accounting purposes and profit/
loss for tax purposes), of which: 5,303,071.11 – 5,303,071.11 5,342,570.88 – 5,342,570.88
- State Fund of Rehabilitation
of Handicapped People 15 2,931,028.89 2,931,028.89
- Non-deductible VAT 15 2,664.00 2,664.00
- Employee shares 15 69,089.00 69,089.00
- statutory interest 15 21,617.00 21,617.00
- other non-deductible 15 2,278,672.22 2,278,672.22
F. Costs not recognized as tax
deductible in the current year,
of which: 22,630,085.65 – 22,630,085.65 30,763,411.73 – 30,763,411.73
- movements in reserves for bonuses 15 711,009.87 711,009.87
- wages and salaries for March 2020 15 15,794,342.45 15,794,342.45
- reserve for after-sales service 15 (1,235,872.49) (1,235,872.49)
- holiday reserve 12 1,627,571.06 1,627,571.06
- provision for expenses 0 5,733,034.76 5,733,034.76

No. Title Legal grounds Current year Previous year
Legal basis Amount Value
art. item point let. Total from profit on from other Total from profit on from other
capital income sources capital income sources
G. Costs considered as tax-
deductible costs in the current
year and reported in the books
of previous years, of which: 13,441,545.98 – 13,441,545.98 (20,602,772.68) – (20,602,772.68)
- wages and salaries for March 2019 12 13,441,545.98 13,441,545.98
H. Loss brought forward, of which: –

I. Other changes to the tax base,
of which: (29,938,461.76) (10,575,041.00) (19,363,420.76) 4,469,576.06 14,572,988.21 (10,103,412.15)
- SEZ benefit repayment PDOP (19,330,029.48) (19,330,029.48)
- difference in depreciation PDOP (33,391.28) (33,391.28)
- capital gains / losses PDOP (10,575,041.00) (10,575,041.00)
J. Income tax base 23,077,088.86 20,500,805.62
K. Income tax 4,384,646.88 3,895,153.08
Infosys Poland Sp. z o.o. | 185

Notes
1. Intangible assets
Change in the balance of intangible assets
in PLN
Particulars Cost of research Goodwill Other intangible Advances for Total
and development assets intangibles
Gross value
April 1, 2019 – 21,445,874.68 462,667.52 – 21,908,542.20
March 31, 2020 – 21,445,874.68 462,667.52 – 21,908,542.20
Accumulated amortization
April 1, 2019 – (21,445,874.68) (462,667.52) – (21,908,542.20)
March 31, 2020 – (21,445,874.68) (462,667.52) – (21,908,542.20)
– –
Impairment write-offs
April 1, 2019 – – – – –
Increases – – – – –
Internal transfer – – – – –
Decreases – – – – –
March 31, 2020 – – – – –
Net value
April 1, 2019 – – – – –
March 31, 2020 – – – – –
2. Tangible assets
2.1 Change in fixed assets
in PLN
Particulars Buildings, Plant and Other tangible Total
premises, civil machinery assets
engineering
structures
Gross value
April 1, 2019 10,980,591.26 23,360,618.62 5,424,611.00 39,765,820.88
Increases – 1,770,996.59 – 1,770,996.59
Internal transfer –
Decreases – (2,990,178.91) (32,125.12) (3,022,304.03)
March 31, 2020 10,980,591.26 22,141,436.30 5,392,485.88 38,514,513.44
April 1, 2019 (10,414,592.92) (19,209,002.96) (4,951,916.93) (34,575,512.81)
Increases (248,418.58) (2,164,615.31) (241,330.27) (2,654,364.16)
Internal transfer –
Decreases – 2,990,305.64 31,998.38 3,022,304.02
March 31, 2020 (10,663,011.50) (18,383,312.63) (5,161,248.82) (34,207,572.95)
– – –
Impairment write-offs
April 1, 2019 – – – –
Increases – – – –
Internal transfer – – – –
Decreases – – – –
March 31, 2020 – – – –
Net value
April 1, 2019 565,998.34 4,151,615.65 472,694.07 5,190,308.06
March 31, 2020 317,579.76 3,758,123.67 231,237.06 4,306,940.49

2.2 Value of land in perpetual usufruct
Not applicable
2.3 Fixed assets not depreciated
The value of fixed assets used by the Company under leases, rental or similar agreements, including operating leases, not
recognized under assets is PLN 964,500 (PLN 964,500 in the prior reporting period). The gross value of such assets has been
taken from lease, rental or similar agreements concluded.
3. Short-term receivables
3.1 Ageing analysis of short-term trade receivables from related parties
in PLN
2020 2019
Maturing:
up to 90 days 280,386.27 –
from 91 to 180 days 5,673,347.93 985,373.09
from 181 to 360 days – –
over 360 days 14,661.78 243.04
5,968,395.98 985,616.13
Balance of gross receivables 5,968,395.98 985,616.13
Impairment write-offs on receivables – –
Balance of net receivables 5,968,395.98 985,616.13
3.2 Ageing analysis of short-term trade receivables from other entities

in PLN
2020 2019
Maturing:
up to 90 days 56,261,350.48 39,690,354.04
from 91 to 180 days 3,128,067.28 298,365.44
from 181 to 360 days – –
over 360 days 100,456.37 –
59,489,874.13 39,988,719.48
Balance of gross receivables 60,055,787.59 41,368,531.97
Impairment write-offs on receivables (565,913.46) (1,379,812.49)
Balance of net receivables 59,489,874.13 39,988,719.48
3.3 Impairment losses on short-term trade receivables

in PLN
Particulars Other entities
April 1, 2019 1,379,812.49
Increases 565,913.46
Reversed (1,379,812.49)
March 31, 2020 565,913.46
3.4 Receivables from other entities

in PLN
2020 2019
due to tax, grants, customs duty, social security, health insurance and other
benefits 5,337,875.31 2,208,372.20
VAT 2,319,524.82 939,651.91
CIT 3,018,350.49 1,268,720.29
Other 14,918,279.21 8,243,936.45
20,256,154.52 10,452,308.65

4. Short-term investments
4.1 Short-term financial assets in related parties
in PLN
2020 2019
Shares – –
Other securities
Originated loans: 48,251,030.41 43,157,865.78
Other short term financial assets
48,251,030.41 43,157,865.78
Under agreement dated October 8, 2016, on December 22, 2016 the Company disbursed a loan to Infosys Technologies (China)
Cp. Ltd, a related company, of US$ 700,000.00.
Under agreement dated March 27, 2017, on May 11, 2017 the Company disbursed a loan to Infosys Technologies (Shanghai)
Cp. Ltd, a related company, of US$ 5,000,000.00.
Under agreement dated November 12, 2018, on November 15, 2018 the Company disbursed a loan to Infosys Technologies
to Brasil Ltda., a related company, of US$ 5,000,000.00.
4.2 Short-term financial assets in other entities
in PLN
2020 2019
Shares – –
Deposits maturing in more than three months 75,231,238.12 45,148,130.14
Originated loans – –
Other short-term financial assets — forwards 1,436,400.00 –
76,667,638.12 45,148,130.14
4.3 Cash and other monetary assets

in PLN
2020 2019
Cash in hand and at bank 10,547,979.12 10,947,029.13
other cash 50,054,466.00 155,488,790.40
Cash at VAT accounts – –
60,602,445.12 166,435,819.53
5. Short-term prepayments
in PLN
2020 2019
Car insurance – –
Gifts/vouchers not handed out 25,600.00 18,870.00
Service contracts 832,156.41 337,008.98
Accident and civil liability insurance – 40,524.11
Subscription/access to databases – 305,803.19
Prepayments 35,467.02 –
893,223.43 702,206.28
6. Long-term financial assets in related parties

in PLN
2020 2019
Infosys Consulting Sp. z o.o. 61,800,000.00 –
61,800,000.00 –
Under a share purchase agreement dated February 20, 2020 the Company acquired shares of Infosys Consulting Sp zoo
amounting to PLN 61.800.000.

7. Long-term investments in other entities
in PLN
2020 2019
Financial assets available for sale – –
Tidalscale investment 4,693,951.20 12,974,676.25
House of Funds investment 13,116,819.53 –
17,810,770.73 12,974,676.25
The Company invested US$ 2,300,000 on May 14, 2019 and US$ 1,625,000 on March 04, 2020 in the House of Funds. The
valuation method is fair value through profit or loss.
8. Equity
8.1 Ownership structure of the share capital
in PLN
Shareholder Number of shares Face value of shares % interest
Infosys BPM Limited (formerly: Infosys BPO Limited) 5,000.00 2,500,000.00 100%
5,000.00 2,500,000.00 100%
8.2 Proposed distribution of profit for the financial year

The Company’s Management Board proposes to allocate the profit for the financial year to finance the loss from the previous
year and increase the reserve capital.
9. Provisions
9.1 Provisions for retirement and similar benefits
in PLN
Particulars Retirement benefits Other Total
April 1, 2019 826,101.00 20,247,616.65 21,073,717.65
Increases 1,062,230.00 25,196,735.23 26,258,965.23
Used – (20,247,616.65) (20,247,616.65)
Reversed (826,101.00) – (826,101.00)
March 31, 2020 1,062,230.00 25,196,735.23 26,258,965.23
of which:
long-term 1,015,441.00 – 1,015,441.00
short-term 46,789.00 25,196,735.23 25,243,524.23
Other short-term provisions for employee benefits include (by basis):

in PLN
provision for unused annual leave 12,835,156.00
provisions for bonuses 6,481,310.28
provision for retirement and disability benefits 735,214.76
provision for overtime 5,145,054.19
25,196,735.23
9.2 Other short-term provisions

Other short-term provisions have been made for any taxable interest on the returned subsidy.
in PLN
Particulars Other Total
April 1, 2019 3,213,688.00 3,213,688.00
Increases 652,300.00 652,300.00
Used – –
Reversed – –
March 31, 2020 3,865,988.00 3,865,988.00

10. Long-term liabilities
10.1 Age distribution of long-term liabilities to related undertakings
Not applicable
10.2 Age distribution of long-term liabilities to other undertakings
Not applicable
10.3 Liabilities to the state budget or local government bodies on account of obtaining ownership
rights to buildings and facilities
Not applicable
11. Short-term liabilities

11.1 Short-term trade liabilities to related parties of PLN 237,451.81 are due within 12 months from
the Balance Sheet date.
11.2 Short-term trade liabilities to other entities of PLN 8,820,700.07 are due within 12 months
from the Balance Sheet date.
11.3 Short-term liabilities due to taxes, customs duty, insurance and other benefits
in PLN
2020 2019
PIT-4 settlements 930,540.97 1,222,337.62
Social security settlements 4,280,642.11 7,949,918.27
ECP budget settlements 206,493.07 –
SFRHP budget settlements (232.57) –
WHT settlements – (1.38)
5,417,443.58 9,172,254.51
11.4 Short-term liabilities — other financial liabilities to other entities

in PLN
2020 2019
Measurement of financial instruments 930,000.00 548,900.00
930,000.00 548,900.00
The Company uses forward contracts to hedge its foreign exchange risk.
12. Other accruals

12.1 Long-term accruals
in PLN
2020 2019
Deferred discount received due to a rent — long-term portion 5,160,018.17 6,990,214.89
5,160,018.17 6,990,214.89
12.2 Short-term accruals

in PLN
2020 2019
Provision for the costs of business trips 13,166.00 4,625.00
Deferred discount received due to a rent — short-term portion 1,659,423.96 1,695,247.59
Deferred income — EU subsidy 8,130,452.55 8,130,452.55
Other 107.86 1,810,303.24
9,803,150.37 11,640,628.38

13. Sales revenue
in PLN
2020 2019
Geographic information
Revenue from sales of services
Domestic 29,641,863.04 30,652,518.81
Exports 252,626,285.12 238,361,173.29
282,268,148.16 269,013,692.10
Revenue by type
Revenue from sales of products
in PLN
2020 2019
Services 282,268,148.16 288,238,979.55
282,268,148.16 288,238,979.55
14. Other operating income

This item includes the performance of the contract with Cloudyn in the amount of PLN 1,785,615.44. The Company sold the
investment in Cloudyn in the year ended March 31, 2018. On May 23, 2020 we received PLN 1,782,389.49 for the issue of
an escrow account. The remaining part includes mainly the performance of loyalty agreements with employees.
15. Other operating costs
This item includes provisions for potential income losses in the amount of PLN 385,368.74, and other provisions for receivables.
16. Interest income
(including those arising from debt financial instruments, loans and receivables)
from April 1, 2019 to March 31, 2020
in PLN
Particulars Realized interest Unrealized interest, due within Total
Up to 3 months 3−12 months Over 12 months
Loans and
receivables 1,903,698.37 662,364.12 1,232,623.51 – 3,798,686.00
1,903,698.37 662,364.12 1,232,623.51 – 3,798,686.00

in PLN
Loans and
receivables 2,620,406.29 (37,180.83) 1,213,936.65 – 3,797,162.11
2,620,406.29 (37,180.83) 1,213,936.65 – 3,797,162.11
17. Other financial income

Other financial income in the amount of PLN 6,328,001.11 results from currency valuation.
18. Interest cost

(including those arising from financial obligations contracted)
in PLN
Other 22,817.55 – – – 22,817.55
22,817.55 – – – 22,817.55

in PLN
Receivables, claims Realized interest Unrealized interest, due within Total
and liabilities
other than those
categorised as
financial assets and
liabilities
Other 15,658.67 – – – 15,658.67
15,658.67 – – – 15,658.67
19. Other financial costs

The loss in the amount of PLN 12,360,656.72 results from valuation of the Tidalscale investment.
Other financial costs in the amount of PLN 1,457,600, result from exchange rate differences realized under forward contracts
20. Income tax

in PLN
2020 2019
Current income tax 4,413,929.39 5,385,216.48
Deferred tax 703,153.65 1,642,386.09
5,117,083.03 7,027,602.57
21. Deferred income tax

in PLN
2020 2019
Deductible temporary differences:
Provision for annual leave 12,835,156.00 11,207,584.94
Provision for bonuses, overtime, retirement and disability benefits 6,297,617.80 6,920,296.39
Accrued exchange losses – 316,269.74
Provisions for other costs 19,960,466.15 15,760,024.07
Fixed assets 670,438.44 2,167,521.60
Measurement of derivatives – 648,900.00
SEZ tax credit 16,059,202.11 31,103,402.85
Reserve for additional after-sales services 1,869,725.26 933,343.04
Provision for unfinished services 18,306,122.41 6,501,874.01
75,998,728.17 75,559,216.64
Gross deferred tax assets 14,439,758.35 14,356,251.16
Net deferred tax assets 14,439,758.34 14,356,251.16
in PLN
2020 2019
Taxable temporary differences:
Accrued exchange gains – 1,090,426.26
Measurement of derivatives – 636,920.54
Interest accrued on deposits – 2,030,814.70
Provisions for income 7,898,481.71 –
7,898,481.71 3,758,161.50
Deferred tax liability 1,500,711.51 714,050.69
Deferred tax assets recognized in the Balance Sheet 14,439,758.34 14,356,251.16
Deferred tax liability recognized in the Balance Sheet 1,500,711.51 714,050.69

in PLN
2020 2019
Net Balance Sheet change in deferred tax assets/liability (703,153.65) (1,642,386.09)
Value of deferred tax recognized in capitals in the period – –
Change in deferred tax charged to profit or loss (703,153.65) (1,642,386.09)
22. Expenditure on non-current non-financial assets

in PLN
2020 2019
Expenditure on non-current non-financial assets:
– incurred in the current year 1,770,996.59 2,849,460.30
– planned 3,366,274.81 3,606,310.00
23. Explanations to the cash flow statement

23.1 Gain/loss on investments
in PLN
2020 2019
Other — gain/loss on forwards 12,521,608.00 12,817,055.57
12,521,608.00 12,817,055.57
23.2 Change in short-term liabilities (except for credit facilities and loans)
in PLN
2020 2019
Change in short-term liabilities 5,287,642.29 (1,421,666.51)
5,287,642.29 (1,421,666.51)
23.3 Acquisition of intangible assets and property, plant and equipment

in PLN
2020 2019
Increases in fixed assets (1,770,996.59) (2,808,618.91)
Change in liabilities due to acquisition of property, plant and equipment – (40,830.52)
(1,770,996.59) (2,849,449.43)
24. Information on the nature and economic purpose of agreements concluded by the
Company not included in the Balance Sheet
Not applicable
25. Related party transactions
25.1 Payment of receivables and liabilities as at the Balance Sheet date
in PLN
Particulars Liabilities Receivables Loans to
Infosys Shanghai – – 23,169,553.52
Lodestone Brazil – – 21,819,528.46
Infosys China – – 3,261,948.43
Infosys Limited 202,416.40 1,489,326.12 –
Infosys Consulting Sp. zoo – 505,843.63 –
Infosys Consulting GmbH – 1,258,676.82 –
Infosys BPM Limited 35,015.09 2,715,380.82 –
Infosys (Czech Republic) Limited s.r.o. 20.32 (831.41) –
237,451.81 5,968,395.98 48,251,030.41

25.2 Revenue from related party transactions in the financial year
in PLN
Particulars Sales revenue
Infosys Limited 16,195,335.10
Infosys BPM Limited 7,659,101.12
Lodestone Germany 1,258,676.82
Infosys Consulting Sp. z o.o. 505,843.63
Infosys (Czech Republic) Limited s.r.o. 5,152.70
25,624,109.37
25.3 Cost of related party transactions in the financial year

in PLN
Particulars Purchase of services
Infosys China 109,173.54
Infosys Brazil (287,312.63)
Infosys Shanghai 779,548.16
Lodestone Brazil 1,007,874.78
Infosys BPM Limited (45,110.82)
Infosys (Czech Republic) Limited s.r.o. (28,637.39)
1,535,535.64
26. Material related-party transactions 31. Post Balance Sheet events not
concluded by the Company on non- recognized in the financial statements
arm’s length terms The COVID-19 pandemic caused the Company to have a
There were no material related-party transactions that would minimal influence on revenues, but only at the end of the
be concluded on non-arm’s length terms. fourth quarter of the financial year ended March 31, 2020.
The Company has adapted its service management, in
27. Staff close cooperation with its customers, so that the impact
in PLN of COVID-19 on their operations is limited. As a result,
Average number of staff in 2020 2019 disruptions to operations were kept to a minimum and
the financial year: employees supported the customers’ operations via a
Office employees 2,211.00 2,117.00 remote operation system.
The Company analyzed the possible effects of the COVID-19
28. Salaries, loans and similar benefits to pandemic and its impact on the carrying amounts of
members of management, supervisory receivables, provisions for revenue, loans, investments and
other assets. In developing its business assumptions as regards
and administrative bodies
uncertainty in the global economic environment resulting from
In the current and prior reporting periods, members of the the pandemic, the Company used all available information
Management, supervisory and administrative bodies did to assess the recoverability of its assets. In view of the said
not receive any loans or similar benefits. Moreover, these uncertainty, the Management is aware that the pandemic may
persons did not receive any remuneration in the financial affect the carrying value of assets and financial results for the
year ended March 31, 2020. next financial year. However, at the date of preparation of
29. Fee paid or payable to the entity these financial statements, the net working capital and the
net asset item are positive and, based on current estimates,
authorized to audit financial statements the Management expects that the carrying value of the assets
in PLN
will be recovered. Therefore, no adjustments to the financial
Particulars 2020 2019 statements as at March 31, 2020 deem necessary.
Fee for the audit of annual
financial statements 64,527.00 58,067.55 There are a number of measures to protect revenue, including
continuous evaluation of cost optimization measures, and the
30. Events related to previous years Management will continue to monitor closely any significant
changes in future economic conditions.
disclosed in the financial statements of
the financial year 32. Changes in accounting rules /
There were no events related to previous years, which were adjustment for error
recognized in the financial statements for the financial year. not applicable

33. Information on non-consolidated joint includes identification and analysis of risk that the Company
is exposed to, setting the limits and control mechanisms
ventures
as well as monitoring risk and matching the limits. Risk
Not applicable management rules and procedures are reviewed on a regular
34. Consolidated financial statements basis in order to take into account changes in the arm’s length
terms and changes in the Company’s business activity.
The consolidated financial statements will be prepared
separately in accordance with the Accounting Act. Credit risk
35. Contingent liabilities Credit risk is the risk that the Company may incur a financial
loss if the client or any other party to the financial instrument
The Company has issued a blank promissory note in the defaults on its obligations under the contract. Credit risk is
amount of PLN 13,106,073.60 to secure the repayment mainly related to debt financial instruments. The objective
of the subsidy given by the Ministry of Economy under of risk management is to adopt a policy whereby parties to
the subsidy contract “Development of accounting and contracts are set credit limits, in order maintain a stable and
IT services and establishment of a R&D Department” well-balanced loan portfolio, both in terms of the quality and
dated December 10, 2012. value of the liabilities.
As at the end of the reporting period the subsidy More information about the credit risk has
totaled PLN 8,130,452.55. been given in Note 40.6.
36. Asset collaterals established by the Liquidity risk
Company Liquidity risk is the risk that the Company will have problems
Not applicable meeting its obligations related to financial liabilities by
making payment in cash or transferring other financial
37. Discontinued operations assets. Liquidity management ensures that the Company’s
Not applicable liquidity is sufficient to pay its liabilities in the ordinary
38. Mergers of companies course of business and during times of crisis without suffering
unacceptable losses, including the loss of reputation.
Not applicable
Market risk
39. Continuation of operations Market risk results from changes in market prices, such
The financial statements were prepared on a going concern as exchange rates and interest rates, having an impact on
basis. The impact of events described in note “Events after the the Company’s performance or the value of its financial
Balance Sheet date not included in the financial statements” instruments. The objective of market risk management is
has been assessed by the Management of the undertaking as to keep and control the Company’s exposure within defined
not posing any significant threat to the continuation of its limits while reaching the optimum return on investment.
business activity with no material changes. With a view to managing the market risk, the Company
acquires and sells derivatives.
40. Financial instruments a) Currency risk
40.1 Financial risk management objectives and The Company is exposed to currency risk related to sales,
policy purchases and loans in foreign currencies, mainly USD and
The Company’s business is exposed to the following risks EUR. The Company mitigates the currency risk with FX
resulting from the financial instruments held: purchase and sale forwards.
• Credit risk b) Interest rate risk
• Liquidity risk The Company is exposed to the risk of fluctuations in the fair
• Market risk value due to fixed-interest-rate assets.
Key risk management policies
It is the responsibility of the Management Board to implement
and manage a risk management policy in the Company. This
40.2 Description of financial instruments

in PLN
Portfolio Quantity Carrying amount Terms and conditions
affecting future cash flows
Cash in hand and at bank 10,547,979.12 Not applicable
Cash Interest of 1.17%, maturing
deposits 20,117,321.00 by March 3, 2020
Interest of 1.05%, maturing
55,113,918.00 by April 30, 2020

Portfolio Quantity Carrying amount Terms and conditions
affecting future cash flows
Interest of 1.4%, maturing by
30,032,219.00 May 4, 2020
Interest of 1.45%, maturing
20,022,247.00 by June 3, 2020
Financial assets available for
sale
Tidalscale investment 4,693,951.20
House of Funds investment 13,116,819.53
40.3 Carrying amount of financial instruments measured at fair value

Not applicable
40.4 Changes in revaluation reserve in respect of financial instruments
Not applicable
40.5 Interest rate risk
in PLN
Financial instruments: 2020 2019
Carrying amount Carrying amount
– Fixed interest rate
Financial assets 173,536,734.53 243,794,786.32
Including:
Loans 48,251,030.41 43,157,865.78
Deposits 125,285,704.12 200,636,920.54
As at the Balance Sheet date, the Company did not have any financial instruments for which the redemption date falls earlier
than the date originally specified in the contract.
Changes in the effective interest rates of financial instruments with floating interest rates follow changes in the market interest
rates, e.g. 1M WIBOR and 3M WIBOR or other reference interest rates.
40.6 Credit risk
The Company’s maximum exposure to the credit risk is expressed as the carrying amount of the following financial assets:
in PLN
2020 2019
Financial assets: Carrying amount Carrying amount
Loans 48,251,030.41 43,157,865.78
Trade receivables 65,458,270.11 40,974,335.61
Other short-term financial assets — deposits 75,231,238.12 45,148,130.14
Other short-term financial assets - Futures contracts 1,436,400.00 –
Cash — deposits 50,054,466.00 155,488,790.40
Cash — other 10,547,979.12 10,947,029.13
Financial assets available for sale 17,810,770.73 12,974,676.24
268,790,154.49 308,690,827.30
in PLN
2020 2019
Financial liabilities: Carrying amount Carrying amount
Valuation of financial instruments 930,000.00 548,900.00
40.7 Impairment losses on financial assets

Not applicable
40.8 Impossible to determine the fair value

Not applicable

40.9 Fair value of financial assets and liabilities
Not applicable
40.10 Transactions where financial assets have been converted into securities or repurchase
contracts
Not applicable
41. Information on costs related to research and development work which have not been
recognized as intangible assets pursuant to Article 33 item 2.
Not applicable
42. Interest and exchange rate differences which increased the acquisition price or cost of
manufacture in the financial year
Not applicable
43. Fixed assets write-offs for long-term financial and non-financial assets
Not applicable
44. List of companies (name, registered office) in which the entity has an interest in the capital
Infosys Consulting Sp. z o.o.
ul. Strzegomska 142A 54-429 Wrocław
in PLN
Equity as at December 31, 2019 8,187,806.94
Profit gained in the year ended December 31, 2019 7,127,826.27
% share in the capital 100%
Arindam Roy Chowdhury

Member of the Board
Anup Kapoor
Member of the Board
Łódź, June 3, 2020

Infosys Consulting GmbH
Indipendent Auditor’s Report
To Infosys consulting GmbH, Garching near Munich/Germany
Audit Options
We have audited the annual financials statement of Infosys consulting Gmbh, Garching near Munich/Germany, which comprise
the Balance Sheet as at 31st December 2019, and the statements of profit and loss for the financial year from 1st January to
31st December 2019, and the notes to the financial statements, including the presentation of the recognition and measurement
policies. In Addition, we have audited the Management report of Infosys Consulting GmbH, Garching near Munich/Germany
for the financial year from 1st January to 31st December 2019
In our opinion, on the basis of the knowledge obtained in the audit,
• The accompanying annual financial statements comply, in all material respects, with the requirements of German commercial
law applicable to business corporations and give a true and fair view of the assets, liabilities and financial position of the
Company as at 31st December 2019 and of its financial performance for the financial year from 1st January to 31st December
2019 in compliance with German Legally Required Accounting Principles, and
• The accompanying management report as a whole provides an appropriate view of the company’s position, in all material
respects, this management report is consistent with the annual financial statements, complies with German legal requirements
and appropriate presents the opportunities and risk of future requirement development.
Pursuant to section 322 (3) sentence 1 German Commercial Code (HGB), we declare that our audit has not led to any reservation
relating to the legal compliance of the annual financial statements and of the Management report.
Basis for the audit options
We conducted our audit of the annual financial statements and of the Management report in accordance with the Section
317 HGB and in compliance with German Generally Accepted Standards for Financials statements Audit promulgated by the
Institut der Wirtschaftsprufer (IDW). Our responsibilities under those requirements and principles and further described in the
“Auditor’s Responsibilities for the Audit of the Annual Financial Statements and Management Report” section of our auditor’s
report. We are independent of the Company in accordance with the requirements of German commercial and professional
law, and we have fulfilled our German professional responsibilities in accordance with these requirements. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the annual financial
statements and the Management report.
Responsibilities of the Executive Directors for the Annual Financial Statements and the Management Report
The executive directors are responsible for the preparation of the annual financial statements that comply, in all material
respects with the requirements of German commercial law applicable to business corporations and that the annual financial
statements give a true and fair view of the assets, liabilities and financial position of the financial performance of the Company
in compliance with German Legally Required Accounting Principles, In addition, The executive directors are responsible for
such internal control as they, in accordance with German Legally Required Accounting Principles, have determined necessary
to enable the annual financial statements that are free from material misstatement whether due to fraud or error.
In preparing the annual financial statements the executive directors are responsible for accessing the Company’s ability to
continue as a going concern. They also have the responsibility for disclosing, as applicable, matters related to the going concern,
in addition, they are responsible for the financial reporting based on the going concern basis of accounting, provided no actual
legal circumstances conflict therewith.
Furthermore, the executive directors are responsible for the preparation of the Management report that as a whole provides
an appropriate view of the Company’s position and is, in all material respects, consistent with the annual financial statements,
complies with German legal requirements, and appropriate presents that opportunities and risk of future development. In
addition, the executive directors are responsible for such arrangements and measured (systems) as they have considered
necessary to enable the preparation of a management report that is in accordance with the applicable German legal requirements,
and to be able to provide sufficient appropriate evidence for the assertions in the Management report.
Auditor ‘s responsibilities for the audit of the Annual Financial statements and of the Management Report
Our objectives are to obtain reasonable assurance about whether the annual financial statements as a whole are free from material
misstatement, whether due to fraud or error, and whether the Management report as a whole provides an appropriate view
of the company’s position and, in all material respects, is consistent with the annual financial statements and the knowledge
obtained in the audit, compiles with the German legal requirements and appropriately presents the opportunities and risks of
future development, as well as to issue an auditor’s report that includes our audit opinions on the annual financial statements
and on management report.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with section 317
HGB and in compliance with German Generally accepted Standards for Financial Statements Audits promulgated by Institute
der Wirtschaftsprufer (IDW) will always detect material misstatement. Misstatements can arise from fraud or error and are
200 | Infosys Consulting GmbH Infosys Subsidiary Financials 2019-20

considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decision of
users taken on the basis of these annual financial statements and this management report.
We exercise professional judgment and maintain professional scepticism throughout the audit. We also
• Identify and assess the risks of material misstatement of the annual financial statements and of the Management report,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our audit opinions. The risk is not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal controls.
• Obtain an understanding of internal control relevant to the audit of annual financial statements and of arrangements
and measures relevant to the audit of the Management report in order to design audit procedures that are appropriate in
circumstances, but not for the purpose of expressing an audit opinion on the effectiveness of these systems of the company.
• Evaluate the appropriateness of accounting policies used by executive directors and the reasonableness of estimates made
by executive directors and related disclosures.
• conclude on the appropriateness of the executive directors’ use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in the auditor’s report to the related disclosures in the annual financial statements and in the Management
report or, if such disclosures are inadequate, to modify our respective audit opinions. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to
cease to be able to continue as a going concern.
• evaluate the overall presentation, structure and content of the annual financial statements, including the disclosures, and
whether the annual financial statements represent the underlying transactions and events in a manner that the annual
financial statements give a true and fair view of the assets, liabilities, financial position and financial performance of the
Company in compliance with German Legally Required Accounting Principles.
• evaluate the consistency of the Management report with the annual financial statements, its conformity with German Law,
and the view of the Company’s position it provides.
• perform audit procedures on the prospective information presented by the executive directors in the Management report. On
the basis of sufficient audit evidence we evaluate, in particular the significant assumptions used by the executive directors
as a basis for the prospective information, and evaluate the proper derivation of the prospective information from these
assumptions. We do not express a separate audit opinion on the prospective information and on the assumptions used as a
basis. There is a substantial unavoidable risk that the future events will differ materially from the prospective information.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in the internal control that we identify during our audit.”
Subject, nature and scope of the audit

Subject of the audit
Our audit covered
• the accounting records,
• the annual financial statements (comprising the Balance Sheet, the statement of profit and loss and the notes to the
financial statements), and
• the Management report of the Company.
The executive directors of the Company are responsible for the accounting records and the preparation of the annual financial
statements and the Management report in accordance with German commercial law; this also applies to the information which
was provided to us concerning these documents. Further information is provided in the section “Responsibilities of the Executive
Directors for the Annual Financial Statements and the Management Report” in the above copy of our auditor’s report.
Our responsibility is to express an opinion in these documents and this information based on our audit conducted with the
professional auditing standards. Our responsibilities in this context are described in the sections “Audit Opinions” and “Auditor’s
Responsibilities for the Audit of the Annual Financial Statements and of the Management Report” of our auditor’s report.
Nature and scope of the audit
Our audit was based on the prior year’s annual financial statements audited by us, on which we issued an unqualified Independent
Auditor’s Report dated 30 April 2019; these annual financial statements were adopted on 16 May 2019.
We conducted our audit in accordance with Sec. 317 HGB and with German Generally Accepted Standards for Financial
Statement Audits promulgated by the Institut der Wirtschaftsprufer (IDW).
Infosys Subsidiary Financials 2019-20 Infosys Consulting GmbH | 201

Concerning the main features of our audit approach, we refer to the section “Auditor’s Responsibilities for the Audit of the
Annual Financial Statements and of the Management Report’ in the above copy of our auditor’s report in chapter 3. In order to
meet these requirements, we apply our risk and process based approach; for this purpose, we use our Engagement Management
System (EMS) auditing software. It supports the planning, performing and documentation of the audit.
In accordance with Sec. 317 (4a) HGB, the scope of the audit does not include assurance on the future viability of the
audited Company or on the effectiveness or efficiency with which the executive directors have conducted or will conduct the
affairs of the Company.
We conducted the audit – with interruptions – in December 2019 (interim audit) and from January to April 2020 (year-end audit).
In accordance with our audit plan, we tested the appropriateness and, if applicable, the operating effectiveness of the identified
controls relevant to the audit. Based on the results of these tests, we determined the nature and scope of our substantive
procedures (substantive analytical procedures and teste of details of selected transactions and account balances). Tests of details
were performed on the basis of judgmental selections of specific items and/or by applying sampling methods.
Our audit focused on:
• completeness and valuation of provisions, and
• substantiation and cut-off of revenue.
In order to assess the appropriateness of the Company’s accounting records, as part of the interim audit, we obtained an
overview of the organization of the accounting record and an understanding of the controls relevant to the audit, and performed
appropriate teste of design and implementation, and operating effectiveness, in particular with regard to the relevant internal
controls implemented.
The Company has outsourced its accounting function to Infosys Limited, Bangalore/India. To assess the appropriateness of the
outsourced accounting function, we performed tests of controls at the service provider.
In auditing accounts receivable, bank balances and provisions, we requested external confirmations from selected customers
as well as from all banks and selected lawyers and tax accountants of the Company concerning its debits, claims, rights,
credits and obligations.
We did not request external confirmations of account payables recorded n lists of accounts balances at the Balance Sheet
date because accounts payable were recorded, maintained and processed in such a way that they could be substantiated
reliably by other means.
Considering the disclosures in the annual financial statements, we evaluated the prospective information in the Management
report for the plausibility and consistency with our audit evidence in respect of the annual financial statements.
The executive directors provided all the information and evidence requested and on 13 April 2020 issued a written letter
of representation in accordance with professional standards. In this letter of representations, the executive directors notably
confirm that all transactions which require recognition in the accounting records are recorded in the books presented and that
in compliance with the applicable accounting principles the annual financial statements reflect all assets, liabilities (obligations,
risks, etc.), accruals and special items, all expenses and income as well as all required disclosures.
Findings and explanations on the financial reporting

Appropriateness of the financial reporting
Accounting records and other audited documents
The accounting records comply with the legal requirements including the German Legally required Accounting Principles. The
information derived from the other audited documents is, in all material respects, appropriately presently within the accounting
records, the annual financial statements and the Management report.
Annual financial statements
The annual financial statement for the financial year ended 31 December 2019 are enclosed as appendices 1.2 to 1.4 to this
long-form audit report.
The annual financial statements have been properly derived from the accounting records and the other audited documents.
The Company complies, in all material respects, with the legal requirements on classification, recognition and valuation and on
the notes to the financial statements. The disclosures on the total remuneration of the executive directors have been omitted,
as permitted by Sec. 286 (4) HGB.
Management Report
The Management report for the financial year ended 31 December 2019 is enclosed as appendix 1.1 to this long form audit report.
According to the results of our audit, the Management report complies, in all material respects, with German legal requirements.

Overall presentation of the annual financial statements
The annual financial statements taken as a whole i.e. the combined presentation of the Balance Sheet, the statement of profit
and loss and the notes to the financial statements, give a true and fair view of the assets and liabilities, financial position and
financial performance of the Company compliance with German Legally required Accounting Principles.
Information on the assets, liabilities, financial position and financial performance
Multi-year data overview
Particulars 2019 2018 2017 2016
Revenue kEUR 64,946 86,197 90,312 75,369
Cost of materials kEUR 32,712 50,570 47,478 31,440
Cost of materials to
Operating income ratio % 50.4% 58.7% 52.6% 41.7%
Personnel expenses kEUR 23,956 26,444 29,449 35,919
Personnel expenses to
Operating income ratio % 36.9% 30.7% 32.6% 47.7%
Profit/loss for the period kEUR 4,031 (439) (1,214) (6,244)
Trade receivables kEUR 7,156 12,357 17,937 14,552
Equity kEUR 4,617 2,086 (975) 239
Balance Sheet total kEUR 17,517 23,012 27,786 26,363
Information on the economic and legal environment of the Company is provided in appendix 3 to this long-forum audit report.
Concluding remark
The above long-from report on our audit of the annual financial statements and of the Management report of Infosys Consulting
GmbH, Garching near Munich/Germany, for financial year from 1 January to 31 December 2019 complies with legal requirements
and the German Generally Accepted Standards for the issuance of Long-form Audit reports for the audit of Financial statements
promulgated by the Institut der Wirtschaftsprufer(IDW) – Auditing Standard IDW AuS 450 (Revised).
Concerning the unqualified Independent Auditor’s Report issued by is we refer to chapter 3 “copy of the Independent Auditor’s report”
Munich/Germany, 13th April 2020
Deloitte GmbH
Wirtschaftsprufungsgesellschart
Signed: Franz Klinger Signed: Marco Farrenkrof

Wirtschaftsprufer Wirtschaftsprufer
(German Public Auditor) (German Public Auditor)

Management report for the financial year 2019
I. General information about the Company Price-adjusted gross domestic product (GDP) increased by
0.6% in 2019. From a more long-term perspective, it emerges
Infosys Consulting GmbH, hereinafter referred to as “IC
that German economic growth in 2019 is below the average
Deutschland”, is an entity of Infosys Consulting Holding
of the past five years, during each of which price-adjusted
AG. The parent company Infosys Consulting Holding AG,
GDP rose by around 2.0% on average.
Kloten, is based in Switzerland and has numerous subsidiaries
worldwide. IC Deutschland is included in the consolidated Economic growth in 2019 was predominantly based on
financial statements of Infosys Limited, Bangalore, India. IC private and government spending. Gross fixed capital
Deutschland designs and implements value-adding solutions formation also grew in the past year, particularly in
to optimally align and future-proof our customers’ position in civil engineering, residential building and other plants,
worldwide competition. In particular, this involves business which, inter alia, includes capital investment in research
process optimizations and IT transformations as well as and development. Export figures, too, showed a robust
measures supporting the Management of change, which development in 2019. At +0.9%, however, their increase
take into account the respective corporate culture within was weaker than in the prior years. In the aggregate, the
the customer organizations and successfully operationalize GDP development in 2019 can be considered in two parts.
business transformations. In the course of these transformation While the service and the construction sectors predominantly
projects, IC Deutschland supports the entire value chain along experienced significant growth overall, economic activity
the complete product life cycle; from product development, in the manufacturing sector (excluding construction) – in
sales, purchasing, logistics, production and distribution particular the automotive sector – plummeted.
through to after-sales and service. IC Deutschland supports The information and communication service sectors (with
its international customers starting with the analysis of particular relevance to IC Deutschland) and financial
vulnerabilities, the detection of optimization opportunities, and insurance services also showed an above-average
the calculation of profitability as well as the re-design of increase of +2.9% each.
strategy, organization, processes and IT systems, all the way (Source: BMWI [Federal Ministry of Economy and Energy]
to the responsible and fair implementation of restructuring and Statistisches Bundesamt [Federal Statistical Office])
and efficiency enhancement projects. Consulting sector in 2019
What sets IC Deutschland apart from the competition is, The German consulting sector is following seamlessly in
firstly, its very experienced, customer-orientated consultants the successful footsteps of the past year. In 2018, revenue
with extensive expertise in their respective industries. in the consulting sector grew by +7.3% to bEUR 33.8, with
Secondly, IC Deutschland offers optimum support in view management consultants generating revenue growth for the
of customers’ digital agenda coupled with tried and tested ninth consecutive time. According to a survey conducted
IT solutions of Infosys Limited, particularly in the field of by the BDU (Federal Association of German Management
automation and artificial intelligence. Consultants) in March 2019, it is to be expected that 2019 will
At IC Deutschland, process and IT experts work together continue to be characterized by considerable growth of +7.1%.
closely. Their common objective to create value unites them In 2018, particularly strong demand for consulting services
in their daily project work on site at the customer’s premises. was recorded in the consumer goods and the insurance
Infosys Limited and Infosys Consulting Group complement sectors, whereas the difficult market conditions were felt in
each other in a variety of ways. Consistent customer orientation vehicle construction. The public sector segment was exactly
as well as the inspiration to create value together with the in line with the overall industry trend in 2018. Even though
customer unites both entities. To this end, both entities the BDU has not yet published final figures for 2019, we
contribute essential characteristics to the Group, such as global expect that the trends experienced in 2018 referred to above
presence, financial stability, innovative strength, optimum will generally continue in 2019.
leverage of onsite, nearshore and offshore competence, global (Source: BDU, Facts & Figures zum Beratermarkt 2019 [Facts
delivery model, sophisticated management and IT consulting & Figures on the Consulting Market 2018])
as well as consultants with extensive experience in creating
customer value. Above all, our geographical reach based on 2. Business development
a global delivery model as well as the broad consulting and In the fiscal 2019 (with the financial year of IC Deutschland
customer portfolio, which hardly gives room for overlap, offer corresponding to the calendar year), IC Deutschland realized
outstanding differentiation and growth potential. a marked decline in revenue when compared to the prior
year. The financial year ended with revenue totaling mEUR
II. Economic report 64.9 (prior year: mEUR 86.2). This corresponds to a drop of
mEUR -21.3 (down by 24.7%) from the prior year, which is
1. Macroeconomic and industry-related
mainly attributable to the loss of a major client engagement.
framework conditions
Looking at 2019 as a whole, we continued to face a high
The German economy in 2019 level of competition. Digital transformation and the overall
The German economy experienced growth for the tenth economic situation that remained positive continued to spur
consecutive year. However, it has lost considerable momentum. investment readiness among our customers in view of their

digital agendas. As in the prior year, this again led to an even The cost of purchased services declined by mEUR
fiercer competition for talent, which continued to be also 17.9 (down by 35.3%) to mEUR 32.7 compared to the
noticeable at IC Deutschland. On the one hand, the exodus prior year’s mEUR 50.6.
of established consultants has been much less pronounced Other operating expenses declined by mEUR 2.4 (down by
than in prior years; on the other, consulting firms have 23.3%) from mEUR 10.2 to mEUR 7.8 in comparison with
also continued to expand their capacities (Accenture, Cap the prior year. This development is mainly due to a sharp
Gemini, NTT Data, MHP). decrease in expenses for employee travel costs. In general,
In order to continue to improve the competitive position of other operating expenses could be reduced in respect of
IC Deutschland, its Europe-wide structure to gain market most positions. The significant reduction in other operating
access (go-to market), which was introduced in 2017, expenses, among other factors, formed the basis for the
will be pursued by launching so-called verticals (industry successful continuation of the consolidation process despite
segments) and establishing service and supply units: so-called the substantial decrease in revenue in 2019.
horizontals. On the other hand, performance management on Overall, the Company realized a profit for the period of
the client side was also continued to be actively pursued, in mEUR 4.0 (prior year: loss for the period of mEUR 0.4) in
the process of which we discontinued unprofitable projects in the financial year ended December 31, 2019.
a targeted manner and adjusted profit targets for new projects,
thus boosting profitability overall. 4. Assets and liabilities
As new transformation projects could be secured with new As at December 31, 2019, the Company’s equity amounted
customers particularly in the manufacturing and financial to mEUR 4.6 (prior year: mEUR 2.1 at a Balance Sheet total
services industries, and consulting projects with our existing of mEUR 17.5 (prior year: mEUR 23.0). This sharp increase
customers were expanded while new business segments in equity could be achieved despite the partial repayment (in
were developed, capacity utilization was roughly at the the amount of mEUR 1.5) of the Company’s capital reserves.
prior year’s level. The Balance Sheet total decreased by mEUR 5.5 year-
Recruiting new qualified staff in sufficient numbers has been on-year, with other assets declining by mEUR 0.4 in the
of the most important and equally challenging tasks in the reporting period. Receivables from affiliated companies,
past calendar year. on the other hand, were up by mEUR 0.2, while trade
In addition to our information and communication policy receivables experienced a reduction of mEUR 5.2. Cash and
in force, and besides the intensive staff support provided cash equivalents as at December 31, 2019 were precisely at
by their ‘coaches’, the ‘extra mile’ and the ‘Masters of the prior year’s level at mEUR 7.5. On the liabilities side,
Excellence’ programs that were successfully launched in liabilities to affiliated companies and trade payables decreased
the prior year, continue to receive a high level of attention by mEUR 2.8 and mEUR 1.6, respectively. Other provisions
by the Management. Both programs have been very well dropped by mEUR 2.8. Tax provisions, on the other hand,
received by the staff. experienced an increase of mEUR 0.6 in the reporting period.
IC Deutschland’s business development in the financial year 5. Financial position
2019 was significantly better than budgeted, as despite an The main objective of the financial management is to ensure
expected decrease in revenue, a further improvement in the Company’s solvency in order to meet its payment
earnings was achieved. The improvement in earnings notably obligations on time and to reduce financial risks. The
results from the reversal of provisions of kEUR 3,585. Company’s capital requirements are generally to be covered
3. Financial performance by the funds generated from operating activities.
In the financial year 2019, Infosys Consulting generated For the purpose of strengthening its financial performance,
revenue of mEUR 64.9 (prior year: mEUR 86.2). This the Company had carried out a capital increase in the prior
corresponds to a decline in revenue of mEUR -21.3 (prior period. The shareholder’s contribution to the capital reserves
year: mEUR -4.1 or -4.5%) or -24.7% when compared to the amounted to mEUR 3.5. This capital contribution was reduced
prior year. The fall in revenue exclusively relates to revenue by mEUR 1.5 to mEUR 2 in the reporting period. Further,
with third parties, while intercompany revenue even showed the loan agreement concluded with the parent in the financial
an increase of mEUR 4.6 compared to the prior year. year 2016 continues to apply in order to compensate for any
liquidity fluctuations the Company might experience. Under
Consulting services and auxiliary services accounted for this loan agreement, a credit line of a maximum of mEUR
mEUR 59.1 (prior year: mEUR 82.9) and mEUR 5.6 (prior 15.0 has been granted to the Company. In the reporting
year: mEUR 6.4) of the revenue, respectively. Germany period as a whole, no funds were drawn under this credit line.
accounted for 62.6% (prior year: 63.5%) of the revenue,
while Europe made up 34.5% (prior year: 22.2%), with the As at the reporting date, cash funds totaling mEUR 7.5 are at
remainder of 2.9% (prior year: 14.3%) being attributable to the prior-year level (mEUR 7.4).
non-European countries. Despite dire conditions in the past financial year, the
Other operating income includes reversals of provisions Company’s economic position can be described as overall
amounting to mEUR 3.6 (prior year: mEUR 0.1). stable according to the Management, taking into account
the Company’s assets, liabilities, financial position and
Personnel expenses totaled mEUR 24.0 (prior year: mEUR financial performance. The stabilization and restructuring
26.4), having decreased by mEUR 2.4 (down by 9.4%) measures introduced in the financial year 2017 were
compared to the prior year.

continued in the reporting period. Further restructurings • monitoring of revenue and profit development per
initiated in the reporting period are a precondition for the month / quarter / half year, degree of target achievement
Company to generate profitable growth rates accompanied distinguished by project, customer, industry
by significant revenue growth. segment, country / region;
6. Financial and non-financial performance • comparison of planned and actual revenue figures per
project / customer / industry segment;
indicators
• active sales funnel management along the various phases /
Profitability and performance of the Company were generally
phase transitions in the sales process through to the closing
assessed based on the following performance indicators:
of the contract and start of the project (in the GOM system);
As regards revenue, we budgeted an amount ranging from
• measurement of sales efficiency by contrasting compliance
mEUR 86 and mEUR 87 for the reporting period. With
with the so-called customer account planning, the agreed
mEUR 65 realized, we unfortunately missed this target. This
business development budget for each individual sales
is notably due to the fact that a large project started in 2018
opportunity or industry segment as well as the win/loss ratio;
was interrupted for the time being and deferred. In addition,
IC Deutschland had discontinued some non-profitable • analysis of new orders and root-cause analysis for lost
accounts in the course of the restructurings, which led to sales opportunities;
a decrease in revenue, which did not preclude, however, a • monthly monitoring of invoicing and receipt of payment
positive adjustment of margins. (effected and still open), including customer interaction
Having said that, we are still optimistic in view of our triggered by the Account Partner;
consolidation in the following financial year ending • consistent monitoring of planned and realized
December 31, 2020, given that no further decrease in revenue billable employee utilization as well as utilization
is expected and we will be able to generate proceeds at the adjusted by time off;
prior-year level. On the medium term, the Company follows • capacity utilization forecast per employee / community
a clear path of revenue growth. (technical, topic-specific assignment of employees
At mEUR 4.4, earnings before taxes, by contrast, developed according to areas of competence such as Strategy
significantly more positive than the budgeted mEUR 0.3. This Transformation, Digital Transformation, Product
marked improvement in the profit for the period is firstly Transformation, etc.);
due to the mentioned focus on highly profitable projects • comparison of plan and actual recruiting targets and actual
and clients and secondly, due to the reversal of substantial additional employees at the respective competence levels;
provisions in 2019. Reducing non-project-related travel costs analysis of employee turnover and rejections of job offers
also constituted a matter of renewed focus for the Management by consultants sought after;
in 2019. As the current realignment process the Company
• analysis and monitoring of project profitability (planned
is experiencing will be continued to be vigorously pursued,
project margin versus current project margin, planned
we expect a further slight improvement of EBT ranging
travel costs versus actual travel costs); and
from mEUR 4.5 to mEUR 5 for the financial year 2020. We
moreover refer to our explanations given in the outlook. • analysis and monitoring of non-project-related expenses
(leasing, telephone costs, travel costs for internal activities
In terms of staff, we aim towards a total headcount of 230
such as community work, recruitment of employees,
by the end of the financial year. Even if our actual headcount
business development).
totaled 175 as at December 31, 2019, we will maintain our
objective of employing a total of 230 members of staff for the Moreover, we carry out so-called project health checks for
end of the fiscal 2020, since the revenue growth planned in larger and more significant client projects in order to identify
the medium term can only be achieved with a sufficiently project risks and take corrective measures at an early stage.
large number of qualified employees. This variance is due to We consider the development of revenue and the profit for the
a high level of employee turnover, particularly in the middle period the most important financial performance indicators.
of the year and as a consequence of the decrease in revenue. In terms of non-financial performance indicators, the number
IC Deutschland takes the following approach in steering its of staff mainly determines the approach we adopt.
present and future ordinary business operations:
III. Reporting on opportunities and risks
• revenue and earnings planning per financial year (top-
down and bottom-up) at project-and customer level Risks
as well as on an aggregated level within the context The operational risk management of IC Deutschland focuses on:
of industry segments (medium-term planning), and
- receivables management;
transitioning towards defined personal objectives for
partners / associate partners; - potential capacity utilization risks and a dedicated resource
planning process on a weekly and cross-country basis;
• budget planning for the business development by
industry segment (so-called verticals) and definition of - identification of critical projects and measures to improve these;
individual capacity utilization targets per thematic focus - improvement of productivity and margins; and
(so-called horizontals); - intensive staff support.

As in the prior years, the main performance risks lie in are now being transferred to other business areas such as retail
the following areas: and energy. Here, our good corporation with SAP AG bears
– from an internal perspective: fruit. IC Deutschland has established an innovative consulting
portfolio that in particular covers the field of AI/automation,
• the successful acquisition of new customers and sustainable
which gained even more breadth and attractiveness through
development of existing customers;
the integration with Infosys Limited. Our global presence
• an efficient cost and project profitability management; will once again considerably improve our standing due to the
• the efficient management of employee secondments (e.g. global transformation programs.
posting employees from foreign firms and branches to Based on the initial situation described above, it is the
Germany versus posting German consultants abroad – objective of IC Deutschland to further expand its client base
especially Switzerland); and in the financial year 2020. By doing so, it continues to reduce
– from an external perspective: the risk of dependency on few very large clients (or projects).
• a fiercer competition through substantial expansion within In this context, the new and large transformation projects
the consulting market; and acquired in the financial year 2019 will make a valuable
contribution to this end.
• the perception of IC Deutschland as IT service provider as
opposed to a management and transformation consultant. In addition, there are considerable opportunities for positive
business development in 2020:
In view of financial risks, IC Deutschland is in the
position to draw on a solvent customer base. Bad debts on 1. a positive economic environment for German companies,
receivables have not yet been occurred to a significant extent. provided that the COVID-19 crisis can be overcome
Moreover, we have been working with the majority of our rapidly;
customers for many years. Liabilities are settled within the 2. sustained demand for IT and SI services;
agreed payment periods. 3. strong growth areas (digitization, artificial intelligence,
Depending on the duration and the extent of the related SAP S/4 HANA);
effects, the outbreak of the global COVID-19 pandemic 4. expansion of the existing and new customer base through
presents a significant risk to the Company. Given the new segments (artificial intelligence and automation,
dynamic development, it is difficult to assess said risk digital, transformation);
conclusively. This risk is monitored as part of the Company’s
5. expanded portfolio through intensified corporation with
risk management. The macroeconomic risk arising from the
Infosys in the field of AI/automation; and
COVID-19 pandemic and the resulting risk in terms of client
or project loss is to be classified as considerable and is difficult 6. further expansion of the nearshore and global delivery
to assess at the time the Management report was prepared. model and a global client management.
It is, however, monitored by maintaining close contact to all
clients and mitigated within the means of the Company. IV. Outlook
We do not see any other legal or other risks that may endanger According to economic analysts of the Institute for the
the Company’s business development. World Economy (Institut für Weltwirtschaft, IfW), German
economic activity gradually picked up some momentum
Summary presentation of risks again after a weak 2019 summer. After the IfW had predicted
The accumulation of individual or multiple risks, particularly that in spite of a clouded international environment and
the risks in connection with the COVID-19 pandemic, the uncertainties as to future developments in economic
may have a significant adverse effect on, or even endanger policy as of mid-2020, the level of economic output would
the future development of the Company. In his overall gradually recover while consumption-related services, in
assessment and according to the current state of knowledge, particular, were anticipated to experience a further expansion.
the managing director does not assume that the present risk It has now, given the repercussions of the spread of the
situation casts significant doubt on the Company’s ability to COVID-19 and the associated economic shifts, adjusted its
continue as a going concern. assessment. The IfW now expects that the German gross
domestic product (GDP) will shrink by 0.1% in 2020 overall.
Opportunities Particularly the first two quarters should be marked by an
The German economy continued to represent positive economic downturn, whereas the IfW anticipates a positive
framework conditions for 2020, and we expect our customers development in the second half of 2020 in the form of a
to continue to invest in improving their financial profitability catching-up effect. However, the IfW is aware that its forecast
and productivity. This, however, depends on the influence is subject to significant uncertainties as it is based on the
of the COVID-19 pandemic referred to above. The topics assumption that the events caused by the COVID-19 will
Industry 4.0, digitalization and artificial intelligence / abate as of mid-2020.
automation are in the process of taking very concrete forms, (Source: ifw-kiel.de; as of March 2020)
and Infosys Consulting, together with Infosys Limited,
are excellently positioned in view of these challenges. BITKOM had expected growth of the ITC market of +1.5
Our capacities in the area of SAP S/4HANA have attracted percent to bEUR 172.2 for 2020. Being the industry’s largest
particular interest in the industry segments life sciences/ segment with an expected revenue of bEUR 95.4 and growth
pharma, the manufacturing sector and financial services, and of 2.7 percent, information technology will become all the

more important. The software segment, too, is again expected further with talent in digital transformation and in view of
to grow considerably with a volume of bEUR 27.6 (up by SAP S4/4HANA reaching availability limits. Nearshoring
6.4%). According to BITKOM, the market for IT services, (the provision of certain services by the Eastern European
including the project business and IT consulting, will also subsidiaries of IC Deutschland) will continue to make a
see an increase of 2.4 percent at a market volume of bEUR significant contribution to our overall success, together with
41.9. Indeed, BITKOM, too, confirmed that the ITC industry our dedicated Indian consulting team, which is exclusively
would face an economic setback due to the first effects in the assigned to our solution portfolio and works closely together
context of the COVID-19 in February 2020, even though with our account partners.
BITKOM had derived a continuously positive mood from its We expect profit for the year 2020 to improve slightly
surveys for February – and, thus, before the acute phase of compared to the prior year as a result of the reorientation set
the COVID-19 crisis. A new forecast by BITKOM for 2020 is into motion, which remains appropriate in the light of the
currently not available. current COVID-19 crisis.
(Source: www.bitkom.org) In view of the development of human resources, we aim
From the Management’s point of view, the standing of at a headcount of approximately 230 until the end of the
IC Deutschland as a high-quality consulting firm in the financial year subject to the new business situation and an
areas of management, transformation and IT consulting increase in order backlog.
following a value integration approach remains a strategic Since, however, a realistic assessment of the final repercussions
opportunity. In mid-2019, the Infosys Knowledge Institute in the context of the COVID-19 crisis cannot yet be given and
and the AI / Automation division were placed under the its duration can hardly be foreseen at this point, we do, of
Management of Infosys Consulting. This underlines Infosys course, acknowledge that the objectives set out above for the
Group’s ambition and will have a positive impact on the financial year 2020 are subject to certain uncertainties.
development of our Company.
Garching near Munich / Germany, April 13, 2020
Despite the current COVID-19 crisis, we anticipate revenue
for our Company for the financial year 2020 to be on a par
with the prior year. Shifts might occur within the individual
quarters of the financial year. We nevertheless continue to
deem our overall planning to be generally realistic. We do Mark Livingston
not expect the average daily rates for IT services to deteriorate Managing Director

Balance Sheet
Particulars EUR EUR As at December Prior year
31, 2019
EUR kEUR
Assets
A. Fixed assets
Property, plant and equipment
Other assets, operating and office
equipment 174,869.99 239
B. Current assets
I. Inventories
Work-in-progress 1,169.79 48
II. Receivables and other assets
1. Trade receivables 7,155,850.03 12,357
2. Receivables from affiliated companies 2,326,692.95 2,101
3. Other assets 252,602.71 641
9,735,145.69 15,099
III. Cash-in-hand and bank balances 7,454,441.36 7,432
17,190,756.84 22,579
C. Deferred income 151,180.38 194
17,516,807.21 23,012

Particulars EUR As at December Prior year
31, 2019
EUR kEUR
A. Equity
I. Subscribed capital 86,000.00 86
II. Capital reserves 2,000,000.00 3,500
III. Net retained profits 2,530,639.20 (1,500)
4,616,639.20 2,086
B. Provisions
1. Tax provisions 1,765,075.04 1,180
2. Other provisions 7,024,949.53 9,781
8,790,024.57 10,961
C. Liabilities
1. Payments received on account of orders 300,001.50 300
2. Trade payables 1,647,604.61 3,203
3. Liabilities to affiliated companies 242,766.85 3,086
4. Other liabilities 1,919,770.48 3,376
thereof taxes: EUR 695,019.11 (prior year: kEUR 1,249)
4,110,143.44 9,965
17,516,807.21 23,012

Particulars EUR Year ended Prior year
December 31,
2019
EUR kEUR
1. Revenue 64,946,457.04 86,197
2. Decrease in work-in-progress (47,050.52) (10)
3. Other operating income 4,038,725.07 692
4. Cost of materials
Cost of purchased services (32,712,248.09) (50,570)
5. Personnel expenses
a) Wages and salaries (21,165,180.87) (22,882)
b) Social security and post-employment costs (2,790,772.63) (3,562)
(23,955,953.50) (26,444)
6. Depreciation and write-downs of property, plant and
equipment (70,920.81) (97)
7. Other operating expenses (7,799,412.20) (10,171)
8. Other interest and similar income 40.43 0
9. Interest and similar expenses (134.86) (26)
10. Income taxes (368,898.00) (10)
11. Earnings after taxes 4,030,604.56 (439)
12. Other taxes – –
13. Profit for the period 4,030,604.56 (439)
14. Accumulated losses brought forward (1,499,965.36) (1,061)
15. Net retained earnings 2,530,639.20 (1,500)

I. General information on the annual Provisions adequately take all risks identifiable and
contingent liabilities into account. Provisions are recognized
financial statements
at settlement amount determined according to sound business
The Balance Sheet and the Statement of Profit and Loss have judgment. Provisions with a term of up to one year have
been prepared in accordance with the regulations of the not been discounted.
German Commercial Code (HGB).
Payments received on account of orders refer to advances by
As at the Balance Sheet date, the Company is a large firm customers for services that cannot yet be invoiced and are
organized in a corporate form within the meaning of measured at nominal value of the payment received.
Section 267 (2) HGB.
With regard to the disclosure of emoluments paid to the Liabilities are carried at settlement amount.
Management, the Company makes use of the safeguard Assets and liabilities dominated in foreign currencies are
Clause under Section 286 (4) HGB. translated into euro at the exchange rate in effect at the date
The Statement of Profit and Loss has been prepared according of origin in accordance with Section 256a HGB. Profit and
to the nature of expense method in accordance with losses from exchange rate movements as at the Balance Sheet
Section 275 (2) HGB. date are taken into account where the residual term is less
than one year. If the residual terms are more than one year,
In the reporting period, the Company partially repaid a exchange rate movements are taken into account to the extent
capital contribution pursuant to Section 272 (2) no. 4 HGB that this results in a higher valuation of receivables or a lower
in the amount of EUR 1,500,000 to the shareholder. Capital valuation of liabilities.
reserves amount to EUR 2,000,000.
III. Notes to the Balance Sheet
II. Recognition and measurement policies
The annual financial statements for the year ended December Assets
31, 2019 have been prepared in accordance with the Fixed assets
recognition and measurement principles of the Third Book
The development in fixed assets is presented in the statement
of the HGB as well as the supplementary provisions of the
of movements in fixed assets (attached to the notes to the
Law on German Limited Liability Companies (GmbHG).
financial statements).
The following recognition and measurement
policies were applied: Current assets
Property, plant and equipment (including low-value Inventories
items) are measured at historic acquisition or production Inventories (work-in-progress) amounted to kEUR 1 (prior
cost less depreciation. year: kEUR 48) in the reporting period.
The option to fully depreciate low-value items with acquisition
Receivables and other assets
or production costs of up to EUR 800.00 was exercised for
additions to low-value items. As in the prior year, all individually reported receivables and
other assets are due within one year. This does not apply
Depreciation is conducted according to the estimated useful
to the other assets in the amount of kEUR 73 (prior year:
life of the assets that ranges between 3 to 15 years on a straight-
kEUR 64) with a residual term of 51 months (prior year: 63
line basis. Write-downs are made to the required extent.
months) or 15 months.
Work-in-progress was measured at production cost in
Receivables from affiliated companies amount to kEUR 2,327
accordance with Section 255 (2) HGB. Interest on borrowed
(prior year: kEUR 2,101) and include trade receivables of
capital is not capitalized. Work-in-progress is written down
kEUR 2,324 (prior year: kEUR 1,661) as well as receivables
to the lower fair value.
relating to other matters of kEUR 3 (prior year: kEUR 440).
Receivables and other assets are stated at nominal value less The receivables were netted with the corresponding liabilities
necessary allowances. Identifiable default risks are taken per company, leading to the respective surplus recognized
into account by making appropriate allowances on specific as at 31 December 2019. As in the prior year, there are no
receivables. A general allowance has been made in order to receivables from the shareholder.
cover the general credit risk.
Other assets mainly relate to tax receivables from foreign
Cash-in-hand and bank balances are capitalized at employees in the amount of kEUR 114 (prior year: kEUR
nominal value. 522), down payments of kEUR 39 (prior year: kEUR 0) and
rent deposits amounting to kEUR 82 (prior year: kEUR 85).
Prepaid expenses have been formed in accordance
with the regulations of German commercial law and Cash-in-hand and bank balances
measured at nominal value. Cash and cash equivalents consist almost entirely of bank
The subscribed capital (share capital) is balances, amounting to kEUR 7,454 (prior year: kEUR 7,432)
recognized at nominal value. at the end of the financial year.

Deferred taxes to foreign employees working on German projects, and to
For the calculation of deferred taxes arising from temporary provisions for income taxes.
or quasi-permanent differences between the values of assets, Other provisions
liabilities and accruals recognized in the Balance Sheet
Other provisions mainly include the following provisions:
prepared under German commercial law and their tax bases,
or from tax losses carried forward, the amounts of the resulting The provisions for outstanding invoices relating to the
tax burden and tax relief are measured at the tax rates of the subcontractor of kEUR 2,519 (prior year: kEUR 2,589),
individual entity at the time the differences are reversed, and employee bonuses including partner bonuses of kEUR 2,312
not discounted. Deferred tax assets and liabilities were offset (prior year: kEUR 1,852), outstanding vacation of kEUR 804
for reporting purposes. This did not result in an excess of (prior year: kEUR 532), social security of kEUR 75 (prior year:
deferred tax assets. kEUR 2,860) as well as provisions for outstanding employee
travel costs of kEUR 457 (prior year: kEUR 583). Moreover,
Deferred tax assets primarily result from tax loss
provisions for litigation costs and for consulting services have
carryforwards and valuation differences arising from the
been made in the amount of kEUR 88 (prior year: kEUR 738)
provisions for vacation.
and kEUR 121 (prior year: kEUR 225), respectively. All other
Deferred tax liabilities are not disclosed. provisions are expected to be due within one year.
Waiving the option to recognize deferred tax assets provided Liabilities
for under Section 274 (1) sentence 2 HGB, these were not
As in the prior year, all individually reported liabilities are
capitalized. The calculation was based on a tax rate for corporate
due within one year.
income tax and solidarity surcharge of 15.825% and for
municipal trade tax of 11.55% (multiplier [Hebesatz] 330%). Liabilities to affiliated companies were netted with the
corresponding receivables per company to ensure that only
Equity and liabilities the respective excess is recognized as at the Balance Sheet date.
Equity Liabilities to affiliated companies include trade payables of
Equity comprises the share capital (kEUR 86), capital kEUR 192 (prior year: kEUR 2,713) and liabilities relating
reserves (kEUR 2,000) and net retained profits, which to other matters of kEUR 51 (prior year: kEUR 373). As
developed as follows: in the prior year, the Company does not have any loan
Particulars kEUR liabilities to the shareholder. In contrast to the prior year
Accumulated losses brought forward as at (EUR 26,817.67), the Company does not disclose any trade
January 1, 2019 (1,500) payables to the shareholder as at December 31, 2019.
Profit for the period 2019 4,031 Other liabilities mainly include the following positions:
Net retained profits as at December 31, Liabilities from taxes in the amount of kEUR 695 (prior year:
2019 2,531 kEUR 1,249) and liabilities from customer bonuses totaling
kEUR 1,199 (prior year: kEUR 2,119).
Provisions for taxes
Provisions for taxes mainly relate to contingent liabilities in
connection with German payroll tax from prior years relating
IV. Notes to the Statement of Profit and Loss

The Statement of Profit and Loss has been prepared according to the nature of expense method.
Revenue can be broken down as follows:
Region 2019 in % 2018 in %
(in kEUR) (in kEUR)
Germany 40,628 62.6 54,774 63.5
Europe (sundry) 22,382 34.5 19,121 22.2
America 313 0.5 329 0.4
Asia 1,534 2.3 10,052 11.7
Australia 89 0.1 1,890 2.2
Africa – – 30 –
Total 64,946 100.0 86,197 100.0
Consulting services account for kEUR 59,058 of the revenue, while an amount of kEUR 5,583 relates to costs passed on,
particularly travel costs, and kEUR 305 to other revenue (management fees).
Other operating income amounting to kEUR 4,039 (prior year: kEUR 692) largely comprises income for the reversal of
provisions of kEUR 3,585 (prior year: kEUR 76), income from the private use of vehicles of kEUR 159 (prior year: kEUR 239)
and income from foreign currency measurement of kEUR 246 (prior year: kEUR 368).
In total, the income relating to other accounting periods in other operating income in the financial year amounts to kEUR
3,630 (prior year: kEUR 76).

The cost of purchased services by subcontractors an average of 162 (prior year: 201) consultants and 13 (prior
amounted to kEUR 32,712 (prior year: kEUR 50,570) in year: 14) administrative employees.
the reporting period.
Management
Personnel expenses declined f ro m kEUR
From November 2015 to October 2, 2019 (date of shareholder
26,444 to kEUR 23,956.
resolution): Michael Dietz, consultant
Other operating expenses of kEUR 7,799 (prior year: kEUR
Since June 6, 2019 (date of shareholder resolution): Mark
10,171) mainly comprise travel costs amounting to kEUR
Livingston, consultant
3,104 (prior year: kEUR 4,531), vehicle costs of kEUR 357
(prior year: kEUR 466), other personnel expenses of kEUR Significant company agreements
1,994 (prior year: kEUR 1,683) and cost allocations of other An open-ended loan agreement with a credit line of a
entities of the group totaling kEUR 391 (prior year: kEUR maximum of kEUR 15,000 has been concluded between the
593). Moreover, consulting costs of kEUR 620 (prior year: Company and the shareholder. At present the Company has
kEUR 918), costs of premises totaling kEUR 348 (prior year: not made any drawdowns from this facility.
kEUR 393), telephone/communication costs of kEUR 303
(prior year: kEUR 414) and expenses relating to foreign In addition, there is a tenancy agreement for the office
currency measurement totaling kEUR 250 (prior year: premises in Garching / Germany, where the Company’s
kEUR 415) were incurred. registered office is located.
Other operating expenses do not include any expenses Group affiliation
relating to other periods (prior year: kEUR 38). The shareholder of Infosys Consulting GmbH is Infosys
Taxes on income resulted in a tax expense in the amount of Consulting Holding AG, Obstgartenstraße 27 in 8302 Kloten/
kEUR 369 (prior year: EUR 10) in the reporting period. Switzerland, with a share of EUR 86.000,00 (100%).
In the aggregate, the Company generated a profit for the The annual financial statements of Infosys Consulting GmbH
period of kEUR 4,031 (prior year: loss for the period of are included in the consolidated financial statements of Infosys
kEUR 439). It is planned to transfer an amount of kEUR Limited, Bangalore, India, which prepares the consolidated
1,000 of net retained profits as at the reporting date of financial statements for the smallest and the largest group of
December 31, 2019 to the parent as distribution of profit. consolidated entities.
The remainder of net retained profits is to be carried forward The consolidated financial statements of Infosys Limited are
to the following financial year. disclosed and are available on the US Securities and Exchange
Commission (SEC) website.
V. Other disclosures There is no profit or loss transfer agreement or fiscal unity
Other financial commitments between the shareholder and Infosys Consulting GmbH.
As at December 31, 2019, the Company has other financial Auditor’s fee
commitments relating to car lease contracts (kEUR 68; prior The total fee to be charged by the auditor of the annual
year: kEUR 179), tenancy agreements for office premises financial statements for the financial year 2019 relates to
and apartments (kEUR 1,060; prior year: kEUR 1,246) expenses for audit services totaling kEUR 25.
totaling kEUR 1,128 (prior year: kEUR 1,425). Of these
commitments, kEUR 336 relate to the financial year 2020, Report on post-Balance Sheet date events
while kEUR 792 relate to the years 2021 until 2024. There At the beginning of the financial year 2020, the COVID-19
are no commitments beyond this period. According to pandemic had spread, which did not have any significant
management, the Company’s other financial commitments financial impact on the Company until the time of preparation
do not pose any substantial risks for the following financial of the present financial statements. For further information,
years. The other financial commitments were incurred within please refer to the relevant reporting in the Management report.
the course of normal business activities. Compared to the
We are not aware of any other material events taking place
alternative of investing in property, plant and equipment,
after the end of the financial year within the meaning of
the conclusion of tenancy and lease transactions serves to
Section 289 (2) HGB.
improve the Company’s liquidity for the period. There are no
other financial commitments to affiliated companies. Garching near Munich / Germany, April 13, 2020
Mark Livingston
Workforce
Managing Director
The Company’s workforce comprised 175 (prior year: 214)
members of staff on the annual average. This number includes

Movements in fixed assets in the financial year 2019
Appendix to the notes
Particulars Acquisition and production cost Accumulated amortization, depreciation and Book value
write-downs
January 1, Additions Disposals December January 1, Additions Disposals December December December
2019 31, 2019 2019 31, 2019 31, 2019 31, 2018
EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR
Other assets, operating
214 | Infosys Consulting GmbH

and office equipment 749,773.07 6,804.95 0.00 756,578.02 510,787.22 70,920.81 0.00 581,708.03 174,869.99 238,985.85

Infosys Technologies (Shanghai) Co. Limited
Auditor’s Report
The Board of Directors of Infosys Technologies (Shanghai) Co. Limited
1. Opinion
We have audited the accompanying financial statements of Infosys Technologies (Shanghai) Co. Limited (“the Company”), which
comprise the Balance Sheet as at December 31, 2019, the statement of income, the statement of cash flow, and the statement
of changes in owners’ equity for the year then ended, and notes to the financial statements.
In our opinion, the accompanying financial statements of the Company is prepared and present fairly, in all material respects,
the Company’s financial position as of December 31, 2019, and the Company’s results of operation and cash flow for the year
ended in accordance with Accounting Standards for Business Enterprises.
2. Basis for opinion

We conducted our audit in accordance with China Standards on Auditing. Our responsibilities under those standards are further
described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent
of the Company in accordance with the code of ethics for Chinese Certified Public Accountants, and we have fulfilled our other
ethical responsibilities in accordance with the code.
3. Responsibilities of the Management and those charged with governance for the financial
statements
The Management of the Company is responsible for the preparation and fair presentation of the financial statements in
accordance with Accounting Standards for Business Enterprises, and designing, implementing and maintaining internal control
that is necessary to enable the financial statements that are free from material misstatement, whether due to fraud or error.
the Management either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
4. Auditor’s responsibilities for the audit of the financial statements

misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion solely to you. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with China Standards
on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these financial statements.
As part of an audit in accordance with China Standards on Auditing, we exercise professional judgment and maintain professional
1. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
4. Conclude on the appropriateness of the management’s use of the going concern basis of accounting and, based on the audit
216 | Infosys Technologies (Shanghai) Co. Limited Infosys Subsidiary Financials 2019-20
5. Evaluate the overall presentation, structure and content of the financial statements (including the disclosures), and whether
We communicated with those charged with governance regarding, among other matters, the planned scope and timing of the
Deloitte Touche Tohmatsu Chinese Certified Public Accountant

Certified Public Accountants LLP
Shanghai, China
21 May 2020
The auditor’s report and the accompanying financial statements are English translations of the Chinese auditors’ report and
statutory financial statements prepared under accounting principles and practices generally accepted in the People’s Republic
of China. These financial statements are not intended to present the financial position and results of operations and cash flows
in accordance with accounting principles and practices generally accepted in other countries and jurisdictions. In case the
English version does not conform to the Chinese version, the Chinese version prevails
Infosys Subsidiary Financials 2019-20 Infosys Technologies (Shanghai) Co. Limited | 217
Balance Sheet
In RMB
Particulars Note VIII As at December 31
2019 2018
Assets
Current assets
Cash and bank balances 1 6,882,292.22 34,684,454.05
Accounts receivable 2 64,422,060.83 58,954,156.35
Prepayments – 48,138.34
Other receivables 3 3,404,078.40 2,981,747.75
Other current assets 4 – 14,815,701.23
Non-current assets
Fixed assets 5 771,080,699.04 655,309,052.61
Construction in progress 6 409,233.55 155,683,429.27
Intangible assets 7 58,883,244.74 60,291,180.39
Long-term deferred expenses 8 15,467,273.79 23,608,209.67
Total Assets 920,548,882.57 1,006,376,069.66
Liabilities and owners’ equity
Current liabilities
Short-term loans 9 84,881,000.00 84,383,743.28
Accounts payable 56,431,060.71 43,430,182.53
Employee benefits payable 10 34,460,430.73 29,473,665.45
Taxes payable 11 4,731,092.57 5,124,393.68
Other payables 72,232,463.24 74,902,043.49
Non-current liabilities due within one year 12 1,284,120.00 1,284,120.00
Other current liabilities 7,653,732.04 7,545,910.25
Total current liabilities 261,673,899.29 246,144,058.68
Other non-current liabilities 12 40,422,896.00 41,707,016.00
Total non-current liabilities 40,422,896.00 41,707,016.00
Owners’ equity
Paid in capital 13 956,355,558.48 956,355,558.48
Accumulated losses (337,903,471.20) (237,830,563.50)
Total owners’ equity 618,452,087.28 718,524,994.98
Total liabilities and owners’ equity 920,548,882.57 1,006,376,069.66
Stone Zhu Subrata Das

Legal representative Head of Accounting Department
Statement of Income
In RMB
Items Note VIII Year ended December 31,
2019 2018
I. Operating income 14 395,089,657.76 359,042,800.00
Less: Operating costs 441,569,081.28 405,535,378.57
Taxes and surcharges 7,391,182.37 –
Administrative expenses 42,640,209.92 48,209,652.43
Selling expenses 3,968,406.83 1,056,507.51
Financial expenses 15 4,594,847.95 5,227,357.73
Add: Other income 16 5,181,731.94 3,176,989.46
Impairment losses of assets 17 (173,420.89) 1,317,144.17
Impairment losses on disposal of assets (7,148.16) –
II. Operating loss (100,072,907.70) (96,491,962.61)
III. Total loss (100,072,907.70) (96,491,962.61)
Less: Income tax expense 18 – –
IV.Net loss for the year (100,072,907.70) (96,491,962.61)
V. Other comprehensive loss, net of tax – –
VI.Total comprehensive loss for the year (100,072,907.70) (96,491,962.61)
In RMB
Particulars Note VIII Year ended December 31,
2019 2018
I. Cash Flows from Operating Activities
Cash receipts from the sale of goods
and the rendering of services 408,046,012.94 412,046,064.32
Receipts of tax refunds 4,052,541.96 –
Proceeds from other operating activities 4,609,602.50 3,808,357.24
Sub-total of cash inflows from operating activities 416,708,157.40 415,854,421.56
Payments for goods purchased and services received 33,210,718.74 43,645,090.35
Payments to and on behalf of employees 362,595,946.84 322,492,913.74
Payments of various types of taxes 12,849,666.07 11,154,629.84
Other cash payments relating to operating activities 26,243,423.10 47,874,177.48
Sub-total of cash outflows from operating activities 434,899,754.75 425,166,811.41
Net Cash Flow used in Operating Activities 20 (26,158,474.38) (9,312,389.85)
II. Cash Flows from Investing Activities
Payments for acquisition of fixed assets and other
long-term deferred expenses 9,679,548.08 3,606,483.83
Sub-total of cash outflows from investing activities 9,679,548.08 3,606,483.83
Net Cash Flow used in Investing Activities (9,679,548.08) (3,606,483.83)
III . Effect of Foreign Exchange Rate Changes
on Cash and Cash Equivalents 68,983.60 303,665.03
IV . Net Increase (Decrease) in Cash and
Cash Equivalents 20 (27,802,161.83) (12,615,208.65)
Add: Opening balance of Cash and Cash Equivalents 34,684,454.05 47,299,662.70
V . Closing Balance of Cash and Cash Equivalents 20 6,882,292.22 34,684,454.05
Statement of Changes in Owner’s Equity
In RMB
Paid-in capital Accumulated losses Total owners’ equity
I. Balance at 1 January 2019 956,355,558.48 (237,830,563.50) 718,524,994.98
II. Changes in equity during the year
(1)
Total comprehensive income – (100,072,907.70) (100,072,907.70)
III. Balance at 31 December 2019 956,355,558.48 (337,903,471.20) 618,452,087.28
I. Balance at January 1, 2018 956,355,558.48 (141,338,600.89) 815,016,957.59
II. Changes in equity during the year
(1)
Total comprehensive income – (96,491,962.61) (96,491,962.61)
III. Balance at December 31, 2018 956,355,558.48 (237,830,563.50) 718,524,994.98
I. Basic information IV. Significant accounting policies and

Infosys Technologies (Shanghai) Co., Ltd. (“the Company”), accounting estimates
is a Limited Liability Company established in Shanghai in the The following significant accounting policies and accounting
People’s Republic of China (PRC). The Company obtained estimates are determined in accordance with ASBE.
an approval certificate Shang Wai Zi Hu Ming Du Zi Zi
[2011] 0512 from the Shanghai Municipal Government on 1. Accounting year
February 16, 2011, and a business license 310000400643765 The Company has adopted the calendar year as its accounting
(Minhang) on February 21, 2011 issued by Shanghai year, i.e. from January 1 to December 31.
Administration of Industry and Commerce of the PRC. The
parent and ultimate holding company is Infosys Limited 2. Functional currency
(formerly Infosys Technologies Limited). Renminbi (‘RMB’) is the currency of the primary economic
In 2012, The Company’s Board of Directors resolved to increase environment in which the Company operates. Therefore, the
the Company’s registered capital from US $20,000,000 to US Company chooses RMB as its functional currency and adopts
$150,000,000. The Company obtained a revised approval RMB to prepare its financial statements.
certificate Shang Wai Zi Hu Du Zi Zi [2011] 0512 from the 3. Basis of accounting and principle of
Shanghai Municipal Government for the change on August 9,
2012 and a revised business license 310000400643765 (Shiju)
measurement
on October 19, 2012 issued by Shanghai Administration of The Company has adopted the accrual basis of accounting.
Industry and Commerce of the PRC. Except for certain financial instruments which are measured
at fair value, the Company has adopted the historical cost
On October 24, 2016, the Company updated its scope of
as the principle of measurement of the financial statements.
principal activities and obtained a renewed business license
Where assets are impaired, provisions for asset impairment
with the unified social credit code of 91310000569580636B.
are made in accordance with relevant requirements.
The Company’s year of operation is 50 years and its principal
activities are to carry out research, develop, design, produce Where the historical cost is adopted as the measurement
software; sale of self-produced products; provide related basis, assets are recorded at the amount of cash or cash
technology consulting services and after sale services; equivalents paid or the fair value of the consideration given
develop computer and network technology; provide to acquire them at the time of their acquisition. Liabilities
testing and maintenance of software solutions; provide are recorded at the amount of proceeds or assets received or
business process management. the contractual amounts for assuming the present obligation,
or, at the amounts of cash or cash equivalents expected to be
II. Basis for the preparation of financial paid to settle the liabilities in the normal course of business.
statements Fair value is the price that would be received to sell an asset
Going concern or paid to transfer a liability in an orderly transaction between
market participants at the measurement date, regardless
The Management has assessed the Company’s ability to of whether that price is directly observable or estimated
continue as a going concern for the 12 months commencing using valuation technique. Fair value measurement and
from December 31, 2019, and noticed no items will raise / or disclosure in the financial statements are determined
substantial doubt about its ability to continue as a going according to the above basis.
concern. Therefore, the financial statements have been
prepared on the going concern basis. Fair value measurements are categorized into Level 1, 2 or
3 based on the degree to which the inputs to the fair value
III. Statements of compliance with the ASBE measurements are observable and the significance of the
The financial statements of the Company have been prepared inputs to the fair value measurement in its entirety, which
in accordance with Accounting Standards for Business are described as follows:
Enterprises (“ASBE”), and present truly and completely, Level 1 inputs are unadjusted quoted prices in active markets
the Company’s financial position as of December 31, for identical assets or liabilities that the entity can access at
2019, and the Company’s results of operations and cash the measurement date;
flows for the year ended. Level 2 inputs are inputs, other than quoted prices included
within Level 1, that are observable for the asset or liability,
either directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability.
4. Cash and cash equivalents 5.3. Impairment of financial assets
Cash comprises cash on hand and deposits that can be readily The Company assesses at each Balance Sheet date the carrying
withdrawn on demand. Cash equivalents are the Company’s amounts of financial assets other than those at fair value
short-term, highly liquid investments that are readily through profit or loss. If there is objective evidence that a
convertible to known amounts of cash and which are subject financial asset is impaired, the Company determines the
to an insignificant risk of changes in value. amount of any impairment loss. Objective evidence that a
financial asset is impaired is evidence that, arising from one
5. Financial instruments or more events that occurred after the initial recognition of
Financial assets and financial liabilities are recognized when the asset, the estimated future cash flows of the financial asset,
the Company becomes a party to the contractual provisions which can be reliably measured, have been affected.
of the instrument. Financial assets and financial liabilities Objective evidence that a financial asset is impaired includes
are initially measured at fair value. For financial assets the following observable events:
and financial liabilities at fair value through profit or loss,
transaction costs are immediately recognized in profit or loss. (1) Significant financial difficulty of the issuer or obligor;
For other financial assets and financial liabilities, transaction (2) A breach of contract by the borrower, such as a default
costs are included in their initial recognized amounts. or delinquency in interest or principal payments;
(3) The lender, for economic or legal reasons relating
5.1. Effective interest method to the borrower’s financial difficulty, granting a
The effective interest method is a method of calculating the concession to the borrower;
amortized cost of a financial asset or a financial liability
(4) It becoming probable that the borrower will enter
(including a group of financial assets or financial liabilities)
bankruptcy or other financial reorganization;
and of allocating the interest income or interest expense
over the relevant period, using the effective interest rate. (5) The disappearance of an active market for that financial
The effective interest rate is the rate that exactly discounts asset because of financial difficulties of the issuer;
estimated future cash flows through the expected life of the (6) Upon an overall assessment of a group of financial assets,
financial asset or financial liability or, where appropriate, a observable data indicates that there is a measurable
shorter period to the net carrying amount of the financial decrease in the estimated future cash flows from the
asset or financial liability. group of financial assets since the initial recognition
When calculating the effective interest rate, the Company of those assets, although the decrease cannot yet be
estimates future cash flows considering all contractual identified with the individual financial assets in the
terms of the financial asset or financial liability (without group. Such observable data includes:
considering future credit losses), and also considers all fees - Adverse changes in the payment status of
paid or received between the parties to the contract giving borrowers in the group;
rise to the financial asset and financial liability that are an - Economic conditions in the country or region of
integral part of the effective interest rate, transaction costs, the borrower which may lead to a failure to pay
and premiums or discounts, etc. the group of assets;
5.2. Classification, recognition and (7) Significant adverse changes in the technological, market,
measurement of financial assets economic or legal environment in which the issuer
operates, indicating that the cost of the investment in the
On initial recognition, the Company’s financial assets are equity instrument may not be recovered by the investor;
classified into one of the four categories, including financial
assets at fair value through profit or loss, held-to-maturity (8) A significant or prolonged decline in the fair value of an
investments, loans and receivables, and available-for-sale investment in an equity instrument below its cost;
financial assets. All regular way purchases or sales of financial (9) Other objective evidence indicating there is an
assets are recognized and derecognized on a trade date basis. impairment of a financial asset.
The financial assets held by the Company are mainly classified
to loans and receivables.
Loans and receivables
Loans and receivables are non-derivative financial assets
with fixed or determinable payments that are not quoted
in an active market. Financial assets classified as loans and
receivables by the Company include accounts receivable.
Loans and receivables are subsequently measured at
amortized cost using the effective interest method. Gain or
loss arising from derecognition, impairment or amortization
is recognized in profit or loss.
Impairment of financial assets measured at 5.5. Derecognition of Financial Liabilities
amortized cost The Company derecognizes a financial liability (or part of
If financial assets carried at amortized cost are impaired, the it) only when the underlying present obligation (or part
carrying amounts of the financial assets are reduced to the of it) is discharged. An agreement between the Company
present value of estimated future cash flows (excluding future (an existing borrower) and an existing lender to replace
credit losses that have not been incurred) discounted at the the original financial liability with a new financial liability
financial asset’s original effective interest rate. The amount with substantially different terms is accounted for as an
of reduction is recognized as an impairment loss in profit extinguishment of the original financial liability and the
or loss. If, subsequent to the recognition of an impairment recognition of a new financial liability.
loss on financial assets carried at amortized cost, there is When the Company derecognizes a financial liability or a
objective evidence of a recovery in value of the financial part of it, it recognizes the difference between the carrying
assets which can be related objectively to an event occurring amount of the financial liability or part of the financial
after the impairment is recognized, the previously recognized liability derecognized and the consideration paid (including
impairment loss is reversed. However, the reversal is made any non-cash assets transferred or new financial liabilities
to the extent that the carrying amount of the financial asset assumed) in profit or loss.
at the date the impairment is reversed does not exceed what
the amortized cost would have been had the impairment 5.6. Offsetting financial assets and financial
not been recognized. liabilities
For a financial asset that is individually significant, the When the Company has a legal right that is currently
Company assesses the asset individually for impairment. For a enforceable to set off the recognized financial assets and
financial asset that is not individually significant, the Company financial liabilities, and intends either to settle on a net basis,
assesses the asset individually for impairment or includes the or to realize the financial asset and settle the financial liability
asset in a group of financial assets with similar credit risk simultaneously, financial assets and financial liabilities
characteristics and collectively assesses them for impairment. are offset with the net amounts presented on the Balance
If the Company determines that no objective evidence of Sheet. Otherwise, financial assets and financial liabilities are
impairment exists for an individually assessed financial asset separately presented on the Balance Sheet without offsetting.
(whether significant or not), it includes the asset in a group
of financial assets with similar credit risk characteristics 6. Fixed assets
and collectively reassesses them for impairment. Assets for Fixed assets are tangible assets that are held for use in the
which an impairment loss is individually recognized are not production or supply of goods or services, for rental to others,
included in a collective assessment of impairment. or for administrative purposes, and have useful lives of more
than one accounting year. A fixed asset is recognized only
5.4. Classification, recognition and when it is probable that economic benefits associated with the
measurement of financial liabilities asset will flow to the Company and the cost of the asset can be
Financial instruments issued by the Company are classified measured reliably. Fixed assets are initially measured at cost.
in accordance with the economic substance of the contractual Subsequent expenditures incurred for the fixed asset are
arrangements instead of the legal form as well as the included in the cost of the fixed asset and if it is probable that
definitions of a financial liability and an equity instrument; economic benefits associated with the asset will flow to the
on initial recognition, financial instruments or their Company and the subsequent expenditures can be measured
component parts are classified as either financial liabilities reliably. Meanwhile the carrying amount of the replaced part is
or equity instruments. derecognized. Other subsequent expenditures are recognized
On initial recognition, financial liabilities are classified into in profit or loss in the period in which they are incurred.
financial liabilities at fair value through profit or loss and A fixed asset is depreciated over its useful life using the straight-
other financial liabilities. The Company’s financial liabilities line method since the month subsequent to the one in which
mainly represent other financial liabilities. it is ready for intended use. The depreciation method, useful
The financial liabilities held by the Company mainly include life, estimated net residual value rate and annual depreciation
other financial liabilities. rate of each category of fixed assets are as follows:
Other financial liabilities Category Useful life Estimated Annual
net residual depreciation
Other financial liabilities, except liabilities of financial value rate rate
guarantee contracts, are subsequently measured at Buildings 25 years 0% 4%
amortized cost using the effective interest method, with
Computer
gain or loss arising from derecognition or amortization
equipment 2-5 years 0% 20%-50%
recognized in profit or loss.
Office
equipment 2-5 years 0% 20%-50%
Estimated net residual value of a fixed asset is the estimated to which the asset belongs will be estimated. The recoverable
amount that the Company would currently obtain from amount of an asset or asset group is the higher of its fair value
disposal of the asset, after deducting the estimated costs less costs of disposal and the present value of the future cash
of disposal, if the asset were already of the age and in the flows expected to be derived from the asset.
condition expected at the end of its useful life. If such recoverable amount is less than its carrying amount,
If a fixed asset is upon disposal or no future economic benefits a provision for impairment losses in respect of the deficit is
are expected to be generated from its use or disposal, the fixed recognized in profit or loss for the period.
asset is derecognized. When a fixed asset is sold, transferred, Once the impairment loss of such assets is recognized, it is
retired or damaged, the amount of any proceeds on disposal not be reversed in any subsequent period.
of the asset net of the carrying amount and related taxes is
recognized in profit or loss for the period. 11. Employee benefits
The Company reviews the useful life and estimated net Actually occurred short-term employee benefits are recognized
residual value of a fixed asset and the depreciation method as liabilities, with a corresponding charge to the profit or
applied at least once at each financial year-end, and account loss for the period or in the costs of relevant assets in the
for any change as a change in an accounting estimate. accounting period in which employees provide services to the
7. Construction in progress Company. Staff welfare expenses incurred by the Company
are recognized in profit or loss for the period or the costs of
Construction in progress is measured at its actual costs. The relevant assets based on the actually occurred amounts when
actual costs include various construction expenditures during it actually occurred. Non-monetary staff welfare expenses are
the construction period and other relevant costs. Construction measured at fair value.
in progress is not depreciated. Construction in progress is
transferred to a fixed asset when it is ready for intended use. Payment made by the Company of social security contributions
for employees such as premiums or contributions on medical
8. Intangible assets insurance, work injury insurance and maternity insurance,
etc. and payments of housing funds, as well as trade union
Intangible assets include land use right. fund and employee education fund provided in accordance
An intangible asset is initially measured at cost. An intangible with relevant requirements, are calculated according to
asset with a finite useful life is amortized using the straight-line prescribed bases and percentages in determining the amount
method over its useful life when the asset is available for use. of employee benefits and recognized as relevant liabilities,
The Company reviews the useful life and amortization with a corresponding charge to the profit or loss for the
method at least at each financial year-end. A change in the period or the costs of relevant assets in the accounting period
useful life or the amortization method used is accounted for in which employees provide services.
as a change in an accounting estimate. During the accounting period of rendering service to employees
The amortization period for such intangible asset is as follows: of the Company, amount which should be paid according to
Category Amortization period defined contribution plans is recognized as liabilities, and
Land use right 50 years recognized in profit or loss or related costs of assets.
A liability for a termination benefit is recognized in profit
or loss for the period at the earlier of when the Company
9. Long-term deferred expenses cannot unilaterally withdraw from the termination plan or
Long-term prepaid expenses represent expenses incurred the redundancy offer and when the Company recognizes any
that should be borne and amortized over the current and related restructuring costs or expenses.
subsequent periods (together of more than one year).
Long-term prepaid expenses are amortized using the 12. Revenue recognition
straight-line method over the expected periods in which
benefits are derived. 12.1. Income from rendering of services
Revenue is recognized when the amount of revenue can be
10. Impairment of non-financial assets measured reliably; it is probable that the associated economic
The Company reviews the fixed assets, construction in benefits will flow to the enterprise; the stage of completion of
progress and other long-term assets at each Balance Sheet the transaction can be determined reliably; and the associated
date to determine whether there is any indication that they costs incurred or to be incurred can be measured reliably.
have suffered an impairment loss. If an impairment indication Revenue from rendering of services is recognized using the
exists, the recoverable amount is estimated. Intangible percentage of completion method at the Balance Sheet date.
assets with indefinite useful life and intangible assets not The stage of completion of a transaction for rendering for
yet available for use are tested for impairment annually, services is determined based on work performed.
irrespective of whether there is any indication that the When the outcome of the transaction involving the rendering
assets may be impaired. of services cannot be estimated reliably, revenue is recognized
Recoverable amount is estimated on individual basis. If it only to the extent of the costs incurred that will be recoverable,
is not practical to estimate the recoverable amount of an and the costs incurred are recognized as expenses for the
individual asset, the recoverable amount of the asset group period. When it is not probable that the costs incurred will
be recovered, revenue is not recognized.
13. Government grants At the Balance Sheet date, deferred tax assets and liabilities
are measured at the tax rates, according to tax laws, that are
Government grants are monetary assets and non-monetary
expected to apply in the period in which the asset is realized
assets from the government to the Company at no
or the liability is settled.
consideration. A government grant is recognized only when
the Company can comply with the conditions attaching to the Current and deferred tax expenses or income are recognized
grant and the Company will receive the grant. in profit or loss for the period, except when they arise from
transactions or events that are directly recognized in other
If a government grant is in the form of a transfer of a monetary
comprehensive income or in owners’ equity, in which case they
asset, it is measured at the amount received or receivable.
are recognized in other comprehensive income or in owners’
A government grant related to an asset is recognized as equity; and when they arise from business combinations, in
deferred income and included in profit or loss over the useful which case they adjust the carrying amount of goodwill.
life of the related asset.
At the Balance Sheet date, the carrying amount of deferred
For a government grant related to income, if the grant is a tax assets is reviewed and reduced if it is no longer probable
compensation for related expenses or losses to be incurred that sufficient taxable profits will be available in the future
in subsequent periods, the grant is recognized as deferred to allow the benefit of deferred tax assets to be utilized. Such
income over the periods in which the related costs or losses reduction in amount is reversed when it becomes probable
are recognized; If the grant is a compensation for related that sufficient taxable profits will be available.
expenses or losses already incurred, the grant is recognized
immediately in profit or loss. 14.3. Income tax offsetting
A government grant related to the Company’s daily activities When the Company has a legal right to settle on a net basis
is recognized in other income or written off related cost and intends either to settle on a net basis or to realize the assets
and expense based on the nature of economic activities; and settle the liabilities simultaneously, current tax assets and
a government grant is not related to the Company’s daily current tax liabilities are offset and presented on a net basis.
activities is recognized in non-operating income and expenses. When the Company has a legal right to settle current tax
assets and liabilities on a net basis, and deferred tax assets
14. Income taxes and deferred tax liabilities relate to income taxes levied by the
Tax expense comprises current income tax and same taxation authority on either the same taxable entity or
deferred income tax. different taxable entities which intend either to settle current
tax assets and liabilities on a net basis or to realize the assets
14.1. Current income taxes and liabilities simultaneously, in each future period in which
At the Balance Sheet date, current income tax liabilities (or significant amounts of deferred tax assets or liabilities are
assets) for the current and prior periods are measured at the expected to be reversed, deferred tax assets and deferred tax
amount expected to be paid (or recovered) according to the liabilities are offset and presented on a net basis.
requirements of tax laws.
15. Transactions denominated in foreign currencies
14.2 Deferred tax assets and deferred tax liabilities A foreign currency transaction is recorded, on initial
For temporary differences between the carrying amounts of recognition, by applying the spot exchange rate on the
certain assets or liabilities and their tax base, or between the date of the transaction.
nil carrying amount of those items that are not recognized as At the Balance Sheet date, foreign currency monetary items
assets or liabilities and their tax base that can be determined are translated into RMB using the spot exchange rates at the
according to tax laws, deferred tax assets and liabilities are Balance Sheet date. Exchange differences arising from the
recognized using the Balance Sheet liability method. differences between the spot exchange rates prevailing at the
Deferred tax is generally recognized for all temporary Balance Sheet date and those on initial recognition or at the
differences. Deferred tax assets for deductible temporary previous Balance Sheet date are recognized in profit or loss for
differences are recognized to the extent that it is probable that the period, except that (1) exchange differences related to a
taxable profits will be available against which the deductible specific-purpose borrowing denominated in foreign currency
temporary differences can be utilized. However, for temporary that qualify for capitalization are capitalized as part of the
differences associated with the initial recognition of goodwill cost of the qualifying asset during the capitalization period;
and the initial recognition of an asset or liability arising from (2) exchange differences related to hedging instruments
a transaction (not a business combination) that affects neither for the purpose of hedging against foreign currency risks
the accounting profit nor taxable profits (or deductible are accounted for using hedge accounting; (3) exchange
losses) at the time of transaction, no deferred tax asset or differences arising from available-for-sale non-monetary
liability is recognized. items (such as shares) denominated in foreign currencies and
For deductible losses and tax credits that can be carried changes in the carrying amounts (other than the amortized
forward, deferred tax assets are recognized to the extent that it cost) of available-for-sale monetary items are recognized as
is probable that future taxable profits will be available against other comprehensive income and included in capital reserve.
which the deductible losses and tax credits can be utilized. Foreign currency non-monetary items measured at historical
cost are translated to the amounts in functional currency
at the spot exchange rates on the dates of the transactions
and the amounts in functional currency remain unchanged.
Foreign currency non-monetary items measured at fair value Impairment of receivables
are re-translated at the spot exchange rate on the date the According to Note IV. 5, the Company will examine the book
fair value is determined. Difference between the re-translated value of receivables at each Balance Sheet date to recognize
functional currency amount and the original functional impairment loss when it is higher than the expected cash
currency amount is treated as changes in fair value (including flow which is recognized by applying judgment and estimate.
changes of exchange rate) and is recognized in profit and loss
Useful life and expected residual value of fixed assets
or as other comprehensive income.
According to Note IV. 6, the Company reviews the useful
16. Leases life and expected residual value of fixed assets at the end
Leases are classified as finance leases whenever the terms of each year at least. The useful life and expected residual
of the lease transfer substantially all the risks and rewards value of fixed assets are estimated based on historical
of ownership to the lessee. All other leases are classified experience in actual useful life and residual value of fixed
as operating leases. assets with similar nature and function and may be changed
significantly due to technical renovation. The Company will
16.1 The Company as lessee under operating change accounting estimate when the expected useful life
leases and expected net residual value of fixed assets are different
Operating lease payments are recognized on a straight-line from the previous ones.
basis over the term of the relevant lease, and are either
included in the cost of related asset or charged to profit or VI. Changes in accounting policy
loss for the period. Initial direct costs incurred are charged to The Company started adopting the Notice of the Revised
profit or loss for the period. Contingent rents are charged to Format of 2019 Financial Statements for General Business
profit or loss in the period in which they are actually incurred. Enterprise (Cai Kuai (2019) No. 6, hereinafter referred to as
the “Cai Kuai No.6 Document”) released by the MoF on April
V. Basis of determining significant 30, 2019 since the preparation of financial statements for the
accounting policies and key assumptions year of 2019. Cai Kuai No.6 Document revised the presenting
and uncertainties in accounting accounts in the Balance Sheet and income statement, split
“Notes and Accounts Receivable” into “Notes receivable”
estimates and “Accounts receivable”, and split “Notes and Accounts
In the application of the Company’s accounting policies, Payable” into “Notes payable” and “Accounts payable”,
which are described in Note IV, the Company is required specified or revised the presenting contents of “Non-current
to make judgments, estimates and assumptions about assets due within one year” “Deferred income”, “Other equity
the carrying amounts of items in the financial statements instruments”, “Research and Development Expenditure”,
that cannot be measured accurately, due to the internal “Interest Income” “Other Income”, and “Income from disposal
uncertainty of the operating activities. These judgments, of assets”, under “Financial expenses”, “Non-operating
estimates and assumptions are based on historical experience income” and “Non-operating income” and adjusted the
of the Company’s management as well as other factors that presenting location of “ Loss from impairment of assets”,
are considered to be relevant. Actual results may differ and specified presenting content of the line item of “capital
from these estimates. contribution from other equity holder. The Company has
The aforementioned judgments, estimates and assumptions accounted for the above changes in presenting accounts
are reviewed regularly on a going concern basis. The effect of retrospectively, and adjusted comparable data for prior year.
a change in accounting estimate is recognized in the period
of the change, if the change affects that period only; or VII. Taxation
recognized in the period of the change and future periods, if Value-added tax
the change affects both.
Value added tax (‘VAT’) on sales is calculated at 6% on revenue
Key assumptions and uncertainties in accounting of rendering of services according to the relevant requirements
estimates of tax laws and paid after deducting input VAT on purchases.
The following are the key assumptions and uncertainties in Based on the zero VAT rate policy, the oversea revenue of the
accounting estimates at the Balance Sheet date, which have Company is exempted from VAT.
a significant risk of causing a material adjustment to the Income tax
carrying amounts of assets and liabilities in future periods.
The statutory income tax rate of the Company is 25% (in
Deferred tax assets 2018: 25%). The Company has cumulative operating loss as
The Management of the Company considers that it is at December 31, 2019. Therefore, no income tax is provided.
uncertain for the Company to obtain enough income tax
payable in the future, so the Company did not recognize RMB
235,055,322.99 of deductible losses as deferred tax assets at
the end of this year according to Note VIII. 18.
Other taxes
Urban maintenance and construction tax is levied at 5% of the VAT actually paid.
Educational surcharge is levied at 3% of the VAT actually paid.
Local educational tax is levied at 2% of the VAT actually paid.
VIII. Notes to the financial statements
1. Cash and bank balances
In RMB
2019 2018
Deposits with banks 6,882,292.22 34,684,454.05
228 | Infosys Technologies (Shanghai) Co. Limited

(1) The customer analysis of accounts receivable is as follows:
In RMB
2019 2018
Amounts due from related parties 44,497,484.18 33,044,144.99
Amounts due from other customers 20,245,701.06 26,057,584.79
Less: Bad debt provision (321,124.41) (147,573.43)
Total 64,422,060.83 58,954,156.35
(2) The ageing analysis of accounts receivable is as follows:

In RMB
2019 2018
Amount Ratio (%) Bad debt Book value Amount Ratio (%) Bad debt provision Book value
provision
Within 1 year 64,436,332.15 99.5 (56,275.19) 64,380,056.96 58,690,502.37 99.3 (105,285.75) 58,585,216.62
1 to 2 year 23,496.94 0.04 – 23,496.94 411,227.41 0.7 (42,287.68) 368,939.73
2 to 3 year 283,356.15 0.44 (264,849.22) 18,506.93 – – – –
Total 64,743,185.24 100 (321,124.41) 64,422,060.83 59,101,729.78 100 (147,573.43) 58,954,156.35
(3) The analysis of the movements of bad debt provision for accounts receivable is as follows:
In RMB
2019 2018
Opening balance 147,573.43 1,464,593.90
Provision during the year 321,158.32 147,573.43
Reversal (147,737.43) (1,464,717.60)
Exchange difference 130.09 123.7

Closing balance 321,124.41 147,573.43
3. Other receivables
The ageing analysis of other receivables is as follows:
In RMB
2019 2018
Amount Ratio (%) Bad debt Book value Amount Ratio Bad debt Book value
provision (%) provision
Within 1 year 868,305.40 25.5 – 868,305.40 2,445,974.75 82 – 2,445,974.75
1 to 2 years 2,000,000.00 58.8 – 2,000,000.00 57,610.00 1.93 – 57,610.00
2- 3 years 57,610.00 1.69 – 57,610.00 127,820.00 4.29 – 127,820.00
More than 3 years 478,163.00 14.1 – 478,163.00 350,343.00 11.8 – 350,343.00
Total 3,404,078.40 100 – 3,404,078.40 2,981,747.75 100 – 2,981,747.75
4. Other current assets

In RMB
2019 2018
Input VAT to be deducted – 14,815,701.23
5. Fixed assets
In RMB
Particulars Electronic Office equipment Buildings Total
equipment
Cost
January 1, 2019 23,229,667.75 26,146,125.17 682,542,213.84 731,918,006.76
Additions during the year 630,291.92 67,043,396.59 89,313,178.26 156,986,866.77
Disposals during the year (15,860.00) (266,492.61) – (282,352.61)
Balance at 31 December 2019 23,844,099.67 92,923,029.15 771,855,392.10 888,622,520.92
January 1, 2019 (10,108,268.21) (11,897,531.11) (54,603,154.83) (76,608,954.15)
Increase for the year (4,787,190.00) (8,226,061.88) (28,194,820.30) (41,208,072.18)
Decrease for the year 15,860.00 259,344.45 – 275,204.45
Balance at 31 December 2019 (14,879,598.21) (19,864,248.54) (82,797,975.13) (117,541,821.88)
Carrying amounts
December 31, 2019 8,964,501.46 73,058,780.61 689,057,416.97 771,080,699.04
December 31, 2018 13,121,399.54 14,248,594.06 627,939,059.01 655,309,052.61
6. Construction in progress
In RMB
Balance at January 1,2018 154,767,078.02
Additions during the year 916,351.25
Balance at 31 December 2018 155,683,429.27
Additions during the year 1,715,591.40
Transfer to fixed assets (156,986,866.77)
Other transfer out (2,920.35)
Balance at 31 December 2019 409,233.55
7. Intangible assets
Land use right In RMB
Cost
Balance at 1 January 2018, 31 December 2018 and 31 December 2019 70,540,000.00
1 January 2018 (8,837,979.70)
Charge for the year (1,410,839.91)
31 December 2018 (10,248,819.61)
Balance at 31 December 2019 (11,656,755.26)
Carrying amounts
31 December 2019 58,883,244.74
31 December 2018 60,291,180.39
8. Long-term deferred expenses

In RMB
2019 2018
Leasehold improvement 496,699.73 1,152,348.57
Building decoration 14,970,574.06 22,455,861.10
Total 15,467,273.79 23,608,209.67
9. Short-term loans
In RMB
2019 2018
Unsecured loans 84,881,000.00 84,383,743.28
Short-term loans include a loan from Infosys Poland Sp. z o.o. for the purposes of business operation. The principal of the
loan is US$ 5,000,000.00 (equivalent to RMB 34,881,000.00), bearing interest per annum at 6.00%, since January 1, 2018, it
has been adjusted to 3.50%. The term of loan was one year. It was due on May 17, 2018, and was extended to May 17, 2019
and then to May 17, 2020.
Short-term loans also include loans from Infosys Technologies (China) Co. Limited for the purpose of business operation. The
total principal of the loan is RMB 50,000,000.00, bearing interest per annum at 6.00%. The loans were originally due in 2018
and then was extended until the lender requires repayment.
10. Employee benefits payable

In RMB
Item As at January 1, Provision for the Payment in the As at December 31,
2019 year year 2019
Wages or salaries, bonus,
allowances, subsidies 29,473,665.45 298,753,085.16 (293,766,319.88) 34,460,430.73
Social security contributions – 19,377,069.15 (19,377,069.15) –
Including: Medical insurance – 16,802,999.90 (16,802,999.90) –
Unemployment insurance – 614,789.03 (614,789.03) –
Maternity and work injury
insurance – 1,959,280.22 (1,959,280.22) –
Defined contribution plans (Note) – 35,357,977.71 (35,357,977.71) –
Housing funds – 14,094,580.10 (14,094,580.10) –
Total 29,473,665.45 367,582,712.12 (362,595,946.84) 34,460,430.73
Note: Defined contribution plans

The Company participates in basic pension insurance plan established by government in accordance with the relevant
requirements. According to the plan, the Company makes a monthly contribution equivalent to the ratio of 16%, 16% and
14%, in Shanghai, Nanjing and Shenzhen respectively, of the employee’s monthly basic wage based on last year’s salary. The
Company no longer undertake further payment obligation. The corresponding cost charges to the profit or loss for the current
period or the cost of a relevant asset when occur.
11. Taxes payable
In RMB
2019 2018
Individual income tax 488,754.89 993,514.03
Housing tax 3,566,929.92 3,767,321.00
Withholding income tax and VAT 559,790.91 363,558.65
VAT 115,616.85 –
Total 4,731,092.57 5,124,393.68
12. Non-current liabilities due within one year and other non-current liabilities
Subsidy payments In RMB
Cost
Opening and closing balance 48,966,000.00
Opening balance (5,974,864.00)
Closing balance (7,258,984.00)
Carrying amount
Closing balance 41,707,016.00
Opening balance 42,991,136.00
In January 2012, the Company received a subsidy from Shanghai Zizhu Science-based Industrial Park Development Co. Ltd.
(‘Zizhu Park’) amounting to RMB 33,896,000.00. The subsidy is intended to provide support for the Company in technological
development during its operation. The subsidy is amortized on a straight-line basis over the year of operation of 50 years.
In December 2013, the Company received a technical reformation subsidy from Finance Bureau of Shanghai Minhang District
amounting to RMB 15,070,000.00. The subsidy is intended to provide support for the project of software development
center of the Company, which is a government grant related to assets. As at December 31, 2019 and December 31, 2018, the
unamortized subsidies were included in the non-current liabilities due within one year and the other non-current liabilities.
13. Paid in capital

The registered capital of the Company is US$1 150,000,000.00. As at December 31, 2019, the contribution by the investor
according to the Articles of Association is as follows:
2019 2018
USD Ratio Equivalent to USD Ratio Equivalent to
% RMB % RMB
149,600,000.00 100 956,355,558.48 149,600,000.00 100 956,355,558.48
14. Operating income

In RMB
2019 2018
Income from principal activities
Rendering of services 394,657,459.00 357,485,448.19
Other operating income
Rental income 432,198.76 1,557,351.81
Total 395,089,657.76 359,042,800.00
15. Financial expenses
In RMB
2019 2018
Interest expenses (279,791.80) (358,135.97)
Interest income 4,251,005.71 4,202,780.25
Exchange gains (losses) 623,634.04 1,382,713.45
Total 4,594,847.95 5,227,357.73
16. Government grants

In RMB
2019 2018
Technological support subsidy 1,284,120.00 1,284,120.00
Development zone supporting fund 2,600,000.00 1,200,000.00
Special fund returns – 689,705.20
Training subsidy 469,700.00 –
Export subsidy 420,000.00 –
Refund of service charge for withholding and remit individual income tax 193,035.38 –
10% additional deduction of VAT input of Service Industry 181,548.63 –
Subsidy for disabled employment 33,327.93 –
Others – 3,164.26
Total 5,181,731.94 3,176,989.46
17. Impairment losses of assets

In RMB
2019 2018
Bad debt losses 173,420.89 (1,317,144.17)
18. Income tax expense

In RMB
2019 2018
Current income tax expenses – –
Deferred income tax expenses – –
Total – –
No provision for income tax has been made as the Company had a tax loss for the year.
As described in Note V, the Company’s management is uncertain that there will be sufficient taxable profit in future periods, so
the deferred tax assets related to the accumulated deductible losses as at December 31, 2019 amounting to RMB 235,055,322.99
is not recognized. Among the accumulated deductible losses, RMB 8,436,534.33, RMB 40,620,742.52, RMB 96,799,379.30
and RMB 89,198,666.84 will expire in 2021, 2022, 2023, and 2024 respectively.
Reconciliation of income tax expenses to the accounting profit is as follows:
In RMB
2019 2018
Accounting losses (100,072,907.70) (96,491,962.61)
Expected income tax expense at tax rate of 25% (25,018,226.93) (24,122,990.65)
Tax effect of non-deductible expenses 96,480.98 49,702.36
Unused deductible loss 22,299,666.72 24,073,288.29
Temporary differences for deferred tax assets 2,622,079.23 –
not recognized
19. Supplement to statement of income
Expenses in the income statement are analyzed by their nature:
In RMB
2019 2018
Employee benefits expenses 382,473,047.66 320,797,596.55
Depreciation and amortization expenses 50,756,943.71 57,163,664.62
Rental payments 3,176,425.99 2,842,120.59
Financial expense 4,594,847.95 5,227,357.73
Other expenses 51,771,280.67 72,681,012.58
Total expenses 492,772,545.98 458,711,752.07
20. Supplement to cash flow statement

(1) Reconciliation of net loss to cash flows from operating activities:
In RMB
2019 2018
Net loss (100,072,907.70) (96,491,962.61)
Add: (Reverse) Provisions on bad debt 173,420.89 (1,317,144.17)
Depreciation of fixed assets 41,208,072.18 36,654,193.48
Financial expenses 4,679,408.92 5,606,211.96
Amortization of intangible assets 1,407,935.65 1,410,839.91
Amortization of technological support subsidy (1,284,120.00) (1,284,120.00)
Amortization of long-term 8,140,935.88 19,098,631.23
deferred expenses
Increase in accrued expenses 7,148.16 –
Decrease (Increase) in operating receivables (6,015,647.77) 35,306,950.38
Increase (Decrease) in operating payables 25,597,279.41 (8,295,990.03)
Net cash flow from operating activities (18,191,597.35) (9,312,389.85)
(2) Net change in cash and cash equivalents

In RMB
2019 2018
Cash and cash equivalents at the 6,882,292.22 34,684,454.05
end of the year
Less: Cash and cash equivalents 34,684,454.05 47,299,662.70
at the beginning of the year
Net increase / (decrease) in cash and cash equivalents (27,802,161.83) (12,615,208.65)
IX. Related party relationships and transactions

(1) Information about the parent company of the Company is as follows:
Name of the Parent Registered address Nature of business Registered Shareholding Voting
Company capital ratio ratio
Infosys Limited India Rendering of information
technical consultation service and
management consultation `11.48 billion 100% 100%
(2) The following are other related parties which have transactions with the Company while no control relationship exists:
Name Relationship with the Company
Infosys Poland Sp. z o.o. Controlled by the same parent company
Infosys Public Services Inc Controlled by the same parent company
Infosys Technologies (China) Co. Limited Controlled by the same parent company
Infosys Technologies S.De.R.L Controlled by the same parent company
(3) Significant transactions between the Company and the related parties in current year:
(a) Sales and purchase
The details of sales and purchases between the Company and its related parties are as follows:
In RMB
2019 2018
Sales
Infosys Technologies (China) Co. Limited 294,232,291.79 229,878,613.01
Infosys Limited 73,437,345.71 73,293,694.82
Infosys Technologies S.De.R.L 2,905,589.33 –
Infosys Public Services Inc – 432,501.07
370,575,226.83 303,604,808.90
Purchases
Infosys Limited 6,752,579.76 7,564,973.02
19,764,018.61 33,698,497.61
(b) Loans and borrowings

The details of loans and borrowings between the Company and related parties are as follows:
In RMB
Particulars Incurred amount As at December Incurred As at Annual
in 2019 31, 2019 amount in December 31, interest rate
2018 2018
Borrowings from
Infosys Poland Sp. z o.o. – 34,881,000.00 – 34,383,743.28 3.50%
Infosys Technologies (China) Co.
Limited – 50,000,000.00 – 50,000,000.00 6.00%
– 84,881,000.00 – 84,383,743.28
Note:
In 2017, the Company borrowed from Infosys Poland Sp. z o.o. US$ 5,000,000.00, bearing interest at 6% per annum, since
January 1, 2018, it has been adjusted to 3.50%. It was originally due on May 17, 2018, and was then extended to May 17,
2020. The incurred amount in 2018 is the exchange rate impact.
In 2017, the Company borrowed from Infosys Technologies (China) Co. Limited RMB 15,000,000.00, bearing interest at 6%
per annum and it was originally due on May 11, 2018 and then was extended until the lender requires repayment. In 2017,
the Company also borrowed from Infosys Technologies (China) Co. Limited RMB 35,000,000.00, bearing interest at 6% per
annum. It was originally due on July 27, 2018 and then was extended until the lender requires repayment.
In RMB
2019 2018
Interest expenses
Infosys Poland Sp. z o.o. 1,251,005.71 1,202,780.25
4,251,005.71 4,202,780.25
(c) Amounts due to / from related companies
In RMB
Accounts Name of the related parties As at December 31,
2019 2018
Accounts receivable Infosys Technologies (China) Co. Limited 34,610,991.87 26,730,978.47
Infosys Limited 7,017,448.09 6,313,166.52
Infosys Public Services Inc 2,869,044.22 –
44,497,484.18 33,044,144.99
Accounts payable Infosys Technologies (China) Co. Limited 51,354,550.05 37,562,424.89
Infosys Limited 5,076,510.66 5,867,757.64
56,431,060.71 43,430,182.53
Other payables Infosys Poland Sp. z o.o. 3,794,861.65 2,464,589.47
11,285,820.56 6,955,548.38
X. Financial instruments and risk management

The Company’s major financial instruments include accounts receivable, other receivables, accounts payable, other payables
and short-term loans. Details of these financial instruments are disclosed in Note VIII. The risks associated with these financial
instruments and the policies on how to mitigate these risks are set out below. The Management manages and monitors these
exposures to ensure appropriate measures are implemented on a timely and effective manner.
The Company adopts sensitivity analysis technique to analyze how the profit and loss for the period and owners’ equity would
have been affected by reasonably possible changes in the relevant risk variables. As it is unlikely that risk variables will change
in an isolated manner, and the interdependence among risk variables will have significant effect on the amount ultimately
influenced by the changes in a single risk variable, the following are based on the assumption that the change in each risk
variable is on a stand-alone basis.
1.Risk management objectives and policies
The Company’s risk management objectives are to achieve proper balance between risks and yield, minimize the adverse
impacts of risks on the Company’s operation performance, and maximize the benefits of the shareholders and other equity
investors. Based on these risk management objectives, the Company’s basic risk management strategy is to identify and analyze
the industry’s exposure to various risks, establish appropriate bottom line for risk tolerance, implement risk management, and
monitors these exposures to ensure appropriate measures are implemented on a timely and effective manner.
1.1 Market risk
1.1.1 Foreign currency risk
Foreign currency risk is the risk that losses will occur because of changes in foreign exchange rates. The Company’s exposure
to the foreign currency risk is primarily associated with USD and INR. The Company’s principal activities are settled in RMB.
As at December 31, 2019, the balance of the Company’s assets and liabilities are both denominated in RMB except that the
assets and liabilities set out below are denominated in foreign currencies. Foreign currency risk arising from the assets and
liabilities denominated in foreign currencies may have impact on the Company’s performance.
In RMB
2019 2018
Cash and bank balances 2,539,913.31 5,880,843.28
Accounts receivable 9,822,371.44 7,662,526.37
Short-term loans (34,881,000.00) (34,383,743.28)
Interest payable (3,794,861.65) (2,464,589.47)
Accounts payable (4,489,137.82) (5,774,077.64)
(30,802,714.72) (29,079,040.74)
Sensitivity analysis on currency risk
The assumption for the sensitivity analysis on currency risk is that all hedges of net investments in foreign operations and the
cash flow hedges are highly effective.
On the basis of the above assumption, where all other variables are held constant, the reasonably possible changes in the foreign
exchange rate may have the following pre-tax effect on the profit or loss for the period and owners’ equity:
In RMB
Item Changes in 2019 2018
exchange rate Effect on Effect on Owners’ Effect on Effect on
profit equity profit owners’ equity
Foreign currencies 10% increase
against RMB (3,080,271.47) (3,080,271.47) (2,907,904.07) (2,907,904.07)
Foreign currencies 10% decrease
against RMB 3,080,271.47 3,080,271.47 2,907,904.07 2,907,904.07
1.2 Credit risk

As at December 31, 2019, the Company’s maximum exposure to credit risk which will cause a financial loss to the Company
due to failure to discharge an obligation by the counterparties.
The Company reviews the recoverable amount of each individual trade debt at each Balance Sheet date to ensure that adequate
impairment losses are made for irrecoverable amounts. In this regard, the Management of the Company consider that the
Company credit risk is significantly reduced.
The credit risk on liquid funds is limited because the counterparties are banks with high credit rating.
1.3 Liquidity risk

In the Management of the liquidity risk, the Company monitors and maintains a level of cash and cash equivalents deemed
adequate by the Management to finance the Company’s operations and mitigate the effects of fluctuations in cash flows. The
Management monitors use of loans and ensures to observe loan agreements.
XI. Capital management
The Company’s primary objectives when managing capital are to safeguard the Company’s ability to continue as a going concern.
The Company defines capital as including all components of equity. The balance of related party transactions is not regarded
by the Company as capital.
The Company’s capital structure is regularly reviewed and managed with due regard to the capital management practices of
the Infosys Limited Group to which the Company belongs. Adjustments are made to the capital structure in light of changes
in economic conditions affecting the Company. The results of the Board of Directors’ review of the Company’s capital structure
are used as a basis for the determination of the level of dividends, if any, that are declared.
XII. Commitments
(1) Capital commitments
In RMB
2019 2018
Capital commitments that have been entered into but have not been performed: –
Contracts for construction of building 389,073.21
Contracts for purchasing equipment – –
Contracts for leasehold improvement – 1,165,399.10
389,073.21 1,165,399.10
(2) Operating lease commitments
As of the Balance Sheet date, the Company had the following commitments in respect of non-cancellable operating leases:
In RMB
2019 2018
Within 1 year 3,752,087.23 2,997,517.52
1 to 2 years 1,079,844.48 2,429,414.23
Over 2 years 738,840.96 –
Total 5,570,772.67 5,426,931.75
XIII. Comparative data

Partial comparative data for 2018 in the financial statements has been reclassified according to the presentation format for 2019.
XIV. Other matters
From January 1, 2020, the Company will start to adopt the revised “Accounting Standards for Business Enterprises No. 22 -
Recognition and Measurement of Financial Instruments”, “Accounting Standards for Business Enterprises No. 23 - Transfer
of Financial Assets” and “Accounting Standards for Business Enterprises No. 24 - Hedging Accounting” released by the MoF
in March 2017, the revised “Accounting Standards for Business Enterprises No. 37 - Presentation of Financial Instruments”
released in May 2017, and the revised “Accounting Standards for Business Enterprises No. 14 – Revenue” released in July 2017.
Infosys Consulting AG
Financial Statements for the year ended

December 31, 2019 and Report of the Statutory Auditor
Report of the Statutory Auditor
To the General Meeting of
INFOSYS CONSULTING AG, KLOTEN
Report of the Statutory Auditor on the Financial Statements
As statutory auditor, we have audited the accompanying financial statements of
Infosys Consulting AG, which comprise the Balance Sheet as at December 31, 2019, and the income statement and notes for
the year then ended.
Board of Directors’ Responsibility
The Board of Directors is responsible for the preparation of these financial statements in accordance with the requirements of
Swiss law and the Company’s articles of incorporation. This responsibility includes designing, implementing and maintaining
an internal control system relevant to the preparation of financial statements that are free from material misstatement, whether
due to fraud or error. The Board of Directors is further responsible for selecting and applying appropriate accounting policies
and making accounting estimates that are reasonable in the circumstances.
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with Swiss law and Swiss Auditing Standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the 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 the internal
control system relevant to the entity’s preparation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control system. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness
of accounting estimates made, as well as evaluating the overall presentation of the financial statements. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements for the year ended December 31, 2019 comply with Swiss law and the Company’s
articles of incorporation.
Report on Other Legal Requirements
We confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act (AOA) and independence
(Article 728 Code of Obligations (CO)) and that there are no circumstances incompatible with our independence.
In accordance with article 728a para. 1 item 3 CO and Swiss Auditing Standard 890, we confirm that an internal control system
exists, which has been designed for the preparation of financial statements according to the instructions of the Board of Directors.
We further confirm that the proposed appropriation of available earnings complies with Swiss law and the Company’s articles
of incorporation. We recommend that the financial statements submitted to you be approved.
We draw attention to the fact that the annual General Meeting for the year 2018 held on
May 8, 2019 approved the distribution of a dividend amounting to CHF 2,500,000. This decision differed from the audited
Board of Directors’ proposed appropriation of available earnings of December 31, 2018. An auditor’s confirmation of compliance
with Swiss law and the Company’s articles of incorporation was not obtained for the distribution approved by the General
Meeting as required by Article 728a paragraph 1 item 2 CO. However, we note that according to the audited financial statements
of December 31, 2018, sufficient available earnings existed to comply with the shareholders’ decision.
We draw attention to the fact that the extraordinary General Meeting held on August 5, 2019 approved the distribution
of a dividend amounting to CHF 6,000,000. This decision was made without the auditor’s confirmation of compliance
with Swiss law and the Company’s articles of incorporation as required by article 728a paragraph 1 item 2 CO. This is a
breach of article 731 CO..
240 I Infosys Consulting AG Infosys Subsidiary Financials 2019-20

Deloitte AG
Marco Hoogendijk Beni Furrer
Licensed Audit Expert Licensed Audit Expert
Auditor in Charge
Zurich, March 31, 2020

MHO/BFU/cbr
Enclosures
- Financial statements (Balance Sheet, income statement and notes)
- Proposed appropriation of available earnings
Infosys Subsidiary Financials 2019-20 Infosys Consulting AG I 241

Balance Sheet
Amount in CHF
2019 2018
Assets
Cash and cash equivalents 6,877,752.79 5,827,986.18
Receivables from third parties 5,696,444.30 7,125,911.45
Receivables from other group companies 8,079,857.32 10,260,992.59
Other short-term receivables from shareholder 2.1 6,000,603.26 708,553.88
Prepaid expenses and accrued income 4,627,783.08 4,272,960.54
Loans to other group companies 1,684,394.00 1,538,259.36
Investments 2.2 65,118.06 65,118.06
Tangible assets 2.3 142,059.32 73,782.13
Right-of-use assets 2.4 8,370,404.22 0.00
Total assets 41,544,416.35 29,873,564.19
Liabilities and equity
Accounts payable to third parties 589,638.93 862,737.60
Accounts payable to other group companies 401,465.04 548,207.97
Other short-term liabilities 1,132,956.03 1,265,283.24
Accrued expenses and deferred income 9,417,476.83 8,681,419.13
Total short-term liabilities 11,541,536.83 11,357,647.94
Loans from shareholder – 1,760,171.72
Lease liability 2.4 8,184,665.23 0.00
Total long-term liabilities 8,184,665.23 1,760,171.72
Share capital 2.5 120,000.00 120,000.00
Statutory retained earnings 60,000.00 60,000.00
Voluntary retained earnings 14,075,744.53 10,185,174.82
Net result for the year 7,562,469.76 6,390,569.71
Total equity 21,818,214.29 16,755,744.53
Total liabilities and equity 41,544,416.35 29,873,564.19
Income Statement
Amount in CHF
Particulars Note no. Years ended December 31,
2019 2018
Consulting revenue 30,416,355.94 31,009,306.74
Other service revenue 27,894,651.28 27,896,188.34
Revenue discounts / reversals (1,262,487.94) 931,848.31
Trade revenue (net) 57,048,519.28 59,837,343.39
Total cost of services (22,490,031.59) (21,380,181.47)
Gross profit 34,558,487.69 38,457,161.92
Personnel expenses (24,170,538.27) (28,851,323.82)
Office rent and maintenance (152,244.93) (1,058,719.99)
Administration and general expenses (163,938.04) (173,357.30)
Consulting (Accounting, tax, legal) expenses (280,158.78) (400,215.33)
Marketing expenses (108,139.85) (251,224.69)
Depreciation and amortization 2.4 (760,641.89) (132,786.11)
Total operating expenses (25,635,661.76) (30,867,627.24)
Earnings before interest and taxes (EBIT) 8,922,825.93 7,589,534.68
Financial expenses 2.4 (558,839.74) (208,606.51)
Financial income 146,134.64 27,103.77
Net financial result (412,705.10) (181,502.74)
Extraordinary expenses – (17,458.75)
Extraordinary income – 27,031.39
Net extraordinary result – 9,572.64

2019 2018
Expenses incurred in other periods – –
Expenses incurred in other periods – –
Earnings before tax (EBT) 8,510,120.83 7,417,604.58
Tax expenses (947,651.07) (1,027,034.87)

Notes to the financial statement

Infosys Consulting AG is a wholly-owned subsidiary of Infosys Consulting Holding AG, Kloten (Switzerland). The Company
renders professional management consulting services, thereby enabling its clients to enhance business performance.
1. Principles
1.1 Accounting year
The accounting year of the Company is from January 1 to December 31.
1.2 General aspects
These financial statements were prepared according to the principles of the Swiss Law on Accounting and Financial Reporting
(32nd title of the Swiss Code of Obligations). Where not prescribed by law, the significant accounting and valuation principles
applied are described below. It should be noted that to ensure the Company’s going concern, the Company’s financial statements
may be influenced by the creation and release of hidden reserves.
1.3 Revenue recognition
The method for recognizing revenues and cost depends on the nature of the services rendered and on the substance of
the contractual agreement. Revenues and costs generated under time-and-material contracts are recognized as services are
rendered. An expected project loss is recognized as an expense immediately. Revenue from fixed-price, fixed-timeframe contracts
is recognized as per the percentage-of-completion method. Efforts expended have been used to measure progress towards
completion as there is a direct relationship between input and productivity. Revenue comprises the invoiced value for the
services and expense reimbursements, net of value added tax.
1.4 Tangible assets
Tangible assets are valued at acquisition or manufacturing costs less accumulated depreciation and impairment losses. With
the exception of land, tangible assets are depreciated using the straight-line method. As soon as there are indicators that book
values may be overstated, these are reviewed and, if necessary, adjusted.
1.5 Leases
As of fiscal 2019 and onwards, leasing and rental agreements will be disclosed by the principle of right-of-use in
accordance with IFRS 16.
1.6 Foregoing a cash flow statement and additional disclosures in the notes
As Infosys Limited, the owner of Infosys Consulting Holding AG, has prepared its consolidated financial statements in accordance
with a recognized accounting standard (IFRS), it has decided to forego presenting additional information on interest-bearing
liabilities and audit fees in the notes as well as a cash flow statement and management report in accordance with swiss law.
2. Information on Balance Sheet and income statement items
2.1 Other short-term receivables
On August 5, 2019 the extraordinary general meeting resolved to distribute a dividend of
CHF 6,000,000. This decision was made without the auditor’s confirmation. As a result, the dividend distribution was reversed
with a credit to the available earnings and a debit to other short-term receivables from the shareholder.

2.2 Investments
Company: Infosys Consulting S.R.L.
Location: Buenos Aires, Argentina
Amount in CHF
Particulars Years ended December 31,
2019 2018
Share capital ARS 18,060,000.00 8,860,000.00
Directly held percentage of ownership and voting rights 3.05% 6.21%
2.3 Tangible assets

Amount in CHF
2019 2018
Installations and equipment 80,904.29 37,578.72
Vehicles 61,155.03 36,203.41
TOTAL 142,059.32 73,782.13
2.4 Right-of-use assets (RoU) and lease liabilities

As a result of disclosing lease and rental agreements in accordance with the principle of Right-of-use, the following
accounts were affected:
Amount in CHF
2019 2018
Balance Sheet
Rent office 7 years 8,370,404.22 –
Lease liability (8,184,665.23) –
Income Statement
Amortization - RoU building 778,196.01 –
Interest expense on lease liability 17,319.39 –
Cashflow
Cashflow From January 1, 2019 to December 31, 2019 848,567.76 –
2.5 Share capital

As at December 31, 2019, the share capital consists of 1,200 equity shares of CHF 100 / par value.
3. Other information
3.1 Full-time equivalents
The annual average number of full-time equivalents was below 250 similar to the previous reporting year.
3.2 Summary of hidden reserves
Amount in CHF
2019 2018
Accounts receivable 13,188.00 470,900.00
Fixed assets – –
Provisions / accruals – –
Total 13,188.00 470,900.00
Increase / (dissolution) of hidden reserve: (457,712) (38,100)
3.3 Subsequent events

Subsequent to yearend and up to the date of signing this report, there was a global outbreak of the COVID-19 virus and
associated slowdown in global economy. It is not possible to reliably estimate the length or severity of these developments,
and hence their financial impact. However, this could have an adverse impact on some of our customers and may affect our
results in the future periods.

Proposal on the appropriation of voluntary retained earnings
in CHF
The Board of Directors proposes to appropriate the voluntary retained earnings (available earnings) as follows:
Amount in CHF
Years ended December 31,
2019 2018
Voluntary retained earnings (brought forward) 14,075,744.53 10,185,174.82
Total voluntary retained earnings 21,638,214.29 16,575,744.53
Dividend 13,000,000.00 2,500,000.00
To be carried forward 8,638,214.29 14,075,744.53
The dividend of CHF 13,000,000 will be settled through a reduction in other short-term receivables from shareholder (CHF
6,000,000) as well as via a cash payment (CHF 7,000,000).

Infosys Technologies S. de R. L. de C. V.
To the Board of Directors and Stockholders of Infosys Technologies, S. de R. L. de C. V.
Opinion
We have audited the financial statements of Infosys Technologies, S. de R. L. de C. V. (“the Entity”), which comprise the
Statement of Financial Position as of December 31, 2019 and 2018, and the Statements of Income, the Statements of Changes in
Stockholders’ Equity and the Statement of Cash Flows for the year then ended, and notes to the financial statements, including
a summary of significant accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Entity
as of December 31, 2019 and 2018, and its financial performance and its cash flows for the year then ended in accordance
with Mexican Financial Reporting Standards (MFRSs).
Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those
standards are further described in the Auditors’ Responsibilities for the Audit of Financial Statements section of our report.
We are independent of the Entity in accordance with the International Ethics Standards Board for Accountants’ Code of
Ethics for professional Accountants (IESBA Code) together with the Code of Ethics issued by the Mexican Institute of Public
Accountants (IMCP Code), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code and
with the IMCP Code.
Emphasis paragraph
As explained in Notes 3.a., 8 and 9 to the financial statements, the Entity changed the methodology for recognizing leases in
the financial statements as of January 1, 2019, derived from the adoption of NIF D- 5, Leases. Since the method used by the
Entity based on the regulatory transitional provisions did not imply adjusting the comparative periods, the financial information
as of and for the year ended December 31, 2018, is not comparative in some items or indicators.
Other matter
The accompanying financial statements have been translated into English for the convenience of readers.
Responsibilities of the Management and those charged with governance for the financial statements
The Management is responsible for the preparation and fair presentation of the financial statements in accordance with MFRSs,
and for such internal control as the Management determines is necessary to enable the preparation of financial statements that
are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Management is responsible for assessing the Entity’s ability to continue as a going
Management either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Entity’s financial reporting process.
Auditors’ responsibilities for the audit of the financial statements
is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity’s internal control.
disclosures made by management.
248 | Infosys Technologies S. de R. L. de C. V. Infosys Subsidiary Financials 2019-20

• C onclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
the Entity’s Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’
report. However, future events or conditions may cause the Entity to cease to continue as a going concern.
Galaz, Yamazaki, Ruiz Urquiza, S. C.

Miembro de Deloitte Touche Tohmatsu Limited
C.P.C. Ana Laura Rodríguez Pérez

May 19, 2020
Infosys Subsidiary Financials 2019-20 Infosys Technologies S. de R. L. de C. V. | 249

Statements of Financial Position
in MXN
Particulars Note no. As of December 31,
2019 2018
Assets
Current assets
Cash 405,992,080 344,894,583
Accounts receivable, net 5 167,080,051 161,492,155
Related parties 6 141,145,483 62,784,307
Other receivables 2,597,292 2,689,871
Prepayments 6,866,412 6,317,520
Computer equipment and furniture and equipment, net 7 5,813,131 9,801,871
Lease right-of-use assets 8 110,482,556 –
Deferred employee statutory profit sharing 12b 9,235,909 7,631,684
Deferred income taxes 12a 28,865,434 24,690,834
Guarantee deposits 2,240,754 2,237,213
Total assets 880,319,102 622,540,038
Liabilities and stockholders’ equity
Current liabilities
Lease liabilities 9 16,512,382
Trade accounts payable 2,205,869 9,664,385
Accruals 11 28,606,902 24,663,441
Related parties 6 9,066,803 12,932,746
Taxes payable 10 68,544,044 21,505,748
Employee statutory profit sharing 18,676,048 13,617,620
Deferred revenue 3j 13,256,128 15,030,394
Employee benefits 11,370,361 9,920,859
Lease liabilities 9 105,500,786 –
Total liabilities 273,739,323 107,335,193
Stockholders’ equity 13
Capital stock 175,000,000 175,000,000
Retained earnings 431,579,779 340,204,845
Total stockholders’ equity 606,579,779 515,204,845
880,319,102 622,540,038
Commitments and contingent liabilities 14
See accompanying notes to financial statements.

Statements of Income
In MXN
2019 2018
Service revenues 869,462,645 736,580,103
Operating expenses
Salaries and related costs 452,802,315 407,726,102
Services 169,911,886 133,901,775
Rents – 26,001,922
Depreciation 4,765,039 8,707,814
Depreciation of lease right-of-use assets 8 17,039,297 –
Employee statutory profit sharing 15,789,167 11,961,202
Other 56,200,785 59,118,275
Total operating expenses 716,508,489 647,417,090
Operating income 152,954,156 89,163,013
Comprehensive financial results:
Foreign exchange (loss) gain – net (8,159,996) 865,681
Interest attributable to lease liabilities 9 (10,138,170) –
Interest income 15,660,697 8,595,248
Comprehensive financial results, net (2,637,469) 9,460,929
Income before income taxes 150,316,687 98,623,942
Income taxes 12a 47,353,279 30,334,445
Net income 102,963,408 68,289,497

Statement of Changes in Stockholders’ Equity
(In MXN)
Capital stock Retained Total
earnings stockholders’
equity
Balances as of January 1, 2018 175,000,000 271,915,348 446,915,348
Net income (Refer to Note 13 b) – 68,289,497 68,289,497
Balances as of December 31, 2018 175,000,000 340,204,845 515,204,845
Retrospective adjustments:
Accumulated effect for adoption NIF D-5 Leases (11,588,474) (11,588,474)
Balances at the beginning of 2019, adjusted 175,000,000 328,616,371 (503,616,371)
Net income (Refer to Note 13 b) 102,963,408 102,963,408
Balances as of December 31, 2019 175,000,000 431,579,779 606,579,779

In MXN
2019 2018
Cash flows from operating activities:
Items relating to investing activities:
Depreciation 4,765,039 8,707,814
Depreciation of lease right-of-use assets 17,039,297 –
Gain on sale of fixed assets (3,518) (10,674)
Interest income (15,660,697) (8,595,248)
Interest attributable to lease liabilities 10,138,170 –
166,594,978 98,725,834
Accounts receivable and deferred revenue (5,587,896) 3,513,183
Related parties (82,227,119) (28,674,768)
Other receivables and prepayments (456,313) 486,627
Guarantee deposits (3,541) (40,964)
Trade accounts payable (7,458,516) 7,707,391
Accruals 3,943,461 8,477,848
Income tax and other taxes paid (6,263,849) (54,303,761)
Employee statutory profit sharing 3,454,203 (2,971,244)
Employee benefits 1,449,502 1,206,544
Net cash from operating activities 73,444,910 34,126,690
Interest received 15,660,697 8,595,248
Acquisition of computer equipment, and furniture and equipment (772,781) (2,979,265)
Proceeds from sale of computer equipment, and furniture and equipment – 69,031
Net cash from investing activities 14,887,916 5,685,014
Cash flows from financing activities
Lease liability payments (27,235,329) –
Increase in cash 61,097,497 39,811,704
Cash
At beginning of year 344,894,583 305,082,879
At end of year 405,992,080 344,894,583

1. Description of business and were not remeasured or translated into the functional
currency because, such financial statements are issued only
Infosys Technologies, S. de R. L. de C. V. (“the Entity”), is
for legal and tax purposes.
an incorporated company under the laws of Mexico. The
address of the Entity is Boulevard Gustavo Díaz Ordaz
130 west, 16th floor, Santa María, Monterrey, Nuevo León. e). Statement of income presentation
The Entity is a subsidiary of Infosys Limited, and its main The Entity presents comprehensive income in a single
activity is to provide services of advice, operational support statement of income or loss entitled “Statement of Income”
personnel trained in the area of design, development, given that the Entity did not generate Other Comprehensive
implementation and adaptation of business solutions related Income (OCI) during the current year or the preceding year,
to information technology. which is presented for comparative purposes.
Given that the Entity is a service entity, ordinary costs and
2. Basis of preparation expenses are presented based on their nature, in order to
present the information clearer. Additionally, the “Operating
a). Statement of compliance income” line item is included, which results from subtracting
Explanation for translation into English – The accompanying the expenses from service income as this line item is
financial statements have been translated from Spanish into considered to provide a better understanding of the Entity’s
English for use outside of Mexico. These financial statements economic and financial performance.
are presented on the basis of Mexican Financial Reporting
Standards (“MFRS”), which are comprised of accounting 3. Summary of significant accounting
standards that are individually referred to as Normas de
policies
Información Financiera or “NIFs”. Certain accounting
practices applied by the Entity that conform with MFRS may The accompanying financial statements have been prepared in
not conform with accounting principles generally accepted conformity with MFRS, which require that the Management
in the country of use. make certain estimates and use certain assumptions that affect
the amounts reported in the financial statements and their
b). Monetary unit of the financial statements related disclosures; however, actual results may differ from
The financial statements and notes as of December 31, 2019 such estimates. The Entity’s management, upon applying
and 2018 and for the years then ended include balances professional judgment, considers that estimates made and
and transactions denominated in Mexican pesos of different assumptions used were adequate under the circumstances.
purchasing power. Cumulative inflation rates over the The significant accounting policies of the Entity are as follows:
previous three-year periods ended December 31, 2019 and
a. Accounting changes
2018 were 15.69% and 12.71%, respectively. Accordingly,
the economic environment is not inflationary in either such As of January 1, 2019, the Entity adopted the following NIF:
period, and no inflationary effects were recognized in the NIF D-5, Leases: The accounting recognition for the lessee
accompanying financial statements. Inflation rate for the establishes a single lease recognition model that eliminated
three-year period ended December 31, 2019 was 15.06%. the classification of leases as operating or capitalizable,
Inflation rates for the years ended December 31, 2019 and whereby assets and liabilities are now recognized for all
2018 were 2.83% and 4.83%, respectively. leases with a duration of more than 12 months (unless the
underlying asset has a low value). Consequently, the most
c). Use of estimates and judgment important effect with regard to the financial position was
The preparation of financial statements requires the the recognition of lease right-of-use (ROU) asset and the
Management to make a number of estimates and assumptions financial liabilities derived from leased assets, which reflect
that affect the reported amounts of assets and liabilities and the payment obligation at present value.
the disclosure of contingent assets and liabilities as of the The accounting recognition for the lessor is unchanged, with
date of the financial statements and the reported amount of only the addition of certain disclosure requirements.
revenues and expenses during the reporting period. Significant
The main aspects considered by this NIF are: a) a lease is
items subject to such estimates and assumptions include
a contract that transfers the right to utilize an asset for a
the carrying amount of furniture and equipment; valuation
given period of time to the lessee in exchange for a payment.
allowances for accounts receivable, and deferred income tax
Accordingly, at the start of the contract, an entity must
assets and liabilities related to employee benefits. Actual
determine whether it obtains the right to control the use of
results could differ from those estimates and assumptions.
an identified asset for a given period of time; b) the nature
d). Functional and reporting currency of lease-related expenses is modified due to the replacement
The aforementioned financial statements are presented in of the operating lease expense according to Bulletin D-5,
Mexican pesos (reporting currency), which is the same as Leases, by the depreciation or amortization of the lease ROU
the local currency but different from the functional currency asset (and operating costs), together with an interest expense

derived from lease liabilities in Comprehensive Financing or realization of such assets. If it is determined that the net
Cost (RIF); c) the presentation of the statement of cash flows carrying value exceeds the recoverable value, the Entity
due to the reduction of cash disbursements for operating records the necessary estimates.
activities, as well as increased cash disbursements for financing
activities to reflect the payment of lease liabilities and interest; g. Accruals
d) the modification of the profit or loss recognized when a Based on the Management’s estimates, the Entity recognizes
vendor-lessee transfers an asset to another entity and then accruals for present obligations where the transfer of assets or
leases this asset back. the rendering of services is virtually inevitable and arises as
In order to apply this NIF, the Entity considered a practical a consequence of past events, principally services and other
expedient for contracts that were previously identified or amounts payable to employee.
not as leases by applying Bulletin D-5, Leases and IFRIC 4, h. Employee benefits
Determination of whether a contract contains a lease, on a
suppletory basis. Additionally, the Entity retrospectively Short-term direct benefits
recognized the cumulative effect in the consolidated Short-term direct employee benefits are recognized in the
Statement of Changes in Stockholders’ Equity at the results of the period in which the services rendered are
initial application date. accrued. A liability is recognized for the amount expected
In the case of lease contracts with the characteristics described to be paid if the Entity has a legal or assumed obligation to
above, the Entity recognized at January 1, 2019, a lease ROU pay this amount as a result of past services provided and the
asset of Pesos 127,521,853, together with short and long- liability can be reasonably estimated.
term leased liabilities of Pesos 139,110,327 and a retained Direct long-term benefits
earnings decrease for pesos 11,588,474.
The Entity’s net obligation in relation to long-term direct
b. Cash profits (except for deferred PS - see subsection (j) Income
Cash consists of checking accounts, and foreign currency. taxes and employee profit sharing) and which the Entity is
At the date of the financial statements, interest income expected to pay after 12 months from the most recent Balance
and foreign exchange gains and losses are included in the Sheet date is the amount of future benefits that employees
Statement of Comprehensive Income. have earned in exchange for their service in the current
and prior years. This benefit is discounted to determine its
c. Accounts receivable present value. Reimbursements are recognized in the income
Accounts receivable are recognized according to the statement in the period in which they accrue.
percentage-of-completion of service to the date of the Termination benefits
statement of financial position and include amounts billed
and unbilled net of provisions for returns and discounts and A liability for termination benefits and a cost or expense is
the allowance for doubtful accounts. recognized when the Entity has no realistic alternative other
than to face the payments or cannot withdraw the offer of
d. Computer equipment and furniture and those benefits, or when it meets the conditions to recognize
equipment, net the costs of a restructuring, whichever comes first.
Furniture and equipment are recorded at acquisition cost. Defined contribution plans
Depreciation on furniture and equipment is calculated on Obligations for contributions to defined contribution plans
the straight-line basis over the estimated useful lives of the are recognized in the Income Statement as the related
assets as determined by The Entity’s management. The total services are provided by employees. Prepaid contributions
useful lives annual depreciation rates of the principal asset are recognized as an asset to the extent that down payment
classes are as follows: results in a reduction in payments to be made in the
Years Rates future or a cash refund.
Furniture and equipment 5 20%
Computer equipment 2-5 50-20% Defined benefit plans
The calculation of obligations by defined benefit plans
Minor repairs and maintenance costs are expensed as incurred. is performed annually by qualified actuaries using the
projected unit credit method.
e. Prepayments
When the calculation results in a possible asset for the Entity,
Mainly include prepayments for the purchase of services
the asset recognized is limited to the present value of the
that are received after the date of the Statement of Financial
available economic benefits in the form of future refunds of
Position and in the ordinary course of operations.
the plan or reductions in future contributions to the plan.
f. Impairment of furniture and equipment To calculate the present value of economic benefits, any
minimum funding requirement should be considered.
The Entity evaluates the net carrying value of furniture
and equipment to determine the existence of indications The labor cost of the current service, which represents the cost
that such value exceeds its recoverable value. The recovery of the benefit period to the employee for having completed
value represents the amount of potential net income that is one more year of working life based on the benefit plans, is
reasonably expected to be obtained as a result of the use

recognized in the costs and operating expenses. Net interest Costs and incurred gains unbilled are recognized under
is recognized under the “Comprehensive financial result, net”. the caption receivables unbilled, while revenue in excess
Changes to plans that affect the cost of past services are of costs and earnings is recognized as deferred income and
recognized in operating results immediately in the year in is presented in current liabilities until all the conditions
which the change occurs, with no possibility of deferral in required for the revenue recognition are met.
subsequent years. Likewise, the effects of liquidation events Maintenance revenues are recognized proportionally
or reduction of obligations in the period that significantly according to the contractual terms.
reduce the cost of future services and / or significantly reduce The Entity makes estimates for after-sales services for certain
the population subject to benefits, respectively, are recognized customers to provide support in case of bug fixes, volume
in the results of operations. discounts, among other reservation time.
Remeasurements (prior actuarial gains and losses) resulting
from differences between the projected and actual actuarial k. Business and credit concentration
assumptions at the end of the period are recognized in the Expenses for administrative services with related parties as
period in which the results of the period are incurred. of December 31, 2019 and 2018 amount to 19% and 8%,
respectively, of total operating expenses. In addition, balances
i. Income Tax (IT) and Employee Statutory Profit receivable from related parties as of December 31, 2019
Sharing (ESPS) and 2018 represent to 16% and 10%, respectively, of total
IT and ESPS payable for the year are determined in conformity assets and balances payable to related parties as December
with the tax regulations in effect. 31, 2019 and 2018 represent to 3% and 7%, respectively,
Deferred IT and ESPS are accounted for under the asset and of total liabilities
liability method. Deferred taxes and ESPS assets and liabilities l. Comprehensive financial results (CFR)
are recognized for the future tax consequences attributable to
The CFR includes foreign exchange loss / gain and interest
differences between the financial statement carrying amounts
income. Transactions in foreign currency are recorded
of existing assets and liabilities and their respective tax bases,
at the exchange rate prevailing on the date of execution
and in the case of IT, for operating loss carryforwards and
or settlement. Foreign currency assets and liabilities are
other recoverable tax credits. Deferred tax and ESPS assets
translated at the exchange rate in force at the statement of
and liabilities are measured using enacted tax rates expected
financial position date. Exchange differences arising from
to apply to taxable income in the years in which those
assets and liabilities denominated in foreign currencies are
temporary differences are expected to be recovered or settled.
reported on the income statement.
The effect on deferred tax and ESPS assets and liabilities of a
change in tax rates is recognized on the statement of income m.Contingencies
in the period that includes the enactment date. Liabilities for loss contingencies are recorded when it is
j. Revenue recognition probable that a liability has been incurred and the amount
thereof can be reasonably estimated. When a reasonable
Revenues from services are recognized as services are provided.
estimation cannot be made, disclosure is provided in the notes
The revenue from contracts hours spent related with to the financial statements. Contingent revenues, earnings or
management services and / or technical application support assets are not recognized until realization is assured.
in the information centers or customer business place,
are recognized in the period were made based on the 4. Foreign currency exposure and translation
hours spent on the projects and negotiated fixed fees for Monetary assets and liabilities denominated in dollars, euros
the respective project. and pound sterling translated into the reporting currency, as
Revenues from fixed-price contracts are recognized by the of December 31, 2019 and 2018, were as follows:
percentage-of-completion method. Based on the percentage- 2019 Pound Dollars Euros
of-completion method, income is recognized on the basis sterling
of cost incurred to date, obtaining a percentage of the Assets
total estimated costs to complete the contract. No revenue Assets (404,751) 142,273,857 15,381,992
is recognized when there is significant doubt about the Liabilities – 10,773,749 –
recoverability. If there are projections that will change the Net (liability)
estimated income, or costs, or if the process is extended to assets (404,751) 131,500,108 15,381,992
conclude the contract, checks are performed to determine
the new estimates. These revisions may result in increases 2018 Pound Dollars Euros
or decreases on income and estimated costs, which are sterling
recognized in income for the period relative. Assets
Assets (399,227) 200,251,344 11,514,362
If during the term of the projects, the Entity estimates that
Liabilities – 26,906,437 158,573
the costs incurred plus costs to be incurred exceed the
Net (liability)
total revenue, the estimated loss is recognized in operating
assets (399,227) 173,344,907 11,355,789
results immediately.

At December 31, 2019 and 2018, amounts recorded Pesos Balance receivable from related parties are as follows:
(8,159,996) and Pesos 865,681, respectively, for the foreign In MXN
exchange gain (loss), respectively. Particulars As at December 31,
The exchange rates used in the various translation processes 2019 2018
to the reporting currency are as follows: Infosys Limited 1,915,529 39,223,432
Country Currency As of December 31, Kallidus Inc(5) 77,651,957 –
Exchange Rate Infosys Consulting S.R.L.(6) 1,876,292 1,847,262
2019 2018 Infosys Consulting LTDA 38,624,332 –
United States of Panaya Limited 20,281,087 20,345,265
America Dollars 19.2946 19.6563 EdgeVerve Systems Limited 796,286 1,368,348
European Union Euros 21.6487 22.5324 141,145,483 62,784,307
England Pound (5)
Corresponds to a short-term loan bearing an interest rate of LIBOR plus
Sterling 25.4568 25.0873 0.82%
(6)
Corresponds to a short-term loan bearing an interest rate of LIBOR plus
At December 31, 2019, the Entity did not have foreign 0.80%
exchange hedging instruments. Balance payable to related parties are as follows:
In MXN
Accounts receivable at December 31, 2019 and 2018,
2019 2018
consist of the following:
In MXN Infosys BPM Limited 23,445 1,480,594
Infosys Technologies (China)
Co. Limited – 9,625,432
2019 2018
Billed accounts receivable 159,568,956 152,365,148 (Shanghai) Co. Limited 7,935,129 –
Unbilled receivables 33,302,593 24,448,202 Infosys Chile SpA 1,108,229 1,826,720
192,871,549 178,813,350 9,066,803 12,932,746
Less:
Provision for discount to
customers (25,514,182) (14,819,631)
7. Computer equipment and furniture and
Allowance for doubtful equipment
accounts (277,316) (501,564) Furniture and equipment at December 31, 2019 and 2018,
(25,791,497) (15,321,195) comprise the following:
167,080,051 161,492,155 In MXN
6. Related parties 2019 2018
Transactions carried out with related parties, during the years Furniture and equipment 52,570,853 52,695,603
ended December 31, 2019 and 2018, were as follows: Computer equipment 58,749,083 61,960,060
In MXN 111,319,936 114,655,663
Less: accumulated
depreciation (105,506,805) (104,853,792)
2019 2018
5,813,131 (9,801,871)
Revenues for consulting and
implementation provided to
customers on behalf of its 8. Lease right-of-use-assets
In MXN
related party (1) 204,030,996 183,411,449
Interest income (2) 509,043 – Particulars Edificios
Expenses for specialized Initial recognition at January 1,
personnel services in project 2019 127,521,853
implementation (3) 92,120,765 75,383,245 Depreciation (amortization) of the
Licenses (4) 63,565 – year (17,039,297)
Balances at December 31, 2019 110,482,556
(1)
Infosys Limited, EdegeVerve Systems Limited in 2019 and Infosys
Limited, Panaya Limited, Edgeverve Limited in 2018.
(2)
Kallidus Inc and Infosys Consulting Ltda in 2019.
(3)
Infosys Limited, Infosys BPO Limited, Infosys Chile SPA, Infosys Tech
(Shanghai)Co. Ltd in 2019 and Infosys Limited, Infosys BPM Limited,
Infosys Technologies (China) Co. Limited, Infosys Chile SpA in 2018.
(4)
Panaya Limited in 2019.

9. Lease liabilities 10. Taxes payable
In MXN
As of December 31, 2019, and 2018, taxes payable
Initial recognition as of January 1, consist of the following:
2019 139,110,327 In MXN
Financial expenses 10,138,170 Particulars As at December 31,
Payments (27,235,329) 2019 2018
Balance as of December 31, 2019 122,013,168 Income tax 20,037,137 (17,148,409)
Lease current liabilities 16,512,382 Income tax withheld to third
Liabilities for long-term leases 105,500,786 parties 12,558,667 12,921,578
Value added tax 25,159,498 16,377,140
As of December 31, 2019, the maturity of the liabilities for
Other tax payments 79,630
long-term leased assets is as follows:
In MXN
Social security contributions 10,709,112 9,355,439
68,544,044 21,505,748
As at December 31, Import
2021 20,107,260
2022 21,769,660
2023 7,056,884
2024 4,192,607
2025 – onwards 52,374,375
Total 105,500,786
Accruals
Accruals at December 31, 2019 and 2018, include the following:
In MXN
Particulars Subcontracting and Other personnel Total
others benefits
Balances at December 31, 2018 11,123,447 13,539,994 24,663,441
Increases recorded in earnings 324,074,425 1,347,506,285 1,671,580,710
Payments (322,684,781) (1,344,952,468) (1,667,637,249)
Balances at December 31, 2019 12,513,091 16,093,811 28,606,902
12. Income taxes (Income Tax (IT) and employee statutory profit sharing (ESPS))
IT Law effective as of January 1, 2014 imposes an IT rate of 30% for 2014 and thereafter.
a) Income taxes
The income tax expense is as follows:
In MXN
2019 2018
Income tax:
Current 49,403,042 27,546,112
Deferred (2,049,763) 2,788,333
(47,353,279) 30,334,445
Income tax expense attributable to income from continuing operations before income taxes, differed from the amounts computed
by applying the Mexican statutory rates of 30% IT to income before income taxes, as a result of the items shown below:
In MXN
2019 2018
Computed “expected” tax expense 41,265,819 29,818,676
Increase (reduction) resulting from
Effects of inflation, net (3,423,411) (7,213,751)
Non-deductible expenses 4,424,298 5,971,277
Other, net 5,086,573 1,758,243
(47,353,279) 30,334,445

The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and liabilities, at
December 31, 2019 and 2018, are presented below
In MXN)
2019 2018
Deferred tax assets:
Allowance for doubtful receivables 117,670 402,275
Provisions for accounts receivable 7,185,814 3,504,077
Furniture and equipment 4,322,563 5,704,249
Accruals 9,024,066 11,779,619
Employee benefits 428,935 428,935
Deferred revenues 3,976,838 4,509,118
Lease right-of-use asset 1,729,592
Deferred profit sharing 1,157,706
Provisions for vacations 2,982,174 2,547,322
Total gross deferred tax assets 30,925,358 28,875,595
Deferred tax liabilities
Prepayments 2,059,924 1,895,256
Deferred ESPS 2,289,505
Total gross deferred tax liabilities 2,059,924 4,184,761
Net deferred tax asset 28,865,434 24,690,834
b) Deferred ESPS
The deferred ESPS expense (benefit) is as follows:
In MXN
2019 2018
Deferred ESPS 1,604,225 491,713
The effects of ESPS on temporary differences that give rise to significant portions of deferred ESPS assets and liabilities as of
December 31, 2019 and 2018 are detailed as follows:
In MXN
2019 2018
Deferred tax assets:
Allowance for doubtful receivables 39,223 134,092
Provisions for accounts receivable 2,395,271 1,168,025
Furniture and equipment 1,440,854 1,901,416
Accruals 3,008,022 2,564,778
Employee benefits 142,978 142,978
Deferred revenues 1,325,613 1,503,039
Lease right-of-use asset 576,534
Provisions for vacations 994,055 849,107
Total gross deferred tax assets 9,922,550 8,263,437
Deferred tax liabilities
Prepayments 686,641 631,752
Total gross deferred tax liabilities 686,641 631,752
Net deferred tax asset 9,235,909 7,631,684

13. Stockholders’ equity 15. Subsequent events
The principal characteristics of stockholders’ equity Effects of the Covid-19 pandemic (Coronavirus)
are described below: Derived from the Coronavirus outbreak (COVID-19)
a) Structure of capital stock in January 2020 and its recent global expansion to a
large number of countries, it has led the World Health
The Entity’s capital stock at December 31, 2019 and 2018,
Organization to classify the viral outbreak as a pandemic
is composed of two social parties, fixed and variable.
since March 11, 2020.
Social fixed portion has a value of 10,000,000 and variable
portion of 165,000,000. Sanitary measures have been taken in Mexico to stop
the spread of this virus, including, among others, social
b) Comprehensive income isolation and the closure of educational centers (schools and
During the years ended at December 31, 2019 and 2018, universities), commercial establishments and non-essential
there were no items that, in accordance with MFRS applicable, businesses. There is strong uncertainty about how this virus
have to be taken directly to equity, so the comprehensive will evolve in Mexico, the time necessary for precautionary
income equals net income for the year, as presented and / or containment measures to take effect, and the result
in income statements. it will have in the national economy; therefore, the economic
impacts and consequences for the Entity’s / clients’ operations
c) Restrictions on stockholders’ equity are uncertain and will largely depend on the evolution and
According to the General Corporations Law, net income spread of the pandemic in the coming months, as well as on
for the year is subject to a 5% separation, to constitute the the ability to react and adapt to all affected economic agents.
legal reserve, until it reaches a fifth of the capital stock. As As of the date of issuance of these financial statements, the
of December 31, 2019, the legal reserve amounts to Pesos Entity’s management has not identified a material impact on
21,944,525 that has not reached the required amount. its financial position or results of operations. However, the
Stockholder contributions restated as provided for by the tax administration will continue to monitor the effects of this
law, may be refunded to stockholders tax-free, to the extent crisis on its clients, industry and markets where it operates.
that such contributions equal or exceed stockholders’ equity. The Entity has evaluated subsequent events for their
Retained earnings on which no IT have been paid, are subject recognition or disclosure in the preparation of the financial
to income taxes in the events of distribution, at the rate of statements. These events were evaluated until May 19,
30% payable by the Entity, consequently, the stockholders 2020, the date of issuance of the financial statements. Based
may only receive 70% of such amounts. on this evaluation, except for what is mentioned in the
preceding paragraphs, it has concluded that there are no
14. Commitments and contingent liabilities subsequent events that require recognition or disclosure in
a) In accordance with Mexican tax law, the tax authorities the financial statements.
are empowered to examine transactions carried
out during the five years prior to the most recent 16. New accounting principles
income tax return filed. As of December 31, 2019, the CINIF has issued the following
b) In accordance with the income tax law, companies NIFs and improvements to NIFs which may affect the financial
carrying out transactions with related parties are subject statements of the Entity:
to certain requirements as to the determination of prices, Effective as of January 1, 2021, although early adoption is
which should be similar to those that would be used in permitted during 2020:
arm’s-length transactions. NIF C-17, Investment properties (NIF C-17) – Given the
Should the tax authorities examine the transactions and reject absence of a NIF establishing the bases used for the accounting
the related-party prices, they could assess additional recognition of investment properties (held to obtain rental
taxes plus the related inflation adjustment and interest, in income or for capital appreciation purposes), entities have
addition to penalties of up to 100% of the omitted taxes. applied the guidance set forth in Circular 55 issued by the
The Entity is in the process of obtaining the aforementioned Accounting Principles Commission of the Mexican Institute
transfer pricing study and supporting documentation in of Public Accountants, which only allows the use of the
order to demonstrate that one of the methods established acquisition cost model for valuation purposes. The main
in article 216 of the Income Tax Law was applied. change detailed in NIF C-17 involves the possibility whereby
c) The Entity entered into a contract to provide services to investment properties held for capital appreciation purposes
its parent company, in which it undertakes to provide may be optionally valued at their acquisition cost or fair value.
services necessary for their operation. These contracts If the Entity opts to apply the fair value model, at each financial
are for an indefinite period. Total payments for this statement closing date, investment properties shall be valued
concept was Pesos 76,271,858 in 2019 and Pesos at their fair value determined in accordance with NIF B-17,
62,640,124 in 2018 and included in operating expenses Determination of fair value. The losses or gains derived from
in the statement of income. valuation adjustments must be recognized in comprehensive
income or Other Comprehensive Income (OCI) of the period
d) There is a contingent liability arising from the labor
obligations mentioned in note 3(h).

in which they arise. When the Entity disposes of the asset in NIF D-5 Leases – a) Given the complexity that may arise
question, OCI must be recycled to results. when determining the discount rate, this NIF establishes
This NIF establishes that investment properties must be the possibility of utilizing a risk-free rate to discount future
recognized in the consolidated statement of financial position lease payments and recognize the lessee’s lease liability, and
when asset definitions are fulfilled; i.e., when, for the entity, b) the use of a practical expedient to exclude material and
investment properties: identifiable components other than leases from the asset
usage right measurement and lease liabilities was restricted.
a) are an economic resource to which it is entitled;
Likewise, other improvements to NIF that do not generate
b) have the potential to generate economic benefits;
accounting changes were also included and essentially clarify
c) are under its control; i.e., when it is able to manage its the purpose of each standard.
utilization and obtain the respective future economic
At the date of issuance of these consolidated financial
benefits, while restricting third-party access to this
statements, the Entity is in the process of determining the
control and economic benefits; and
effects derived from its adoption of these new standards on
d) arose as a result of past events that affected the its financial statements.
entity economically.
Effective as of January 1, 2020, although early adoption 17. Authorization to issue the financial
is permitted during 2019; Improvements to NIF that statements
generate accounting changes: On May 19, 2020, Ravi Arcot, Expedition and Operations
NIF C-16 Impairment of receivable financial instruments Leader, and Lorena Delgado Cantu, Finance Officer,
– Clarifies the effective interest rate to be utilized when authorized the issuance of the accompanying financial
renegotiating a financial instrument to collect principal statements and related notes thereto.
and interest (IFCPI). In accordance with the General Corporations Law and
NIF C-19 Financial instruments payable, and NIF C-20 the bylaws of The Entity, the stockholders are empowered
Financial instruments for collecting principal and interest to modify the financial statements after issuance. The
– Specify that the effective interest rate need not be accompanying financial statements will be submitted to the
periodically recalculated when its amortization does not next Stockholders’ Meeting for approval.
generate material effects.
NIF D-4 Income taxes, and NIF D-3 Employee benefits –
Paragraphs have been included regarding uncertain tax
treatments when considering the bases used to determine
ISR and PTU, while also evaluating the probability
whereby the tax or legal authority will accept or reject an
uncertain tax treatment.
NIF D-4 Income taxes – Clarifies the accounting recognition
of income taxes incurred by the distribution of dividends in
relation to the transactions that generated distributable profits.

Panaya Ltd.
To the Shareholders Of Panaya Ltd.
We have audited the accompanying statement of financial position of PANAYA Ltd. (“the Company”) as of December 31, 2019
and 2018, and the related statements of comprehensive loss, changes in shareholders’ deficiency and cash flows for the years
then ended. These financial statements are the responsibility of the Company’s Board of Directors and management. Our
responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audits in accordance with generally accepted auditing standards, including those prescribed by the Auditors’
Regulations (Auditor’s Mode of Performance) - 1973. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing
the principles used and significant estimates made by the Board of Directors and management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the
Company as of December 31, 2019 and 2018, and the results of its operations and its cash flows for the years then ended, in
conformity with accounting principles generally accepted in Israel (Israeli GAAP).
Brightman Almagor Zohar & Co.

Certified Public Accountants
A Firm in the Deloitte Global Network
March 31, 2020

Tel-Aviv, Israel
264 | Panaya Ltd. Infosys Subsidiary Financials 2019-20

Statement of Financial Position
In NIS thousand
Particulars Note no. December 31,
2019 2018
ASSETS
Current assets:
Cash and cash equivalents 14,521 9,841
Trade receivables 4,599 546
Trade receivables – related parties 4,058 3,307
Other receivables – related parties 409 841
Property and equipment, net 3 6,445 7,077
Intangible assets, net – 78
LIABILITIES AND SHAREHOLDERS’ DEFICIENCY
Current liabilities:
Trade payables 2,617 4,412
Trade payables – related parties 134,630 131,903
Other payables – related parties 66,058 64,144
Other payables 10,242 6,520
Employee-related payables 19,609 15,072
Deferred revenue 95,270 92,830
Accrued severance pay, net of severance fund 4 307 675
Commitments and contingent liabilities 5
Total shareholders’ deficiency (292,761) (286,860)
Liabilities and shareholders’ deficiency 35,972 28,696
The accompanying notes are an integral part of the financial statements.
March 31, 2020 David Binny

Director
Date of approval of the financial statements
Infosys Subsidiary Financials 2019-20 Panaya Ltd. | 265

Statement of Comprehensive Loss
In NIS thousand
2019 2018
Revenues 2H 102,446 134,186
Cost of revenues 28,253 19,021
Operating expenses:
Research and development 2C, 8A 46,628 56,530
Selling and marketing expenses 8B 40,529 97,030
General and administrative expenses 8C 11,141 13,657
Operating loss 24,105 52,052
Financial expenses (income), net (18,204) 22,930
Other (income) expenses – (363)
Net loss 5,901 74,619

Statement of Changes in Shareholders’ Deficiency
In NIS thousand
Particulars Share capital Additional Share-based Payments on Accumulated Total
paid-in payment account of deficit shareholders’
capital capital fund shares to be deficiency
allotted
Balance at January 1, 2018 13 79,925 15,863 68,798 (376,840) (212,241)
Net loss – – – – (74,619) (74,619)
Balance at December 31, 2018 13 79,925 15,863 68,798 (451,459) (286,860)
Net loss – – – – (5,901) (5,901)
Balance at December 31, 2019 13 79,925 15,863 68,798 (457,360) (292,761)

in NIS thousand
2019 2018
Cash flows provided by (used in) operating activities:
Net loss (5,901) (74,619)
Adjustment required to reconcile net loss to cash provided by (used in) operating
activities:
Depreciation and amortization 1,468 2,693
Decrease (increase) in trade and other receivables (3,306) (268)
Increase in trade and other payables 6,568 66,669
Increase (decrease) in employee related payables 4,537 143
Increase in deferred revenue 2,440 2,442
Increase (decrease) in accrued severance pay, net (368) 215
Net Cash from / used in operating activities 5,438 (2,725)
Cash flows from investing activities:
Acquisition of property and equipment (758) (537)
Net cash used in investing activities (758) (537)
Increase (decrease) in cash and cash equivalents 4,680 (3,262)

Note 1: General E. Intangible assets

A. Panaya Ltd. (the “Company”) was incorporated and These assets that represent acquired domains, copyrights,
commenced operations on January 2, 2006, as a wholly- licenses and trademarks are stated at cost and amortized
owned subsidiary of Panaya Inc. (“the Parent Company”), using the straight-line method over their estimated useful
which is incorporated in Delaware, US lives of 3 to 4 years.
B. The Company develops and markets solutions for ERP F. Fair value of financial instruments
systems, by identifying the changes on the ERP system
The carrying amount of some of the Company’s financial
through automated analysis.
instruments, including cash equivalents, accounts receivable,
C. The Company has incurred losses since its inception accounts payable and accrued liabilities approximate their fair
and its continued operations as a going concern are value, due to their short maturities.
dependent on financing from the Parent Company, until
it reaches sufficient profitability. G. Income taxes
D. Related parties – Within their meaning in Opinion No. 29 Income taxes are accounted for using the asset and liability
of the Institute of Certified Public Accountants in Israel. approach. The asset and liability approach requires the
recognition of taxes payable or refundable for the current
E. The functional currency of the Company is the NIS,
year and deferred tax liabilities and assets for the future
as the NIS is the primary currency of the economic
tax consequences of events that have been recognized in
environment in which the Company has operated and
the Company’s financial statements or tax returns. The
expects to continue to operate in the foreseeable future.
measurement of current and deferred tax liabilities and
Note 2: Significant accounting policies assets is based on provisions of the relevant tax law. The
measurement of deferred tax assets is reduced, if necessary,
The significant accounting policies applied are as follows:
by the amount of any tax benefits that, based on available
A. Use of estimates evidence, are not expected to be realized.
The preparation of financial statements in accordance with H. Revenues
generally accepted accounting principles in Israel requires
The Company derives its revenue principally from the sale
the Management to make estimates and assumptions that
of its ERP systems analysis services including activation and
affect the reported amounts of assets and liabilities and
monthly service fees. Revenues from services are recognized
disclosure of contingent assets and liabilities at the date of
as services are performed or on a straight-line basis if
the financial statements and reported amounts of expenses
service is ongoing. Revenue is recognized provided that an
during the reported periods. Actual results could differ
arrangement (usually in the form of a purchase order) exists,
from those estimates.
the fee is fixed and determinable and collection is reasonably
B. Cash equivalents assured. If uncertainties exist, revenue is recognized when the
The Company considers all highly liquid investments, which uncertainties are resolved.
include short-term bank deposits (up to three months from Note 3: Property and equipment, net
date of deposit) that are not restricted as to withdrawal or use,
to be cash equivalents. The composition:
in NIS thousand
C. Research and development
Costs incurred in connection with the research of the 2019 2018
Company’s products are expensed as incurred. Cost:
D. Property and equipment Furniture and fixtures 2,473 2,467
Computers and software 10,611 9,901
Property and equipment are stated at cost. Depreciation is
Leasehold improvements 10,537 10,505
computed by the straight-line method over the estimated
Communication equipment 370 366
useful life of the assets.
23,991 23,239
Annual rates of depreciation are as follows: Less – Accumulated
Particulars % depreciation 17,546 16,162
Computers and software 33 Net book value 6,445 7,077
Office furniture and equipment 7
Leasehold improvements 10 Note 4: Liability for severance pay
Communications equipment 15 On February 28, 2015, the Company’s employees have signed
Leasehold improvements are amortized by the straight-line off on Section 14 of the Severance Pay Law, 1963, pursuant
method over the term of the lease, which is shorter than the to which the Company’s regular deposits with pension funds
estimated useful life of the improvements. and / or insurance companies release it from any further
liability to the employees for whom such deposits are made.

Therefore, the financial statements do not include a liability in Income derived from the benefited enterprise is tax exempt
respect of the amounts that were deposited from that date to during the first two years of the seven to ten-year tax benefit
cover that liability. As regards to severance pay liability until period as above, and is subject to a reduced tax rate of 10%-
the sign off, a liability is recognized in the financial statements 25% during the remaining years of benefits.
in respect of the employer’s obligation to pay severance pay, In the event of distribution of a cash dividend from income
which is calculated on the basis of their most recent salary as which was tax exempt as above, the Company would have to
at Balance Sheet date, multiplied by the employee’s years of pay the 25% tax in respect of the amount distributed.
employment until February 28, 2015, and is presented net of
The Company is entitled to claim accelerated depreciation in
the amounts deposited for severance pay as aforesaid.
respect of equipment used by approved enterprises during the
Note 5: Commitments and contingent liabilities first five years of the operation of these assets.
The entitlement to the above benefits is conditional upon
A. Lease agreements
the Israeli subsidiary’s fulfilling the conditions stipulated by
In March 2015, the Company entered into a lease agreement the above Law, regulations published there under and the
for new premises to be used by the Company from 2016 certificate of approval for the specific investments in benefited
for a period of five years with an optional extension of enterprises. In the event of failure to comply with these
additional five years. During 2016, the Company moved conditions, the benefits may be cancelled and the Company
to the new location. may be required to refund the amount of the benefits, in
Future minimum lease payments under the lease agreements whole or in part, with the addition of linkage differences to
for the premises are NIS 334 and NIS 45 thousand per the Israeli CPI and interest.
month, for a period of two years and four years, respectively, The Company elected 2008, as its implementation year as
commencing January 2020. stipulated in the Law and 2012, as its expansion year as
B. Operating lease agreements stipulated in the Law.
The Company entered into several operating lease agreements The Law was amended as part of the Economic Policy Law
in respect of vehicles that it uses. The leases are for a for the years 2011-2012, which was passed in the Knesset on
period of three years. December 27, 2010 (“the Amendment”).
The Amendment sets alternative benefit tracks to the ones
Note 6: Stockholders’ equity currently in place under the provisions of the Law, as follows:
Common stock: Investment grants track designed for enterprises located in
Particulars As at December 31, national development zone A and two new tax benefits tracks
2019 2018 (preferred enterprise and a special preferred enterprise), which
Authorized Issued and provide for application of a unified tax rate to all preferred
fully paid income of the Company, as defined in the Law.The benefits
Number of shares granted to the preferred enterprises will be unlimited in time,
Ordinary shares NIS 1.00 par unlike the benefits granted to special preferred enterprises,
value each 10,000 6,000 which will be limited for a period of 10 years. The benefits
shall be granted to companies that will qualify under criteria
Each ordinary share is entitled to one vote and to receive set in the law; for the most part, those criteria are similar to
dividends as declared by the Board of Directors. the criteria that were set in the Law prior to its amendment.
Note 7 Taxes on income The Company’s management believes that the Company is in
compliance with the conditions stipulated by the above law.
A. The regular tax rate for the years 2018 and 2019 is 23%.
C. The Company has received final tax assessments
B. Tax Benefits through tax year 2014.
Tax benefits under the Law for the Encouragement of Capital D. As of December 31, 2018, the Company had a net
Investments, 1959 (“the Law”) carryforward tax loss of approximately NIS 347 million
Under the Law, including Amendment No. 60 to the Law and a provisional current year tax loss is approximately
that as published in April 2005, by virtue of the ‘benefited NIS 5 million. Under Israeli tax laws, the carryforward
enterprise’ if the status is granted to some facilities of the tax losses of the Company can be utilized indefinitely.
Israeli subsidiary, it will be entitled to various tax benefits. E. Deferred tax assets were not created since the
The main tax benefits available are: realization of any future benefit from deductible
temporary differences, net operating loss and tax
In respect of income derived from the benefited enterprise,
credit carryforwards cannot be sufficiently assured as
the Company is entitled to reduced tax rates during a period
of December 31, 2019.
of up to ten years from the year in which such enterprise first
earn taxable income (limited to 12 years from commencement
of production or 14 years from the date of approval,
whichever is earlier).

Note 8: Supplementary statements of C. General and administrative expenses
operations information in NIS thousand
A. Research and development costs 2019 2018
in NIS thousand
Particulars Years ended December 31, Payroll and related expenses 9,305 10,623
2019 2018 Consultants and related
expenses 304 732
Payroll and related expenses 35,345 41,743 Other 1,532 2,302
Consultants and related 11,141 13,657
expenses 6,267 8,812
Depreciation and
amortization 517 1,507
Other 4,499 4,468
46,628 56,530
B. Selling and marketing expenses

in NIS thousand
2019 2018
Payroll and related expenses 16,734 10,299

Consultants and related
expenses 1,502 562
Marketing 7,202 6,555
Travel and office expenses 5,429 5,658
Other 3,058 8,240
Related parties –
subcontractors 6,113 40,305
Related parties 491 25,411
40,529 97,030

Fluido Oy
Auditor’s Report
To the Members of the Annual General Meeting of Fluido Oy.
Report on the Audit of the Financial Statements.
Opinion
We have audited the financial statements of Fluido Oy for the year ended 31 December,2019.The financial statements comprise
the Balance Sheet, income statement and notes for the group as well as the parent company.
In our opinion, the financial statements give a true and fair view of the group’s and the company’s financial performance and
financial position in accordance with the laws and regulations governing the preparation of financial statements in Finland
and comply with statutory requirements.
Basis for Opinion
We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under good auditing
practice are further described in the Auditor’s responsibilities for the Audit of financial statements section of my report. We are
independent of the parent company and of the group companies in accordance with the ethical requirements that are applicable
in Finland and are relevant to our audit , and we fulfill my other ethical responsibilities in accordance with these requirements
.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of the Board of Directors and the Managing Director for the Financial Statements
The Board of Directors and the managing Director are responsible for the preparation of financial statements that give a true
and fair view in accordance with the laws and regulations governing the preparation of financial statements in Finland and
comply with statutory requirements. The Board of Directors and the Managing Director are also responsible for such internal
control as they determine is necessary to enable the preparation of financial statements that are free from material misstatements,
Whether due to fraud or error.
In preparing the financial statements, the Board of Directors and the Managing Director are also responsible for assessing the
parent company’s and the group’s ability to continue as going concern, disclosing, as applicable, matters relating to going
concern and using the going concern basis of accounting. The financial statements are prepared using the going concern basis
of accounting unless there is an intention to liquidate the parent company or the group or cease operations, or there is no
realistic alternative but to do so.
Auditors’ responsibilities for the Audit of Financial Statements
Our objective is to obtain reasonable assurance on whether the financial statements as a whole are free from material
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with good auditing practice will
always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individully or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of the financial statements.
As part of an audit in accordance with good auditing practice, we exercise professional judgment and maintain professional
provide a basis of our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the parent company’s or the
group’s internal control.
• Conclude on the appropriateness of the Board of Director’s and the managing Director’s use of the going concern basis of
accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the parent company’s or the group’s ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However future events or conditions may cause the Company to
cease to continue as a going concern.
274 | Fluido Oy Infosys Subsidiary Financials 2019-20

• Evaluate the overall presentations, structure and content of the financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and events so that the financial statements give a true and fair view.
• Obtain sufficient appropriate audit evidenced regarding the financial information of the entities or business activities within
the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision
and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding among other matters, the planned scope and timing of the
audit and significant audit findings, include any significant deficiencies in internal control that we identify during my audit.
Other Reporting Requirements
Other information
The Board of Directors and the managing Director are responsible for the other information. The other information comprises
information included in the report of The Board of Directors. Our opinion on the financial statements does not cover
the other information.
In connection with our audit of the financial statements, our responsibility is to read the information included in the report
of the Board of Directors and, in doing so ,consider whether the information included in the report of the Board of Directors
is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be
materially misstated. Our responsibility also includes considering whether the report of the Board of Directors has been prepared
in accordance with the applicable laws and regulations.
In our opinion, the information in the report of the Board of Directors is consistent with the information in the financial
statements and the report of the Board of Directors has been prepared in accordance with the applicable laws and regulations.
If, based on the work we have performed on the report of The Board of Directors, we conclude that there is a material
misstatement of this other information, We are required to report that fact. We have nothing to report in this regard.
Auditia Oy
Authorised Public Accountants
Ari Kurjonen
Authorised Public Accountant
Helsinki,
March 4, 2020
Infosys Subsidiary Financials 2019-20 Fluido Oy | 275

Information about the year
Fluido Group is a provider of digital transformation services to companies in Finland, Sweden, Norway and Denmark. The
Group’s revenue in 2019 was € 37,3 million and profit before tax, € 816.437,99. The Group’s revenue grew by 31,9% in 2019
and the Company strengthened its market position as leading service provider in the Nordics in Salesforce technology area.
The Parent company Fluido Oy revenue was € 23,4 million and profit before tax, € 860.398,65.
Company shares
Fluido Group shares are 100% owned by Infosys Group. Infosys Group is based in Bangalore and it is listed in New York
and Mumbai stock exchanges and has over 240.000 employees. Infosys Group revenue in 2019 was US$ 12,4 billion and
profit US$ 2,2 billion.
Estimate of risks and uncertainties
Business risks relate mainly to general global economic situation and the impact of economic fluctuations to companies’ investments.
Estimate of future developments
The year 2020 has started as expected. The Group will aim to grow revenue and profit according to its business plan.
Key ratios
in € thousand
Fluido Oy For the period between January 1
to December 31,
2019 2018
Revenue 23 383 19 807
Ebitda 1 024 1 805
Profit before tax 860 1 636
EBIT (%) 3.9 8.6
Equity ratio (%) 41.8 38.7
ROE (%) 13.1 31.0
Group For the period between January 1
to December 31,
2019 2018
Revenue 37 280 28 256
Ebitda 1 394 419
Profit before tax 816 (341)
EBIT (%) 2.3 neg.
Equity ratio (%) 22.8 16.8
ROE (%) 25.7 neg.
Personnel
On average 284 employees worked at Fluido Group during the year. The salaries and bonuses paid to personnel during the
year were 23.4 M euro.
Board proposal for dividend distribution
The Board proposes to Annual General Meeting no dividend is distributed.

Fluido Group Balance Sheet
Amount in Euros
2019 2018
ASSETS
NON-CURRENT ASSETS
Intangible assets
Other long-term assets 83 771,80 104 044,18
Goodwill 1 067 801,20 1 473 952,63
Intangible total 1 151 573,00 1 577 996,81
Tangible assets
Machinery and equipment 388 610,67 310 538,82
Tangible total 388 610,67 310 538,82
TOTAL NON-CURRENT ASSETS 1 540 183,67 1 888 535,63
CURRENT ASSETS
Long-term receivables
Other long-term receivables 716 635,58 93 247,26
Total long-term receivables (Def.tax) 716 635,58 93 247,26
Short term receivables
Trade debtors 8 499 633,71 4 798 495,60
Other debtors 646 691,07 260 161,56
Prepayments and accrued income 326 713,83 418 871,67
Total short term receivables 9 473 038,61 5 477 528,83
Cash 5 029 344,45 3 495 175,17
TOTAL CURRENT ASSETS 15 219 018,64 9 065 951,26
Assets total 16 759 202,31 10 954 486,89
Amount in Euros
2019 2018
CAPITAL AND RESERVES
Share capital 2 500,00 2 500,00
Other reserves 3 012 019,05 1 765 841,93
Retained earnings 74 776,76 719 626,93
Profit (loss) of the financial year 728 730,51 -663 738,63
Translation difference 4 790,42 18 888,46
TOTAL CAPITAL AND RESERVES 3 822 816,74 1 843 118,69
PROVISIONS 9 331,00 62 393,17
CREDITORS
Short term creditors
Advances received 717 885,01 333 021,45
Trade creditors 345 012,85 567 063,21
Other creditors 3 049 461,58 2 165 747,06
Accruals and deferred income 8 814 695,13 5 983 143,31
Total short term creditors 12 927 054,57 9 048 975,03
TOTAL CREDITORS 12 927 054,57 9 048 975,03
Total equity and liabilities 16 759 202,31 10 954 486,89

Fluido Group Profit and Loss
Amount in Euros
Particulars January 1 to December 31
2019 2018
REVENUE 37 280 542,42 28 255 988,60
Other income 37 112,54 0,00
Materials and services
Materials
Purchases during year (462 551,37) (881 194,96)
Materials total (462 551,37) (881 194,96)
External services
External services (1 822 896,46) (1 568 982,59)
Materials and services total (2 285 447,83) (2 450 177,55)
Personnel costs
Salaries (23 370 687,22) (17 093 634,59)
Personnel related costs
Pension costs (3 318 368,63) (2 416 535,44)
Other social costs (1 984 825,30) (1 354 806,81)
Total personnel related costs (5 303 193,93) (3 771 342,25)
Total personnel costs (28 673 881,15) (20 864 976,84)
Other expenses (4 964 293,03) (4 522 254,73)
EBITDA 1 394 032,95 418 579,48
Depreciation
Depreciation according to plan (544 971,86) (532 041,06)
Depreciation total (544 971,86) (532 041,06)
EBIT 849 061,09 (113 461,58)
Financial income and cost
Other interest income
Other 17 380,77 11 602,66
Total other financial income 17 380,77 11 602,66
Interest expenses and other financial costs
To others (50 003,86) (239 241,34)
Total interest expense and other costs (50 003,86) (239 241,34)
Total financial income and cost (32 623,09) (227 638,68)
PROFIT BEFORE TAX 816 438,00 (341 100,26)
Income tax (87 707,48) (322 638,36)
NET PROFIT 728 730,51 (663 738,63)

Fluido Oy Balance Sheet
Amount in Euros
2019 2018
ASSETS
NON-CURRENT ASSETS
Intangible assets
Other long-term assets 62 016,10 94 176,10
Intangible total 62 016,10 94 176,10
Tangible assets
Machinery and equipment 254 297,08 235 699,04
Total tangible assets 254 297,08 235 699,04
Investments
Investment in group companies 2 133 239,90 1 121 135,54
Receivables from group companies 514 868,67 245 477,31
Investments total 2 648 108,57 1 366 612,85
NON-CURRENT ASSETS TOTAL 2 964 421,75 1 696 487,99
CURRENT ASSETS
Receivables
Long term receivables
From Group companies 1 071 302,82 600 000,00
Deferred tax asset 530 864,00 –
Long-term receivables total 1 602 166,82 600 000,00
Short-term receivables
Trade debtors 3 004 431,98 2 739 400,24
Receivables from Group companies 4 287 749,51 3 203 890,34
Muut saamiset 345 875,71 110 374,13
Prepayments and accrued income 204 830,38 326 952,56
Total short-term receivables 7 842 887,58 6 380 617,27
Total receivables 9 445 054,40 6 980 617,27
Short-term investments
Total short-term investments – –
Cash 2 246 683,57 2 158 605,08
TOTAL CURRENT ASSETS 11 691 737,97 9 139 222,35
TOTAL ASSETS 14 656 159,72 10 835 710,34
Amount in Euros
2019 2018
Share capital
Share capital 2 500,00 2 500,00
Other reserves 3 010 423,00 1 760 423,00
Other reserves 3 010 423,00 1 760 423,00
Retained earnings 2 437 120,71 1 132 311,90
Profit (loss) of the financial year 677 894,42 1 304 808,81
Total equity 6 127 938,13 4 200 043,71
Provisions
Other provisions 9 331,00 60 760,00
Total provisions 9 331,00 60 760,00
Creditors
Short-term creditors
Received advances 206 019,78 333 021,45
Accounts payable 208 592,64 529 455,97
Group creditors 907 698,70 1 151 898,50
Other creditors 1 222 204,19 974 152,96
Accruals and deferred income 5 974 375,28 3 586 377,75
Total short-term creditors 8 518 890,59 6 574 906,63
Total creditors 8 518 890,59 6 574 906,63
Total equity and liabilities 14 656 159,72 10 835 710,34

Fluido Oy Statement of Profit and Loss
Amount in Euros
Particulars January 1 to December 31
2019 2018
REVENUE 23 383 141,76 19 807 440,36
Materials and services
Materials
Purchases during year (462 551,37) (881 194,96)
External services (2 218 906,82) (1 882 877,24)
Materials and services total (2 681 458,19) (2 764 072,20)
Personnel costs
Salaries (13 811 027,06) (10 486 489,82)
Total other personnel-related costs (2 614 612,23) (1 972 291,08)
Pension costs (2 197 485,71) (1 636 558,48)
Other personnel-related costs (417 126,52) (335 732,60)
Total personnel costs (16 425 639,29) (12 458 780,90)
Depreciation
Depreciation according to plan (120 670,66) (110 737,67)
Total depreciation (120 670,66) (110 737,67)
Other expenses (3 252 309,02) (2 779 731,39)
EBIT 903 064,60 1 694 118,20
Financial income and cost
Other interest income
From others 139,82 –
Interest expenses and other financial costs
To others (42 805,77) (58 149,30)
Total financial income and cost (42 665,95) (58 149,30)
PROFIT BEFORE TAX 860 398,65 1 635 968,90
Income tax (182 504,23) (331 160,09)
NET PROFIT 677 894,42 1 304 808,81

Notes to Annual Accounts
Principles for accounting

Annual Accounts have been prepared according to current legislation and other stipulations regarding preparations of the Accounts.
All subsidiaries Sweden AB, Fluido Norway A/S, Fluido Denmark A/S,Fluido Slovakia s.r.o and Fluido Newco AB have been
consolidated into the consolidated accounts. Consolidations have been done according to acquisition method in accounting.
All intra group ownership, receivables, debts, internal margins and other transactions have been eliminated.
Valuation principles for assets
Non-current assets are valued at cost minus depreciation.
Receivables and other financial assets have been valued as Accounting Act Chapter 5 section 2.
Depreciation methods
Asset are depreciated according to plan
Depreciation schedule is:
Intangibles 5 years
Tangibles 25% residual depreciation
Goodwill 5 years
Statement of Profit and Loss - Additional information

Board fees
Amount in Euros
Group Fluido Oy
2019 2018 2019 2018
– 21 000,00 – 21 000,00
Auditors fees
Amount in Euros
Particulars Group Fluido Oy
2019 2018 2019 2018
Audit 40 209,00 33 417,00 13 680,00 11 000,65
Other services 1 133,14 5 765,00 – 5 765,00
TOTAL 41 342,14 39 182,00 13 680,00 16 765,65
Balance Sheet Additional Information

Amount in Euros
Non-current assets detail Group Fluido Oy
2019 2018 2019 2018
Non-current assets
Acq. cost at beginning of year 175 665,72 160 856,70 160 856,70 160 856,70
Additions 13 394,62 14 809,02 – –
Acq cost 31.12 189 060,34 175 665,72 160 856,70 160 856,70
Accumul. depreciation 1.1 (71 621,54) (34 509,260 (66 680,60) (34 509,26)
Depreciation cur. year (33 667,00) (37 112,28) (32 160,000 (32 171,34)
Accumul. depreciation 31.12 (105 288,54) (71 621,54) (98 840,60) (66 680,60)
Accounting value 31.12 83 771,80 104 044,18 62 016,10 94 176,10
Goodwill
Acq. cost at beginning of year 2 042 868,09 572 525,05 – –
Additions – 1 470 343,04 – –
Acq cost 31.12 2 042 868,09 2 042 868,09 – –
Accumul. depreciation 1.1 (568 915,46) (186 293,70) – –
Depreciation cur. year (406 151,43) (382 621,76) – –
Accumul. depreciation 31.12 (975 066,89) (568 915,46) – –
Accounting value 31.12 1 067 801,20 1 473 952,63 – –
Machinery and equipment

Non-current assets detail Group Fluido Oy
2019 2018 2019 2018
Acq. cost at beginning of year 494 654,28 265 729,65 366 501,45 187 977,09
Additions 183 225,28 228 924,63 107 108,70 178 524,36
Acq cost 31.12 677 879,56 494 654,28 473 610,15 366 501,45
Depreciation cur. year (105 153,43) (112 307,01) (88 510,66) (78 566,33)
Accounting value 31.12 388 610,67 310 538,82 254 297,08 235 699,04
Ownership in other entities

Amount in Euros
Name and residence Ownership (%) Book value
Fluido Sweden AB 100 330.371,06
Fluido Denmark A/S 100 367.536,17
Fluido Norway AS 100 1.301.392,86
Fluido Slovakia s.r.o 100 133.939,81
Receivables from group companies

Amount in Euros
2019 2018
Long-term
Loan receivables 1 886 171,49 845 477,31
Short-term
Debtors 3 548 945,76 2 531 893,41
Other receivables 738 802,75 671 996,93
Total 6 173 920,00 4 049 367,65
Changes in equity
Amount in Euros
Group Fluido Oy Group Fluido Oy
Share capital 2 500,00 2 500,00 2 500,00 2 500,00
Other reserves 3 012 019,05 3 010 423,00 1 765 841,93 1 760 423,00
Translation difference 4 790,42 – 18 888,46 0,00
Retained earnings 74 776,76 2 437 120,71 719 626,93 1 132 311,90
Dividends – – – –
Own share purchase – – – –
Profit for the year 728 730,51 677 894,42 -663 738,63 1 304 808,81
Total available equity 3 820 316,74 6 125 438,13 1 840 618,69 4 197 543,71
TOTAL EQUITY 3 822 816,74 6 127 938,13 1 843 118,69 4 200 043,71
Debts to group companies

Amount in Euros
Short-term
Creditors 907 698,70 1 151 898,50
Other group debt – –
TOTAL 907 698,70 1 151 898,50

Group transactions
During the financial year, Fluido Oy had group sales worth €1.961.497,65 and group purchases €1.454.469,47. Sales and
purchases have been carried out at normal commercial terms.
Personnel
Average personnel
Group Fluido Oy
2019 2018 2019 2018
284 219 165 133
Guarantees and future liabilities

Keva (facilities landlord), rental guarantee for Espoo office €122.541,81. Lease will end on December 31, 2022. Fluido Oy can
end lease by giving notice of six months and paying six month rent. Total future rent liability is €1.220.418.
Signatures of the Annual Accounts
Espoo: February 10, 2020
Kai Mäkelä Ravi Kumar Singisetti

Chief Executive Officer Chairman of the Board
Dinesh Ramakrishna Jasmeet Singh

Board member Board member
Auditor signature
Audit statement has been given with this date 4/3/2020
Ari Kurjonen, KHT
Auditia Oy, publicly certified auditing firm
List of accounting material
Daily ledger Electronic
General ledger Electronic
Annual accounts Electronic / physical
Balance Sheet specifications Electronic / physical
Various accounting material types and method of preserving

Sales invoices Electronic
Purchase invoices Electronic
E-invoices Electronic
Travels expense claims Electronic
Salaries Electronic
Bank statements Electronic
VAT calculations Electronic
Periodical tax returns Electronic

Infosys (Czech Republic) Limited s.r.o
Introduction
Company: Infosys (Czech Republic) Limited s.r.o., Digital content management services
Vlněna 526/1, Trnitá, 602 00 Brno, Analyzing, updating, and reporting on digital content for a
Czech Republic major American hi-tech manufacturer
Corporate ID No.: 269 18 757 Sales support
(Hereinafter “the Company”) Support of sales and quoting activities in the European region
Period: April 1, 2019 to March 31, 2020 for an American Hi-tech manufacturer
Other services
Introduction
Small client operations with the following processes:
The nature of the services (business process outsourcing)
provided by Infosys (Czech Republic) Limited s.r.o. is in line • Translation and interpretation support
with the following trade licenses in the Czech Republic: • Remote logistic software support
• Remote support and quality control
1. Production, trade and services not listed • Transition and due-diligence support
in annexes 1 to 3 to the Trade Licensing • Project management support
Act • Process and operation consulting
Fields of activity: • Application development and maintenance
• Services in the area of administration and services of an • IT services management
organizational and economic nature
Information according to Sec 21(2) of Act No.
• Provision of software, information technology consulting, 563/1991, on Accounting
data processing, hosting and related activities and web
portals • about facts which occurred after the Balance Sheet date
and are material for the fulfilment of the purpose of
• Guidance and consulting activities, production of expert this Annual Report: none
studies and opinions
No such facts occurred after the Balance Sheet date.
• Research and development in the field of natural and
technical sciences or social sciences Changes in the Supervisory Board:
• Intermediation in trade and services On July 9, 2019, Narayanan Sampath ceased to be a member
• Translation and interpretation activities of the Supervisory Board.
On July 9, 2019, Jan Skoták became a member of
2. Activities of accounting advisors and the Supervisory Board.
accounts keeping, tax record keeping Both changes in the Supervisory Board were registered in the
Description of activities: Commercial Register on August 26, 2019.
Technical Contact Center Change of the registered office of the Company:

Providing technical support to Infosys clients’ personnel and On February 24, 2020, the registered office of the Company
/ or customers via phone, mail, or chat changed to Vlněna 526/1, Trnitá, 602 00 Brno. This change was
registered in the Commercial Register on February 24, 2020.
Support provided in most European languages
• about a forecasted development in activities of the
Finance and accounting reporting unit
Providing expert accounting support in the following areas: Estimation of uncertainties concerning the COVID-19
• Accounts payable global pandemic in the area of health
• Accounts receivable The Company assessed possible impacts on the carrying
amounts of receivables and unvoiced revenues that may
• Travel and expenses
arise from the COVID-19 pandemic. In developing
• General ledger assumptions concerning potential future uncertainties in
Insurance services the global economic conditions, due to this pandemic the
Company used both internal and external information
Processes:
sources and related information and economic forecasts
• Underwriting support (end-to-end process – all stages of as of the date of approval of these financial statements.
insurance policies) The Company expects to recover the carrying amount of
Banking services these assets and will continue to thoroughly monitor all
significant changes of future economic conditions.
Providing services to European clients of an American banking
institution during the transition to a new reporting software
286 | Infosys Czech republic Limited s.r.o Infosys Subsidiary Financials 2019-20
The turnover for 2019-20 amounted to 512,708 TCZK
compared to 386,724 TCZK for 2018-19. The number of
employees as of March 31, 2020 (including employees on
maternity and parental leave) amounted to 702 (March 31,
2019 – 593 employees).
It is expected that in fiscal 2020-21 there will be 782
(excluding employees on maternity and parental leave)
employees and turnover of 571,600 TCZK
• about any R&D activities: none
• about acquisition of own shares or own ownership interests
The Company has acquired no own shares or
ownership interests.
• about any activities in the area of environmental protection
The Company tries to achieve ecological and thrifty handling
of raw materials, energy, water and other sources when
providing services in order to improve the inputs efficiency.
• about labor-law relations
The Company meets all conditions arising from labor-law
relations stipulated by the Labor Code.
• The Company does not have any branch or other
component of its business enterprise abroad.
Enclosures:
1. Balance Sheet as of March 31, 2020
2. Profit and Loss Account for the period from April 1, 2019
to March 31, 2020
3. Notes to the financial statements
4. Report on Relations 2019-20
5. Auditor’s report
Date: May 18, 2020
Signature
KAPIL JAIN
Company Executive Director
Infosys Subsidiary Financials 2019-20 Infosys Czech republic Limited s.r.o | 287
To the Partner of Infosys (Czech Republic) Limited s.r.o.
Having its registered office at: Vlněna 526/1, Trnitá, 602 00 Brno
Opinion
We have audited the accompanying financial statements of Infosys (Czech Republic) Limited s.r.o. (hereinafter also the
“Company”) prepared on the basis of accounting regulations applicable in the Czech Republic, which comprise the Balance
Sheet as of March 31, 2020, and the profit and loss account, statement of changes in equity and cash flow statement for the
year then ended, and notes to the financial statements, including a summary of significant accounting policies and other
explanatory information.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of Infosys (Czech
Republic) Limited s.r.o. as of March 31, 2020, and of its financial performance and its cash flows for the year then ended in
accordance with accounting regulations applicable in the Czech Republic.
Basis for Opinion
We conducted our audit in accordance with the Act on Auditors and Auditing Standards of the Chamber of Auditors of the
Czech Republic, which are International Standards on Auditing (ISAs), as amended by the related application guidelines. Our
responsibilities under this law and regulation are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Company in accordance with the Act on Auditors and the Code
of Ethics adopted by the Chamber of Auditors of the Czech Republic and we have fulfilled our other ethical responsibilities
in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Other Information in the Annual Report
In compliance with Section 2(b) of the Act on Auditors, the other information comprises the information included in the
Annual Report other than the financial statements and auditor’s report thereon. The Statutory Executive is responsible for
the other information.
Our opinion on the financial statements does not cover the other information. In connection with our audit of the financial
statements, our responsibility is to read the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be
materially misstated. In addition, we assess whether the other information has been prepared, in all material respects, in
accordance with applicable law or regulation, in particular, whether the other information complies with law or regulation in
terms of formal requirements and procedure for preparing the other information in the context of materiality, i.e. whether any
non-compliance with these requirements could influence judgments made on the basis of the other information.
Based on the procedures performed, to the extent we are able to assess it, we report that:
• The other information describing the facts that are also presented in the financial statements is, in all material respects,
consistent with the financial statements; and
• The other information is prepared in compliance with applicable law or regulation.
In addition, our responsibility is to report, based on the knowledge and understanding of the Company obtained in the audit,
on whether the other information contains any material misstatement of fact. Based on the procedures we have performed on
the other information obtained, we have not identified any material misstatement of fact.
Responsibilities of the Company’s Statutory Executive and Supervisory Board for the Financial Statements
The Statutory Executive is responsible for the preparation and fair presentation of the financial statements in accordance with
accounting regulations applicable in the Czech Republic and for such internal control as the Management determines is necessary
to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Statutory Executive is responsible for assessing the Company’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
the Statutory Executive either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Supervisory Board is responsible for overseeing the Company’s financial reporting process.
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is
a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material
As part of an audit in accordance with the above law or regulation, we exercise professional judgment and maintain professional
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
disclosures made by the Statutory Executive.
• Conclude on the appropriateness of the Statutory Executive’s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures
We communicate with the Statutory Executive and Supervisory Board regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
In Prague on May 18, 2020

Audit firm: Statutory auditor:
Deloitte Audit s.r.o. Miroslav Zigáček
Registration number : 079 Registration number : 2222
Balance Sheet
(in CZK thousand)
Particulars As of March31,
2020 2019
Gross Adjustment Net Net
TOTAL ASSETS 441,656 75,147 366,509 337,981
B. Fixed assets 128,523 75,016 53,507 59,053
B.I. Intangible fixed assets 3,092 756 2,336 2,954
B.I.2. Valuable rights 3,092 756 2,336 2,954
B.I.2.1. Software 3,092 756 2,336 2,954
B.II. Tangible fixed assets 125,431 74,260 51,171 21,647
B.II.1. Land and structures 32,770 11,372 21,398 345
B.II.1.2. Structures 32,770 11,372 21,398 345
B.II.2. Tangible movable assets and sets of
tangible movable assets 91,260 62,888 28,372 19,902
B.II.5. Prepayments for tangible fixed assets
and tangible fixed assets under
construction 1,401 – 1,401 1,400
B.II.5.2. Tangible fixed assets under
construction 1,401 – 1,401 1,400
B.III. Non-current financial assets – – – 34,452
B.III.5. Other non-current securities and
investments – – – 34,452
C. Current assets 311,661 131 311,530 277,346
C.II. Receivables 100,319 131 100,188 117,168
C.II.1. Long-term receivables 16,180 – 16,180 16,672
C.II.1.4. Deferred tax asset 3,123 – 3,123 9,416
C.II.1.5. Receivables - other 13,057 – 13,057 7,256
C.II.1.5.2. Long-term prepayments made 13,057 – 13,057 7,256
C.II.2. Short-term receivables 84,139 131 84,008 100,496
C.II.2.1. Trade receivables 65,887 131 65,756 81,491
C.II.2.4. Receivables - other 18,252 – 18,252 19,005
C.II.2.4.3. State - tax receivables 3,344 – 3,344 1,415
C.II.2.4.4. Short-term prepayments made 7,683 – 7,683
C.II.2.4.5. Estimated receivables 7,222 – 7,222 17,579
C.II.2.4.6. Sundry receivables 3 – 3 11
C.IV. Cash 211,342 – 211,342 160,178
C.IV.1. Cash on hand 1,050 – 1,050 2
C.IV.2. Cash at bank 210,292 – 210,292 160,176
D. Other assets 1,472 – 1,472 1,582
D.1. Deferred expenses 1,472 – 1,472 1,582
Liabilities
(in CZK thousand)
Particulars As of March31,
2020 2019
TOTAL LIABILITIES AND EQUITY 366,509 337,981
A. Equity 252,472 215,704
A.I. Share capital 18,750 18,750
A.I.1. Share capital 18,750 18,750
A.II. Share premium and capital funds – (19,767)
A.II.2. Capital funds – (19,767)
A.II.2.2. Gains or losses from the revaluation of assets and liabilities (+/-) – (19,767)
A.III. Funds from profit 1,875 1,875
A.III.1. Other reserve funds 1,875 1,875
A.IV. Retained earnings (+/-) 214,846 205,816
A.IV.1. Accumulated profits or losses brought forward (+/-) 214,846 205,816
A.V. Profit or loss for the current period (+/-) 17,001 9,030
B.+C. Liabilities 105,907 100,001
B. Reserves 18,797 51,715
B.II. Income tax reserve 4,135 4,323
B.IV. Other reserves 14,662 47,392
C. Payables 87,110 48,286
C.II. Short-term payables 87,110 48,286
C.II.4. Trade payables 32,193 9,688
C.II.8. Other payables 54,917 38,598
C.II.8.3. Payables to employees 23,506 22,062
C.II.8.4. Social security and health insurance payables 9,746 6,013
C.II.8.6. Estimated payables 21,385 10,509
C.II.8.7. Sundry payables 280 14
D. Other liabilities 8,130 22,276
D.1. Accrued expenses 1,801 14,394
D.2. Deferred income 6,329 7,882
(in CZK thousand)
2020 2019
I. Sales of products and services 512,708 386,724
A. Purchased consumables and services 74,578 67,631
A.2. Consumed material and energy 5,953 5,936
A.3. Services 68,625 61,695
D. Staff costs 363,664 265,435
D.1. Payroll costs 266,119 193,142
D.2. Social security and health insurance costs and other charges 97,545 72,293
D.2.1. Social security and health insurance costs 89,988 66,922
D.2.2. Other charges 7,557 5,371
E. Adjustments to values in operating activities 12,500 8,461
E.1. Adjustments to values of intangible and tangible fixed assets 12,448 8,449
E.1.1. Adjustments to values of intangible and tangible fixed assets - permanent 12,448 8,449
E.3. Adjustments to values of receivables 52 12
F. Other operating expenses 10,794 38,674
F.1. Net book value of sold fixed assets 76 –
F.3. Taxes and charges 59 34
F.4. Reserves relating to operating activities and complex deferred expenses (32,730) 36,978
F.5. Sundry operating expenses 43,389 1,662
* Operating profit or loss (+/-) 51,172 6,523
IV. Income from non-current financial assets - equity investments 17,929 –
IV.2. Other income from equity investments 17,929 –
G. Costs of equity investments sold 54,219 –
VI. Interest income and similar income 2 247
VI.2. Other interest income and similar income 2 247
VII. Other financial income 21,713 14,026
K. Other financial expenses 7,279 4,201
* Financial profit or loss (+/-) (21,854) 10,072
** Profit or loss before tax (+/-) 29,318 16,595
L. Income tax 12,317 7,565
L.1. Due income tax 6,024 11,418
L.2. Deferred income tax (+/-) 6,293 (3,853)
** Profit or loss net of tax (+/-) 17,001 9,030
*** Profit or loss for the current period (+/-) 17,001 9,030
* Net turnover for the current period 552,352 400,997
(in CZK thousand)
Share capital Gains or Funds from Accumulated Profit or loss TOTAL
losses profit, reserve profits or for the current EQUITY
from the fund losses brought period
revaluation forward
of assets and
liabilities (+/-)
Balance at 31 March 2018 18,750 11,832 1,875 207,148 (1,332) 238,273
Distribution of profit or
loss – – – (1,332) 1,332 –
Gains or losses from the
revaluation of assets and
liabilities – (31,599) – – – (31,599)
Profit or loss for the
current period – – – – 9,030 9,030
Balance at 31 March 2019 18,750 (19,767) 1,875 205,816 9,030 215,704
Distribution of profit or
loss – – – 9,030 (9,030) –
Gains or losses from the
revaluation of assets and
liabilities – 19,767 – – – –
Profit or loss for the
current period – – – – 17,001 17,001
Balance at March 31, 2020 18,750 – 1,875 214,846 17,001 252,472
Cash Flow Statement
(in CZK thousand)
2020 2019
P. Opening balance of cash and cash equivalents 160,178 140,899
Cash flows from ordinary activities (operating activities)
Z. Profit or loss before tax 29,318 16,595
A.1. Adjustments for non-cash transactions 16,134 51,975
A.1.1. Depreciation of fixed assets 12,448 8,449
A.1.2. Change in provisions and reserves (32,678) 43,773
A.1.3. Profit/(loss) on the sale of fixed assets 36,366 –
A.1.5. Interest expense and interest income (2) (247)
A.* Net operating cash flow before changes in working capital 45,452 68,570
A.2. Change in working capital 35,425 (31,898)
A.2.1. Change in operating receivables and other assets 10,747 (45,768)
A.2.2. Change in operating payables and other liabilities 24,678 13,870
A.** Net cash flow from operations before tax 80,877 36,672
A.5. Income tax paid from ordinary operations (6,212) (1,091)
A.*** Net operating cash flows 74,665 35,581
Cash flows from investing activities
B.1. Fixed assets expenditures (41,430) (16,302)
B.2. Proceeds from fixed assets sold 17,929
B.*** Net investment cash flows (23,501) (16,302)
Cash flow from financial activities
C.*** Net financial cash flows
F. Net increase or decrease in cash and cash equivalents 51,164 19,279
R. Closing balance of cash and cash equivalents 211,342 160,178
Notes to the Financial Statements (unconsolidated)
Year ended March 31, 2020 Hosur Road, Bangalore, 560 100 India. The consolidated
(in CZK thousand) financial statements can be obtained in the consolidating
entity’s registered office.
1. General information and description of Changes in the corporate records made in the
the business Register of Companies:
In the year ended March 31, 2020, the following
Incorporation and description of the Company changes were recorded:
Infosys (Czech Republic) Limited s.r.o. (hereinafter “the
Registered office of the Company
Company”) was incorporated on February 4, 2004 following
its registration in the Register of Companies held by the Vlněna 526/1, Trnitá,
Regional Court in Brno, Insert No. 45386, File C. The 602 00, Brno
principal business activities of the Company include the Member of the Supervisory Board:
production, trade and services not listed in Appendices 1 to NARAYANAN SAMPATH,
3 of the Trade Licensing Act, and accounting advisory, book-
keeping and tax records keeping. born on May 11, 1959
Reporting Period 560070 Bengaluru, F 301, Adarsh Residency, 47th Cross, 8th
Block, Jayanagar, Republic of India
April 1, 2019 –March 31, 2020
Membership origination date: July 18, 2018
Company owners
Recorded on: July 9, 2019
The Company’s shareholder as of March 31, 2020:
Member of the Supervisory Board:
Infosys BPM Limited 100 %
JAN SKOTÁK,
561229 Bengaluru, Electronics City, Hosur Road, Plot
Nos. 26/3, 26/4, 26/6 born on September 19, 1974
India Sochorova 3214/44, Žabovřesky, 616 00 Brno
Registered office of the Company Membership origination date: July 9, 2019
Infosys (Czech Republic) Limited s.r.o. Organizational structure
Vlněna 526/1, Trnitá The Company is managed by the Executive Director.
Postcode 602 00, Brno
Corporate ID
2. Significant accounting policies applied by
269 18 757
the Company
The financial statements were prepared in accordance with Act
Statutory Body
No. 563/1991 Coll., on Accounting, as amended (hereinafter
The sole Executive Director of the Company “the Accounting Act”) and Regulation No. 500/2002 Coll.
as of March 31, 2020: of the Ministry of Finance of the Czech Republic, which
KAPIL JAIN provides implementation guidance on certain provisions of
Acting on behalf of the Company the Accounting Act for reporting entities that are businesses
The Executive Director acts independently on maintaining double-entry accounting records, as amended
behalf of the Company. (hereinafter “the Regulation”).
Members of the Supervisory Board as of March 31, 2020: The financial statements were prepared under the assumption
Chairman of the Board of Directors: of the Company’s ability to operate as a going concern.
RITESH GANDHI Estimation of uncertainties concerning the COVID-19 global
pandemic in the area of health
Member of the Board of Directors
The Company assessed possible impacts on the carrying
JAN SKOTÁK amounts of receivables and unvoiced revenues that may arise
The consolidated financial statements of the broadest group from the COVID-19 pandemic. In developing assumptions
of reporting entities, the part of which the Company as a concerning potential future uncertainties in the global
consolidated entity is, are prepared by Infosys Limited, based economic conditions due to this pandemic, the Company used
in Electronics City, Hosur Road, Bengaluru, 560 100 India. both internal and external information sources and related
The consolidated financial statements can be obtained in information and economic forecasts as of the date of approval
the consolidating entity’s registered office. of these financial statements. The Company expects to recover
The consolidated financial statements of the narrowest the carrying amount of these assets and will continue
group of reporting entities, the part of which the Company to thoroughly monitor all significant changes of future
as a consolidated entity is, are prepared by Infosys BPM economic conditions.
Limited based at Plot Nos. 26/3, 26/4, 26/6, Electronics City,
(a) Tangible and intangible fixed assets (d) Foreign currency translation
Tangible and intangible fixed assets are stated at cost. Transactions denominated in foreign currencies are translated
Tangible and intangible fixed assets with the acquisition cost using a fixed monthly exchange rate determined based on
of less than CZK 2,500 are not presented on the face of the the daily exchange rate promulgated by the Czech National
Balance Sheet and are expensed in the year of acquisition. Bank as of the first business day of each calendar month. The
The following table shows the depreciation methods and exchange rate is applicable for all transactions occurring in
periods by asset type: the relevant month. Customer invoices are translated using
Asset Depreciation Time of the exchange rate promulgated by the
method depreciation Czech National Bank as of the date of the invoice issuance.
Office equipment straight-line 60 months Payments in CZK from a bank account maintained in a
PC equipment straight-line 30 - 60 months foreign currency (EUR, USD) are translated using an internal
exchange rate of Citi Bank a.s., Deutsche Bank. During the
Technical improvements on tangible assets held under a lease reporting period, solely realized foreign exchange rate gains
(buildings) are depreciated on a straight-line basis over the and losses are reported.
shorter of the lease term or the estimated useful life.
At the Balance Sheet date, the relevant assets and liabilities
(b) Non-current financial assets denominated in foreign currencies are translated at the
Czech National Bank’s exchange rate prevailing as of that
Non-current financial assets are valued in line with Sections
date. Unrealized foreign exchange rate gains and losses are
25 and 27 of the Accounting Act and Sections 48 and
recognized in the profit or loss for the reporting period.
51 of the Regulation.
In line with the Act and the Regulation, securities and equity (e) Assets held under leases
investments are measured at acquisition cost. In the event of The Company reports leasehold assets by including the
impairment of the financial assets, the Company recognizes lease payments in expenses on a straight-line basis over the
a provision. lease period. Upon the expiry of the lease and exercise of
the option to purchase the leased asset, the subject of the
(c) Provisions and reserves
lease is reported as part of the Company’s assets at purchase
Receivables (replacement) cost.
The Company establishes provisions against doubtful
receivables based on an analysis of individual debtor’s solvency. (f) Income taxation
The tax payable for the given period includes the tax currently
Reserves
payable and the change in the deferred tax balance.
Reserve for outstanding vacation days
The tax currently payable includes the estimate of the tax
The reserve for outstanding vacation days at the Balance calculated from the tax base using the tax rate applicable on
Sheet date is established based on an analysis of the the last day of the reporting period and all additional taxes
outstanding vacation days and the average payroll costs, and tax refunds for prior periods.
including the costs of social security and health insurance
The deferred tax is based on all temporary differences between
payments per employee.
the accounting and tax values of assets and liabilities, using
Income tax reserve the anticipated tax rate valid for the period in which the tax
The income tax reserve is established due to the fact that the asset will be realized or the liability settled.
date of preparing the financial statements precedes the date A deferred tax asset is recognized only if it is likely that it will
at which the tax liability is determined. In the subsequent be realized in the following reporting periods.
reporting period, the reserve is released and the identified tax
liability is recognized. The Company recognizes the income (g) Classification of payables
tax reserve in an amount corresponding to the created reserve The Company classifies a portion of long-term payables, bank
net of income tax prepayments made if these are lower than loans and financial borrowings maturing within less than one
the anticipated tax. If such prepayments are higher than or year from the Balance Sheet date as short-term payables.
equal to the anticipated tax liability, no income tax reserve is
Accrued expenses and deferred income are recognized in
recognized by the Company.
Balance Sheet item D ‘Other liabilities’ as long-term. The
Reserve for warranty claims presentation treatment corresponds to that of deferred
The Company establishes a reserve for the risk of warranty expenses and accrued income in both the current
claims arising from projects and engagements implemented and previous periods.
in the prior reporting period.
(h) Other operating income
Reserve for other risks
The Company reports income arising from received grants in
The reserve for other risks is established for sundry risks the reporting period in which the relevant authorities rule to
arising from other matters identified by the Company as of provide the funding under the grants.
the Balance Sheet date.
(i) Accruals and deferrals accounts are separated. All highly-liquid investments that are easily
Deferred expenses include expenses relating to the costs of convertible into cash are considered known cash equivalents.
future reporting periods. (l) Employee benefits
Accrued expenses include expenses relating the current The Company has prepared a policy on compensated
reporting period but the respective cost has not yet been cumulated absence. The estimated costs of cumulated absence
incurred. This principally relates to the impacts of rental/ are determined based on an actuarial valuation conducted by
operating lease payments distributed evenly over the contract an independent actuary as of each Balance Sheet date using
term on an accrual basis. the method of estimated unit time period.
Deferred income consists of income relating to future
reporting periods. Income from accrual contracts is (m) Related party transactions
recognized when the relating services are realized and the The Company’s Related Parties refer to:
income from the latest billing as of the recognition date is • Parties that may exercise, directly or indirectly, a material
recognized as unbilled income. or controlling influence over the Company and their
subsidiaries; and
(j) Revenue recognition
• Members of the statutory, supervisory and management
Revenues are recognized as of the date of realizing sales net
bodies of the Company or its parent company and close
of discounts and income taxes. With regard to long-term
persons of the aforementioned parties, including associates
contracts for which the course of billing precedes the course
and subsidiaries of those members or persons.
of delivering services defined based on the proportion of the
time spent to the total contract term, the Company recognizes The Company has entered into a transfer pricing agreement
with the parent company and fellow subsidiaries. All
a proportionate part of such billing on an accrual basis in
related party transactions are recorded in line with this
the form of deferred income. Otherwise, when services
transfer pricing agreement.
are delivered prior to billing, the Company recognizes a
proportionate part of such billing on an accrual basis in the (n) Subsequent events
form of estimated receivables.
The impact of events which occurred between the Balance
Reserves for potential losses arising from contracts in Sheet date and the date of preparing the financial statements
progress are recognized in the period in which they are is presented in the financial statements when these events
likely to be incurred based on estimated contracts as of the provided additional information on facts that existed as of
Balance Sheet date. the Balance Sheet date.
(k) Cash and cash equivalents When significant post-Balance Sheet events occurred between
the Balance Sheet date and the date of preparing the financial
Cash on hand includes cash on hand and stamps and
statements, the impacts of those events are disclosed in the
vouchers, or cash in transit relating to this item.
notes to the financial statements but are not presented in the
Cash on bank accounts relates to balances on accounts, financial statements.
especially bank accounts, or cash relating to this item.
Cash flows are recognized using the indirect method, with the 3. Changes in accounting principles and
profit for the period being adjusted by the impacts of non-cash policies
transactions, deferrals, accruals or deferrals of past or future
In the year ended March 31, 2020, no changes were made in
operating income or payments, and income and expense items
the accounting principles and policies.
relating to the investments of cash flows. Cash flows from
the Company’s operating, investment and financial activities
4. Tangible fixed assets

Particulars Buildings Machinery and Financial assets Total
equipment,
Account No.
042
Cost
Balance at April 1, 2019 10 358 77 574 34 452 122 384
Additions 23 377 17 992 41 369
Disposals 965 2 905 34 452 38 322
Exchange rate difference
Reclassification – – – –
Balance at March 31, 2020 32 770 92 660 – 125 431
Balance at April 1, 2019 10 013 56 272 – 66 285
Depreciation 2 324 9 521 – 11 845
Accumulated depreciation on disposals 965 2 905 – 3 870
Particulars Buildings Machinery and Financial assets Total
equipment,
Account No.
042
Balance at March 31, 2020 11 372 62 888 – 74 260
Net book value at April 1, 2019 345 21 302 34 452 56 099
Net book value at March 31, 2020 21 398 29 773 – 51 171
Major additions to fixed assets in the reporting period included the purchase of IT equipment and computers and also new
office premises equipment.
The most significant disposals of tangible fixed assets included the sale of financial assets (an equity investment in Unsilo A/S,
with its registered office at: Inge Lehmannsgade 10, 8000 Aarhus C, Denmark).
None of the Company’s assets have been pledged as security.
Particulars Buildings Machinery and Fixed assets Total
equipment, under
Account No. construction
042
Cost
Balance at April 1, 2018 10 358 65 798 50 907 127 063
Additions – 12 913 – 12 913
Disposals – 1 137 31 599 32 736
Balance at March 31, 2019 10 358 77 574 34 452 122 384
Balance at April 1, 2018 9 644 49 764 – 59 408
Depreciation 369 7 645 8 014
Accumulated depreciation on disposals – 1 137 – 1 137
Reclassification – –
Balance at March 31, 2019 10 013 56 272 – 66 285
Net book value at April 1, 2018 714 16 034 50 907 67 655
Net book value at March 31, 2019 345 21 302 34 452 56 099
5. Assets held under leases (b) Short-term trade payables amounted to CZK 32,193
thousand (March 31, 2019 – CZK 9,688 thousand), of
Operating leases which CZK 14,055 thousand (March 31, 2019 – CZK 7,017
In the reporting period, the Company held non-residential thousand) included past-due payables. The Company records
premises under leases; the premises were located at the no payables with maturity of more than five years.
following address: Holandská 9, Brno, Postcode 639 00. The
validity of lease agreements was terminated as of March 15, 7. Advance payments made
2020. At the same time, new lease agreements were entered Short-term advance payments made include prepayments
into with the validity from March 15, 2020 with the option of for the lease of residential and non-residential premises
further extension. The total lease expenses amounted to CZK in the amount of CZK 7,683 thousand (March 31,
18,190 thousand and CZK 25,416 thousand in the years ended 2019 – CZK 0 thousand).
March 31, 2020 and 2019, respectively. Long-term advance payments made include prepayments for
the lease of office premises in the amount of CZK 13,057
6. Trade receivables and payables thousand (March 31, 2019 – CZK 7,256 thousand).
(a) Short-term trade receivables amounted to CZK 65,887 8. Statement of changes in equity
thousand (March 31, 2019 – CZK 81,570 thousand), of
As of the date of signing the financial statements, no decision
which CZK 49,706 thousand (March 31, 2019 – CZK
was made about the transfer of profit for fiscal 2019-2020.
56,491 thousand) included past-due receivables. The
The Company’s management anticipates transferring the
provision against doubtful receivables amounted to CZK 131
profit generated in the reporting period to retained earnings.
thousand and CZK 79 thousand as of March 31, 2020 and
2019, respectively.
9. Reserves
Particulars Reserve for Reserve for risks Reserve for Reserve for Total
outstanding income tax other risks
vacation days
Balance at April 1, 2019 3 345 43 036 4 323 1 011 51 715
Change in reserves 944 (34 955) (188) 1 281 (2 918)
Balance at March 31, 2020 4 289 8 081 4 135 2 292 18 797
The income tax reserve in the amount of CZK 9,500 thousand (March 31, 2019 – CZK 10,423 thousand), the advance payments
made in the amount of CZK 5,365 thousand (March 31, 2019 – CZK 6,100 thousand), and the relevant payable are reported
in the line ‘Reserve for income tax’ in the amount of CZK 4,135 thousand (March 31, 2019 – CZK 4,323 thousand).
The reserve for risks includes the costs of estimated losses and support subsequent to the sale / generation of income from the
sale of services in the amount of CZK 8,081 thousand (March 31, 2019 – CZK 43,036 thousand) and the reserve for other
risks amounts to CZK 2,292 thousand. The reserve for outstanding vacation days amounts to CZK 4,289 thousand (March
31, 2019 – CZK 3,345 thousand).
10. Sales
In the reporting period, the sales of services were as follows:
Particulars Year ended March 31, 2020 Year ended March 31, 2019
In-country Europe and India Total In-country Europe and India Total
USA USA
Advisory, HW and
SW consulting 59 935 118 248 334 525 512 708 57 138 142 209 187 377 386 724
Total 59 935 118 248 334 525 512 708 57 138 142 209 187 377 386 724

(a) Trade receivables and payables
Particulars Receivables at Receivables at Payables at Payables at
March 31, 2020 March 31, 2019 March 31, 2020 March 31, 2019
Infosys Poland Sp.z.o.o – 69 5 (1)
Infosys BPM Ltd 402 1 484 – –
Infosys Technologies Limited 34 472 19 683 – –
Balance at March 31, 2020 34 874 21 236 5 (1)
Sales of goods and services and purchases thereof

Year ended March 31, 2020 Sales for the year Purchases for the year
Infosys Poland Sp. z o.o. 170 31
Infosys BPM Ltd 18 763 –
Infosys Limited 315 604 –
Total 334 537 31
Year ended March 31, 2019 Sales for the year Purchases for the year
Infosys Poland Sp. z o.o. 2 979 870
Infosys BPM Ltd 5 315 2 727
Total 185 721 3 597
(b) Benefits and loans provided to the members of Statutory and Supervisory Bodies
In the years ended March 31, 2020 and 2019, the Company did not provide any benefits and loans to the members of
its statutory bodies.
12. Services
The total costs of services amounted to CZK 68,625 thousand (March 31, 2019 – CZK 61,695 thousand), which principally
included the lease expenses in the amount of CZK 18,190 thousand (March 31, 2019 – CZK 25,416 thousand).
13. Other operating expenses
In compliance with the decision of the Ministry of Trade on October 30, 2019, in the current reporting period the Company
returned a subsidy amount of CZK 41,048 thousand due to a failure to meet several conditions concerning the subsidy provision.
14. Employees and managers

The average re-calculated number of employees and managers, and the staff costs for the years ended March 31, 2020 and
2019 were as follows:
Year ended March 31, 2020 Headcount Payroll costs Social security Social costs
and health
insurance costs
Employees 598 262 567 89 242 7 545
Managers 1 3 462 746 12
Total 599 266 119 89 988 7 557
Year ended March 31, 2019 Headcount Payroll costs Social security Social costs
and health
insurance costs
Employees 445 190 630 66 365 5 362
Managers 1 2 512 557 9
Total 446 193 142 66 922 5 371
15. Estimated receivables

Total estimated receivables amounted to CZK 7,222 thousand (March 31, 2019 – CZK 17,579 thousand) and included estimated
unbilled services and accrual contracts income.
16. Estimated payables

Total estimated payables amounted to CZK 21,385 thousand (March 31, 2019 – CZK 10,509 thousand) and included
estimated unbilled services.
17. Accrued expenses

Total accrued expenses amount to CZK 1,801 thousand (March 31, 2019 – CZK 14,394 thousand). Lease payments under
operating leases are charged to expenses on a straight line basis in the profit and loss account over the lease term. An outstanding
part of the lease is recorded as an accrued expense.
18. Deferred income

Total deferred income amounts to CZK 6,329 thousand (March 31, 2019 – CZK 7,882 thousand) and represents deferred
income from long-term projects with customers.
19. Other financial expenses and income

Other financial expenses in the amount of CZK 7,279 thousand (March 31, 2019 – CZK 4,201 thousand) and other financial
income in the amount of CZK 21,713 thousand (March 31, 2019 – CZK 14,026 thousand) principally included realized and
unrealized foreign exchange rate gains and losses.
20. Other income from equity investments and costs of equity investments sold
Other income from equity investments in the amount of CZK 17,929 thousand (March 31, 2019 – CZK 0 thousand) and costs
of equity investments sold in the amount of CZK 54,219 thousand. (March 31, 2019 – CZK 0 thousand) included reporting
of the sale of the equity investment in Unsilo A/S.
21. Due amounts arising from social security and health insurance
The amounts due arising from social security and health insurance amounted to CZK 9,746 thousand (March 31, 2019 – CZK
6,013 thousand), of which the amount of CZK 6,929 thousand (March 31, 2019 – CZK 4,428 thousand) included estimated
social security payments and the amount of CZK 2,817 thousand (March 31, 2019 – CZK 1,585 thousand) included estimated
health insurance payments. None of these amounts were past their due dates.
22. Fees paid to the statutory auditor

This information is presented in the notes to the consolidated financial statements prepared for the consolidation group in
which the Company is included.
23. Income taxation
(a) Tax currently payable
The income tax payable comprises the estimated tax amount for the taxation period ended March 31. 2020 in the amount of
CZK 9,500 thousand (taxation period ended March 31, 2019 – CZK 10,423 thousand), and an adjustment of the estimated
income tax for the taxation period ended March 31, 2019 of CZK 3,285 thousand (taxation period ended March 31, 2018 –
CZK 995 thousand) and an overpayment in the amount of CZK 191 thousand.
(b) Deferred tax
Particulars Asset Liabilities
Balance at March 31, Balance at March 31,
2020 2019 2020 2019
Fixed assets 312 396 – –
Receivables 25 – – –
Reserves 2 786 9 005 – –
Other temporary differences 3 123 15 – –
Deferred tax asset / (liability) 312 9 416 – –
In line with the accounting policies presented in Note 2 (f) above, the Company recognized a deferred tax asset, as it assumes
that the deferred asset will be recovered, with regard to the result for the year ended March 31, 2020. In line with the accounting
policies presented in Note 2 (f) above, in calculating deferred tax as of March 31, 2020, the applied tax rate amounted
to 19% (2019 – 19%).
24. Off Balance Sheet commitments

The Company has no contractual liabilities reported off the Balance Sheet.
The Company is not aware of any contingent liabilities.
The Company is not aware of any off-Balance Sheet payables or payables arising from guarantees not reported on the Balance Sheet.
25. Cash flow statement

For the purposes of the cash flow statement, cash and cash equivalents are defined as cash on hand, cash in transit, cash at
bank, and other financial assets, the value of which can be reliably determined and which are easily convertible into cash. The
balance of cash and cash equivalents as of the Balance Sheet date was as follows:
Particulars Balance at March 31
2020 2019
Total current financial assets 211 342 160 178
Cash and cash equivalents 211 342 160 178
Cash flows from operating, investment and financial activities presented in the cash flow statement are not offset.
26. Significant post Balance Sheet events

As of the Balance Sheet date, the Company’s management is not aware of any significant post Balance Sheet events that would
have a material impact on the financial statements as of March 31, 2020.
Report on relations
For the accounting period April 1, 2019 – March 31, 2020
The Executive Director of the Company has drawn up the following Report on relations between
the controlling person and the controlled person and between the controlled person and other persons controlled by the same
controlling person in the sense of Section 82 of Act No. 90/2012 Coll., the Act on Business Corporations, for the period April
1, 2019 – March 31, 2020 (hereinafter referred to as “the Decisive Period”). Upon description of the relations, the obligation
to keep trade secrets of the Company has been complied with.
1) Structure of the relations

According to the information available to the Executive Director of the Company acting with due managerial care, during the
Decisive Period the Company was a member of the Infosys BPM group, in which the controlling person was Infosys BPM Limited
(hereinafter referred to as “the Infosys BPM Group”). Infosys BPM Limited is a majority-owned and controlled subsidiary of
Infosys Limited. The information about the persons belonging to the Infosys BPM Group is stated as at March 31, 2020 and is
based on the information available to the Executive Director of the Company acting with due managerial care. The structure
of the relationships in the Infosys BPM Group is shown in the overview which forms Annex No. 1.
Controlling person Infosys BPM Limited, Plot Nos. 26/3, 26/4 and 26/6, Electronics City,Hosur Road,
Bengaluru, 561229 India
Controlled person Infosys (Czech Republic) Limited s.r.o, Vlněna,
526/1, Trnitá, 602 00 Brno, Czech Republic
Corporate ID 269 18 757,
Infosys BPM Limited is the founder and sole shareholder of the Company.
2) Role of the Company in the Infosys BPM Group

The Company is a majority-owned and controlled subsidiary of Infosys BPM Limited. Like other companies within the Infosys
BPM Group, the Company leverages the benefits of service delivery globalization, process redesign and technology and thus
drives efficiency and cost effectiveness into client business processes and thereby improves their competitive position by
managing their business processes in addition to providing increased value. The Company is a leading provider of business
process management services to organizations that outsource their business processes. The Company provides services to these
organizations (customers) mostly directly, partially also as a subcontractor of Infosys Poland Sp.z.o.o. or as a subcontractor
of Infosys Limited or as a subcontractor of Infosys BPM Limited. In the latter cases, Infosys Poland Sp.z.o.o. or Infosys
Limited or Infosys BPM Limited acts as the prime contractor to the customer and assumes all major risks in relation to the
contract with the customer.
3) Manner and means of control of the Company

The Company is controlled in particular via decisions of its sole shareholder (i.e. Infosys BPM Limited) in the capacity of the
general meeting of the Company. Infosys BPM Limited is the sole shareholder of the Company.
4) Overview of actions made by the controlled person in the interest or at the initiative of
the of the controlling person or persons controlled by the controlling person
In the Decisive Period, the Company made no actions in the interest or at the initiative of the controlling person or persons
controlled by the controlling person which related to property exceeding 10% of the equity of the Company as stated in the
most recent set of financial statements.
5) Overview of mutual contracts between controlled and controlling persons and between
the controlled person and the persons controlled by the same controlling person
a) Contracts between the controlled and the controlling person:
During the entire Decisive Period, the subcontracting agreements between the Company (as vendor, respectively supplier) and
Infosys BPM Limited (as customer) and Infosys Limited (as customer) were in effect.
Particulars Sales for the Purchases for the
Decisive Decisive
Period in TCZK Period in TCZK
Infosys BPM Limited 18 763 –
b) Contracts between the controlled person and the persons controlled by the same controlling
person:
During the entire Decisive Period, the subcontracting agreement between the Company (as vendor, respectively supplier) and
Infosys Poland Sp.z.o.o (as customer) was in effect.
Particulars Sales for the Purchases for the
Decisive Decisive
Period in TCZK Period in TCZK
Infosys Poland Sp.z.o.o. 170 31
6) Assessment of detriment and assessment of its settlement

On the basis of the contracts concluded between the Company and controlling person and between the Company and the
persons controlled by the same controlling person and on the basis of actions made by the Company in the interest or at the
initiative of the controlling person or persons controlled by the controlling person, no detriment arose to the Company.
7) Assessment of advantages, disadvantages and risks ensuing from the relations between
the controlled person and the controlling person and between the controlled person and
other persons controlled by the same controlling person
Participation in the Infosys BPM Group is advantageous for the Company as Infosys and Infosys BPM are global groups with
strong brands and reputation among potential customers and employees which the Company utilizes in negotiations with
customers and potential customers and in attracting qualified and motivated employees.
There are no disadvantages related to the Company’s membership in the Infosys BPM Group.
No risks ensue from the Company’s membership in the Infosys BPM Group.
On May 18, 2020
KAPIL JAIN
Executive Director
Infosys (Czech Republic) Limited s.r.o.
WongDoody Holding Company, Inc.
Consolidated Financial Statements

Years Ended December 31, 2019 and 2018
Board of Directors
WONGDOODY Holding Company, Inc. and Subsidiaries
Seattle, Washington
We have audited the accompanying consolidated financial statements of WONGDOODY Holding Company, Inc. and
Subsidiaries, which comprise the consolidated Balance Sheets as of December 31, 2019 and 2018, and the related consolidated
statements of income, stockholders’ equity, and cash flows for the years then ended, and the related notes to the consolidated
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are
Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our
audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of
material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial
statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial
position of WONGDOODY Holding Company, Inc. and Subsidiaries as of December 31, 2019 and 2018, and the results of
their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in
the United States of America.
BDO USA LLP

May 8, 2020
306 | WONGDOODY Holding Company, Inc. Infosys Subsidiary Financials 2019-20

Consolidated Balance Sheet
In US$
2019 2018
Assets
Current Assets
Cash 13,275,000 10,189,000
Accounts receivable 4,637,000 5,289,000
Prepaid expenses and other current assets 344,000 239,000
Total Current Assets 18,256,000 15,717,000
Deferred tax assets 7,841,000 8,015,000
Property and equipment, net 905,000 894,000
Other long-term assets 156,000 123,000
Total Assets 27,158,000 24,749,000
Liabilities and Stockholders’ Equity
Current Liabilities
Accounts payable 1,049,000 1,047,000
Accrued compensation 3,608,000 1,844,000
Accrued expenses 23,000 16,000
Advance billings 2,707,000 4,857,000
Income taxes payable 289,000 176,000
Current portion of deferred rent 28,000 17,000
Current portion of capital lease obligations 154,000 185,000
Deferred rent, net of current portion 300,000 234,000
Capital lease obligations, net of current portion 39,000 161,000
Commitments (Notes 6 and 7)
Stockholders’ equity
Common stock 9,911,000 9,911,000
Total stockholders’ equity 18,961,000 16,212,000
Total liabilities and stockholders’ equity 27,158,000 24,749,000
See accompanying notes to consolidated financial statements.
Infosys Subsidiary Financials 2019-20 WONGDOODY Holding Company, Inc. | 307

Consolidated Statement of Income
In US$
2019 2018
Revenues 34,052,000 24,992,000
Operating expenses
Salaries and related expenses 23,857,000 16,626,000
General and administrative expenses 6,657,000 4,911,000
Total operating expenses 30,514,000 21,537,000
Income from operations 3,538,000 3,455,000
Other income (expense), net
Interest expense (11,000) (29,000)
Interest income 155,000 27,000
Interest income from stockholder – 16,000
Total other income, net 144,000 14,000
Net income 2,749,000 2,561,000

Consolidated Statement of Stockholders’ Equity
In US$
Common stock Note Retained Total
Shares Amount receivable from earnings
stockholder
Balance, January 1, 2018 2,000 1,945,000 (1,842,000) 4,733,000 4,836,000
Net income – – – 2,561,000 2,561,000
Interest on note receivable from
stockholder – – (16,000) – (16,000)
Forgiveness of note receivable
from stockholder – – 1,858,000 – 1,858,000
Contributed capital from parent – 7,966,000 – – 7,966,000
Distributions to stockholders – – – (993,000) (993,000)
Balance, December 31, 2018 2,000 9,911,000 – 6,301,000 16,212,000
Net income – – – 2,749,000 2,749,000
Balance, December 31, 2019 2,000 9,911,000 – 9,050,000 18,961,000

Consolidated Statement of Cash Flows
In US$
2019 2018
Operating activities
Net income 2,749,000 2,561,000
Adjustments to reconcile net income to net cash provided by
Depreciation and amortization 457,000 432,000
Accrued interest on note receivable from stockholder – (16,000)
Forgiveness of note receivable from stockholder – 1,858,000
Deferred tax benefit 174,000 (48,000)
Changes in operating assets and liabilities:
Accounts receivable 652,000 1,020,000
Prepaid expenses and other assets (138,000) (42,000)
Accounts payable 2,000 (3,576,000)
Income taxes payable 113,000 176,000
Advance billings (2,150,000) 1,677,000
Accrued compensation 1,764,000 711,000
Accrued expenses 7,000 (7,000)
Investing activities
Purchases of property and equipment (423,000) (120,000)
Net cash used in investing activities (423,000) (120,000)
Financing activities
Repayments under notes payable – (1,330,000)
Payments of capital lease obligations (198,000) (247,000)
Distributions to stockholders – (993,000)
Net cash used in financing activities (198,000) (2,570,000)
Net increase in cash 3,086,000 2,118,000
Cash, beginning of year 10,189,000 8,071,000
Cash, end of year 13,275,000 10,189,000
Supplemental disclosure of cash flow information
Cash paid for interest 11,000 29,000
Cash paid for taxes 647,000 780,000
Non-cash investing and financing activities
Recognition of deferred tax asset and non-cash capital contribution – 7,966,000
Property and equipment acquired under capital lease 45,000 91,000

Notes to Consolidated Financial Statements
1. Summary of Significant Accounting Policies
Description of Business
WONGDOODY Holding Company, Inc. and Subsidiaries (the “Company”) is incorporated under the laws of the State of
Washington and promotes products and services for clients across the United States, primarily through targeted integrated
marketing campaigns focused on live, digital, and social brand experiences.
The Company was formed on November 30, 1993. On April 13, 2018, the Company entered into a definitive agreement for
all of the Company’s outstanding common stock to be acquired by Infosys Limited (“Infosys”), a consulting and information
technology company based in India. The acquisition closed on May 22, 2018. WONGDOODY Holding Company, Inc. and
Subsidiaries are now wholly-owned subsidiaries of Infosys. These financial statements do not include any adjustments relating
to the acquisition of the Company by Infosys.
Principles of Consolidation
The accompanying consolidated financial statements include WONGDOODY, Inc. and WDW Communications, Inc.,
two companies that are subsidiaries of WONGDOODY Holding Company, Inc. All significant intercompany accounts and
transactions have been eliminated upon consolidation.
Basis of Financial Statement Presentation
The accompanying consolidated financial statements present the financial position, results of operations, and cash flows of the
Company in conformity with accounting principles generally accepted in the United States of America (“GAAP”).
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions
that affect certain reported amounts and disclosures. The Company’s significant estimates include the allowance for doubtful
accounts and the estimated useful lives of assets. Accordingly, actual results could materially differ from those estimates.
Cash
The Company maintains its cash in bank accounts that, at times, may exceed federally insured limits. The Company has not
experienced and does not anticipate any losses on such accounts.
Property and Equipment
Property and equipment are stated at cost. The Company provides for depreciation on a straight-line basis over the estimated
useful lives of the respective assets:
Furniture, fixtures, and office equipment 5 - 7 years
Computer hardware and software 3 - 7 years
Leasehold improvements Lesser of expected lease term or useful life
Expenditures for major renewals and betterments are capitalized while those for repairs and maintenance are expensed as incurred.
Accrued Compensation
As a result of the acquisition of the Company by Infosys, the Company entered into employment agreements with certain
employees. Under each agreement, the employee will be entitled to a retention bonus, payable in three equal annual installments
on the anniversary date of the acquisition. The total amount payable over the three-year period is $4,000,000. Per the Share
Purchase Agreement, in the event an employee eligible for a retention bonus is no longer with the Company as of the annual
payment date, the amount may be reallocated among other employees or be used to recruit or retain new hires. As of December
31, 2019, and 2018, the Company accrued $816,850 and $811,000, respectively. The amount accrued as of year-end represents
the portion of the bonus related to the services provided from the date of the last payment in May through the end of the year.
Certain employees are eligible for additional consideration in future periods based on the Company achieving certain financial
targets during each of the defined fiscal years. The maximum amount of future payments related to these deferred compensation
agreements at the acquisition date was $3,100,000. The maximum amounts payable for the years ended or ending December
31, 2019 and 2020 are $1,500,000 and $1,200,000, respectively. Because employees eligible for these payments must remain
employed to receive them for each year, they are accounted for as compensation to the extent earned in each period. As of
December 31, 2019, the Company has accrued $1,900,000 for payments due for the year ended December 31, 2019. This
includes the $400,000 accrued in 2018 that has not been paid as of December 31, 2019.

Revenue Recognition
Effective January 1, 2019, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards
Codification (“ASC”) Topic 606, Revenue from Contracts with Customers, (“ASC 606”) using the modified retrospective
transition method, with the cumulative effect of the initial adoption being recognized as an adjustment to opening retained
earnings at January 1, 2019. As a result, comparative periods have not been adjusted and continue to be reported under ASC
Topic 605, Revenue Recognition (“ASC 605”).
Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services (the performance
obligation) in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services
(the transaction price). The Company measures revenue by estimating the transaction price based on the consideration specified
in the client arrangement. Revenue is recognized as the performance obligations are satisfied. The Company’s revenue is
primarily derived from providing advertising services to its customers, including creative strategy and development, strategic
planning, market plan development, connection planning, advertising, digital marketing, retail marketing, and video/digital/
print production. The Company’s contracts are primarily retainer contracts for advertising services or fees for service on a rate
per hour or per project basis for project-based work. Revenue is recorded net of sales tax.
Performance Obligation
In substantially all of the Company’s contracts, the performance obligation is to provide creative consulting services at an
agreed-upon level of effort to accomplish the specified engagement. The customer contracts are comprised of arrangements
involving fees based on an agreed upon monthly billing rate over the term of the agreement, a fixed fee for the defined project,
or an agreed upon rate per hour. The transaction price of a contract is allocated to each distinct performance obligation based
on its relative stand-alone selling price and is recognized as revenue, when, or as, the customer receives the benefit of the
performance obligation. Clients typically receive and consume the benefit of the services as they are performed. Substantially
all client contracts provide that the Company is compensated for services performed to date and allow for cancellation by either
party on short notice without penalty.
Generally, the Company’s short-term contracts, which normally take 30 to 90 days to complete, consist of a single performance
obligation. As a result, the Company does not consider the underlying services as separate or distinct performance obligations
because the services are highly interrelated, occur in close proximity, and the integration of the various components of a
marketing message is essential to overall service. In certain of the Company’s long-term retainer contracts, which have a term of
up to one year, the performance obligation is a stand-ready obligation because the Company provides a constant level of similar
services over the term of the contract. In certain creative services agreements, the Company acts as an agent and arranges, at
the client’s direction, for third-parties to perform studio production efforts.
Revenue Recognition Methods
A substantial portion of the Company’s revenue is recognized over time, as the services are performed, because the client
receives and consumes the benefit of the Company’s performance throughout the contract period, or the Company creates
an asset with no alternative use and is contractually entitled to payment for the performance to date in the event the client
terminates the contract for convenience. For the client contracts, other than when the Company has a stand-ready obligation
to perform services, revenue is recognized over time using input measures that correspond to the level of staff effort expended
to satisfy the performance obligation on a rate per hour or equivalent basis. For the client contracts when the Company has
a stand-ready obligation to perform services on an ongoing basis over the life of the contract, typically for periods up to one
year, where the scope of these arrangements is broad and there are no significant gaps in performing the services, the Company
recognizes revenue using a time-based measure resulting in a straight-line revenue recognition. From time to time, there may
be changes in the client service requirements during the term of a contract and the changes could be significant. These changes
are typically negotiated as new contracts covering the additional requirements and the associated costs, as well as additional
fees for the incremental work to be performed.
Principal vs. Agent
For certain contracts, the Company incurs third-party costs on behalf of clients, including direct costs and incidental or out-
of-pocket costs. Third-party direct costs incurred in connection with the creation and delivery of advertising services include,
among others: purchased media, studio production services, specialized talent, including artists and other freelance labor,
materials and services, and other related expenditures. Out-of-pocket costs include, among others: transportation, hotel, meals
and telecommunication charges incurred by the Company in the course of providing services. Billings related to out-of-pocket
costs are included in revenue since the Company controls the goods or services prior to delivery to the client.
The inclusion of billings related to third-party direct costs in revenue depends on whether the Company acts as a principal or
as an agent in the client arrangement. In the contracts which include studio production efforts and media planning and buying
services, we act as an agent and arrange, at the client’s direction, for third parties to perform certain services. In these cases,
we do not control the goods or services prior to the transfer to the client. As a result, revenue is recorded net of these costs.
For contracts entered into with Infosys, the Company’s parent, the Company acts as principal when contracting for third-party
services on behalf of Infosys. This is because the Company controls the specified services before they are transferred to Infosys

and the Company is responsible for providing the specified services or is responsible for directing and integrating the third-
party services to fulfill performance obligation outlined in the contract at an agreed upon price. In such arrangements, the
Company also assumes pricing risk under the terms of the contract. For all contracts with Infosys, the Company includes the
billable amounts related to third-party costs in the transaction price and records revenue over time at the gross amount billed.
Variable Consideration
Some of the Company’s client arrangements include variable consideration provisions, which include prompt-payment
discounts. Variable consideration is estimated and included in total consideration at contract inception based on either the
expected value method or the most likely outcome method. These estimates are based on historical experience and other
factors known at the time.
Advertising Costs
The Company expenses all advertising costs when incurred. Advertising expense for the years ended December 31, 2019 and
2018 was approximately $142,000 and $198,000, respectively.
Rent Expense
The Company recognizes the effect of all rent variances over the expected life of the lease on a straight-line basis. Any variances
between cash rental payments and straight-line expense recognition are recorded as a liability, which is included in deferred
rent in the accompanying consolidated Balance Sheets.
Leases meeting the criteria for capitalization under FASB ASC Topic 840, Leases, are reported as capital leases.
Income Taxes
The Company was treated as a Sub-chapter S-Corporation for Federal income tax purposes until its acquisition by Infosys
on May 21, 2018; therefore, no provision for Federal income taxes was required up to that date. Stockholders were taxed
individually on their pro rata share of earnings.
In connection with the acquisition of the Company’s common stock by Infosys, the Company elected to revoke its status as an
S corporation and has elected to be treated as a C corporation beginning May 22, 2018.
Income tax expense comprises current and deferred income tax. Income tax expense is recognized in net income in the
statement of 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. 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. The Company offsets current tax assets and current tax liabilities, where
it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to
realize the asset and settle the liability simultaneously.
The Company has adopted the accounting standard on accounting for uncertainty in income taxes, which addresses the
determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the consolidated
financial statements. Under this guidance, the Company may recognize the tax benefit from an uncertain tax position only if it is
more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits
of the position. The tax benefits recognized in the consolidated financial statements from such a position are only included if
there is greater than 50 percent likelihood of them being realized upon ultimate settlement.
The guidance on accounting for uncertainty in income taxes also addresses derecognition, classification, interest and penalties
on income taxes, and accounting in interim periods. The Company recognizes interest accrued related to unrecognized tax
benefits in interest expense and penalties as income tax expense. As of December 31, 2019, and 2018, the Company had no
uncertain tax positions.
Sales Taxes
Revenues are presented net of sales taxes. The sales tax obligation is included in accrued liabilities until the taxes are remitted
to the appropriate taxing authorities.

Advance Billings
Fees billed to clients in excess of fees recognized as revenue along with client deposits related to pass-through costs to cover
project expenses are classified as Advance Billings. As of December 31, 2019, advance billings included $353,000 of such fees
and $2,354,000 of pass-through related costs, respectively. As of December 31, 2018, advance billings included $1,604,000
of such fees and $3,253,000 of pass-through related costs, respectively.
New Accounting Pronouncements
In February 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-02, Leases. The new standard in this update
requires that any entity that is a lessee record, for all leases with a term exceeding 12 months, an asset representing its right to
use the underlying asset for the lease term and a liability to make lease payments. The update is effective for the Company for
the ending December 31, 2022, and early adoption is permitted. The Company is currently reviewing the provisions of this
standard to determine the effect on its consolidated financial statements.
Subsequent Events
The date to which events occurring after December 31, 2019, have been evaluated for possible adjustment to the financial
statements or disclosure therein is May 8, 2020, which is the date on which the financial statements were available to be issued.
On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency because of a new strain
of coronavirus originating in Wuhan, China (the “COVID-19 outbreak”) and the risks to the international community as the
virus spreads globally beyond its point of origin. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic,
based on the rapid increase in exposure globally.
The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. As such, it is uncertain as to the full
magnitude that the pandemic will have on the Company’s financial condition, liquidity, and the future results of operations.
Management is actively monitoring the impact of the global situation on its financial condition, liquidity, operations, suppliers,
industry, and workforce. Given the daily evolution of the COVID-19 outbreak and the global responses to curb its spread,
the Company is not able to estimate the effects of the COVID-19 outbreak on its results of operations, financial condition or
liquidity for fiscal year 2020.
On March 27, 2020, President Trump signed into law the “Coronavirus Aid, Relief, and Economic Security (CARES) Act.” The
CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side
social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the
net interest deduction limitations, increased limitations on qualified charitable contributions, and technical corrections to tax
depreciation methods for qualified improvement property. The Company has elected to defer employer side social security
payments as allowed under the CARES Act.
It also appropriated funds for the SBA Paycheck Protection Program loans that are forgivable in certain situations to promote
continued employment, as well as Economic Injury Disaster Loans to provide liquidity to small businesses harmed by COVID-19.
There is no assurance we are eligible for these funds or will be able to obtain them.
We continue to examine the impact that the CARES Act may have on our business. Currently, we are unable to determine the
impact that the CARES Act will have on our financial condition, results of operation, or liquidity.
2. Concentration of Credit Risk
Substantially all of the Company’s accounts receivable and revenues are generated from a small group of customers. The
Company performs ongoing credit evaluations of its clients and generally does not require collateral. For the year ended
December 31, 2019, one customer represented approximately 37% of the Company’s total revenues and approximately 43% of
the Company’s total accounts receivable as of December 31, 2019. Two of the Company’s customers represented approximately
8% and 13% of the Company’s total revenues and approximately 24% and 7% of the Company’s total accounts receivable,
respectively, as of December 31, 2019. For the year ended December 31, 2018, one customer represented approximately 53% of
the Company’s total revenues and approximately 58% of the Company’s total accounts receivable as of December 31, 2018. Two
of the Company’s customers represented approximately 14% and 12% of the Company’s total revenues and approximately 2%
and 25% of the Company’s total accounts receivable, respectively, as of December 31, 2018. The loss of any of the Company’s
significant customer relationships would have a material effect on the Company’s operations.
The Company’s credit policy towards its customers is 30 – 60 days. The Company carries its accounts receivable at cost
less an allowance for doubtful accounts. On a periodic basis, the Company evaluates its accounts receivable and establishes
an allowance for doubtful accounts, based on the history of past write-offs and collections and current credit conditions.
Receivables are written-off as uncollectible on a periodic judgmental basis after collection efforts have been unsuccessful. There
was no allowance for doubtful accounts deemed necessary at December 31, 2019 and 2018.

3. Property and Equipment
Property and equipment consist of the following:
in US$
As at December 31,
2019 2018
Furniture, fixtures, and office equipment 1,136,000 1,038,000
Computer hardware and software 1,084,000 885,000
Leasehold improvements 1,258,000 1,178,000
3,478,000 3,101,000
Less accumulated depreciation and amortization (2,573,000 ) (2,207,000 )
Property and Equipment, net 905,000 894,000
Depreciation and amortization expense related to property and equipment for the years ended December 31, 2019 and 2018
was $457,000 and $432,000, respectively. Property and equipment as of December 31, 2019 and 2018 included total cost of
$1,023,000 and $1,069,000 of property and equipment held under capital leases, respectively.
4. Note Receivable from Stockholder
The Company previously made a loan to one of the Company’s stockholders who was also an employee that was used by the
stockholder to purchase Company stock in 2000. The note’s principal balance and accrued interest were presented as a reduction
of stockholders’ equity. During the year ended December 31, 2018, the Company forgave this loan and related accrued interest
in the amount of $1,858,000. The expense associated with this forgiveness was included in salaries and related expenses in
the accompanying statement of operations for the year ended December 31, 2018.
5. Line of Credit
The Company had a line of credit with Washington Trust Bank for $1,000,000 that was secured by all of the Company’s accounts
receivable and equipment. Advances on the line bore interest at the prime rate, with a floor of 3.25%. The line of credit was
closed during the year ended December 31, 2018.
6. Long-term Debt and Capital Lease Obligations
On June 20, 2013, the Company signed a Promissory Note with Washington Trust Bank for $2,308,000. The loan was refinanced
on January 5, 2015, and the Company received an additional $1,638,000. The new loan had a maturity date of December 30,
2019 and bore interest at 3.75% per annum. The Company was required to make monthly principal and interest payments
of $58,000, with the remaining principal balance due upon maturity in 2019. Borrowings were secured by all assets of the
Company. During the year ended December 31, 2018, the Company repaid the entire loan and there was no balance outstanding
as of December 31, 2019 or 2018.
The aggregate amount of long-term debt and capital lease obligations is as follows:
in US$
As at December 31,
2019 2018
Capital leases 193,000 346,000
Less current portion (154,000) (185,000)
Capital Lease Obligations 39,000 161,000
The aggregate amounts of payments of capital lease obligations are as follows as of December 31, 2019:
Year ending December 31, in US$
2020 153,000
2021 30,000
2022 9,000
2023 1,000
Total future payments 193,000
Less amount representing interest on capital leases (5,000)
188,000

7. Operating Lease Commitments
The Company leases certain computer hardware, equipment, furniture, and office space under various operating leases. These
lease terms vary from two to four years. Total rent expense under operating leases was $1,467,000 and $1,272,000 for the
years ended December 31, 2019 and 2018, respectively.
The following is a schedule of future minimum rental payments due under non-cancelable operating leases with initial or
remaining terms in excess of one year as of December 31, 2019:
Year ending December 31, in US$
2020 1,383,000
2021 1,389,000
2022 1,066,000
2023 1,098,000
2024 370,000
Future Minimum Rental Payments 5,306,000
8. Income Taxes
Income tax expense in the statement of income is comprised of:
in US$
As at December 31,
2019 2018
Current tax expense 759,000 956,000
Deferred tax expense (benefit) 174,000 (48,000)
Total Income Tax Expense 933,000 908,000
For the year ended December 31, 2019, the difference between the provision for income taxes and the income tax determined
by applying the statutory federal income tax rate of 21% to income before income taxes is primarily due to the Company’s
change in taxable status in May 2018, state income taxes, and permanent items.
Significant components of the Company’s deferred tax assets and liabilities are as follows:
in US$
As at December 31,
2019 2018
Fixed assets (46,000) -
Accrued compensation 652,000 292,000
Accrued vacation 165,000 5,000
Other liabilities 79,000 35,000
Other assets (79,000) 26,000
Goodwill and intangible assets from acquisition 7,070,000 7,657,000
Net Deferred Tax Assets 7,841,000 8,015,000
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. As of December 31, 2019, the Company determined that no valuation allowance against
its net deferred tax assets was necessary.
9. Retirement Plan
The Company has a defined contribution plan covering all employees with at least 1,000 hours after their original date of hire.
The Company may make an annual discretionary profit-sharing contribution. The Company made profit sharing contributions
of $170,000 and $135,000 for the years ended December 31, 2019 and 2018, respectively.
10. Related Party Transactions
During the year ended December 31, 2019, the Company performed certain services for Infosys, the Company’s parent as of May
22, 2018. The related party receivable balance at December 31, 2019 and 2018 totaled $768,000 and $339,000, respectively.
Revenues from Infosys during the year ended December 31, 2019 totaled $6,600,000, and the professional services performed
for Infosys totaled $1,100,000. Revenues from Infosys during the year ended December 31, 2018 totaled $543,000, and the
professional services performed for Infosys totaled $90,000. For the year ended December 31, 2019, revenue from Infosys
represented approximately 23% of the Company’s total revenues and approximately 17% of the Company’s total accounts
receivable as of December 31, 2019. For the year ended December 31, 2018, revenue from Infosys represented approximately
3% of the Company’s total revenues and approximately 6% of the Company’s total accounts receivable as of December 31, 2018.

Infosys Consulting Ltda.
To the Members of Infosys Consulting Ltda.
Report on the Ind AS Financial Statements

Opinion
We have audited the Ind AS financial statements of Infy Consulting Ltda (‘the Company’), which comprises the Balance Sheet as
at 31st December 2019, the Statement of Profit and Loss (including other comprehensive income), the Statement of Cash Flow
and the Statement of Changes in Equity for the year then ended, and notes to the financial statements including a summary
of significant accounting policies and other explanatory information (herein after referred to as ‘ Ind AS financial statements’)
In our opinion and to the best of our information and according to the explanation given to us, the aforesaid Ind AS financial
statements give the information required by the Act in the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India including the Ind AS , of the financial position of the Company as at 31st
December 2019 and its financial performance including other comprehensive income and its Cash Flows and the Changes in
Equity for the year ended on that date.
Basis for opinion
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the
Institute of Chartered Accountants of India together with the Ethical requirements that are relevant to our audit of the financial
statements under the provisions of the Act and the Rules there under, and we have fulfilled our other ethical responsibilities
in accordance with the requirements and the code of Ethics
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on
the Ind AS financial statements.
Responsibilities of Management’s and those charged with Governance for the financial Statements:
The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013(‘the
Act’) with respect to the preparation of these Ind AS financial statements that give a true and fair view of the financial
position, financial performance including other comprehensive income, Cash Flows and changes in Equity of the Company
in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS)
prescribed under section 133 of the Act, read with relevant rule issued there under.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act
for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial
statements that give a true and fair view and are free from material misstatements, whether due to fraud or error.
In preparing the financial statements, the Management is responsible for assessing the Company’s ability to continue as going
Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibility for the Audit of the Financial Statements:
Our objective is to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatements, whether due to fraud or error and to issue an auditor’s report that includes our opinion. Reasonable assurance
the aggregate, they could reasonably be expected to influence the economic decision of users taken on the basis of these
318 | Infosys_Consulting_Ltda Infosys Subsidiary Financials 2019-20

Report on other Legal and Regulatory Requirements
As required by Section 143(3) of the Act, We report that:
i) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purpose of our audit;
ii) in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our
examination of those books;
iii) the Balance Sheet, the Statement of Profit and Loss and the Statement of Cash Flow and Statement of Changes in Equity
dealt with by this Report are in agreement with the books of account and
iv) in our opinion, the aforesaid Ind AS financial statements comply with the Accounting Standards specified under Section
133 of the Act, read with relevant rule issued there under.
For Shenoy & Kamath

Chartered accountants,
Firm Registration Number. 006673S
(M Rathnakar Kamath)
Partner
Membership Number. 202841
UDIN : 202841AAABVX5608
Place: Bengaluru.
Date: March 31, 2020
Infosys Subsidiary Financials 2019-20 Infosys_Consulting_Ltda | 319

Balance Sheet
in BRL
2019 2018
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 2.1 1,460,385 82,268
Capital work-in-progress 52,448 –
Other financial assets 2.2 60,000 –
CURRENT ASSETS
Financial assets
Loans 2.5 852,825 116,399
Total assets 176,509,622 54,306,688
Equity
Other equity 2.8 (193,482,396) (140,577,004)
Total equity (28,566,826) (57,920,389)
Liabilities
Borrowings 2.09 – 51,369,905
Total non-current liabilities – 51,369,905
Current liabilities
Trade payables 2.10 39,562,919 13,904,015
Borrowings 2.9 84,625,929 27,022,192
Provisions 2.13 962,802 438,573
The accompanying notes form an integral part of the financial statements.
As per our report of even date attached for and on behalf of Board of Directors of Infosys Consulting Ltda.
for Shenoy & Kamath
Firm’s registration number : 006673S
M. Rathnakar Kamath Claudio Henrique Elsas

Partner Director
Membership number:. 202841
Bengaluru
March 31, 2020

in BRL, except equity share and per equity share data
2019 2018
Other income, net 2.16 740,077 128,804
Total income 80,685,270 54,715,913
Expenses
Communication expenses 1,280,965 524,481
Consultancy and professional charges 4,354,080 3,623,176
Depreciation expenses 2.1 367,395 217,605
Finance cost 6,523,596 1,863,212
Other expenses 2.17 13,787,468 8,736,784
Total expenses 116,689,497 83,286,539
Loss before tax (36,004,227) (28,570,626)
Tax expense
Current tax 2.14 6,787,690 (396,306)
Deferred tax 2.14 – –
Loss for the year (42,791,917) (28,174,320)
Total comprehensive income for the year (42,791,917) (28,174,320)
Equity shares of par value BRL 1 each
Basic and Diluted (BRL) (0.26) (0.34)
equity share
for Shenoy & Kamath

Partner Director
Bengaluru
March 31, 2020

in BRL
capital Reserves and surplus attributable to
Retained Business transfer equity holders
earnings adjustment of the Company
reserve
Balance as of January 1, 2018 82,656,615 (112,402,684) – (29,746,069)
31, 2018
Exchange differences on translation – – – –
Loss for the year – (28,174,320) – (28,174,320)
Balance as of December 31, 2018 82,656,615 (140,577,004) – (57,920,389)
31, 2019
Business transfer reserve – – 46,161,794 46,161,794
Transfer during the year – – (56,275,270) (56,275,270)
Equity instruments through other
comprehensive income (Issue of 82,258,955
shares at BRL 1 each) 82,258,955 – – 82,258,955
Exchange differences on translation – – – –
Loss for the year – (42,791,917) – (42,791,917)
Balance as of December 31, 2019 164,915,570 (183,368,921) (10,113,476) (28,566,826)
for Shenoy & Kamath

Partner Director
Bengaluru
March 31, 2020

Statements of Cash Flows
in BRL
2019 2018
Cash flows from operating activities
Loss for the year (42,791,917) (28,174,320)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation expense 367,395 217,605
Income tax expense 6,787,690 (396,306)
Impairment loss recognized / (reversed) under expected credit loss model 89,066 4,698
Finance Cost 6,523,596 1,863,212
Other adjustments (870,000) 162,482
Exchange differences on translation of assets and liabilities – –
Trade receivables (65,858,280) (1,001,133)
Other financial assets and other assets (62,091,709) 1,892,683
Trade payables 25,652,216 5,219,468
Other financial liabilities and other liabilities and provisions 62,307,963 (8,989,965)
Cash generated from operations (69,883,980) (29,201,576)
Income taxes paid (617,632) (2,632,824)
Expenditure on property, plant and equipment (1,797,961) (32,058)
Loans to employees (736,426) 188,433
Adjustment arising out of business transfer 72,145,480 –
Net cash flow from investing activities 69,611,093 156,375
Cash flow from/used in financing activities
Loan received 6,233,832 43,919,433
Finance Cost (6,523,596) (1,863,212)
Proceeds from issue of share capital – –
Net cash flow (used in) / from financing activities (289,764) 42,056,221
Net (decrease) / increase in cash and cash equivalents (1,180,283) 10,378,196
Cash and cash equivalents at the beginning of the year 11,727,897 1,349,701
Cash and cash equivalents at the end of the year 10,547,614 11,727,897
for Shenoy & Kamath

Partner Director
Bengaluru
March 31, 2020

Significant accounting policies
Company overview and from the licensing of software products and platforms
Infosys Consulting Ltda. is a wholly-owned subsidiary of across our core and digital offerings (together called as
Infosys Limited effective August 14, 2018. The Company software-related services).
renders professional management consulting services, thereby Effective January 1, 2019, the Company adopted Ind AS 115,
enabling its clients to enhance business performance. Revenue from Contracts with Customers using the cumulative
With effect from October 1, 2019 Infosys Technologia Do catch-up transition method, applied to contracts that were
Brasil Ltda. merged with Infosys Consulting Ltda. not completed as at January 1, 2019. In accordance with
the cumulative catch-up transition method, the comparatives
1 Significant accounting policies have not been retrospectively adjusted. The following is a
summary of new and / or revised significant accounting
1.1 Accounting year policies related to revenue recognition.
The accounting year of the Company is from Revenue is recognized upon transfer of control of promised
January 1 to December 31. products or services to customers in an amount that reflects
1.2 Basis of preparation of financial statements products or services.
These financial statements are prepared in accordance with Arrangements with customers for software related services
Indian Accounting Standards (Ind AS) under the historical are either on a fixed-price, fixed-timeframe or on a
cost convention on the accrual basis, the provisions of the time-and-material basis.
Companies Act, 2013 (‘Act’) (to the extent notified). The Ind
AS are prescribed under Section 133 of the Act read with Rule Revenue on time-and-material contracts are recognized as
3 of the Companies (Indian Accounting Standards) Rules, the related services are performed and revenue from the
2015 and relevant amendments and rules issued thereafter. end of the last invoicing to the reporting date is recognized
as unbilled revenue.
Accounting policies have been consistently applied except
where a newly-issued accounting standard is initially adopted Revenue from fixed-price, fixed-timeframe contracts, where
or a revision to an existing accounting standard requires a the performance obligations are satisfied over time and where
change in the accounting policy hitherto in use. there is no uncertainty as to measurement or collectability
of consideration, is recognized as per the percentage-
1.3 Presentation currency of-completion method.
The Company’s presentation currency is Brazilian real (BRL). When there is uncertainty as to measurement or ultimate
collectability, revenue recognition is postponed until such
1.4 Use of estimates uncertainty is resolved. Efforts or costs expended have been
The preparation of the financial statements in conformity used to measure progress towards completion as there is a
with Ind AS requires the Management to make estimates and direct relationship between input and productivity.
assumptions that affect the reported balances of assets and Maintenance revenue is recognized ratably over the term of
liabilities and disclosures relating to contingent liabilities as the underlying maintenance arrangement.
Revenues in excess of invoicing are classified as contract
of income and expenses during the period.
assets (referred to as unbilled revenue) while invoicing in
Accounting estimates could change from period to period. excess of revenues are classified as contract liabilities (referred
Actual results could differ from those estimates. Appropriate to as unearned revenues).
changes in estimates are made as the Management becomes
In arrangements for software development and related
services and maintenance services, the Company has applied
the guidance in Ind AS 115, Revenue from contract with
customer, by applying the revenue recognition criteria for
each distinct performance obligation. The arrangements with
Examples of such estimates include computation of percentage customers generally meet the criteria for considering software
of completion which requires the Company to estimate the development and related services as distinct performance
efforts or costs expended to date as a proportion of the total obligations. For allocating the transaction price, the Company
efforts to be expended, impairment losses on financial assets, has measured the revenue in respect of each performance
future obligations under employee benefit plans, income obligation of a contract at its relative standalone selling
taxes, post-sales customer support and the useful lives of price. The price that is regularly charged for an item when
property, plant and equipment. sold separately is the best evidence of its standalone selling
1.5 Revenue recognition price. In cases where the Company is unable to determine the
standalone selling price, the Company uses the expected cost-
The Company derives revenues primarily from business plus margin approach in estimating the standalone selling
IT services comprising of software development and price. For software development and related services, the
related services, consulting and package implementation performance obligations are satisfied as and when the services

are rendered since the customer generally obtains control of The Company presents revenues net of indirect taxes in its
the work as it progresses. Statement of Profit and loss.
Revenue from licenses where the customer obtains a right- Rendering of services
to-use the licenses is recognized at the time the license is
Revenue from a contract to provide services is recognized in
made available to the customer. Revenue from licenses where
the period in which the services are provided in accordance
the customer obtains a right-to-access is recognized over the
with the terms of the contract. At each yearend, revenue
from unbilled services provided are included within accrued
generally have three elements: license, implementation and
income and any amounts invoiced in advance are deferred to
Annual Technical Services (ATS). The Company has applied
the accounting period when those services will be provided.
from these performance obligations. When implementation The stage of completion is determined on the basis of the
services are provided in conjunction with the licensing actual completion of a proportion of the total services to
arrangement and the license and implementation have be rendered. An expected loss on a contract is recognized
been identified as two separate performance obligations, immediately in the profit and loss account.
the transaction price for such contracts are allocated to
1.6 Provisions
each performance obligation of the contract based on their
relative standalone selling prices. In the absence of standalone A provision is recognized if, as a result of a past event, the
selling price for implementation, the performance obligation Company has a present legal or constructive obligation that
is estimated using the expected cost plus margin approach. is reasonably estimable, and it is probable that an outflow of
Where the license is required to be substantially customized economic benefits will be required to settle the obligation.
as part of the implementation service the entire arrangement Provisions are determined by discounting the expected
fee for license and implementation is considered to be a single future cash flows at a pre-tax rate that reflects current
performance obligation and the revenue is recognized using market assessments of the time value of money and the risks
the percentage-of-completion method as the implementation specific to the liability.
is performed. Revenue from client training, support and 1.7 Post-sales client support and others
other services arising due to the sale of software products is
recognized as the performance obligations are satisfied. ATS The Company provides its clients with a fixed-period post-
revenue is recognized ratably over the period in which the sales support for corrections of errors and support on all its
services are rendered. fixed-price, fixed-timeframe contracts. Costs associated with
such support services are accrued at the time when related
The Company accounts for volume discounts and pricing revenues are recorded and included in cost of sales. The
incentives to customers as a reduction of revenue based on Company estimates such costs based on historical experience
the ratable allocation of the discounts / incentives to each of and the estimates are reviewed annually for any material
the underlying performance obligation that corresponds to changes in assumptions.
the progress by the customer towards earning the discount/
incentive. Also, when the level of discount varies with 1.8 Onerous contracts
increases in levels of revenue transactions, the Company Provisions for onerous contracts are recognized when the
recognizes the liability based on its estimate of the customer’s expected benefits to be derived by the Company from a
future purchases. If it is probable that the criteria for the contract are lower than the unavoidable costs of meeting
discount will not be met, or if the amount thereof cannot the future obligations under the contract. The provision is
be estimated reliably, then discount is not recognized until measured at the present value of the lower of the expected
the payment is probable and the amount can be estimated cost of terminating the contract and the expected net cost of
reliably. The Company recognizes changes in the estimated continuing with the contract. Before a provision is established
amount of obligations for discounts in the period in the Company recognizes any impairment loss on the assets
which the change occurs. associated with that contract.
Deferred contract costs are incremental costs of obtaining a
contract which are recognized as assets and amortized over 1.9 Property, plant and equipment
the term of the contract. Property, plant and equipment are stated at cost, less
Contract modifications are accounted for when additions, accumulated depreciation and impairment, if any. Costs
deletions or changes are approved either to the contract directly attributable to acquisition are capitalized until the
scope or contract price. The accounting for modifications of property, plant and equipment are ready for use, as intended
contracts involves assessing whether the services added to an by the Management. The Company depreciates property,
existing contract are distinct and whether the pricing is at the plant and equipment over their estimated useful lives using
standalone selling price. Services added that are not distinct the straight-line method. The estimated useful lives of
are accounted for on a cumulative catch up basis, while those assets are as follows :
that are distinct are accounted for prospectively, either as a Computer equipment (1) 3-5 years
separate contract, if the additional services are priced at the Furniture and fixtures (1) 5 years
standalone selling price, or as a termination of the existing Office equipment (1) 5 years
contract and creation of a new contract if not priced at the Plant and machinery (1) 5 years
standalone selling price. Leasehold improvements Over lease term

Depreciation methods, useful lives and residual values are (iv) Financial liabilities
reviewed periodically, including at each financial year end. Financial liabilities are subsequently carried at amortized cost
(1)
using the effective interest method, except for contingent
useful lives as given above best represent the period over which the
Management expects to use these assets. Hence the useful lives for these
consideration recognized in a business combination which is
assets is different from the useful lives as prescribed under Part C of subsequently measured at fair value through Profit and Loss.
Schedule II of the Companies Act, 2013. For trade and other payables maturing within one year from
Advances paid towards the acquisition of property, plant and the Balance Sheet date, the carrying amounts approximate fair
equipment outstanding at each Balance Sheet date is classified value due to the short maturity of these instruments.
as capital advances under other non-current assets and the 1.11 Fair value of financial instruments
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
reporting date. The methods used to determine fair value
with these will flow to the Company and the cost of the
include discounted cash flow analysis, available quoted
item can be measured reliably. Repairs and maintenance
market prices and dealer quotes. All methods of assessing
costs are recognized in net profit in the Statement of Profit
fair value result in general approximation of value, and such
and Loss when incurred. The cost and related accumulated
depreciation are eliminated from the financial statements
upon sale or retirement of the asset and the resultant gains 1.12 Impairment
or losses are recognized in the Statement of Profit and Loss.
a. Financial assets
1.10 Financial instruments The Company recognizes loss allowances using the expected
1.10.1 Initial recognition credit loss (ECL) model for the financial assets which are
financial assets, expected credit losses are measured at an
amount equal to the 12-month ECL, unless there has been a
significant increase in credit risk from initial recognition in
which case those are measured at lifetime ECL. The amount
of expected credit losses (or reversal) that is required to adjust
the loss allowance at the reporting date to the amount that
is required to be recognized is recognized as an impairment
gain or loss in profit or loss.
b. Non-financial assets
a.Non-derivative financial instruments (i) Property, plant and equipment
(i) Financial assets carried at amortized cost Property, plant and equipment are evaluated for recoverability
A financial asset is subsequently measured at amortized cost if whenever events or changes in circumstances indicate that
it is held within a business model whose objective is to hold their carrying amounts may not be recoverable. For the
the asset in order to collect contractual cash flows and the purpose of impairment testing, the recoverable amount (i.e.
contractual terms of the financial asset give rise on specified the higher of the fair value less cost to sell and the value-in-
dates to cash flows that are solely payments of principal and use) is determined on an individual asset basis unless the asset
interest on the principal amount outstanding. does not generate cash flows that are largely independent of
(ii) Financial assets at fair value through other those from other assets. In such cases, the recoverable amount
comprehensive income is determined for the CGU to which the asset belongs.
A financial asset is subsequently measured at fair value If such assets are considered to be impaired, the impairment to
through other comprehensive income if it is held within a be recognized in the Statement of Profit and Loss is measured
business model whose objective is achieved by both collecting by the amount by which the carrying value of the assets
contractual cash flows and selling financial assets and the exceeds the estimated recoverable amount of the asset. An
contractual terms of the financial asset give rise on specified impairment loss is reversed in the Statement of Profit and Loss
dates to cash flows that are solely payments of principal and if there has been a change in the estimates used to determine
interest on the principal amount outstanding. the recoverable amount. The carrying amount of the asset is
A financial asset which is not classified in any of the above have been determined (net of any accumulated amortization
categories are subsequently fair valued through profit or loss. or depreciation) had no impairment loss been recognized for
the asset in prior years.

1.13 Employee benefits that includes the enactment or the substantive enactment
Compensated absences that it is probable that future taxable profit will be available
The Company has a policy on compensated absences against which the deductible temporary differences and tax
which are both accumulating and non-accumulating in losses can be utilized. The Company offsets current tax assets
nature. The expected cost of accumulating compensated and current tax liabilities, where it has a legally enforceable
absences is determined by actuarial valuation performed right to set off the recognized amounts and where it intends
by an independent actuary at each Balance Sheet date using either to settle on a net basis, or to realize the asset and settle
projected unit credit method on the additional amount the liability simultaneously.
expected to be paid / availed as a result of the unused
entitlement that has accumulated at the Balance Sheet date. 1.16 Cash Flow Statement
Expense on non-accumulating compensated absences is Cash flows are reported using the indirect method, whereby
recognized in the period in which the absences occur. profit for the period is adjusted for the effects of transactions
of a non-cash nature, any deferrals or accruals of past or
1.14 Foreign currency future operating cash receipts or payments and item of
Functional currency income or expenses associated with investing or financing
cash flows. The cash flows from operating, investing and
The functional currency of the Company is the BRL.
financing activities of the Company are segregated.
Transactions and translations
1.17 Other income
are translated into the relevant functional currency at Other income is comprised primarily of interest income,
exchange rates in effect at the Balance Sheet date. The gains dividend income and exchange gain on translation of other
or losses resulting from such translations are included in net assets and liabilities. Interest income is recognized using the
profit in the Statement of Profit and Loss. Non-monetary effective interest method.
assets and non-monetary liabilities denominated in a foreign 1.18 Earnings per share
currency and measured at fair value are translated at the
Basic earnings per share is computed by dividing the net
exchange rate prevalent at the date when the fair value
profit after tax by the weighted average number of equity
was determined. Non-monetary assets and non-monetary
shares outstanding during the period.
liabilities denominated in a foreign currency and measured
at historical cost are translated at the exchange rate prevalent 1.19 Leases
at the date of the transaction.
Lease under which the Company assumes substantially all
Transaction gains or losses realized upon settlement of foreign the risks and rewards of ownership are classified as finance
currency transactions are included in determining net profit leases. Such assets acquired are capitalized at fair value of
for the period in which the transaction is settled. Revenue, the asset or present value of the minimum lease payments
expense and cash-flow items denominated in foreign currencies at the inception of the lease, whichever is lower. Lease
are translated into the relevant functional currencies using the payments under operating leases are recognized as an expense
exchange rate in effect on the date of the transaction. on a straight-line basis in the Statement of Profit and Loss
over the lease term.
1.15 Income taxes
Income tax expense comprises current and deferred income 1.20 Borrowing cost
tax. Income tax expense is recognized in net profit in the Borrowing cost are charged to the Statement of Profit and Loss
Statement of Profit and Loss except to the extent that it in the period in which they were incurred.
it is recognized in other comprehensive income. Current 1.21 Recent accounting pronouncements
income tax for current and prior periods is recognized at Ind AS 116, Leases: On March 30, 2019, the Ministry of
the amount expected to be paid to or recovered from the tax Corporate Affairs (MCA) has notified Ind AS 116, Leases.
authorities, using the tax rates and tax laws that have been Ind AS 116 will replace the existing leases Standard, Ind AS
enacted or substantively enacted by the Balance Sheet date. 17, Leases and related Interpretations. The Standard sets out
Deferred income tax assets and liabilities are recognized for all the principles for the recognition, measurement, presentation
temporary differences arising between the tax bases of assets and disclosure of leases for both parties to a contract i.e.,
and liabilities and their carrying amounts in the financial the lessee and the lessor. Ind AS 116 introduces a single
statements. Deferred tax assets are reviewed at each reporting lessee accounting model and requires a lessee to recognize
date and are reduced to the extent that it is no longer probable assets and liabilities for all leases with a term of more than 12
that the related tax benefit will be realized. months, unless the underlying asset is of low value. Currently,
Deferred income tax assets and liabilities are measured using operating lease expenses are charged to the Statement of Profit
tax rates and tax laws that have been enacted or substantively and Loss. The Standard also contains enhanced disclosure
enacted by the Balance Sheet date and are expected to apply requirements for lessees. Ind AS 116 substantially carries
to taxable income in the years in which those temporary forward the lessor accounting requirements in Ind AS 17. The
differences are expected to be recovered or settled. The effect effective date for adoption of Ind AS 116 is annual periods
of changes in tax rates on deferred income tax assets and beginning on or after April 1, 2019. The standard permits two
liabilities is recognized as income or expense in the period possible methods of transition:
The changes in the carrying value of property, plant and equipment for the year ended December 31, 2019 are as follows:
in BRL
Particulars Plant and Office Computer Furniture and Leasehold Total
machinery equipment equipment fixtures Improvement
January 1, 2019 6,103 6,816 1,648,738 216,581 – 1,878,237
Additions / Adjustments 1,519,873 498,577 7,395,760 5,221,787 1,193,096 15,829,094
Deletions – – – – – –
December 31, 2019 1,525,976 505,393 9,044,498 5,438,368 1,193,096 17,707,331
as of January 1, 2019 6,103 6,214 1,567,072 216,581 – 1,795,970
Depreciation 16,558 15,003 155,154 101,902 78,778 367,395
on deletions 1,463,510 403,168 7,072,105 4,771,759 373,039 14,083,581
as of December 31, 2019 1,486,171 424,384 8,794,332 5,090,242 451,816 16,246,946
Carrying value as of
December 31, 2019 39,805 81,009 250,165 348,126 1,644,913 1,460,385
January 1, 2019 – 602 81,666 – – 82,268
The changes in the carrying value of property, plant and equipment for the year ended December 31, 2018 were as follows:
in BRL
Particulars Plant and Office Computer Furniture and Leasehold Total
machinery equipment equipment fixtures Improvement
January 1, 2018 6,103 11,844 1,617,075 227,539 – 1,862,561
Additions/ Adjustments – – 33,490 – – 33,490
Deletions – (5,028) (1,827) (10,958) – (17,813)
December 31, 2018 6,103 6,816 1,648,738 216,581 – 1,878,238
as of January 1, 2018 6,103 9,024 1,376,789 202,830 – 1,594,746
Depreciation – 856 192,110 24,639 – 217,605
as of December 31, 2018 6,103 6,214 1,567,072 216,581 – 1,795,970
December 31, 2018 – 602 81,666 – – 82,268
January 1, 2018 – 2,820 240,286 24,709 – 267,815

in BRL
2019 2018
Non-current
Rental deposits (1) 60,000 –
60,000 –
Current
Unbilled Revenues 26,083,589 3,283,294
Others (1) 27,001,382 2,512,645
53,084,971 5,795,939
Total other financial assets 53,144,971 5,795,939
Add: Total other financial assets
Financial assets carried at amortized cost (Refer to Note 7) 53,144,971 5,795,939
(1)
Includes dues from related parties (Refer to Note 2.19) – 2,512,645

in BRL
2019 2018 The carrying value and fair value of financial instruments
Current by categories as of December 31, 2019 and December 31,
Unsecured 2018 were as follows:
in BRL
Considered good (1) 81,296,707 15,527,492
Considered doubtful 3,507,272 50,576 Particulars As at December 31,
84,803,979 15,578,069 2019 2018
Less: Allowances for Assets
credit losses (3,507,272) (50,576) Cash and cash
Total trade receivables 81,296,707 15,527,492 equivalents (Refer to
(1)
Includes dues from related Note 2.4) 10,547,614 11,727,897
parties (Refer to Note 2.19) 6,808,940 10,892,525 Trade receivables (Refer
to Note 2.3) 81,296,707 15,527,492
2.4 Cash and cash equivalents Loans (Refer to Note
in BRL 2.5) 852,825 116,399
Particulars As at December 31, Other financial assets
2019 2018 (Refer to Note 2.2) 53,144,971 5,795,939
Balances with banks Total 145,842,117 33,167,727
In current accounts 10,547,614 11,727,897 Liabilities
Total cash and cash Trade payables (Refer to
equivalents 10,547,614 11,727,897 Note 2.10) 39,562,919 13,904,015
Borrowings (Refer to
Note 2.9) 84,625,929 78,392,097
2.5 Loans
in BRL Other financial
liabilities (Refer to Note
2.11) 49,437,013 13,458,693
2019 2018
Total 173,625,861 105,754,805
Current
Unsecured, considered All the above financial assets and liabilities are
good carried at amortized cost and the carrying values
Loans to employees 852,825 116,399 approximates their fair value.
852,825 116,399
Total current loans 852,825 116,399 Financial risk management
2.6 Other assets The Company’s activities expose it to a variety of financial
in BRL risks : market risk, credit risk and liquidity risk. The
Particulars As at December 31, Company’s focus is to foresee the unpredictability of
2019 2018 financial markets and seek to minimize potential adverse
Current effects on its financial performance. The primary market risk
Advances other than to the Company is foreign exchange risk. The Company’s
capital advance exposure to credit risk is influenced mainly by the individual
Payment to vendors characteristic of each customer and the concentration of risk
for supply of goods 42,883 – from the top few customers.
Others Market risk
Prepaid expenses 212,082 438 The Company operates internationally and a major portion of
Withholding taxes the business is transacted in several currencies. Consequently,
and others 19,413,555 4,925,405 the Company is exposed to foreign exchange risk through
Total current other assets 19,668,520 4,925,843 its sales and services in other countries and purchases from
overseas suppliers in various foreign currencies.

The following table analyses the foreign currency risk from monetary assets and liabilities as at December 31, 2019:
in BRL
Particulars USD Euro GBP CHF Other Total
currencies
Cash and cash equivalents 7,844,145 9,568 (9,836) 5,602,476 (2,898,739) 10,547,614
Trade receivables 7,569,880 4,136,337 – 4,099,299 30,636,768 46,442,284
Other financial assets,
loans and other current
assets 3,607,334 3,496,267 – (795,510) 67,865,916 74,174,007
Trade payables (400,513) (47,145) – – (1,167,591) (1,615,249)
Other financial liabilities 210,557 3,315 – – (87,974,629) (87,760,757)
Net assets / (liabilities) 18,831,404 7,598,342 (9,836 ) 8,906,264 6,461,725 41,787,899
The following table analyses the foreign currency risk from monetary assets and liabilities as at December 31, 2018:
in BRL
Particulars USD Euro GBP CHF Other Total
currencies
Cash and cash equivalents – – – – – –
Trade receivables 854,353 – 271,593 – – 1,125,946
Other financial assets,
loans and other current
assets (288,898) – – (3,161,235) – (3,450,133)
Trade payables (30,498) (617,255) (4,455) (4,404,731) (118,656) (5,175,595)
Other financial liabilities (103,268) (91,580) – (20,483) (424,118) (639,449)
Net assets / (liabilities) 431,689 (708,835) 267,138 (7,586,449) (542,774) (8,139,232)
Credit risk Credit risk exposure

Credit risk refers to the risk of default on its obligation by Provision of BRL 89,066 for ECL on customer balances was
the counterparty resulting in a financial loss. The maximum done for the year ended December 31, 2019 and reversal of
exposure to the credit risk at the reporting date is primarily BRL 4,698 was done for the year ended December 31, 2018.
from trade receivables amounting to BRL 81,296,707 and in BRL
BRL 15,527,492 as of December 31, 2019 and December Particulars Year ended December 31,
31, 2018, respectively and unbilled revenue amounting to 2019 2018
BRL 26,083,589 and BRL 3,283,294 as of December 31, Balance at the beginning 61,217 56,118
2019 and December 31, 2018, respectively. Trade receivables Impairment loss
and unbilled revenue are typically unsecured. Credit risk recognized / reversed 89,066 4,698
has always been managed by the Company through credit Amounts written off – –
approvals, establishing credit limits and continuously Translation differences – 401
monitoring the creditworthiness of customers to which Balance at the end 150,283 61,217
the Company grants credit terms in the normal course of
business. As per Ind AS 109, the Company uses ECL model Credit risk on cash and cash equivalents is limited as we
to assess the impairment loss or gain. The Company uses a generally invest in banks with high credit ratings assigned by
provision matrix to compute the ECL allowance for trade international and domestic credit rating agencies.
receivables and unbilled revenues. The provision matrix Liquidity risk
takes into account available external and internal credit risk
The Company’s principal source of liquidity are cash and cash
factors such as credit default swap quotes, credit ratings
equivalents. The Company has taken loan from its fellow
from international credit rating agencies and the Company’s
subsidiaries to meet its working capital requirement.
historical experience for customers.
As of December 31, 2019 and December 31,2018, the
Company had cash and cash equivalents of BRL 10,547,614
and BRL 11,727,897 respectively.
As of December 31, 2019 and December 31, 2018, the
outstanding compensated absences were BRL 10,206,915
and BRL 569,227 respectively.

2.8 Equity
Equity share capital
in BRL, except as otherwise stated
2019 2018
Authorized
164,915,570 (82,656,615) equity shares of BRL1 par value, fully paid 164,915,570 82,656,615
164,915,570 (82,656,615) equity shares of BRL1 par value for 2019, fully paid 164,915,570 82,656,615
(Of the above, 164,915,570 equity shares are held by the holding company, Infosys
Limited as at December 31,2019)
164,915,570 82,656,615
The details of shareholders holding more than 5% shares as at December 31, 2019 and December 31, 2018 are as follows :
in BRL, except as otherwise stated
Name of the shareholder As at December 31,
2019 2018
Number of shares % held Number of shares % held
Infosys Limited 16,49,15,570 100 8,26,56,605 99.99
The Company was acquired by Infosys Limted on August 14,2018.

The entity has acquired Infosys Technologia DO Brazil Ltda as on October 01, 2019
The shares were transferred by minority shareholder to Infosys Limited on December 20, 2019.
The reconciliation of the number of shares outstanding and the amount of share capital as at December 31, 2019 and December
31, 2018 is as follows :
in BRL except as stated otherwise
2019 2018
Number of shares Amount Number of shares Amount
Number of shares at the beginning of the period 82,656,615 82,656,615 82,656,615 82,656,615
Issue of shares during the year 82,258,955 82,258,955 – –
Number of shares at the end of the period 164,915,570 164,915,570 82,656,615 82,656,615
With effect from October 01, 2019 Infosys Technologia Do Brasil Ltda. merged with Infosys Consulting Ltda.The additional
shares has been received as a part of the merger.
2.9 Borrowings 2.11 Other financial liabilities

In BRL In BRL
2019 2018 2019 2018
Non Current Current
Unsecured Loan from Others
Fellow subsidiaries (Refer Accrued
to Note 2.19) (1) – 51,369,905 compensation to
Current employees* 7,633,991 1,408,410
Unsecured Loan from Accrued expenses (1)* 9,323,383 6,745,577
Fellow subsidiaries (Refer Compensated
to Note 2.19) (1) 84,625,929 27,022,192 absences 10,206,915 569,227
Total borrowings 84,625,929 78,392,097 Other payables (2) * 32,479,639 5,304,706
59,643,928 14,027,920
The loans were given in accordance with the terms and conditions of the
(1)
loan agreement and the details for these have been given in Note 2.19. Total current other
financial liabilities 59,643,928 14,027,920
2.10 Trade payables * Financial liability
in BRL carried at amortized cost 49,437,013 13,458,693
Particulars As at December 31, (1)
Includes dues to related parties
2019 2018 (Refer to Note 2.19) 10,951 339,170
(2)
Trade payables (1)
39,562,919 13,904,015
(Refer to Note 2.19) 5,565,627 5,283,570
Total trade payables 39,562,919 13,904,015
(1)
includes dues to related parties
(Refer to Note 2.19) 9,902,187 13,443,714
2.12 Other liabilities The details of income tax assets and income tax
in BRL liabilities are as follows :
in BRL
2019 2018 Particulars Year ended December 31,
NON-CURRENT 2019 2018
Current Income tax assets 9,486,152 16,130,850
Unearned revenue 3,277,041 934,546 Current income tax
Others liabilities (513,472) (988,112)
Client deposits 15,950 71,442 Net current income tax
Withholding taxes assets / (liability) at the
and others 16,474,410 3,470,372 end 8,972,680 15,142,738
Total current other
liabilities 19,767,400 4,476,360 The gross movement in the current income tax asset /
(liability) is as follows:
in BRL
2.13 Provisions
in BRL Particulars Year ended December 31,
2019 2018
Net current income tax
2019 2018
asset / (liability) at the
Current
beginning 15,142,738 12,113,608
Others
Income tax paid 617,632 2,632,824
Post-sales client
Current income tax
support 962,802 438,573
expense (6,787,690) 396,306
Total current Provisions 962,802 438,573
asset / (liability) at the end 8,972,680 15,142,738
2.14 Income taxes
Income tax expense in the Statement of Profit and Loss comprises: 2.15 Revenue from operations
in BRL
Revenue from operations for the year ended December 31,
Particulars Year ended December 31, 2019 and December 31, 2018 is as follows:
2019 2018 in BRL
Current taxes 6,787,690 (396,306)
Income tax expense 6,787,690 (396,306)
2019 2018
Current tax expense for the years ended December 31, Revenue from software
2019 and December 31, 2018 includes provisions (net of services 79,893,280 54,587,109
reversals) amounting to BRL 6,787,690 and reversals (net Revenue from products
of provisions) amounting to BRL 396,306 respectively, and platforms 51,913 –
pertaining to prior periods. Total revenue from
operations 79,945,193 54,587,109
A reconciliation of the income tax provision to the amount
income before income taxes is summarized as follows:
in BRL The table below presents disaggregated revenues from
Particulars Year ended December 31, contracts with customers by offerings for the year ended
2019 2018 December 31, 2019. The Company believes that this
Profit / (loss) before disaggregation best depicts how the nature, amount, timing
income tax (36,004,227) (28,570,626) and uncertainty of our revenues and cash flows are affected
Enacted tax rates in Brazil by industry, market and other economic factors.
In BRL
(%) 34.00 34.00
Computed expected tax Particulars Year ended December 31,
expense (12,241,437) (9,714,013) 2019 2018
Overseas taxes 6,787,690 (396,306) Revenue by offerings
Effect of unrecognized Core 76,802,041 –
deferred tax assets 11,872,474 9,714,014 Digital 3,143,152 –
Income tax expense 6,418,727 (396305) Total 79,945,193 –
The applicable Brazil statutory tax rate for year ended

December 31,2019 and December 31,2018 is 34%.

Digital services revenue recognized corresponds directly with the value to
Digital Services comprise of service and solution offerings the customer of the entity’s performance completed to date,
of the Company that enable our clients to transform their typically those contracts where invoicing is on time and
businesses. These include offerings that enhance customer material basis. Remaining performance obligation estimates
experience, leverage AI-based analytics and big data, engineer are subject to change and are affected by several factors,
digital products and IoT, modernize legacy technology including terminations, changes in the scope of contracts,
systems, migrate to cloud applications and implement periodic revalidations, adjustment for revenue that has not
advanced cyber security systems. materialized and adjustments for currency.
The aggregate value of performance obligations that are
Core services completely or partially unsatisfied as at December 31, 2019,
Core Services comprise traditional offerings of the Company other than those meeting the exclusion criteria mentioned
that have scaled and industrialized over a number of years. above, is BRL 84,563,187. Out of this, the Group expects to
These primarily include application management services, recognize revenue of around 46% within the next one year
proprietary application development services, independent and the remaining thereafter. The contracts can generally
validation solutions, product engineering and management, be terminated by the customers and typically includes an
infrastructure management services, traditional enterprise enforceable termination penalty payable by them.
application implementation, support and integration services.
2.16 Other income
Trade receivables and contract balances in BRL
The Company classifies the right to consideration in exchange Particulars Year ended December 31,
for deliverables as either a receivable or as unbilled revenue. 2019 2018
A receivable is a right to consideration that is unconditional Interest received on
upon passage of time. Revenue for time and material contracts financial assets Carried at
are recognized as related service are performed. Revenue for amortized cost
fixed price maintenance contracts is recognized on a straight- Deposits with banks
line basis over the period of the contract. Revenues in excess and others 107,187 –
of billings is recorded as unbilled revenue and is classified Miscellaneous income,
as a financial asset for these cases as right to consideration is net 632,890 128,804
unconditional upon passage of time. Total other income 740,077 128,804
is based on percentage of completion method. Invoicing to 2.17 Expenses
the clients is based on milestones as defined in the contract. in BRL
This would result in the timing of revenue recognition being Particulars Year ended December 31,
different from the timing of billing the customers. Unbilled 2019 2018
revenue for fixed price development contracts (contract Employee benefit
asset) is classified as non-financial asset as the contractual expenses
right to consideration is dependent on completion of Salaries including bonus 70,356,112 49,072,372
contractual milestones. Share based payments
Invoicing in excess of earnings are classified to employees (6,687) 211,633
as unearned revenue. Staff welfare 262,273 9,047
Total employee benefit
Trade receivable and unbilled revenues are presented net of
expenses 70,611,698 49,293,053
During the year ended December 31, 2019, the Company in BRL
recognized revenue of BRL 682,556 arising from opening Particulars Year ended December 31,
unearned revenue as of January 1, 2019. 2019 2018
Other expenses
Performance obligations and remaining performance Power and fuel 11,101 861
obligations Brand and marketing 81,430 131,299
The remaining performance obligation disclosure provides the Operating lease
aggregate amount of the transaction price yet to be recognized payments 1,725,384 631,118
as at the end of the reporting period and an explanation as Rates and taxes 10,670,538 4,196,280
to when the Group expects to recognize these amounts in Repairs and
revenue. Applying the practical expedient as given in Ind AS maintenance 1,232,822 401,663
115, the Group has not disclosed the remaining performance Consumables 430 –
obligation related disclosures for contracts where the Insurance 95,444 25,776

Particulars Year ended December 31, The obligations on long-term, non-cancellable operating
2019 2018 leases payable as per the rentals stated in the respective
Provision / (reversal) for agreements are as follows:
in BRL
post-sales client support (870,000) 162,081
Cost of software Particulars As at December 31,
packages and others 279,255 – 2019 2018
Allowances / (reversals) Future minimum lease
for credit losses on payable
financial assets 89,066 4,698 Not later than 1 year 2,177,400 1,220,348
Exchange (gains) / Later than 1 year and not
losses on translation later than 5 years 3,445,678 532,207
of other assets and
liabilities – 3,025,312 The operating lease arrangements are renewable on a periodic
Others 471,998 157,695 basis and for most of the leases, extend up to a maximum of
Total other expenses 13,787,468 8,736,784 five years from their respective dates of inception and relates
to rented premises. Some of these lease agreements have
price escalation Clauses.
2.18 leases
Obligations on long-term, non-cancellable operating leases
The lease rentals charged during the period are as follows :
in BRL
2019 2018
during the period 1,725,384 631,118

Name of the holding companies Country Holding as at December 31,
2019 2018
Infosys Limited (effective August 14, 2018) India 100% 99.99%
With effect from October 01, 2019 Infosys Technologia Do Brasil Ltda. merged with Infosys Consulting Ltda.
Name of the ultimate holding company Country
Infosys Limited India
Name of subsidiaries Country
Infosys Austria GmbH (1) (formerly Lodestone Management Consultants GmbH) Austria
Infosys CIS LLC (1)(18) Russia
Infosys Luxembourg S.a.r.l (1)(13) Luxembourg
Infosys Technologies (Australia) Pty. Limited (Infosys Australia) (3) Australia
Infosys BPM Limited (formerly Infosys BPO Limited) India

Lodestone Management Consultants Inc. (5)(11) US
Infosys Management Consulting Pty Limited (5) Australia
Infosys Consulting (Shanghai) Co. Ltd. (formerly Lodestone Management Consultants Co., Ltd)(5) China
Panaya Japan Co. Ltd (26)(7) Japan
Brilliant Basics (MENA) DMCC (8)(26) UAE
Fluido Oy(9)(14) Finland
Infosys South Africa (Pty) Ltd(9)(17) South Africa
HIPUS(20) Japan
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Wholly-owned subsidiary of Panaya Inc.
(8)
(9)
(10)
(11)

(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
(20)
(21)
(22)
(23)
(24)
(25)
Effective October 1, 2019, merged into Infosys Consulting Ltda, a majority-owned and controlled subsidiary of Infosys Limited
(26)
Under liquidation
The details of amounts due to or due from related parties as at December 31, 2019 and December 31, 2018 are as follows :
in BRL
2019 2018
Trade receivables
Infosys Technologia Do Brasil Ltda. – 9,535,337
Infosys Consulting S.R.L. 150 150
Infosys Consulting AG 1,663,362 1,085,445
Infosys Limited 5,288,576 –
Infy Consulting Company Ltd. (143,148) 271,593
6,808,940 10,892,525
– 2,512,645
Borrowings
Infosys Consulting Holding AG (1) 50,231,473 45,873,491
Infosys Consulting AG (1) 6,127,399 5,496,414
Infosys Poland Sp. Z o.o 19,866,029 –
Infosys Technologies S. de R. L. de C. V. 8,401,028 –
Infosys Technologia Do Brasil Ltda.(2) – 27,022,192
84,625,929 78,392,097
Trade payables
Infy Consulting Company Limited 4,958 4,455
Infosys Consulting S.R.L. 832,424 118,656
Infy Consulting B.V. 24,578 –
Infosys Consulting GmbH 2,093,343 617,255
9,902,187 13,443,714
Infosys Technologia Do Brasil Ltda. – 732,628
Infy Consulting B.V. – 34,696
Infosys Consulting Holding AG – 16,975
Infosys Technologies S. de R. L. de C. V. 11,081 –
5,565,627 5,283,570
Accrued expenses
Panaya Limited 10,951 –
Infosys Limited – 339,170
10,951 339,170
in BRL

Particulars For the year ended December 31,
2019 2018
Purchase of shared services, facilities and personnel
Infosys Tecnologia Do Brasil Ltda. (Infosys Brasil) 6,148,672 8,994,581
Infy Consulting B.V. 67,476 34,649
Infy Consulting Company Ltd. 4,958 4,455
Infosys Consulting AG 460,019 1,378,327
Infosys Consulting GmbH 1,353,188 1,411,087
9,833,244 12,020,976
Sale of services
Infy Consulting Company Ltd. 1,697,611 595,880
Infosys Tecnologia Do Brasil Ltda. (Infosys Brasil) 17,560,595 22,951,978
Infosys Consulting AG 1,135,283 265,014
24,528,061 23,812,872
Interest Expense
Infosys Consulting AG 630,985 (58,740)
Infosys Poland Sp. Z o.o 213,729 –
Infosys Tecnologia Do Brasil Ltda. (Infosys Brasil) 1,211,671 22,192
Infosys Technologies S. de R. L. de C. V. 7,644 –
Infosys Consulting Holding AG 4,357,982 1,897,730
6,422,011 1,861,181

The Company is engaged in providing consultancy service in a single geography. Based on the ‘Management approach’, as
defined in Ind AS 108, Segment Reporting the Chief Operating Decision Maker (CODM) evaluates the performance and allocates
resources based on the analysis of the performance of the Company as a whole. Its operations are, therefore, considered to
constitute a single segment in the context of Ind AS 108, Segment Reporting.

Infosys Consulting Sp. z o.o.
ul. Strzegomska 142A 54-429 Wrocław

REGON number 020524762
Financial Statements
for the period from January 1, 2019 to December 31, 2019
Independent Statutory Auditor’s Report
To the Shareholders’ Meeting of Infosys Consulting Sp. z o.o.
Auditor’s report on the audit of annual financial statements
Opinion
We have audited the attached annual financial statements of Infosys Consulting Sp. z o. o. (hereinafter referred to as ”the
Company”) with its registered office in Wrocław, Strzegomska Street 142A, including:
• introduction to the financial statements,
• balance sheet prepared as of 31 December 2019, with total assets and liabilities plus equity of PLN 27.831.429,48,
• profit and loss account for the period from 1 January 2019 to 31 December 2019, disclosing a net profit of PLN 7.127.826,27,
• statement of changes in equity for the period from 1 January 2019 to 31 December 2019, disclosing a decrease in
equity of PLN 872.173,73,
• cash flow statement for the period from 1 January 2019 to 31 December 2019, showing a net cash increase of PLN 1.802.835,96,
• additional information and explanations, (hereinafter referred to as „the financial statements”).
In our opinion, the audited financial statements:
• present true and fair view of the economic and financial position of the Company as of 31 December 2019 as well as its
financial result and cash flows for the financial year ended on this date in accordance with applicable regulations of the
Accounting Act of 29 September 1994 (Dz. U. of 2019 No. 351 with subsequent items, further referred to as “the Accounting
Act”), and the accounting principles (policies) adopted by the Company;
• comply in their form and content with the applicable provisions of law and the Company’s articles of association;
• have been prepared based on properly kept accounting records, in accordance with the provisions of Chapter II
of the Accounting Act.
Basis for Opinion
Our audit of the financial statements has been performed in accordance with International Standards on Auditing as adopted
by the National Auditing Standards by the National Council of Statutory Auditors (hereinafter referred to as “KSB”), as well as
the Act of 11 May 2017 on statutory auditors, audit firms and public oversight (Dz. U. of 2017 No. 1089, with subsequent
amendments) (further referred to as the „Act on statutory auditors”).
Our responsibilities under those standards are described in the section Auditor’s responsibility for the audit of financial
statements of this report.
We are independent of the Company in accordance with the Code of Ethics for Professional Accountants of International
Federation of Accountants (further referred to as the “IFAC code”), adopted by the Resolutions of the National Council of
Statutory Auditors and other ethical requirements applicable to the audits of financial statements in Poland. We have fulfilled
our ethical responsibilities in accordance with those requirements and the IFAC Code. During the audit the key certified auditor
as well as the auditing firm have remained independent of the Company, in accordance with the independence requirements
of the Act on statutory auditors.
Responsibility of the Company’s Management Board for the Financial Statements
The Management Board of the Company is responsible for the preparation, based on correctly kept accounting books, of
the financial statements that provide true and fair view of the economic and financial position of the Company as well as
its financial result and cash flows in accordance with the Accounting Act, the accounting principles (policies) adopted by
the Company, and the applicable provisions of law and the Company’s articles of association, as well as internal control that
management determines necessary to enable the preparation of the financial statements that are free from misstatements,
whether due to fraud or error.
The Management Board is obliged to ensure the financial statements meet the requirements of the Accounting Act.
Auditor’s Responsibility for the Audit of Financial Statements
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with KSB will always detect
existing material misstatements. Misstatements can arise from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
340 | Infosys Consulting Sp. z o.o. Infosys Subsidiary Financials 2019-20

The scope of the audit does not include any assurance on the future profitability of the audited Company nor the efficiency or
effectiveness of current or future management of the Company’s operations.
As part of an audit in accordance with KSB, we exercise professional judgment and maintain professional skepticism
• Assess the general presentation, structure and content of the financial statements, including disclosures, and whether
the financial statements present transactions and events, which the financial statements base on, in the manner
ensuring fair presentation.
Other Information Including the Report on Activities
Other information includes the Company’s Report on Activities for the financial year ended 31 December 2019 (the
report on activities”).
Responsibility of the Company’s Management Board
The Management Board of the Company is responsible for preparation of the report on activities in accordance with the law.
The Management Board of the Company is required to ensure that the report on activities meets the requirements of
the Accounting Act.
Responsibility of the Auditor
Our audit opinion on the financial statements does not refer to the report on activities. In conjunction with our audit, our
responsibility was to become familiar with the report on activities, and while doing that, consider whether it is not materially
inconsistent with the financial statements or with our knowledge acquired during the audit, or appears misstated in any other
manner findings. If, based on work performed, we conclude the report on activities is materially misstated, we are obliged
to inform about it in our audit report. Our responsibility, as required by the Act on statutory auditors, was also to express an
opinion, whether the report on activities had been prepared in accordance with the law and whether it had been consistent
with information included in the annual financial statements.
Opinion on the report on activities
Based on the work performed during the audit, in our opinion, the report on activities:
• has been prepared in accordance with art. 49 of the Accounting Act,
• is consistent with the information included in the financial statements.
Furthermore, we declare that based of our knowledge of the Company and its environment obtained during the audit of financial
statements we have not identified any material misstatements in the report on activities.
The key certified auditor, responsible for the audit, whose result is this independent auditor’s report, was Piotr Łyskawa, acting
on behalf of Avanta Audit Sp. z o.o. Sp. k. with its registered office in Bielany Wrocławskie, registered in the list of the audit
firms under No. 3595.
signed electronically
Piotr Łyskawa
Key certified auditor
No. 90051
Bielany Wrocławskie, 28 February 2020
Infosys Subsidiary Financials 2019-20 Infosys Consulting Sp. z o.o. | 341

Balance Sheet
in PLN
Particulars Note no. Current year Previous year
ASSETS
FIXED ASSETS 1,433,333.65 1,289,622.55
Intangible assets – –
Fixed tangible assets 1 418,366.15 337,589.58
Fixed assets 412,349.43 337,589.58
Freehold land (including perpetual usufruct of land) – –
Buildings and structures – –
Plant and machinery 375,429.77 292,946.38
Vehicles – –
Other tangible fixed assets 36,919.66 44,643.20
Fixed assets under construction 6,016.72 –
Prepayments for fixed assets under construction – –
Long-term receivables – –
Related entities – –
Other entities – –
Long-term investments – –
Long-term prepayments 2 1,014,967.50 952,032.97
Deferred income tax assets 1,014,967.50 952,032.97
Other prepayments – –
CURRENT ASSETS 26,398,095.83 18,669,025.84
Inventories – –
Raw materials – –
Semi-finished products and work in progress – –
Finished products – –
Goods for resale – –
Prepayments for inventories – –
Receivables and claims 3 14,992,891.23 9,066,657.20
Related entities 16 3,616,610.37 3,143,551.54
Trade debtors payable within a period of 3,616,610.37 3,143,551.54
up to 12 months 3,616,610.37 3,143,551.54
over 12 months – –
Other – –
Other entities 11,376,280.86 5,923,105.66
Trade debtors payable within a period of 9,831,068.19 4,408,013.13
up to 12 months 9,831,068.19 4,408,013.13
over 12 months – –
Taxation, state subsidy and social security receivables 1,004,391.05 966,619.49
Other debts 540,821.62 548,473.04
Receivables in court – –
Short-term investments 11,405,204.60 9,602,368.64
Short-term financial assets 11,405,204.60 9,602,368.64
In related entities – –
In other entities – –
Cash and other monetary assets 11,405,204.60 9,602,368.64
Cash in hand and at bank 11,405,204.60 9,602,368.64
Other cash equivalents – –
Other monetary assets – –
Other short-term investments – –
Short-term prepayments 4 – –
CALLED UP SHARE CAPITAL (FUND) – –
OWN SHARES – –
Total assets 27,831,429.48 19,958,648.39

Balance Sheet
in PLN
LIABILITIES AND EQUITY
EQUITY 8,187,806.94 9,059,980.67
Share capital (fund) 5 1,000,000.00 1,000,000.00
Share capital not paid-up (negative amount) –
Entity’s own shares (negative amount) – –
Additional shareholders’ contributions – –
Additional shareholders’ contributions not paid-up – –
Supplementary capital (fund) 6 – 5,090,433.83
Revaluation reserve – –
Other reserves (funds) – –
Retained earnings brought forward 59,980.67 541,628.33
Net profit for the year 7 7,127,826.27 2,427,918.51
Write-offs from net profit for the financial year (negative amount) – –
Liabilities and provisions 19,643,622.54 10,898,667.72
Provisions – –
Deferred income tax provision –
Provision for retirement pensions and similar benefits – –
Other provisions – –
Long-term liabilities – –
Related entities – –
Other entities – –
Short-term liabilities 4,550,066.92 2,049,159.68
Related entities 461,186.57 651,645.00
Trade creditors with maturity period of: 461,186.57 651,645.00
- Up to 12 months 461,186.57 651,645.00
- Over 12 months – –
Other – –
Liabilities to other entities in which the entity has equity
interest – –
Other entities 3,940,897.36 1,313,295.60
Loans – –
Debentures – –
Other financial liabilities – –
Trade creditors with maturity period of: 212,701.74 2,399.29
- Up to 12 months 212,701.74 2,399.29
- Over 12 months – –
Payments received on account – –
Bills of exchange payable – –
Taxation, customs duty and social security liabilities 3,726,944.61 1,300,031.24
Wages and salaries payable – –
Other short-term payables 1,251.01 10,865.07
Special funds 147,982.99 84,219.08
Accruals and deferred income 8 15,093,555.62 8,849,508.04
Negative goodwill – –
Other accruals and deferred income 15,093,555.62 8,849,508.04
Long-term accruals and deferred income – 14,530.65
Short-term accruals and deferred income 15,093,555.62 8,834,977.39

in PLN
Sales 10 72,136,361.40 60,925,004.07
From related parties 39,903,508.34 60,929,885.37
Sales of finished goods 72,136,361.40 60,925,004.07
Movement in inventories of finished goods and work in progress
(increase - positive amount, decrease - negative amount) – –
Manufacturing cost of products for entity’s own use – –
Sales of goods for resale and raw materials – –
Operating expenses 62,318,051.54 57,041,697.95
Depreciation and amortization 202,863.21 181,868.43
Consumption of materials and energy 349,232.77 701,653.34
External services 17,068,481.72 15,519,368.20
Taxes and charges, including 454,264.44 690,178.73
Excise duty – –
Wages and salaries 35,006,683.97 30,364,919.68
Employee benefits 6,921,931.55 5,787,884.64
Emerytalne 2,693,217.26 346,152.65
Other expenses 2,314,593.88 3,795,824.93
Cost of raw materials and goods for resale sold – –
Gross profit (loss) after selling, general and administrative expenses 9,818,309.86 3,883,306.12
Other operating income 204,275.29 7,433.66
Profit from non-financial fixed assets sold 12,581.40 –
Subsidies received – –
Revaluation of non-financial assets – –
Other operating income 191,693.89 7,433.66
Other operating expenses 263.13 205.89
Loss on non-financial fixed assets sold – –
Revaluation of non-financial assets – –
Other operating expenses 263.13 205.89
Operating profit (loss) 10,022,322.02 3,890,533.89
Financial income 9,321.29 –
Dividends received, including those – –
from related entities – –
from other entities – –
Interest received, including interest 9,321.29 –
Gain on disposal of financial assets, including: – –
Revaluation of investments – –
Other – –
Financial expenses 830,353.58 442,648.67
Interest, including interest payable – 30.00
to related entities – –
Loss on disposal of financial assets, including: – –
Revaluation of investments – –
Other 830,353.58 442,618.67
Profit (loss) before tax 9,201,289.73 3,447,885.22
Income tax 11 2,073,463.46 1,019,966.71
Other mandatory charges – –
Net profit (loss) 7,127,826.27 2,427,918.51

in PLN
Particulars Current Previous
Note no. year year
EQUITY AT THE BEGINNING OF PERIOD 9,059,980.67 6,632,062.16
fundamental errors adjustments – –
EQUITY AT THE BEGINNING OF PERIOD AFTER ADJUSTMENTS 9,059,980.67 6,632,062.16
Share capital at the beginning of period 1,000,000.00 1,000,000.00
Changes in share capital – –
Increase (due to) – –
- Share issue – –
Decrease (due to) – –
- Redemption of shares – –
Share capital at the end of period 1,000,000.00 1,000,000.00
Share capital not paid-up at the beginning of period – –
Changes in share capital not paid-up – –
Share capital not paid-up at the end of period – –
Supplementary capital at the beginning of period 5,090,433.83 2,173,201.69
Changes in supplementary capital (5,090,433.83) 2,917,232.14
Increase (due to) 2,427,918.51 2,917,232.14
- Share premium – –
- Distribution of profit (statutory) 2,427,918.51 2,917,232.14
- Distribution of profit (above the minimum statutory value) – –
Decrease (due to) 7,518,352.34 –
- Dividend payment 7,518,352.34 –
Supplementary capital at the end of period – 5,090,433.83
Profit (loss) brought forward at the beginning of period 2,969,546.84 3,458,860.47
Profit brought forward at the beginning of period 2,969,546.84 3,458,860.47
Changes in accounting policies – –
- Revaluation of assets and liabilities denominated in foreign
currencies – –
- Deferred taxation – –
Other adjustments –
Profit brought forward at the beginning of period, after
adjustments 2,969,546.84 3,458,860.47
- Distribution of profit brought forward –
Decrease (due to) 2,909,566.17 2,917,232.14
- Distribution of profit brought forward 2,427,918.51
- Dividend payment 481,647.66
Przeniesienie Zysku na kapitał zapasowy – –
Profit brought forward at the end of period 59,980.67 541,628.33
Loss brought forward at the beginning of period – –
- Changes in accounting policies – –
Revaluation of assets and liabilities denominated in foreign
currencies – –
Deferred taxation –
- Other adjustments – –
Loss brought forward at the beginning of period, after adjustments – –
- Loss coverage – –
Loss brought forward at the end of period – –
Profit (loss) brought forward at the end of period 59,980.67 541,628.33
Net profit (loss) for the year 7,127,826.27 2,427,918.51

Particulars Current Previous
Note no. year year
Net profit for the year 7,127,826.27 2,427,918.51
Net loss for the year – –
Write-offs from net profit for the year – –
Equity at the end of period 8,187,806.94 9,059,980.67
Equity at the end of period, after proposed distribution of profits
(coverage of losses) 8,187,806.94 9,059,980.67

in PLN
Particulars Current year Previous year
OPERATING CASH FLOWS
Net profit (loss) for the year 7,127,826.27 2,427,918.51
Total adjustments 2,946,068.07 695,429.65
Depreciation 202,863.21 181,868.43
Foreign exchange gains (losses) – –
Interest and shares in profits (dividends) – –
Investment profit (loss) (12,581.40) –
Change in provisions’ balance – –
Change in stocks’ balance – –
Change in liabilities’ balance (5,926,234.03) 1,220,968.47
Change in short-term liabilities’ balance, with the exception of loans 2,500,907.24 81,625.49
Change in prepayments and accruals’ balance 6,181,113.05 (789,032.74)
Other adjustments – –
Net operating cash flows 10,073,894.34 3,123,348.16
INVESTMENT CASH FLOWS
Cash inflows 38,712.00 –
Disposals of intangible and tangible fixed assets 38,712.00 –
Other investments inflows – –
Cash outflows (309,770.38) (211,808.20)
Purchases of intangible and tangible fixed assets (309,770.38) (211,808.20)
Purchases of immovable property and intangible assets investments – –
Other investment outflows – –
Net investment cash flows (271,058.38) (211,808.20)
FINANCIAL CASH FLOWS
Cash inflows – –
Net inflows from issuing shares and other instruments and additional capital
contributions – –
Loans – –
Issue of debt securities – –
Other financial inflows – –
Cash outflows (8,000,000.00) –
Acquisition of entity’s own shares – –
Dividends and other payments to shareholders/owners (8,000,000.00) –
Distribution of profit other than payments of dividends to shareholders/owners – –
Loans repaid – –
Debt securities redeemed – –
Other financial liabilities – –
Payments of finance lease liabilities – –
Interest – –
Other financial outlays – –
Net financial cash flows (8,000,000.00) –
TOTAL NET CASH FLOWS 1,802,835.96 2,911,539.96
BALANCE SHEET CHANGE IN CASH BALANCE, INCLUDING: 1,802,835.96 2,911,539.96
Change in cash balance due to foreign exchange differences
CASH AS AT THE BEGINNING OF PERIOD 9,602,368.64 6,690,828.68
CASH AS AT THE END OF PERIOD, INCLUDING: 11,405,204.60 9,602,368.64
Cash with limited disposability 174,066.82 124,352.91

for the period from 1 January 2019 to 31 December 2019
1 Tangible fixed assets

(a) Analysis of tangible fixed assets
in PLN
Fixed tangible assets including: 412,349.43 337,589.58
freehold land (including perpetual usufruct of land) – –
buildings and structures – –
plant and machinery 375,429.77 292,946.38
vehicles – –
other tangible fixed assets 36,919.66 44,643.20
Fixed assets under construction 6,016.72 –
Prepayments for fixed assets under construction – –
Total tangible fixed assets 418,366.15 377,331.50
(b) Tangible fixed assets by title

in PLN
The Company’s own tangible fixed assets 418,366.15 377,331.50
Tangible fixed assets used under rent finance lease or similar agreements and included
in the Company’s assets – –
Total Balance Sheet tangible fixed assets 418,366.15 377,331.50
Other tangible fixed assets used under rent, operating lease or similar agreements
excluded from Balance Sheet 71,629.00 68,751.00
(c) Tangible fixed assets - movements during the year

in PLN
Current year Plant and Other tangible Fixed assets Total
machinery fixed assets under
construction
Cost at the beginning of period 1,549,160.70 74,294.64 – 1,623,455.34
Additions - purchase 303,753.66 – 6,016.72 309,770.38
Disposals - liquidation (38,712.00 ) – (38,712.00)
Costs at the end of period 1,814,202.36 74,294.64 6,016.72 1,894,513.72
Accumulated depreciation at the beginning of
period 1,256,214.32 29,651.44 – 1,285,865.76
Additions - depreciation for the period 195,139.67 7,723.54 – 202,863.21
Disposals - liquidation (12,581.40 ) (12,581.40)
Accumulated depreciation at the end of period 1,438,772.59 37,374.98 – 1,476,147.57
Net book value at the beginning of period 292,946.38 44,643.20 – 337,589.58
Net book value at the end of period 375,429.77 36,919.66 6,016.72 418,366.15
in PLN
Previous year Plant and Other tangible Fixed assets Total
construction
Cost at the beginning of period 1,337,352.50 74,294.64 – 1,411,647.14
Additions - purchase 211,808.20 – – 211,808.20
Disposals - liquidation – – –
Costs at the end of period 1,549,160.70 74,294.64 – 1,623,455.34
Accumulated depreciation at the beginning of
period 1,083,637.07 20,360.26 – 606,839.27
Additions - depreciation for the period 172,577.25 9,291.18 – 181,868.43
Disposals - liquidation – – – –

Previous year Plant and Other tangible Fixed assets Total
construction
Accumulated depreciation at the end of period 1,256,214.32 29,651.44 – 1,285,865.76
Net book value at the beginning of period 253,715.43 53,934.38 – 804,807.87
Net book value at the end of period 292,946.38 44,643.20 – 337,589.58
As at the Balance Sheet date the Company had no liabilities to State budget or budgets of territorial self-government units by
virtue of acquired ownership rights to buildings and structures.
During the year there were no fixed assets write downs.
The Company has not incurred manufacturing costs of fixed assets under construction and fixed assets for entity’s
own during the year.
2 Long-term prepayments Particulars Current year Previous year

in PLN Release – –
Particulars Current year Previous year Write downs balance at
Deferred income tax the end of period 48,972.99 –
assets 1,014,967.50 952,032.97 Net receivables and
Total long term claims 14,992,891.23 9,066,657.20
prepayments 1,014,967.50 952,032.97
4 Short term prepayments
3 Receivables and claims in PLN
in PLN Particulars Current year Previous year
Particulars Current year Previous year Prepaid insurance – –
Gross receivables as at Prepaid subscriptions – –
the Balance Sheet date 15,041,864.22 9,066,657.20 Non -invoiced sales – –
Write downs balance at Other – –
the beginning of period – – Total short-term
Increase 48,972.99 – prepayments – –
Utilisation – –
5 Equity
Shareholders Number of Number of
shares Nominal value shares Nominal value
Infosys Consulting Holding AG 10,000 1,000,000 10,000 1,000,000
Total 10,000 1,000,000 10,000 1,000,000
6 Supplementary capital Particulars Current year Previous year

Dividend payment (7,518,352.34) –
(a) Analysis of supplementary capital Status at the end of the
Particulars Current year Previous year period 0.00 5,090,433.83
Repayable contributions
from shareholders –
Other – 5,090,433.83 7 Net profit (loss) for the year
Total supplementary The Management Board proposes to transfer the
capital – 5,090,433.83 profit to reserve capital.
(b) Supplementary capital - movements during 8 Accruals and deferred income

the year (a) Long-term accruals
in PLN in PLN
Particulars Current year Previous year Particulars Current year Previous year
Balance at the beginning Other – 14,530.65
of period 5,090,433.83 2,173,201.69 Total long-term accruals – 14,530.65
Appropriation of prior
year profit (loss) 2,427,918.51 2,917,232.14

(b) Short-term accruals Particulars Current year Previous year
in PLN Prior period temporary
Particulars Current year Previous year differences utilized 830,353.58 442,618.67
Services provided not Provision for annual
invoiced 6,888,575.05 1,181,038.98 bonus 1,552,919.49 1,247,515.63
Provision for unused Provision for unused
annual leave 1,523,740.00 1,471,566.00 annual leave 1,523,740.00 1,471,566.00
Provision for annual payments to PFRON 296,894.00 240,660.00
bonus 1,552,919.49 1,247,515.63 costs of unpaid
Reserve for remuneration 3,113,525.17 3,054,283.04 remuneration
Other 1,802,890.64 1,691,107.08 costs of unpaid social
Provision for expenses 211,905.27 203,997.31 security contributions 265,130.53 268,761.35
Total short-term accruals 15,093,555.62 8,849,508.04 depreciation (1,309.97) 7,688.46
Total accruals 15,093,555.62 8,864,038.69 Other 2,256,014.16 5,740,728.26
Costs related to the
previous year, to be
9 Cash on VAT bank account settled in the current tax
in PLN
year 4,680,830.76 4,566,199.98
Particulars Current year Previous year paid remuneration
Cash on VAT bank and social security
account – – contributions 268,761.35 247,562.46
Total short-term accruals – – annual bonus paid 1,247,515.63 1,389,716.72
other provisions used 3,164,553.78 2,928,920.80
10 Sales revenue Tax base 11,244,200.76 8,301,223.61
Prior period losses – –
(a) Analysis of sales revenue Other increases 1,535,327.00
in PLN Tax base 11,244,200.76 9,836,550.61
Particulars Current year Previous year Corporate Income Tax 2,136,398.00 1,868,945.13
Sales of finished
products – – (b) Deferred Taxation
Sales of services 72,136,361.40 60,925,004.07
Sales of goods for resale – –
Assets due to deferred
Total sales revenue 72,136,361.40 60,925,004.07
income tax:
Provision for unused
(b) Sales analysis by geographical area annual leave 289,510.60 279,597.54
in PLN
Provision for annual
Particulars Current year Previous year bonus 295,054.70 237,027.97
Domestic sales – 338,417.20 Unpaid social security
Export sales 72,136,361.40 60,586,586.87 contributions and
Total sales 72,136,361.40 60,925,004.07 remuneration 147,406.32 35,689.03
Fixed assets 1,293.78 4,020.74
11 Corporate Income Tax Other costs 281,702.10 395,697.68
Total assets due to
(a) Corporate Income Tax deferred tax 1,014,967.50 952,032.96
in PLN
Particulars Current year Previous year The Company did not make any write downs for
Current Taxation 2,136,398.00 1,868,945.13 deferred tax assets
Deferred Taxation (62,934.54) (848,978.42)
Total 2,073,463.46 1,019,966.71 12 Expenditure on non-financial fixed assets
Expenditure on non-financial non-current assets incurred in
Current Taxation the last year and planned for the next year (separately incurred
in PLN and planned expenditure on environmental protection)
Particulars Current year Previous year Title incurred in the planned to
Profit before tax 9,201,289.73 3,447,885.22 current year bear in the
Costs and losses which following year
are excluded from Expenditure on non-
income-earning costs financial fixed assets 309,770.38 –
by taxation legislation, - including
including: 6,723,741.79 9,419,538.37 environmental
protection – –
13 The amount and nature of individual 16 The nature and economic purpose of the
items of income or expense of contracts concluded by the entity that
extraordinary value or that occurred are not included in the Balance Sheet
incidentally not applicable
not applicable
17 Transactions concluded by the entity on
14 Information on costs related to research non-market terms with related parties
and development works that have not not applicable
been classified as intangible assets
not applicable
18 Average number of employees
15 Analysis of cash balance for the purpose based on an employment
contract 203 213
of cashflow statement based on temporary
in PLN
contract – –
Particulars Current year Previous year based on graduate
Cash in hand 809.71 1,652.58 contracts – –
Cash in bank 11,404,394.89 9,600,716.06 Total 203 213
Total 11,405,204.60 9,602,368.64
Short-term financial
assets classified as cash 19 Directors’ Remuneration
for the purpose of Management Board were not paid any remuneration.
cashflow statement – –
Total cash and cash 20 Information on advances, loans,
equivalents for the guarantees and sureties granted to
purpose of cashflow
statement 11,405,204.60 9,602,368.64 persons belonging to the Management
and supervisory bodies
not applicable
21 Transactions with related parties

The Company operates as part of the Infosys Consulting Holding group. The consolidated financial statements of the group
are prepared by Infosys Consulting Holding AG based in Switzerland
in PLN
Infosys Consulting AG (Switzerland)
Receivables 309,004.16 763,749.99
Liabilities 8,699.73 138,552.84
Revenues 8,404,112.51 9,205,464.98
Costs 822,691.27 850,291.47
Infosys Consulting CO Ltd. (United Kingdom)
Receivables 2,887,668.51 1,831,842.53
Liabilities 277,186.41 373,073.07
Revenues 25,238,544.28 14,465,002.38
Costs 4,781,799.36 3,448,846.35
Infosys Consulting Holding AG
Receivables – –
Liabilities – 12,317.58
Revenues – –
Costs – 12,317.58
Infosys Technologies (Sweden)
Receivables – –
Liabilities – –
Revenues – 25,504.91
Costs – –
Infosys Consulting SRL, Rumunia
Receivables – –

Liabilities 30,949.78 –
Revenues – –
Costs 145,001.76 –
Infosys Consulting SAS, (France)
Receivables 3,982.43 –
Liabilities – –
Revenues 3,982.43 –
Costs – –
Infosys Consulting GmbH (Germany)
Receivables 396,777.09 550,527.48
Liabilities 62,619.16
Revenues 6,240,553.05 11,950,897.13
Other revenues 49,954.77 –
Costs 291,650.58 1,037,357.41
Infy Consulting BV (Netherlands)
Liabilities 44,218.17 25,159.21
Costs 95,315.42 25,141.08
Lodestone Management (Portugal)
Receivables 713.27 –
Liabilities – –
Revenues 713.27 –
Other revenues (7,098.67) –
Costs – –
Infosys Consulting PTE.Ltd, (Singapore)
Receivables – –
Liabilities – –
Revenues – –
Costs – 6,728.55
Infosys Consulting Belgium
Liabilities – –
Costs – –
Infosys Limited (India) –
Liabilities 100,132.48 39,923.14
Costs 30,766.99 (816.11)
Lodestone Management Consultants in Atlanta
Receivables – –
Liabilities – –
Revenues – –
Costs – 1,215.00
22 Exchange rates applied to currency valuation

EUR 4.2585 4.3000
USD 3.7977 3.7597
GBP 4.9971 4.7895

23 Audit fees
in PLN
Obligatory audit services 35,000.00 35,000.00
Other attestation services – –
Tax advisory services – –
Other services – –
24 Post Balance Sheet events

On February 20, 2020, the current owner, Infosys Consulting Holding AG, sold the shares to Infosys Poland Sp. z o.o. The
merger is planned in the second quarter of 2020
25 Changes in accounting principles (policy), including valuation methods

In 2019, the Company did not change its accounting principles compared to the previous financial year
26 Data comparability
In 2019, the Company did not change the method of preparing the financial statements compared to the previous financial
year. Data comparability was ensured.
27 Other information
All other disclosure requirements contained in Schedule 1 of the Accounting Act of 29 September 1994
are not applicable.
28 Persons who sign Financial Statements electronically

Tarang Suresh Puranik - Board Director
Agnieszka Jackowska Durkacz - Board Director

Infosys Management Consulting Pty. Limited
Harsh Shah
Deloitte Touche Tohmatsu
Eclipse Tower, 60 Station Street, Level 19
Parramatta, NSW 2150
This representation letter is provided in connection with your audit of the financial report of Infosys Management Consulting
Pty Limited for the year ended 31 December 2019, for the purpose of expressing an opinion as to whether the financial report
gives a true and fair view in accordance with the Australian Accounting Standards and the Corporations Act 2001.
We confirm that:
1. We have fulfilled our responsibilities, as set out in the terms of the audit engagement dated 17 December 2019, for the
preparation of the financial report in accordance with Australian Accounting Standards and the Corporations Act 2001;
in particular, the financial report gives a true and fair view in accordance therewith.
2. We have provided you with:
• Access to all information of which we are aware that is relevant to the preparation of the financial report such as
records, documentation and other matters;
• Additional information that you have requested from us for the purpose of the audit;
• Unrestricted access to the persons within the entity from whom you determined it necessary to obtain audit evidence; and
• All information required by the Corporations Act 2001 and all requested information, explanations and assistance
for the purposes of the audit.
3. All transactions have been recorded in the accounting records and are reflected in the financial report.
4. We are responsible for the design, implementation and maintenance of internal control to prevent and detect fraud.
5. We have disclosed to you the results of our assessment of the risk that the financial report may be materially misstated
as a result of fraud.
6. There has been no fraud or suspected fraud affecting the entity involving management, employees who have significant
roles in internal control or others where the fraud could have a material effect on the financial report.
7. There have been no allegations of fraud, or suspected fraud, affecting the entity’s financial report communicated by
employees, former employees, analysts, regulators or others.
8. There have been no instances of non-compliance or suspected non-compliance with laws and regulations whose effects
should be considered when preparing the financial report.
9. Significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable.
10. We have disclosed to you the identity of the entity’s related parties and all the related party relationships and transactions
of which we are aware.
11. Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with
the requirements of Australian Accounting Standards.
12. All known actual or possible litigation and claims whose effects should be considered when preparing the financial
report have been disclosed to you and accounted for and disclosed in accordance with the Australian Accounting Standards.
13. There are no uncorrected misstatements, individually and in aggregate, to the financial report as a whole.
14. All events occurring subsequent to the date of the financial report and for which Australian Accounting Standards
require adjustment or disclosure have been adjusted or disclosed within the financial report.
15. In respect of other information:
• we have informed you of all the documents that we expect to issue that may comprise other information;
16. The selection and application of accounting policies as described in Note 2 in the financial report are appropriate.
17. We have no plans or intentions that may affect the carrying value or classification of assets and liabilities.
18. Liabilities, both actual and contingent, have been properly recorded and, when appropriate, adequately disclosed in
the financial report.
19. The entity has satisfactory title to, or control over all assets and there are no liens or encumbrances on such assets that
have not been disclosed nor has any asset been pledged as collateral.
20. We have properly recorded and, when appropriate, adequately disclosed in the financial report the affects of any laws,
regulations and contractual agreements on the financial report, including non-compliance.
356 | Infosys Management Consulting Pty. Limited Infosys Subsidiary Financials 2019-20
21. We have communicated to you all deficiencies in internal control of which we are aware.
22. We have identified and disclosed to you all embedded derivatives of which we are aware.
23. All post-employment benefits have been identified and properly accounted for and all events impacting the plans have
been brought to the actuary’s attention.
24. For defined benefit plans:
(a) the actuarial assumptions underlying the valuation of the plan are in accordance with the best estimate of future
events and are consistent with our knowledge of the business;
(b) the actuary’s calculations have been based on complete and up-to-date member information; and
(c) the amounts included in the financial report derived from the work of the actuary are in accordance with the
requirements of AASB 119 “Employee Benefits”.
25. There are no material share based payments that have not been disclosed to you and there is no documentation relating
to share based payments that has been withheld.
26. We have disclosed to you all financial guarantees that we have given to third parties and we have accounted for these
guarantees in accordance with the requirements of AASB 139 “Financial Instruments Recognition and Measurement”.
We understand that your audit was conducted in accordance with Australian Auditing Standards and was, therefore, designed
primarily for the purpose of expressing an opinion on the financial report of the entity taken as a whole, and that your test of
the financial records and other auditing procedures were limited to those which you considered necessary for that purpose.
Yours faithfully
Roger Gibson
Director
Infosys Subsidiary Financials 2019-20 Infosys Management Consulting Pty. Limited | 357
Directors’ Report
The directors present their report together with the financial 6. Environmental regulation
report of Infosys Management Consulting Pty. Ltd (‘the
The Company’s operations are not regulated by any significant
Company’), for the financial year ended December 31, 2019
environmental regulation under a law of the commonwealth
and the auditor’s report thereon.
or of a state or territory. However, the Board believes that the
Company has adequate systems in place for the Management
1. Directors of its environmental requirements, and is not aware of
The directors of the Company at any time during or since the any breach of those environmental requirements as they
end of the financial year are: apply to the Company.
Joost Alexander Hoeve Appointed February 29, 2012,
Resigned August 5, 2019 7. Events subsequent to reporting date
Geoffrey Anton Leong Appointed May 16, 2016 No matters or circumstances have arisen since the end of the
Roger Gibson Appointed August 9, 2019 financial year and the date of this report which significantly
affected or may significantly affect the operations of the
2. Company Secretary Company, the results of those operations, or the state of affairs
of the Company in future financial years.
Joost Alexander Hoeve was appointed as Company Secretary
on November 30, 2012. Resigned August 5, 2019.
8. Likely developments
Roger Gibson was appointed as Company
The Company will continue to pursue its policy of profitability
Secretary on August 9, 2019.
and market share of its major business sectors during the
next financial year.
3. Principal activities
Further information about likely developments in the
Infosys Management Consulting Pty. Ltd. supports clients
operations of the Company and the expected results of those
in designing and delivering simple and pragmatic solutions
operations in future financial years has not been included in
to their complex business problems. The focus is set on
this report because disclosure of the information would be
processes, data and systems, enabling operating models
likely to result in unreasonable prejudice to the Company.
which work pragmatically and efficiently in today’s complex
and global business environment.
9. Indemnification and insurance of officers
The strategy of the business is to remain cost competitive
and auditors
while increasing the market share by owning our client’s
business challenges, identifying new opportunities and No indemnities have been given or insurance premiums paid,
reimagining business solutions to help create new markets during or since the end of the financial year, for any person
and disrupting existing ones. who is or has been an officer or auditor of the Company.
There were no other significant changes in the nature of the
10. Lead Auditor’s independence
activities of the Company during the year.
declaration
No matters or circumstances have arisen since the end
of the financial year which significantly affected or may The Lead Auditor’s independence declaration is set out
significantly affect the operations of the Company, the results on page 28 and forms part of the Directors’ Report for the
of those operations, or the state of affairs of the Company in financial year ended December 31, 2019.
future financial years. This report is made with a resolution of the directors:
4. Dividends
No dividends were paid during the year and the directors do
not recommend the payment of a dividend.
5. Operating and financial review

Roger Gibson
The profit after tax for the year ended December 31, 2019 Director
amounted to AUD $ 1,152,719 (2018 Profit after tax of AUD
$ 1,134,485). This was primarily a result of an increase of
revenue from AUD $ 22,824,970 in year 2018 to AUD $
24,055,475 in year 2019, increase of cost of sales from AUD Sydney
$ 19,390,797 in year 2018 to AUD $ 20,379,471 in year 2019 March 13, 2020
and increase of tax expense from AUD $ 521,491 in year 2018
to AUD $ 567,781 in year 2019.
In AUD
2019 2018
Assets
Cash and cash equivalents 8 4,745,923 3,461,562
Trade and other receivables 9 2,716,081 2,140,122
Other assets 25,393 7,056
Property, plant and equipment 10 19,929 20,338
Net deferred tax assets 7a 811,003 718,227
Total assets 8,318,329 6,347,305
Liabilities
Trade payables 11 (69,311) (162,113)
Other payables 12 (791,830) (449,912)
Current tax liabilities (237,695) (181,269)
Provisions 13 (2,283,939) (1,827,825)
Total current liabilities (3,382,775) (2,621,119)
Provisions 13 (509,466) (452,817)
Total non-current liabilities (509,466) (452,817)
Total liabilities (3,892,241) (3,073,936)
Surplus / (deficiency) in net assets 4,426,088 3,273,369
Equity
Share capital 14 3,500,300 3,500,300
Accumulated profit / (losses) 925,788 (226,931)
Surplus / (deficiency) in equity 4,426,088 3,273,369
Statement of Profit or Loss and Other Comprehensive Income
In AUD
2019 2018
Revenue 5 24,055,475 22,824,970
Cost of sales 6b (20,379,471) (19,390,797)
Gross profit 3,676,004 3,434,173
Administrative expenses 6d (863,285) (797,708)
Other expenses 6c (1,075,760) (941,107)
Operating profit 1,736,959 1,695,358
Finance income 6a - 1,037
Finance costs 6a (16,459) (40,419)
Net finance costs (16,459) (39,382)
Income tax expense 7b (567,781) (521,491)
Other comprehensive income, net of tax - -
Total comprehensive income 1,152,719 1,134,485
In AUD
Share capital Balance at January 1, 2018
Accumulated losses Surplus/(Deficiency) in Equity
Balance at January 1, 2018 3,500,300 (1,361,416) 2,138,884
Total other comprehensive income - - -
Profit for the year - 1,134,485 1,134,485
Total comprehensive income for the year - 1,134,485 1,134,485
Transactions with owners of the Company
Issue of ordinary shares - - -
Dividends to equity holder - - -
Total transactions with owners of the
Company - - -
Balance at December 31, 2018 3,500,300 (226,931) 3,273,369
Balance at January 1, 2019 3,500,300 (226,931) 3,273,369
Total other comprehensive income - - -
Profit for the year - 1,152,719 1,152,719
Total comprehensive income for the year - 1,152,719 1,152,719
Issue of ordinary shares - - -
Dividends to equity holder - - -
Total transactions with owners of the
Company - - -
Balance at December 31, 2019 3,500,300 925,788 4,426,088
In AUD
2019 2018
Cash receipts from customers 23,446,618 22,723,123
Cash paid to suppliers and employees (21,533,405) (21,003,918)
Cash (used in) / generated from operations 1,913,213 1,719,205
Interest (paid) / received net (8,841) (21,981)
Income tax (paid) / refund received (604,131) (390,587)
Net cash from operating activities 16 1,300,241 1,306,637
Purchase of property, plant and equipment (15,880) (10,322)
Proceeds from / (repayment of) borrowings from holding company - (1,206,136)
Net cash used in financing activities - (1,206,136)
Net increase / (decrease) in cash and cash equivalents 1,284,361 90,179
Cash and cash equivalents at January 1 3,461,562 3,371,383
Cash and cash equivalents as on December 31 4,745,923 3,461,562
1. Reporting entity requirements with respect to lease accounting. It introduces

significant changes to lessee accounting by removing the
Infosys Management Consulting Pty. Ltd. (‘the Company’),
distinction between operating and finance lease and requiring
previously Lodestone Management Consultants Pty. Ltd., is
the recognition of a right-of-use asset and a lease liability
a company domiciled in Australia, whereby the Company’s
at commencement for all leases, except for short-term
name was changed on February 1, 2016. The address of the
leases and leases of low value assets when such recognition
Company’s registered office is Level 10, 77 Pacific Highway.
exemptions are adopted. In contrast to lessee accounting,
PO Box 1885 North Sydney, NSW 2060 Australia. The
the requirements for lessor accounting have remained largely
financial statements of the Company are as at and for the year
unchanged. Details of these new requirements are described
ended December 31, 2019. The Company is a for-profit entity
in Note 3 (j). There is no material impact of the adoption of
and is primarily involved in specialized IT consulting service.
AASB 16 on the Company’s financial statements.
2. Basis of preparation The date of initial application of AASB 16 for the
Company is January 1, 2019.
(a) Statement of compliance
The entity as a lessee
These financial statements are general purpose financial
statements which have been prepared in accordance with The entity assesses whether a contract contains a lease, at
Corporations Act 2001 and Australian Accounting Standards inception of a contract. A contract is, or contains, a lease if the
– Reduced Disclosure Requirements, and comply with other contract conveys the right to control the use of an identified
requirements of the law. asset for a period of time in exchange for consideration. To
assess whether a contract conveys the right to control the
In the opinion of the directors, the Company is not publicly
use of an identified asset, the entity assesses whether: (1) the
accountable nor a reporting entity. The financial report of
contract involves the use of an identified asset (2) the entity
the Company has been drawn up as a financial report for
has substantially all of the economic benefits from use of the
distribution to the members and for the purpose of fulfilling
asset through the period of the lease and (3) the entity has
the requirements of the Corporations Act 2001.
the right to direct the use of the asset.
The financial report has been prepared in accordance with
In preparation for the first-time application of AASB 16, the
the recognition, measurement and classification aspects of all
Company has assessed that the new definition in AASB 16
applicable Australian Accounting Standards (AASBs) adopted
will not significantly change the scope of contracts that meet
by the Australian Accounting Standards Board (AASB).
the definition of a lease for the Company.
The annual financial statements were authorized by the
For short-term leases (lease term of 12 months or less) and
directors on March 13, 2020.
leases of low-value assets (which includes tablets and personal
(b) Basis of measurement computers, small items of office furniture and telephones),
the Company has opted to recognize a lease expense on a
The financial statements have been prepared on the historical
straight-line basis as permitted by AASB 16. This expense is
cost basis, unless otherwise indicated.
presented within ‘other expenses’ in profit or loss.
(c) Functional and presentation currency The following table shows the operating lease commitments
These financial statements are presented in Australian Dollars, disclosed applying AASB 117 at December 31, 2018,
which is the Company’s functional currency. discounted using the incremental borrowing rate at the date
of initial application and the lease liabilities recognized in the
(d) Use of estimates and judgments statement of financial position at the date of initial application.
The preparation of financial statements in conformity with Impact on retained earnings In AUD
AASB requires management to make judgments, estimates as at January 1, 2019
and assumptions that affect the application of accounting Operating lease
policies and the reported amounts of assets, liabilities, income commitments at December
and expenses. Actual results may differ from these estimates. 31, 2018 43,642
Estimates and underlying assumptions are reviewed on Short-term leases and leases
an ongoing basis. Revisions to accounting estimates are of low-value assets (43,642)
recognized in the period in which the estimates are revised Lease liabilities recognised
and in any future periods affected. at January 1, 2019 -
(e) Adoption of new and revised standards
Impact of initial application of AASB 16 Leases
In the current year, the Company has applied AASB 16
Leases that is effective for annual periods that begin on or
after January 1, 2019. AASB 16 introduces new or amended
3. Significant accounting policies that is created or retained by the Company is recognized as a
separate asset or liability.
The accounting policies set out below have been applied
consistently to all periods presented in these financial Financial assets and liabilities are offset and the net amount
statements, and have been applied consistently by the Company. presented in the statement of financial position when, and
only when, the Company has a legal right to offset the
(a) Foreign currency amounts and intends either to settle on a net basis or to realize
Transactions in foreign currencies are translated to the the asset and settle the liability simultaneously.
functional currency of the Company at exchange rates at The Company has the following non-derivative financial assets:
the dates of the transactions. Monetary assets and liabilities
denominated in foreign currencies at the reporting date are
retranslated to the functional currency at the exchange rate at Loans and receivables are financial assets with fixed or
that date. The foreign currency gain or loss on monetary items determinable payments that are not quoted in an active
is the difference between amortized cost in the functional market. Such assets are recognized initially at fair value
currency at the beginning of the period, adjusted for effective plus any directly attributable transaction costs. Subsequent
interest and payments during the period, and the amortized to initial recognition loans and receivables are measured
cost in foreign currency translated at the exchange rate at at amortized cost using the effective interest method, less
the end of the year. Non-monetary assets and liabilities any impairment losses.
denominated in foreign currencies that are measured at Loans and receivables comprise trade and other receivables.
fair value are retranslated to the functional currency at the Cash and cash equivalents
exchange rate at the date that the fair value was determined. Cash and cash equivalents comprise cash balances and call
Non-monetary items in a foreign currency that are measured deposits with original maturities of three months or less from
in terms of historical cost are translated using the exchange the acquisition date that are subject to an insignificant risk of
rate at the date of the transaction. Exchange differences arising changes in their fair value, and are used by the Company in
on the translation of non-monetary items are recognized the Management of its short-term commitments in the current
directly in equity to the extent that the gain or loss is directly liabilities on the Balance Sheet.
recognized in equity, otherwise the exchange difference is
recognized in profit or loss . (ii) Non-derivative financial liabilities
(b) Financial Instruments The Company initially recognizes debt securities issued and
subordinated liabilities on the date that they are originated.
AASB 9 Financial Instruments: Classification and All other financial liabilities (including liabilities designated
Measurement (effective for annual periods beginning on or at fair value through profit or loss) are recognized initially on
after January 1, 2018) – AASB 9 was issued by the IASB in the trade date at which the Company becomes a party to the
November 2009 and amended in November 2013 to include contractual provisions of the instrument.
the new requirements for general hedge accounting. Another
revised version of AASB 9 was issued in July 2014 mainly to The Company derecognizes a financial liability when its
include, a) impairment requirements for financial assets and contractual obligations are discharged or cancelled or expire.
b) limited amendments to the classification and measurement The Company classifies non-derivative financial liabilities
requirements by introducing a ‘fair value through other into the other financial liabilities category. Such financial
comprehensive income’ (FVTOCI) measurement category for liabilities are recognized initially at fair value less any
certain simple debt instruments. In relation to the impairment directly attributable transaction costs. Subsequent to
of financial assets, AASB 9 requires an expected credit loss initial recognition, these financial liabilities are measured
model. This standard has not impacted the Company’s at amortized cost using the effective interest rate method.
financial position or performance, as the Company does not Other financial liabilities comprise loans and borrowings and
have any financial instruments which are designated through trade and other payables.
profit or loss category.
(iii) Share Capital
(i) Non-derivative financial assets Ordinary shares
The Company initially recognizes loans and receivables Ordinary shares are classified as equity. Incremental costs
on the date that they are originated. All other financial directly attributable to the issue of ordinary shares are
assets (including assets designated at fair value through recognized as a deduction from equity, net of any tax effect.
profit or loss) are recognized initially on the trade date at
which the Company becomes a party to the contractual (c) Property, plant and equipment
provisions of the instrument.
(i) Recognition and measurement
Items of property, plant and equipment are measured at cost-less
contractual rights to the cash flows from the asset expire, or
accumulated depreciation and accumulated impairment losses.
it transfers the rights to receive the contractual cash flows
on the financial asset in a transaction in which substantially Cost includes expenditure that is directly attributable to the
all the risks and rewards of ownership of the financial asset acquisition of the asset.
are transferred. Any interest in transferred financial assets
When parts of an item of property, plant and equipment have Amortization methods, useful lives and residual values are
different useful lives, they are accounted for as separate items reviewed at each financial year-end and adjusted if appropriate.
(major components) of property, plant and equipment.
(e) Impairment
Any gains and losses on disposal of an item of property, plant
and equipment (calculated as the difference between the net (i) Non-financial assets
proceeds from disposal and the carrying amount of the item) The carrying amounts of the Company’s non-financial
is recognized in profit or loss. assets, other than deferred tax assets, are reviewed at each
reporting date to determine whether there is any indication
(ii) Subsequent costs of impairment. If any such indication exists, then the asset’s
The cost of replacing part of an item of property, plant and recoverable amount is estimated. Indefinite life intangible
equipment is recognized in the carrying amount of the item assets are tested annually for impairment. An impairment loss
if it is probable that the future economic benefits embodied is recognized if the carrying amount of an asset or its related
within the part will flow to the Company and its cost can cash-generating unit (CGU) exceeds its recoverable amount.
be measured reliably. The costs of the day to day servicing
The recoverable amount of an asset or CGU unit is the greater
of property, plant and equipment are recognized in profit
of its value in use and its fair value less costs to sell. In assessing
or loss as incurred.
value in use, the estimated future cash flows are discounted to
(iii) Depreciation their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and
Items of property, plant and equipment are depreciated on a
the risks specific to the asset. For impairment testing, assets
straight-line basis in profit or loss over the estimated useful
are grouped together into the smallest group of assets that
lives of each component.
generates cash inflows from continuing use that are largely
Items of property, plant and equipment are depreciated from independent of the cash inflows of other assets or CGUs.
the date that they are installed and are ready for use, or in
Impairment losses are recognized in profit or loss. Impairment
respect of internally constructed assets, from the date that the
losses recognized in respect of CGUs are allocated first to
asset is completed and ready for use.
reduce the carrying amount of any goodwill allocated to the
The estimated useful lives for the current and comparative CGU (or group of CGUs), and then to reduce the carrying
periods are as follows: amounts of the other assets in the CGU (or group of CGUs)
Leasehold improvement/ installation 5 years on a pro rata basis.
IT equipment 3 years An impairment loss in respect of goodwill is not reversed. For
Office machine 2 years other assets, an impairment loss is reversed only to the extent
Furniture 5 years that the asset’s carrying amount does not exceed the carrying
amount that would have been determined, net of depreciation
or amortization, if no impairment loss had been recognized.
reviewed at each reporting date.
(ii) Non-derivative financial assets
(d) Intangible assets
A financial asset is assessed at each reporting date to determine
(i) Other intangible assets - software whether there is any objective evidence that it is impaired.
Other intangible assets that are acquired by the Company and A financial asset is impaired if there is objective evidence of
have finite useful lives are measured at cost less accumulated impairment as a result of one or more events that occurred
amortization and accumulated impairment losses. after the initial recognition of the asset, and that the loss event
(ii) Subsequent expenditure had an impact on the estimated future cash flows of that asset
that can be estimated reliably.
Subsequent expenditure is capitalized only when it increases
the future economic benefits embodied in the specific asset to Objective evidence that financial assets are impaired includes
which it relates. All other expenditure, including expenditure default or delinquency by a debtor, restructuring of an amount
on internally generated goodwill and brands, is recognized in due to the Company on terms that the Company would not
profit or loss as incurred. consider otherwise, indications that a debtor or issuer will
enter bankruptcy, adverse changes in the payment status
(iii) Amortization of borrowers or issuers, economic conditions that correlate
Intangible assets are amortized on a straight-line basis in with defaults or the disappearance of an active market for a
profit or loss over their estimated useful lives, from the date security. In addition, for an investment in an equity security,
that they are available for use. a significant or prolonged decline in its fair value below its
cost is objective evidence of impairment.
The estimated useful lives for the current and comparative
periods are as follows: The Company considers evidence of impairment for financial
assets measured at amortized cost (loans and receivables and
Software 3 years
held-to-maturity financial assets) at both a specific asset and
collective level. All individually significant assets are assessed
for specific impairment. Those found not to be specifically
impaired are then collectively assessed for any impairment
that has been incurred but not yet identified. Assets that A liability is recognized for the amount expected to be paid
are not individually significant are collectively assessed under short term cash bonus or profit sharing plans if the
for impairment by grouping together assets with similar Company has a present legal or constructive obligation to
risk characteristics. pay this amount as a result of past service provided by the
In assessing collective impairment, the Company uses employee and the obligation can be estimated reliably.
historical trends of the probability of default, timing of If the amount of the leave is expected to be settled beyond
recoveries and the amount of loss incurred, adjusted for 12 months from the reporting date, the amount is measured
management’s judgment as to whether current economic and in accordance with a long-term benefit as noted above
credit conditions are such that the actual losses are likely to (Refer to Note 3(f)(ii)).
be greater or lesser than suggested by historical trends.
(g) Provisions
An impairment loss in respect of a financial asset measured
at amortized cost is calculated as the difference between its
carrying amount and the present value of the estimated future
can be estimated reliably, and it is probable that an outflow
of economic benefits will be required to settle the obligation.
rate. Losses are recognized in profit or loss and reflected in
an allowance account against receivables.
Interest on the impaired asset continues to be recognized market assessments of the time value of money and the risks
through the unwinding of the discount. When an event specific to the liability. The unwinding of the discount is
occurring after the impairment was recognized causes the recognized as a finance cost.
amount of impairment loss to decrease, the decrease in
impairment loss is reversed through profit or loss. (h) Onerous contracts
A provision for onerous contracts is recognized when the
(f) Employee benefits expected benefits to be derived by the Company from a
(i) Defined contribution plans contract are lower than the unavoidable cost of meeting its
A defined contribution plan is a post-employment benefit obligations under the contract. The provision is measured
plan under which the Company pays fixed contributions at the present value of the lower of the expected cost of
into a separate entity and will have no legal or constructive terminating the contract and the expected net cost of
obligation to pay further amounts. Obligations for continuing with the contract. Before a provision is established,
contributions to defined contribution plans are recognized the Company recognizes any impairment loss on the assets
as an employee expense in profit and loss when they are associated with the contract.
due. Prepaid contributions are recognized as an asset (i) Services
to the extent that a cash refund or a reduction in future
Revenue is derived from providing local marketing and
payments is available.
client liaison functions for clients based in Australia as well
(ii) Long term employee benefits as performing onsite software development/ implementation
The Company’s net obligation in respect of long term employee services on the basis of agreed mark-up on cost incurred.
benefits is the amount of future benefit that employees have (j) Leases
earned in return for their service in the current and prior
periods plus related on costs; that benefit is discounted to (i) Policies applicable from January 1, 2019
determine its present value, and the fair value of any related The Company assesses whether a contract is or contains a
assets is deducted. The discount rate is the yield at the lease, at inception of the contract. The Company recognizes
reporting date on corporate bond rates that have maturity a right-of-use asset and a corresponding lease liability with
dates approximating the terms of the Company’s obligations. respect to all lease arrangements in which it is the lessee,
except for short-term leases (defined as leases with a lease
(iii) Termination benefits
term of 12 months or less) and leases of low value assets
Termination benefits are recognized as an expense when (such as tablets and personal computers, small items of office
the Company is demonstrably committed, without realistic furniture and telephones). For these leases, the Company
possibility of withdrawal, to a formal detailed plan to either recognizes the lease payments as an operating expense on a
terminate employment before the normal retirement date, or straight-line basis over the term of the lease unless another
to provide termination benefits as a result of an offer made systematic basis is more representative of the time pattern in
to encourage voluntary redundancy. Termination benefits which economic benefits from the leased assets are consumed.
for voluntary redundancies are recognized as an expense
In the case of the Company, all leases are short term leases and
if the Company has made an offer encouraging voluntary
hence are exempted from the recognition and measurement
redundancy, it is probable that the offer will be accepted, and
requirements of AASB 16 Leases.
the number of acceptances can be estimated reliably.
The lease liability is initially measured at the present value of
(iv) Short term benefits the lease payments that are not paid at the commencement
Short-term employee benefit obligations are expensed as the date, discounted by using the rate implicit in the lease. If
related service is provided.
this rate cannot be readily determined, the lessee uses its included in the related right-of-use asset, unless those costs
incremental borrowing rate. are incurred to produce inventories.
Lease payments included in the measurement of the Right-of-use assets are depreciated over the shorter period of
lease liability comprise: lease term and useful life of the underlying asset. If a lease
• Fixed lease payments (including in-substance fixed transfers ownership of the underlying asset or the cost of
payments), less any lease incentives receivable; the right-of-use asset reflects that the Company expects to
exercise a purchase option, the related right-of-use asset is
• Variable lease payments that depend on an index
depreciated over the useful life of the underlying asset.
or rate, initially measured using the index or rate at
the commencement date; The depreciation starts at the commencement date of the lease.
• The amount expected to be payable by the lessee under The right-of-use assets are presented as a separate line in the
residual value guarantees; consolidated statement of financial position.
• The exercise price of purchase options, if the lessee is Variable rents that do not depend on an index or rate are not
reasonably certain to exercise the options; included in the measurement of the lease liability and the
right-of-use asset. The related payments are recognized as an
• Payments of penalties for terminating the lease, if the lease
expense in the period in which the event or condition that
term reflects the exercise of an option to terminate the lease.
triggers those payments occurs and are included in ‘Other
The lease liability is presented as a separate line in the expenses’ in profit or loss (Refer to Note 6c).
consolidated statement of financial position.
As a practical expedient, AASB 16 permits a lessee not to
The lease liability is subsequently measured by increasing the separate non-lease components, and instead account for
carrying amount to reflect interest on the lease liability (using any lease and associated non-lease components as a single
the effective interest method) and by reducing the carrying arrangement. The Company has not used this practical
amount to reflect the lease payments made. expedient. For contracts that contain a lease component and
The Company remeasures the lease liability (and one or more additional lease or non-lease components, the
makes a corresponding adjustment to the related right- Company allocates the consideration in the contract to each
of-use asset) whenever: lease component on the basis of the relative stand-alone price
• The lease term has changed or there is a significant event of the lease component and the aggregate stand-alone price
or change in circumstances resulting in a change in the of the non-lease components.
assessment of exercise of a purchase option, in which case (k) Finance income and finance costs
the lease liability is remeasured by discounting the revised
lease payments using a revised discount rate. Finance income comprises interest income on funds invested,
gains on the disposal of available-for-sale financial assets,
• The lease payments change due to changes in an index or changes in the fair value of financial assets at fair value
rate or a change in expected payment under a guaranteed through profit or loss, and reclassifications of amounts
residual value, in which cases the lease liability is previously recognized in other comprehensive income.
remeasured by discounting the revised lease payments Interest income is recognized as it accrues in profit or loss,
using an unchanged discount rate (unless the lease using the effective interest method.
payments change is due to a change in a floating interest
rate, in which case a revised discount rate is used). Finance costs comprise interest expense on borrowings and
changes in the fair value of financial assets at fair value through
• A lease contract is modified and the lease modification profit or loss (except impairment on trade receivables).
is not accounted for as a separate lease, in which case
the lease liability is remeasured based on the lease term Borrowing costs that are not directly attributable to the
of the modified lease by discounting the revised lease acquisition, construction or production of a qualifying asset are
payments using a revised discount rate at the effective date recognized in profit or loss using the effective interest method.
of the modification. Foreign currency gains and losses are reported on a net
The Company did not make any such adjustments during basis as either finance income or finance cost depending
the periods presented. on whether foreign currency movements are in a net gain
or net loss position.
The right-of-use assets comprise the initial measurement of the
corresponding lease liability, lease payments made at or before (l) Tax
the commencement day, less any lease incentives received Tax expense comprises current and deferred tax. Current and
and any initial direct costs. They are subsequently measured deferred tax are recognized in profit or loss except to the
at cost-less accumulated depreciation and impairment losses. extent that it relates to items recognized directly in equity or
Whenever the Company incurs an obligation for costs to in other comprehensive income.
dismantle and remove a leased asset, restore the site on which Current tax is the expected tax payable or receivable on the
it is located or restore the underlying asset to the condition taxable income or loss for the year, using tax rates enacted
required by the terms and conditions of the lease, a provision or substantively enacted at the reporting date, and any
is recognized and measured under AASB 137. To the extent adjustment to tax payable in respect of previous years.
that the costs relate to a right-of-use asset, the costs are
Deferred tax is recognized in respect of temporary differences
between the carrying amounts of assets and liabilities
for financial reporting purposes and the amounts used significant effect on the financial statements of the Company.
for taxation purposes. Deferred tax is not recognized for These standards become mandatory for the Company’s 2019
temporary differences on the initial recognition of assets or or 2020 financial statements. The Company does not plan to
liabilities in a transaction that is not a business combination adopt these standards early.
and that affects neither accounting nor taxable profit or loss.
Deferred tax is measured at the tax rates that are expected to be 4. Determination of fair values
applied to temporary differences when they reverse, using tax A number of the Company’s accounting policies and
rates enacted or substantively enacted at the reporting date. disclosures require the determination of fair value, for
In determining the amount of current and deferred tax the both financial and non-financial assets and liabilities. Fair
Company takes into account the impact of uncertain tax values have been determined for measurement and / or
positions and whether additional taxes and interest may be disclosure purposes based on the following methods. When
due. The Company believes that its accruals for tax liabilities applicable, further information about the assumptions made
are adequate for all open tax years based on its assessment in determining fair values is disclosed in the notes specific to
of many factors, including interpretations of tax law and that asset or liability.
prior experience. This assessment relies on estimates and (i) Trade and other receivables
assumptions and may involve a series of judgments about
future events. New information may become available that The fair value of trade and other receivables, excluding
causes the Company to change its judgment regarding the construction contracts in progress is estimated as the
adequacy of existing tax liabilities; such changes to tax present value of future cash flows, discounted at the market
liabilities will impact tax expense in the period that such a rate of interest. For trade and other receivables maturing
determination is made. within one year from the Balance Sheet date, the carrying
Deferred tax assets and liabilities are offset if there is a of these instruments.
legally enforceable right to offset current tax liabilities and
assets, and they relate to income taxes levied by the same (ii) Other non-derivative financial liabilities
tax authority on the same taxable entity, or on different tax Fair value, which is calculated based on the present value of
entities, but they intend to settle current tax liabilities and future principal and interest cash flows, is discounted at the
assets on a net basis or their tax assets and liabilities will be market rate of interest at the reporting date.
realized simultaneously.
A deferred tax asset is recognized for unused tax losses, 5. Revenue
tax credits and deductible temporary differences, to the In AUD
extent that it is probable that future taxable profits will be Particulars As at December 31
available against which they can be utilized. Deferred tax 2019 2018
assets are reviewed at each reporting date and are reduced Related party revenue 24,055,475 22,811,785
to the extent that it is no longer probable that the related tax Third party revenue - 13,185
benefit will be realized. Total 24,055,475 22,824,970
(m) Goods and Services Tax
6a. Finance income and finance costs
Revenue, expenses and assets are recognized net of the In AUD
amount of Goods and Services Tax (GST), except where
the amount of GST incurred is not recoverable from the Particulars As at December 31,
Australian Taxation Office (ATO). In these circumstances, 2019 2018
the GST is recognized as part of the cost of acquisition of the Finance income
asset or as part of the expense. Interest received - 1,037
- 1,037
Receivables and payables are stated with the amount of
Finance costs
GST included. The net amount of GST recoverable from, or
payable to, the ATO is included as a current asset or liability
Bank charges (10,485) (3,038)
in the Balance Sheet.
Interest expense on loan and
Cash flows are included in the statement of cash flows on a borrowings - (19,980)
gross basis. The GST components of cash flows arising from Net unrealized / realized
investing and financing activities, which are recoverable from, foreign currency loss (5,974) (17,401)
or payable to, the ATO are classified as operating cash flows. (16,459) (40,419)
(n) New standards and interpretations not yet Net finance (expense) (16,459) (39,382)
adopted
A number of new standards, amendments to standards and
interpretations are effective for annual periods beginning after
January 1, 2019, and have not been applied in preparing
these financial statements. None of these is expected to have a
6b. Cost of sales (b) Reconciliation of effective tax rate
In AUD In AUD
2019 2018 2019 2018
Travel 1,676,883 1,474,255 Profit / (Loss) before tax 1,720,500 1,655,976
Employee benefits expense 17,369,212 15,334,461 Tax using the Company’s
External contractor expense 1,333,376 2,582,081 domestic tax rate of 30%
20,379,471 19,390,797 (2018: 30%) 516,150 496,793
Catch-up deferred tax
6c. Other expenses accounted (9,021) (7,299)
In AUD Non-deductible tax expenses 60,652 31,997
Particulars As at December 31, Income tax (reversal) /
2019 2018 expense for the year 567,781 521,491
Depreciation expense 16,288 35,959
Other expense 1,059,472 905,148 8. Cash and cash equivalents
1,075,760 941,107 In AUD
6d. Administrative expenses 2019 2018
In AUD Cash and cash equivalents 4,745,923 3,461,562
2019 2018
Communications 132,356 217,921
9. Trade and other receivables
In AUD
Legal and accounting 47,973 46,521
Back office expense 121,769 74,246 Particulars As at December 31,
Employee benefit expense 561,187 459,020 2019 2018
863,285 797,708 Trade receivable due from
related party 2,672,071 2,128,873
6e. Employee expense
2,716,081 2,140,122
In AUD
Particulars As at December 31, The average credit period on sale is 30 days. No interest is
2019 2018 charged on trade receivables. Based on management’s best
Employee salary 14,140,584 12,149,147 estimate, no doubtful debts exist as on December 31, 2019.
Employee bonus 942,841 1,152,956
Annual leave and long
service leave 170,007 255,429
Superannuation 1,390,803 1,256,613
Other employee related
expenses 1,286,164 979,336
17,930,399 15,793,481
7. Tax expense
(a) Deferred tax asset
In AUD
2019 2018
Deferred tax assets – timing
differences (819,757) (722,986)
Deferred tax liabilities 8,754 4,759
(811,003) (718,227)
10. Property, plant and equipment
In AUD
Particulars Leasehold IT equipment / Furniture Total
improvement / Office machines
installation
Cost
Balance at January 1, 2018 205,163 241,110 42,019 488,292
Additions - 10,322 10,322
Disposals / write-off - (55) - (55)
Balance at December 31, 2018 205,163 251,377 42,019 498,559
Depreciation and impairment losses
Balance at January 1, 2018 (205,163) (202,637) (34,517) (442,317)
Depreciation for the year - (34,059) (1,900) (35,959)
Disposals / write-off - 55 - 55
Balance at 31 December 2018 (205,163) (236,641) (36,417) (478,221)
Carrying amounts
As at January 1, 2018 - 38,473 7,502 45,975
As at December 31, 2018 - 14,736 5,602 20,338
In AUD
Particulars Leasehold IT Equipment / Furniture Total
improvement / Office machines
installation
Cost
Balance at January 1, 2019 205,163 251,377 42,019 498,559
Additions - 15,880 - 15,880
Disposals / write-off - - (2,993) (2,993)
Balance at December 31, 2019 205,163 267,257 39,026 511,446
Depreciation and impairment losses
Balance at January 1, 2019 (205,163) (236,641) (36,417) (478,221)
Depreciation for the year - (14,393) (1,896) (16,289)
Disposals / write-off - - 2,993 2,993
Balance at December 31, 2019 (205,163) (251,034) (35,320) (491,517)
Carrying amounts
at January 1, 2019 - 14,736 5,602 20,338
at December 31, 2019 - 16,223 3,706 19,929
11. Trade payables

In AUD
2019 2018
Trade payables due to related party 39,985 37,261
Other trade payables 29,326 124,852
69,311 162,113
The average credit period on purchases is 30 days from the date of invoice. No interest is charged on overdue payables. The
Company has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.
12. Other payables

In AUD

2019 2018
Accrued superannuation expense 146,942 -
Accrued subcontractor expenses 53,062 121,900
Other accruals 500,940 252,233
Payroll tax 90,886 75,779
791,830 449,912
13. Provisions 1. Franking credits / debits that will arise from the payment
/ receipts of the current tax liabilities / assets;
Employee benefits
In AUD 2. Franking debits that will arise from the payment of
dividends recognized as a liability at the year-end;
As at December 31,
2019 2018 3. Franking credits that will arise from the receipt of
Current dividends recognized as receivables at the year-end; and
Annual leave 892,566 814,521 4. Franking credits that the entity may be prevented from
Long service leave distributing in subsequent years.
outstanding 102,458 67,145 The ability to utilize the franking credits is dependent upon
Incentive provision 314,119 - there being sufficient available profits to declare dividends.
Accrued bonus 974,796 946,159
Total current 2,283,939 1,827,825 15. key managerial personnel
Non-current compensation
Long service leave
key managerial personnel of the Company are those persons
outstanding 509,466 452,817
having the authority and responsibility for planning,
Total non-current 509,466 452,817
directing and controlling activities of the Company. The
Total employee provisions 2,793,405 2,280,642
directors of the Company are considered as key management
personnel of the Company.
14. Capital and reserves The employee compensation is as follows:
Share capital In AUD
In shares As at December 31,
As at December 31, 2019 2018
2019 2018 Short-term employee benefits 1,453,107 1,114,252
On issue at January 1 3,500,300 3,500,300
Add: shares issued during 16. Reconciliation of cash flow from
the year - -
On issue at December 31 3,500,300 3,500,300 operating activities
In AUD
Ordinary shares As at December 31,

2019 2018
The Company does not have authorized capital or par value
Reconciliation of Cash Flow
in respect of its issued shares. All issued shares are fully paid.
from Operations with Profit
All shares rank equally with regard to the Company’s residual
after Income Tax
assets, except that preference shareholders participate only to
Profit / (Loss) for the year
the extent of the face value of the shares.
after tax 1,152,719 1,134,485
The holders of ordinary shares are entitled to receive Adjustments for:
dividends as declared from time to time, and are entitled to Depreciation expense 16,288 35,958
one vote per share at meetings of the Company. In respect of Loss on sales of fixed assets - -
the Company’s shares that are held by the Company, all rights Income tax expense 567,781 521,491
are suspended until those shares are reissued. Operating profit / (loss)
No dividend was paid during the year, and no proposed before changes in working
dividend has been made or anticipated at the date of this capital 1,736,788 1,691,934
report (2018: $nil). Decrease / (increase) in trade
Dividend franking account as at December 31 and other receivables (594,295) (85,751)
In AUD (Decrease) / increase in trade
As at December 31, and other payables 563,205 (205,112)
2019 2018 (Decrease) / increase in
30% franking credits provision and employee
available to shareholders benefits 198,644 313,893
of Infosys Management Increase / (decrease) in
Consulting Pty. Ltd. for deferred income 30 (17,740)
subsequent financial years 1,491,665 887,513 Income tax (604,131) (390,587)
1,491,665 887,513 Net cash from / (used in)
operating activities 1,300,241 1,306,637
The above available amounts are based on the balance of the
dividend franking account at year-end adjusted for:
17. Related party transactions 18. Operating leases
The details of the related party transactions entered into by Leases as lessee
the Company during the year ended December 31, 2019 and
At the end of the reporting period, the future minimum
December 31, 2018 are as follows:
In AUD lease payments under non-cancellable operating leases
are payable as follows.
As at December 31, In AUD
2019 2018
As at December 31,
Revenue Transactions
2019 2018
Sale of services
Less than one year - 43,642
Infosys Limited 22,039,214 17,605,002
Between one and five years - -
Infosys Consulting GmBH 492,470 4,482,998
Total - 43,642
Infosys BPM Limited 1,262,248 665,261
Infosys Compaz Pte. Ltd. 257,327 -
Portland Group Pty. Ltd. 4,216 58,524 19. Financial instruments
24,055,475 22,811,785
In AUD
Infosys Consulting GmBH - 18,660
Infosys consulting Holding Financial assets As at December 31,
AG - 5,928 2019 2018
Infosys Consulting Pte. Ltd. 120,441 102,693 Cash and cash equivalents 4,745,923 3,461,562
Infy Consulting BV 39,719 12,105 Receivables 2,672,071 2,128,873
Infosys Consulting AG 135,618 155,048 Financial liabilities
295,778 294,434 At amortized cost:
Employee stock Trade payables (69,311) (162,113)
compensation 106,297 16,466 Other payables (795,282) (326,653)
Capital transaction
Repayment of Loan- Infosys 20. Auditors’ remuneration
Consulting Holding AG - 1,225,748 In AUD
- 1,225,748 As at December 31,
Interest expense 2019 2018
Infosys Consulting Holding Audit of financial reports* 25,000 25,000
AG - 19,965
Other services - -
- 19,965
Total 25,000 25,000
The details of the amount due to or due from related parties as
*The audit fees for 2018 and 2019 is payable to
at December 31, 2019 and December 31, 2018 are as follows:
Deloitte Touche Tohmatsu.
In AUD
As at December 31, 21. Ultimate parent entity
2019 2018 As at, and throughout the financial year ending December
Trade receivables 31, 2019, the parent entity of the Company was Infosys
Infosys Limited 2,152,090 1,381,637 Consulting Holding AG, incorporated in Switzerland, and
Infosys Consulting GmBH - 379,355 the ultimate parent is Infosys Limited, India.
Portland Group Pty. Ltd. - 13,580
Infosys Compaz Pte. Ltd. 257,301 - 22. Events subsequent to reporting date
There has not arisen in the interval between the end of the
2,672,071 2,128,873
financial year and the date of this report any item, transaction
Other receivable
or event of a material and unusual nature likely, in the opinion
Infosys Consulting Holding AG - 1,643
of the directors of the Company, to affect significantly the
Trade Payables
operations of the Company, the results of those operations, or
Infosys Consulting Pte. Ltd. 21,114 17,828
the state of affairs of the Company, in future financial years.
Infy Consulting BV 15,332 12,124
Infosys Limited - 646
23. Capital management
Infosys Consulting AG 3,539 731 The Board’s policy is to improve its capital base so as to
39,985 37,261 maintain investor, creditor and market confidence and to
Provision expense sustain future development of the business. The Board of
Employee stock comp 134,327 30,273 Directors will continue to monitor the return on capital, and
level of dividends to ordinary shareholders.
The Board seeks to maintain a balance between higher returns that might be possible with higher levels of borrowings and
the advantages and security offered by a sound capital position. There were no changes to the Company’s approach to capital
management during the year.
The Company is not subject to externally imposed capital requirements, other than any requirements that exist by way of
arrangements entered into by the Company’s ultimate parent entity.
Directors’ declaration
In the opinion of the directors of Infosys Management Consulting Pty Ltd (“the Company”):
(a) the Company is not publicly accountable nor a reporting entity;
(b) the financial statements and notes, set out on pages 4 to 26, are in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the financial position of the Company as at 31 December 2019 and of its
performance, as represented by the results of its operations and its cash flows, for the financial year ended on
that date in accordance with the statement of compliance and basis of preparation described in Notes 1 to 4;
(ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) to
the extent described in Note 2, and the Corporations Regulations 2001; and
(c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
Signed in accordance with a resolution of the directors:
Roger Gibson
Director
Sydney
March 13, 2020
Kallidus, Inc.
To the Board of Directors of Infosys Limited
Opinion
We have audited the financial statements of Kallidus Inc. (“the Company”), subsidiary company of Infosys Limited (“the Holding
Company”), which comprise the Balance Sheet as at December 31 2019, the statement of profit and loss account (including
other comprehensive income), the statement of cash flows and the statement of changes in equity for the year then ended, and
notes to the financial statements, including a summary of significant accounting policies and other explanatory information
(herein referred to as “Ind AS financial statements”).
In our opinion, the accompanying Ind AS financial statements give a true and fair view of the financial position of the entity as
at December 31, 2019, and of its financial performance including other comprehensive income, it’s cash flows and the changes
in equity for the year then ended in accordance with the Indian Accounting Standards as specified under section 133 of the
Companies Act 2013 (‘the Act’) read with relevant rules issued thereunder.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) issued by ICAI. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the entity in accordance with the ethical requirements that are relevant to our audit of the Ind AS financial
statements in India, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter
We draw attention to Note 2.19 of the Ind AS financial statements of the Company, where the Board of Director of the Company,
in the board meeting held on 10 October 2019 have approved the business transfer of the Company to the Holding Company.
The Company is in the process of executing the business transfer agreement and related documents to transfer the business,
subject to securing the requisite regulatory approvals for a consideration based on an independent valuation.
Our opinion is not modified in respect of this matter.
Responsibilities of Management for the Ind AS Financial Statements
The Company’s Board of Directors is responsible for the preparation and fair presentation of these Ind AS financial statements
in accordance with the aforesaid Indian Accounting Standards, and for such internal control as management determines is
necessary to enable the preparation of these Ind AS financial statements that are free from material misstatement, whether
In preparing these Ind AS financial statements, management is responsible for assessing the entity’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless management either intends to liquidate the entity or to cease operations, or has no realistic alternative but to do so.
The Company’s Board of Directors are responsible for overseeing the entity’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether these Ind AS financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect
Ind AS financial statements.
• Identify and assess the risks of material misstatement of these Ind AS financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
376 I Kallidus, Inc. Infosys Subsidiary Financials 2019-20

the entity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
However, future events or conditions may cause the entity to cease to continue as a going concern.
audit and significant audit findings that we identify during our audit.
for B S R & Co. LLP

Firm’s Registration number : 101248W/W-100022
Amrit Bhansali
Partner
UDIN: 20065155AAAACW2596
Place: Bengaluru
Date: June 1, 2020
Infosys Subsidiary Financials 2019-20 Kallidus, Inc. I 377

Balance Sheet
in US$
2019 2018
ASSETS
Non-current assets
Property, plant and equipment 2.1 671,733 1,100,463
Intangible assets 2.1 – –
Deferred tax assets, net 2.12 10,063,260 7,002,569
Income tax assets, net 2.12 – 10,677
Current assets
Financial assets
Other financial assets 2.2 3,118,467 181,898
Total assets 20,444,804 15,798,826
Equity
Other equity (9,534,484) (2,518,066)
Total equity (7,054,793) (38,375)
LIABILITIES
Deferred tax liabilities 2.12 – –
Income tax liability, net 2.12 7,385 –
Total non-current liabilities 7,385 –
Current liabilities
Borrowings 2.11 17,000,000 6,000,000
Trade payables 2.9 5,516,007 4,396,419
Other current liabilities 2.10 895,915 927,743

As per our report of even date attached for and on behalf of the Board of Directors of Kallidus, Inc.
for B S R & Co. LLP
Firm’s registration number: 101248W/W - 100022
Amrit Bhansali Amit Kalley Sourav Banerjee

Partner Director Director
Place: Bengaluru Place: USA

Date: June 1, 2020 Date: June 1, 2020

in US$, except equity share and per equity share data
2019 2018
Other income, net 2.14 5,222 195,370
Total income 14,935,449 14,975,009
Expenses
Finance cost 346,094 108,493
Travel expenses 665,755 1,086,598
Cost of software packages and others 2.15 529,237 341,992
Communication expenses 3,429,874 2,494,411
Depreciation and amortization expense 2.1 432,069 784,638
Other expenses 2.15 1,545,769 1,239,370
Total expenses 26,173,495 32,514,718
Loss before tax (11,238,046) (17,539,709)
Tax expense:
Current tax (reversed) / expensed 2.12 (1,160,937) 560,127
Deferred tax credit 2.12 3,060,692 (5,745,363)
Loss for the year (7,016,418) (12,354,473)
Total other comprehensive income, net of tax – –
Total comprehensive income / (loss) for the Year (7,016,418) (12,354,473)
Equity shares
Basic and diluted (USD) (0.07) (0.12)
equity share

for B S R & Co. LLP



in US$
Note no. Year ended December 31,
2019 2018
Cash flow from operating activities
Loss for the year (7,016,418) (12,354,473)
Income taxes expense (4,221,629) (5,185,236)
Depreciation and amortization expense 432,069 784,638
Interest and other income (4,558) (18,774)
Finance cost 346,094 108,493
(Profit) / loss on sale of assets – (123,602)
Impairment loss recognized / (reversed) under expected credit loss
model 63,900 (624,556)
Changes in operating assets and liabilities
Trade receivables and unbilled revenue (3,780,788) 4,555,126
Prepayments and other assets 94,315 (47,400)
Trade payables 1,119,589 (176,164)
Unearned revenues and other liabilities (810,672) (2,539,460)
Cash generated by operating activities (13,778,098) (15,621,408)
Income tax refund 1,178,999 3,683,266
Purchase of property, plant and equipment (3,401) (23,394)
Sale of property, plant and equipment and intangible assets 61 1,300,000
Purchase of intangible assets – –
Interest and other income 4,558 18,774
Net cash from investing activities 1,218 1,295,380
Proceeds from short term borrowings (Refer to Note 2.8) 11,000,000 6,000,000
Net cash from financing activities 11,000,000 6,000,000
Net (decrease) / increase in cash and cash equivalents (1,597,880) (4,642,763)
Cash and cash equivalents at the beginning of the year 3,626,934 8,269,697
Cash and cash equivalents at the end of the year 2.4 2,029,054 3,626,934

for B S R & Co. LLP



in US$
Particulars Share capital Share premium Retained Total equity of
earnings the Company
Balance as of January 1, 2018 2,479,691 – 9,836,407 12,316,098
Net loss for the year – – (12,354,473) (12,354,473)
Balance as of December 31, 2018 2,479,691 – (2,518,066) (38,375)
Balance as of January 1, 2019 2,479,691 – (2,518,066) (38,375)
Net loss for the year – – (7,016,418) (7,016,418)
Balance as of December 31, 2019 2,479,691 – (9,534,484) (7,054,793)
for B S R & Co. LLP



Company overview analysis on the assumptions used and based on current

estimates expects the carrying amount of these assets will
Kallidus Inc. (“the Company”) is a wholly-owned subsidiary
be recovered. The impact of COVID-19 on the Company’s
of Infosys Limited. The Company is a leading provider of
financial statements may differ from that estimated as at the
digital experience solutions, including mobile commerce and
date of approval of these financial statements.
in-store shopping experiences to large retail clients.
1 Significant accounting policies
Revenue is primarily derived from software development
1.1 Accounting year and related services.
The accounting year of the Company is from Effective January 1, 2019, the Company adopted Ind AS 115,
January 1 to December 31. Revenue from Contracts with Customers using the cumulative
1.2 Basis of preparation of financial statements catch-up transition method, applied to contracts that were
not completed as at January 1, 2019. In accordance with
These financial statements are prepared in accordance with the cumulative catch-up transition method, the comparatives
Indian Accounting Standards (Ind AS) under the historical have not been retrospectively adjusted. The following is a
cost convention on the accrual basis. The Ind AS are summary of new and / or revised significant accounting
prescribed under Section 133 of the Act read with Rule 3 of policies related to revenue recognition.
the Companies (Indian Accounting Standards) Rules, 2015
and Companies (Indian Accounting Standards) Amendment Arrangements with customers for software related services
Rules, 2016. The Ind AS are prescribed under Section are either on a fixed-price, fixed-timeframe or on a
133 of the Act read with Rule 3 of the Companies (Indian time-and-material basis.
Accounting Standards) Rules, 2015 and relevant amendment Revenue is recognized upon transfer of control of promised
rules issued thereafter. products or services to customers in an amount that reflects
Accounting policies have been consistently applied except the consideration we expect to receive in exchange for those
where a newly-issued accounting standard is initially adopted products or services.
or a revision to an existing accounting standard requires a T&M
1.3 Use of estimates the related services are performed and revenue from the
The preparation of the financial statements in conformity end of the last invoicing to the reporting date is recognized
with Ind AS requires the Management to make estimates and as unbilled revenue.
assumptions that affect the reported balances of assets and FP
liabilities and disclosures relating to contingent liabilities as
Revenue from fixed-price, fixed-timeframe contracts, where
the performance obligations are satisfied over time and where
of income and expenses during the period. Examples of such
there is no uncertainty as to measurement or collectability
estimates include expected credit losses on financial assets,
future obligations under employee benefit plans, income
of-completion method.
taxes and the useful lives of property plant and equipment.
Accounting estimates could change from period to period. Uncertainty
Actual results could differ from those estimates. Appropriate When there is uncertainty as to measurement or ultimate
changes in estimates are made as the Management becomes collectability, revenue recognition is postponed until such
aware of changes in circumstances surrounding the estimates. uncertainty is resolved. Efforts or costs expended have been
Changes in estimates are reflected in the financial statements used to measure progress towards completion as there is a
in the period in which changes are made and, if material, their direct relationship between input and productivity.
Maintenance
Estimation of uncertainties relating to the global Maintenance revenue is recognized ratably over the term of
health pandemic from COVID-19 (COVID-19): the underlying maintenance arrangement.
The Company has considered the possible effects that may
Unbilled / unearned
result from the pandemic relating to COVID-19 on the carrying
amounts of receivables, unbilled revenues and investment. In Revenues in excess of invoicing are classified as contract
developing the assumptions relating to the possible future assets (referred to as unbilled revenue) while invoicing in
uncertainties in the global economic conditions because of excess of revenues are classified as contract liabilities (referred
this pandemic, the Company, as at the date of approval of these to refer to as unearned revenue).
financial statements has used internal and external sources of Software development and related services
information including credit reports and related information,
In arrangements for software development and related
economic forecasts. The Company has performed sensitivity
services and maintenance services, the Company has applied

the guidance in Ind AS 115, Revenue from Contract with reliably. The Company recognizes changes in the estimated
Customer, by applying the revenue recognition criteria for amount of obligations for discounts in the period in
each distinct performance obligation. The arrangements with which the change occurs.
customers generally meet the criteria for considering software
Deferred contract cost
development and related services as distinct performance
obligations. For allocating the transaction price, the Company Deferred contract costs are incremental costs of obtaining a
has measured the revenue in respect of each performance contract which are recognized as assets and amortized over
obligation of a contract at its relative standalone selling the term of the contract.
price. The price that is regularly charged for an item when Contract modification
sold separately is the best evidence of its standalone selling
price. In cases where the Company is unable to determine the Contract modifications are accounted for when additions,
standalone selling price, the Company uses the expected cost- deletions or changes are approved either to the contract
plus margin approach in estimating the standalone selling scope or contract price. The accounting for modifications of
price. For software development and related services, the contracts involves assessing whether the services added to an
performance obligations are satisfied as and when the services existing contract are distinct and whether the pricing is at the
are rendered since the customer generally obtains control of standalone selling price. Services added that are not distinct
the work as it progresses. are accounted for on a cumulative catch-up basis, while those
that are distinct are accounted for prospectively, either as a
Licenses separate contract, if the additional services are priced at the
Revenue from licenses where the customer obtains a right- standalone selling price, or as a termination of the existing
to-use, the licenses is recognized at the time the license is contract and creation of a new contract if not priced at the
made available to the customer. Revenue from licenses where standalone selling price.
the customer obtains a right-to-access is recognized over the Tax
generally have three elements: license, implementation and The Company presents revenues net of indirect taxes in its
Annual Technical Services (ATS). The Company has applied Statement of Profit and Loss.
the principles under Ind AS 115 to account for revenues 1.5 Provisions
from these performance obligations. When implementation A provision is recognized if, as a result of a past event, the
services are provided in conjunction with the licensing Company has a present legal or constructive obligation that
arrangement and the license and implementation have is reasonably estimable, and it is probable that an outflow of
been identified as two separate performance obligations, economic benefits will be required to settle the obligation.
the transaction price for such contracts are allocated to Provisions are determined by discounting the expected
each performance obligation of the contract based on their future cash flows at a pre-tax rate that reflects current
relative standalone selling prices. In the absence of standalone market assessments of the time value of money and the risks
selling price for implementation, the performance obligation specific to the liability.
is estimated using the expected cost-plus margin approach.
Where the license is required to be substantially customized 1.6 Onerous contracts
as part of the implementation service the entire arrangement Provisions for onerous contracts are recognized when the
fee for license and implementation is considered to be a single expected benefits to be derived by the Company from a
performance obligation and the revenue is recognized using contract are lower than the unavoidable costs of meeting
the percentage-of-completion method as the implementation the future obligations under the contract. The provision is
is performed. Revenue from client training, support and measured at the present value of the lower of the expected
other services arising due to the sale of software products is cost of terminating the contract and the expected net cost of
recognized as the performance obligations are satisfied. ATS continuing with the contract. Before a provision is established,
revenue is recognized ratably over the period in which the the Company recognizes any impairment loss on the assets
services are rendered. associated with that contract.
Volume discounts 1.7 Property, plant and equipment
The Company accounts for volume discounts and pricing Property, plant and equipment are stated at cost, less
incentives to customers as a reduction of revenue based on accumulated depreciation and impairment, if any. Costs
the ratable allocation of the discounts / incentives to each of directly attributable to acquisition are capitalized until the
the underlying performance obligation that corresponds to property, plant and equipment are ready for use, as intended
the progress by the customer towards earning the discount by the Management. The Company depreciates property,
/ incentive. Also, when the level of discount varies with plant and equipment over their estimated useful lives using
increases in levels of revenue transactions, the Company the straight-line method. The estimated useful lives of
recognizes the liability based on its estimate of the customer’s assets are as follows:
future purchases. If it is probable that the criteria for the
Office equipment (1) 5 years
discount will not be met, or if the amount thereof cannot
Computer equipment (1) 3-5 years
be estimated reliably, then discount is not recognized until
Furniture and fixtures (1) 5 years
the payment is probable and the amount can be estimated

Leasehold improvements are amortized over the term of lease dates to cash flows that are solely payments of principal and
or the estimated useful life of the asset, whichever is lower. interest on the principal amount outstanding.
Depreciation methods, useful lives and residual values are (ii) Financial assets at fair value through other
reviewed periodically, including at each financial year end. comprehensive income
(1) For these class of assets, based on internal assessment, A financial asset is subsequently measured at fair value
the Management believes that the useful lives as given above through other comprehensive income if it is held within a
best represent the period over which the Management expects business model whose objective is achieved by both collecting
to use these assets. contractual cash flows and selling financial assets and the
Advances paid towards the acquisition of property, plant and contractual terms of the financial asset give rise on specified
equipment outstanding at each reporting date is classified dates to cash flows that are solely payments of principal and
as capital advances under other non-current assets and the interest on the principal amount outstanding.
cost of assets not put to use before such date are disclosed (iii) Financial assets at fair value through profit or loss
under ‘Capital work-in-progress’. Subsequent expenditures A financial asset which is not classified in any of the above
relating to property, plant and equipment is capitalized only categories are subsequently fair valued through profit or loss.
(iv) Financial liabilities
with these will flow to the Company and the cost of the item
can be measured reliably. Repairs and maintenance costs are Financial liabilities are subsequently carried at amortized
recognized in the Statement of Profit and Loss when incurred. cost using the effective interest method. For trade and other
The cost and related accumulated depreciation are eliminated payables maturing within one year from the reporting date,
from the financial statements upon sale or retirement of the the carrying amounts approximate fair value due to the short
asset and the resultant gains or losses are recognized in the maturity of these instruments.
Statement of Profit and Loss. 1.10 Fair value of financial instruments
1.8 Intangible assets In determining the fair value of its financial instruments, the
Intangible assets are stated at cost less accumulated Company uses a variety of methods and assumptions that
amortization and impairment. Intangible assets are amortized are based on market conditions and risks existing at each
over their respective individual estimated useful lives on a reporting date. The methods used to determine fair value
straight-line basis, from the date that they are available for include discounted cash flow analysis, available quoted
use. The estimated useful life of an identifiable intangible market prices and dealer quotes. All methods of assessing
asset is based on a number of factors including the effects fair value result in general approximation of value, and such
of obsolescence, demand, competition, and other economic value may never actually be realized.
factors (such as the stability of the industry, and known 1.11 Impairment
technological advances), and the level of maintenance
expenditures required to obtain the expected future cash a. Financial assets
flows from the asset. Amortization methods and useful lives The Company recognizes loss allowances using the expected
are reviewed periodically including at each financial year end. credit loss (ECL) model for the financial assets which are
1.9.1 Initial recognition measured at an amount equal to lifetime ECL. For all other
The Company recognizes financial assets and financial financial assets, expected credit losses are measured at an
liabilities when it becomes a party to the contractual amount equal to the 12-month ECL, unless there has been a
provisions of the instrument. All financial assets and liabilities significant increase in credit risk from initial recognition in
are recognized at fair value on initial recognition, except for which case those are measured at lifetime ECL. The amount
trade receivables which are initially measured at transaction of expected credit losses (or reversal) that is required to adjust
price. Transaction costs that are directly attributable to the the loss allowance at the reporting date to the amount that
acquisition or issue of financial assets and financial liabilities, is required to be recognized is recognized as an impairment
that are not at fair value through profit or loss, are added to gain or loss in Statement of Profit and Loss.
the fair value on initial recognition. Regular way purchase b. Non-financial assets
(i) Property, plant and equipment
Non-derivative financial instruments whenever events or changes in circumstances indicate that
(i) Financial assets carried at amortized cost their carrying amounts may not be recoverable. For the
does not generate cash flows that are largely independent of
those from other assets.

If such assets are considered to be impaired, the impairment to 1.16 Income taxes
be recognized in the Statement of Profit and Loss is measured Income tax expense comprises current and deferred income
by the amount by which the carrying value of the assets tax. Income tax expense is recognized in net profit in the
exceeds the estimated recoverable amount of the asset. An Statement of Profit and Loss except to the extent that it
impairment loss is reversed in the Statement of Profit and Loss relates to items recognized directly in equity, in which case
if there has been a change in the estimates used to determine it is recognized in other comprehensive income. Current
the recoverable amount. The carrying amount of the asset is income tax for current and prior periods is recognized at
increased to its revised recoverable amount, provided that the amount expected to be paid to or recovered from the
this amount does not exceed the carrying amount that would tax authorities, using the tax rates and tax laws that have
have been determined (net of any accumulated amortization been enacted or substantively enacted by the reporting date.
or depreciation) had no impairment loss been recognized for Deferred income tax assets and liabilities are recognized for all
the asset in prior years. temporary differences arising between the tax bases of assets
1.12 Employee benefits and liabilities and their carrying amounts in the financial
statements. Deferred tax assets are reviewed at each reporting
Compensated absences date and are reduced to the extent that it is no longer probable
The Company has a policy on compensated absences which that the related tax benefit will be realized.
are accumulating in nature. The expected cost of accumulating Deferred income tax assets and liabilities are measured using
compensated absences is determined by actuarial valuation tax rates and tax laws that have been enacted or substantively
performed by an independent actuary at each reporting enacted by the reporting date and are expected to apply
date using projected unit credit method on the additional to taxable income in the years in which those temporary
amount expected to be paid / availed as a result of the unused differences are expected to be recovered or settled. The effect
entitlement that has accumulated at the reporting date. of changes in tax rates on deferred income tax assets and
liabilities is recognized as income or expense in the period
1.13 Other income
Other income is comprised primarily of interest income date. A deferred income tax asset is recognized to the extent
and exchange gain/loss on translation of other assets that it is probable that future taxable profit will be available
and liabilities. Interest income is recognized using the against which the deductible temporary differences and tax
effective interest method. losses can be utilized. The Company offsets current tax assets
1.14 Borrowing cost and current tax liabilities, where it has a legally enforceable
right to set off the recognized amounts and where it intends
Borrowing costs are charged to the Statement of Profit and either to settle on a net basis, or to realize the asset and settle
Loss in the period in which they occurred. the liability simultaneously
1.15 Foreign currency In assessing the realizability of deferred income tax assets,
the Management considers whether some portion or all of the
Functional currency deferred income tax assets will not be realized. The ultimate
The functional currency of the Company is the US Dollar. realization of deferred income tax assets is dependent upon
These financial statements are presented in the US Dollars. the generation of future taxable income during the periods
Transactions and translations in which the temporary differences become deductible.
Management considers the scheduled reversals of deferred
Foreign-currency denominated monetary assets and liabilities income tax liabilities, projected future taxable income and
are translated into the relevant functional currency at tax planning strategies in making this assessment. Based on
exchange rates in effect at the reporting date. The gains or the level of historical taxable income and projections for
losses resulting from such translations are included in net future taxable income over the periods in which the deferred
profit in the Statement of Profit and Loss. Non-monetary income tax assets are deductible, the Management believes
assets and non-monetary liabilities denominated in a foreign that the Company will realize the benefits of those deductible
currency and measured at fair value are translated at the differences. The amount of the deferred income tax assets
exchange rate prevalent at the date when the fair value considered realizable, however, could be reduced in the near
was determined. Non-monetary assets and non-monetary term if estimates of future taxable income during the carry
liabilities denominated in a foreign currency and measured forward period are reduced.
at historical cost are translated at the exchange rate prevalent
at the date of the transaction. 1.17 Cash flow statement
Transaction gains or losses realized upon settlement of foreign Cash flows are reported using the indirect method, whereby
currency transactions are included in determining net profit profit for the period is adjusted for the effects of transactions
for the period in which the transaction is settled. Revenue, of a non-cash nature, any deferrals or accruals of past or
expense and cash-flow items denominated in foreign currencies future operating cash receipts or payments and item of
are translated into the relevant functional currencies using the income or expenses associated with investing or financing
exchange rate in effect on the date of the transaction. cash flows. The cash flows from operating, investing and

1.18 Earnings per share or income, when an entity has received or paid advance
Basic earnings per share is computed by dividing the net consideration in a foreign currency.
profit after tax by the weighted average number of equity Ind AS 115, Revenue from Contract with Customers:
shares outstanding during the period. Diluted earnings
On March 28, 2018, Ministry of Corporate Affairs has notified
per equity share is computed by dividing the net profit
the Ind AS 115, Revenue from Contract with Customers.
attributable to the equity holders of the Company by the
The core principle of the new standard is that an entity
weighted average number of equity shares considered for
should recognize revenue to depict the transfer of promised
deriving basic earnings per equity share and also the weighted
goods or services to customers in an amount that reflects
average number of equity shares that could have been issued
the consideration to which the entity expects to be entitled
upon conversion of all dilutive potential equity shares.
in exchange for those goods or services. Further the new
1.19 Leases standard requires enhanced disclosures about the nature,
amount, timing and uncertainty of revenue and cash flows
Lease under which the Company assumes substantially all
arising from the entity’s contracts with customers.
the risks and rewards of ownership are classified as finance
leases. Such assets acquired are capitalized at fair value of The standard permits two possible methods of transition:
the asset or present value of the minimum lease payments • Retrospective approach – Under this approach, the standard
at the inception of the lease, whichever is lower. Lease will be applied retrospectively to each prior reporting
payments under operating leases are recognized as an expense period presented in accordance with Ind AS 8, Accounting
on a straight-line basis in the Statement of Profit and Loss Policies, Changes in Accounting Estimates and Errors.
over the lease term. • Retrospectively with cumulative effect of initially applying
1.20 Recent accounting pronouncements the standard recognized at the date of initial application
(Cumulative catch-up approach)
Appendix B to Ind AS 21, Foreign Currency The effective date for adoption of Ind AS 115 is financial
Transactions and Advance Consideration: periods beginning on or after April 1, 2018.
On March 28, 2018, MCA has notified the Companies (Indian The Company will adopt the standard on January 1, 2019
Accounting Standards) Amendment Rules, 2018 containing by using the cumulative catch-up transition method and
Appendix B to Ind AS 21, Foreign Currency Transactions accordingly comparatives for the year ending or ended
and Advance Consideration which clarifies the date of the December 31, 2018 will not be retrospectively adjusted. The
transaction for the purpose of determining the exchange effect on adoption of Ind AS 115 is expected to be insignificant.
rate to use on initial recognition of the related asset, expense
2. Notes to the Financial Statements

2.1 Property, plant and equipment and intangible assets
Following are the changes in the carrying value of property, plant and equipment an intangible assets for the year
ended December 31, 2019:
in US$
Particulars Property, plant and equipment Tangible Intangible Total
Leasehold Office Computer Furniture Total Software
improvements equipment equipment and
fixtures
January 1, 2019 1,218,609 48,099 627,925 151,490 2,046,123 – 2,046,123
Additions during the year – 1,000 2401 – 3,401 – 3,401
Deletions during the year – (183) – – (183) – (183)
December 31, 2019 1,218,609 48,916 630,326 151,490 2,049,341 – 2,049,341
Accumulated depreciation as
of January 1, 2019 (543,444) (16,129) (334,507) (51,580) (945,660) – (945,660)
Depreciation and
amortization charge for the
year (244,973) (10,593) (146,280) (30,223) (432,069) – (432,069)
deletions – 121 – – 121 – 121
of December 31, 2019 (788,417) (26,601) (480,787) (81,803) (1,377,608) – (1,377,608)
December 31, 2019 430,192 22,315 1,49,539 69,687 671,733 – 671,733

Following are the changes in the carrying value of property, plant and equipment an intangible assets for the year
ended December 31, 2018:
in US$
Particulars Property, plant and equipment Tangible Intangible Total
Leasehold Office Computer Furniture Total Software
improvements equipment equipment and
fixtures
January 1, 2018 1,218,609 44,119 609,956 179,394 2,052,078 2,000,000 4,052,078
Additions during the year – 3,980 18,840 574 23,394 – 23,394
Deletions during the year
– – (871) (28,478) (29,349) (2,000,000) (2,029,349)
December 31, 2018 1,218,609 48,099 627,925 151,490 2,046,123 – 2,046,123
of January 1, 2018 (297,965) (5,308) (170,146) (41,924) (515,343) (498,630) (1,013,973)
Depreciation and
amortization charge for the
year (245,479) (10,821) (164,984) (30,934) (452,218) (332,420) (784,638)
deletions – – 623 21,278 21,901 831,050 852,951
of December 31, 2018 (543,444) (16,129) (334,507) (51,580) (945,660) – (945,660)
December 31, 2018 675,165 31,970 293,418 99,910 1,100,463 – 1,100,463
The aggregate depreciation/amortization expenses have been included under depreciation and amortization expense in the
Statement of Profit and Loss.
2.2 Other financial assets 2.4 Cash and cash equivalents

in US$ in US$
2019 2018 2019 2018
Current Balances with bank
Rental deposits (1) 31,178 31,178 In current accounts 2,029,054 3,626,934
Unbilled revenues (1)(2) 2,927,554 142,665 Total cash and cash
Others (1) 159,735 8,055 equivalents 2,029,054 3,626,934
Total 3,118,467 181,898
(1)
Financial assets carried at 2.5 Other current assets
amortized cost 3,118,467 181,898 in US$
(2)
Includes dues from Particulars As at December 31,
related party (Refer to
2019 2018
Note 2.17) 157,395 820
Current
Others
2.3 Trade receivables Prepaid expenses 560,186 806,179
in US$
560,186 806,179
Particulars As at December 31, Total other current assets 560,186 806,179
2019 2018
Current 2.6 Financial instruments
Unsecured
Considered good (1) 4,002,104 3,070,106 Financial instruments by category
Credit impaired 263,317 199,417 The carrying value of financial instruments were as follows:
4,265,421 3,269,523 in US$
Less: Allowances for credit Particulars As at December 31,
loss 263,317 199,417 2019 2018
4,002,104 3,070,106 Assets:
Includes dues from related
(1)
party (Refer to Note 2.17) 832,453 1,169,500 (Refer to Note 2.4) 2,029,054 3,626,934

Particulars As at December 31, Credit risk on cash and cash equivalents is limited as they
2019 2018 are deposited with banks with high credit ratings assigned
Trade receivables (Refer to by credit rating agencies.
Note 2.3) 4,002,104 3,070,106
Liquidity risk
to Note 2.2) 3,118,467 181,898 Liquidity risk is defined as the risk that the Company will not
Total 9,149,625 6,878,938 be able to settle or meet its obligation on time.
Liabilities: The Company’s principal sources of liquidity are cash and cash
Trade payables (Refer to equivalents and the cash flow that is generated from operations.
Note 2.9) 5,516,007 4,396,419 As of December 31, 2019, the Company had a negative
Borrowings 17,000,000 6,000,000 working capital of US$ 17,782,401 including cash and cash
Other financial liabilities equivalents of US$ 2,029,054. As of December 31, 2018, the
(Refer to Note 2.8) 3,542,760 3,974,733 Company had a negative working capital of US$ 8,152,084
Total 26,058,767 14,371,152 including cash and cash equivalents of US$ 3,626,934.
All the above financial instruments are carried at amortized The significant financial liability is borrowings from related
cost and the carrying values approximates their fair value. party of US$ 17,000,000 as on December 31, 2019 and US$
6,000,000 as on December 31, 2018.The loan is repayable
Financial risk management on demand. (Refer note 2.17).
Financial risk factors In the general interest of Kallidus Inc., the fellow subsidiary
continue to provide financials support as may be necessary
The Company’s activities expose it to a variety of financial to continue trade and meet it’s obligation.
risks: credit risk and liquidity risk.
2.7 Equity
Credit risk
Credit risk refers to the risk of default on its obligation by in US$
exposure to the credit risk at the reporting date is primarily Particulars As at December 31,
from trade receivables amounting to US$ 4,002,104 and 2019 2018
US$ 3,070,106 as of December 31, 2019 and December Authorized capital
31, 2018 respectively and unbilled revenue amounting to Equity shares
US$ 2,927,554 and US$ 142,665 as of December 31, 2019 222,000,000 shares – –
and December 31, 2018 respectively. Trade receivables and Issued, subscribed and paid-
unbilled revenue are typically unsecured and are derived up capital
from revenue earned from customers primarily located in 102,135,416 shares of USD
the United States. Credit risk has always been managed by 0.02 each 2,479,691 2,479,691
the Company through credit approvals, establishing credit 2,479,691 2,479,691
limits and continuously monitoring the creditworthiness of
Each holder of equity shares is entitled to one vote per share
customers to which the Company grants credit terms in the
normal course of business. On account of adoption of Ind AS The details of shareholder holding more than 5% shares as at
109, the Company uses expected credit loss model to assess December 31, 2019 and December 31, 2018 are as follows:
the impairment loss or gain. The Company uses a provision Name As at December 31,
matrix to compute the expected credit loss allowance for of the 2019 2018
trade receivables and unbilled revenues. The provision matrix shareholder
takes into account available external and internal credit risk Number of Number of
factors such as credit default swap quotes, credit ratings shares % held shares % held
from international credit rating agencies and the Company’s Infosys
historical experience for customers. Limited,
holding
Credit risk exposure company 102,135,416 100.00 102,135,416 100.00
The allowance / (reversal) for lifetime expected credit loss
on customer balances for the year ended December 31, 2.8 Other financial liabilities
2019 was US$ 63,900 and US$ (624,556) for the year in US$
ended December 31, 2018.
in US$
2019 2018
Particulars Year ended December 31, Current
2019 2018 Others
Balance at the beginning 199,417 823,973 Accrued compensation
Impairment loss recognized / to employees (1) 1,031,366 1,600,002
(reversed) 63,900 (624,556) Accrued expenses (1) (2) 1,813,728 2,092,998
Balance at the end 263,317 199,417

Particulars As at December 31, Interest: Interest on the principal shall be charged at the rate
2019 2018 equal to LIBOR + appropriate spread which is 0.82% simple
Compensated absences 537,530 538,306 interest. The rate of interest as at December 2019 is 2.86%
Accrued interest on loan The rate shall be revisited quarterly based on the LIBOR on
from subsidiary (1)(4) 454,587 108,493 the 1st day of each quarter.
Other payables (1) (3) 243,079 173,240 On 5th July 2019 the Company further entered into working
4,080,290 4,513,039 capital loan agreement with Infosys Public Services Inc. to
Total financial liabilities 4,080,290 4,513,039 borrow USD 3,000,000 out of which USD 2,000,000 was
(1)
Financial liability carried received on 19 July 2019.
at amortized cost 3,542,760 3,974,733
(2)
Includes dues to related Terms of the loan are as follows :
party (Refer to Note 2.17) 1,142,617 1,515,994 1. Interest on the principal shall be charged at LIBOR +
(3)
Includes dues to related appropriate spread % which shall be revised periodically
party (Refer to Note 2.17) 231,129 162,987 based on the agreed arm’s length interest rate. The rate of
(4)
Includes dues to related interest as at December 2019 is 2.86%
party (Refer to Note 2.17) 454,587 108,493 2. The principal amount of loan shall be repayable on demand.
On 6th August 2019 the Company entered into working
2.9 Trade payables capital loan agreement with Infosys Technologies S. de. R.
In US$
L. de. C.V to borrow USD 5,000,000 out of which USD
Particulars As at December 31, 4,000,000 was received in different tranches.
2019 2018
Trade payables (1) 5,516,007 4,396,419 2.12 Income taxes
5,516,007 4,396,419 Income tax expense in the Statement of Profit and Loss comprises:
Includes dues to related
(1) In US$
parties (Refer to Note 2.17) 5,339,113 4,237,210 Particulars Year ended December 31,
2019 2018
2.10 Other liabilities Current taxes (1,160,937) 560,127
in US$ Deferred taxes 3,060,692 (5,745,363)
Particulars As at December 31, Income tax expense (4,221,629) (5,185,236)
2019 2018 Current tax expense for the year ended December 31, 2019
Current and December 31, 2018 includes provision / (reversal)
Unearned revenue 555,434 667,991 amounting to US$ (1,344,119) and US$ (691,931)
Others respectively pertaining to prior periods
Entire deferred income tax for the year ended December
others 160,626 34,934
31, 2019 and December 31, 2018 relates to origination and
reversal of temporary differences.
895,915 927,743
2.11 Borrowings computed by applying the statutory income tax rate to the
in US$ income before income taxes is summarized as follows:
in US$
Current 2019 2018
Unsecured loan from fellow Profit before income taxes
subsidiaries 17,000,000 6,000,000 (11,238,046) (17,539,709)
Total current borrowings 17,000,000 6,000,000 Enacted tax rates in US 27.00% 27.00%
On 10 April 2018, Kallidus Inc. received a working capital expense (3,034,272) (4,735,722)
loan from Infosys Public Services Inc. to the extent of USD State minimum taxes 5,000 5,000
6,000,000 on the following terms and conditions: Tax provision/(reversal) for
1. Interest on the principal shall be charged at simple interest earlier periods (1,344,119) (691,931)
per annum and shall be revised periodically based on Overseas withholdings 178,182 1,247,059
agreed arm’s length rate. The rate of interest as at December Effect of unrecognized
2019 is 2.86%. deferred tax assets (44,006) (131,168)
On 1st March 2019 the Company further entered into loan Effect of non-deductible
agreement with Infosys Public Services Inc. to borrow USD expenses 17,586 64,528
5,000,000 out of which USD 5,000,000 was received in Others – (943,002)
different tranches. Income tax expense (4,221,629) (5,185,236)

The applicable federal statutory tax rate for both year ending in which the temporary differences become deductible.
2019 and year ending 2018 is 27% and 27% respectively. Management considers the scheduled reversals of deferred
The following table provides the details of income tax assets income tax liabilities, projected future taxable income, and
and income tax liabilities: tax planning strategies in making this assessment. Based on
in US$ the level of historical taxable income and projections for
Particulars As at December 31, future taxable income over the periods in which the deferred
2019 2018 income tax assets are deductible, the Management believes
Income tax assets (7,385) 10,677 that the Company will realize the benefits of those deductible
Net current income differences. The amount of the deferred income tax assets
(liability)/ tax assets at the considered realizable, however, could be reduced in the near
end (7,385) 10,677 term if estimates of future taxable income during the carry
forward period are reduced.
The gross movement in the current income tax asset / The gross movement in the deferred income tax account
(liability) for the years ended December 31, 2019 and for the year ended December 31, 2019 and December 31,
December 31, 2018 is as follows: 2018, is as follows:
in US$ in US$
Particulars Year ended December 31, Particulars Year ended December 31,
2019 2018 2019 2018
Net current income tax asset/ Net deferred income tax
(liability) at the beginning 10,677 4,254,070 asset at the beginning 7,002,569 1,257,206
Income tax paid/(refund) (1,178,999) (3,683,266) Credits / (charge) relating to
Current income tax expense 1,160,937 (560,127) temporary differences 3,060,691 5,745,363
Net current income Net deferred income tax
(liability)/ tax assets at the asset at the end 10,063,260 7,002,569
end (7,385) 10,677
The credit to temporary difference during the year December
The tax effects of significant temporary differences that resulted 31, 2019 are primarily on account of deferred tax assets
in deferred income tax assets and liabilities are as follows: recognized on accumulated losses partially offset by accrued
in US$ compensation to employees and compensated absences.
Particulars As at December 31, The credit to temporary difference during the year December
2019 2018 31, 2018 are primarily on account of accrued compensation
Deferred income tax assets to employees and compensated absences.
Accrued compensation to In assessing the realizability of the deferred income tax assets
employees 278,469 432,000 as per the Management assessment, the Company has two
Compensated absences 145,133 145,343 options for utilizing the net operating losses:
Accumulated losses 8,046,532 4,972,814
Others 1,596,983 1,545,962 1. Set off the losses against the capital gain arising of US$ 43.94
Total deferred income tax million on account of business transfer to Infosys Limited.
assets 10,067,117 7,096,119 2. Set off the losses against the prior year profits of US$ 10
Deferred income tax million under CARES Act
liabilities
2.13 Revenue from operations
Fixed assets 3,857 93,550
Others – – Revenue from operations for the year ended December 31,
Total deferred income tax 2019 and December 31, 2018 is as follows:
in US$
Deferred income tax assets Particulars Year ended December 31,
after set off 10,063,260 7,002,569 2019 2018
Deferred income tax Revenue from software
liabilities after set off – – services 132,890 81,072
Revenue from products and
Deferred tax assets and deferred tax liabilities have been offset platforms 14,797,337 14,698,567
wherever the Company has a legally enforceable right to set- Total revenue from
off current tax assets against current tax liabilities and where operations 14,930,227 14,779,639
the deferred tax assets and deferred tax liabilities relate to
income taxes levied by the same taxation authority. Disaggregate revenue information
In assessing the realizability of deferred income tax assets, The table below presents disaggregated revenues from
the Management considers whether some portion or all of the contracts with customers by offerings for the year ended
deferred income tax assets will not be realized. The ultimate December 31, 2019. The Company believes that this
realization of deferred income tax assets is dependent upon disaggregation best depicts how the nature, amount, timing

and uncertainty of our revenues and cash flows are affected Trade receivables and unbilled revenues are presented net of
by industry, market and other economic factors. impairment in the Balance Sheet.
in US$
During the year ended December 31, 2019, the Company
Particulars Year ended recognized revenue of US$ 642,991 arising from opening
December unearned revenue as of January 1, 2019.
31, 2019 During the year ended December 31, 2019, US$19,090
Revenue by offerings of unbilled revenue pertaining to fixed-price development
Core 132,890 contracts as of January 1, 2019 has been reclassified
Digital 14,797,337 to trade receivables upon billing to customers on
Total 14,930,227 completion of milestones.
Digital services Performance obligations and remaining

Digital services comprise of service and solution offerings performance obligations
of the Company that enable our clients to transform their The remaining performance obligation disclosure provides the
businesses. These include offerings that enhance customer aggregate amount of the transaction price yet to be recognized
experience, leverage AI-based analytics and big data, engineer as at the end of the reporting period and an explanation as
digital products and IoT, modernize legacy technology to when the Group expects to recognize these amounts in
systems, migrate to cloud applications and implement revenue. Applying the practical expedient as given in Ind AS
advanced cybersecurity systems. 115, the Group has not disclosed the remaining performance
obligation related disclosures for contracts where the
Core services revenue recognized corresponds directly with the value to
Core services comprise traditional offerings of the Company the customer of the entity’s performance completed to date,
that have scaled and industrialized over a number of years. typically those contracts where invoicing is on time and
These primarily include application management services, material basis. Remaining performance obligation estimates
proprietary application development services, independent are subject to change and are affected by several factors,
validation solutions, product engineering and management, including terminations, changes in the scope of contracts,
infrastructure management services, traditional enterprise periodic revalidations, adjustment for revenue that has not
application implementation, support and integration services. materialized and adjustments for currency.
Products and platforms The aggregate value of performance obligations that are
completely or partially unsatisfied as at December 31, 2019,
The Company also derives revenues from the sale of other than those meeting the exclusion criteria mentioned
products and platforms including Infosys Nia – an Artificial above, is US$ 5,902,545. Out of this, the Group expects to
Intelligence (AI) platform which applies next-generation AI recognize revenue of around 46% within the next one year
and machine learning. and the remaining thereafter. The contracts can generally
Trade receivables and contract balances be terminated by the customers and typically includes an
enforceable termination penalty payable by them.
The Company classifies the right to consideration in exchange
for deliverables as either a receivable or as unbilled revenue. 2.14 Other income
A receivable is a right to consideration that is unconditional in US$
upon passage of time. Revenue for time and material contracts Particulars Year ended December 31,
are recognized as related service are performed. Revenue for 2019 2018
fixed price maintenance contracts is recognized on a straight- Interest received on financial
line basis over the period of the contract. Revenues in excess assets – carried at amortized
of billings is recorded as unbilled revenue and is classified cost
as a financial asset for these cases as right to consideration is Deposit with bank and
unconditional upon passage of time. others 4,558 18,774
Revenue recognition for fixed price development contracts Exchange gains / (losses) on
is based on percentage of completion method. Invoicing to foreign currency forward and
the clients is based on milestones as defined in the contract. options contracts – –
This would result in the timing of revenue recognition being Exchange gains / (losses) on
different from the timing of billing the customers. Unbilled translation of other assets
revenue for fixed price development contracts (contract and liabilities – –
asset) is classified as non-financial asset as the contractual Profit / (loss) on sale of assets – 123,602
right to consideration is dependent on completion of Miscellaneous income, net 664 52,994
contractual milestones. 5,222 195,370

2.15 Expenses Particulars Year ended December 31,
in US$ 2019 2018
Particulars Year ended December 31, Reimbursement of
2019 2018 expenses – –
Employee benefit expenses Interest expense on
Salaries including bonus 10,420,686 15,927,576 loan from related party – –
Contribution to provident Others 21,410 120,276
and other funds – – 1,545,769 1,239,370
Share-based payments to
employees – – 2.16 Leases
Staff welfare 841,770 1,245,307
11,262,456 17,172,883 Obligations on long-term, non-cancellable operating
Cost of software packages leases
and others The lease rentals charged during the period is as under:
Own use / third-party in US$
hardware and applications 529,237 341,992 Particulars Year ended December 31,
Third-party items bought 2019 2018
for service delivery to Lease rentals recognized
clients – – during the period 702,579 564,434
529,237 341,992
Other expenses The obligations on long-term, non-cancellable operating
Power and fuel – – leases payable as per the rentals stated in the respective
Brand and marketing 676,314 1,042,672 agreements are as follows:
in US$
Operating lease payments 702,579 564,434
Rates and taxes 29,066 93,445 Future minimum lease As at December 31,
Repairs and maintenance 42,418 35,087 payable 2019 2018
Consumables 1,232 395 Not later than 1 year 791,772 842,772
Insurance 516 7,617 Later than 1 year and not
Donation – – later than 5 years 2,373,883 3,296,797
Allowances for credit Later than 5 years – –
losses on financial assets 63,900 (624,556)
Exchange gains / (losses) 8,334 – The operating lease arrangements is renewable on a periodic
Auditor’s remuneration basis and extend up to a maximum of 7.5 years from the
Audit fees – – respective date of inception and relates to rented premises.
The lease agreement also has a price escalation Clause.

As at December 31,
2019 2018
Name of the holding company
Infosys Limited 100% 100%


Infosys (Czech Republic) Limited s.r.o. (4) Czech Republic
Infosys Poland Sp z.o.o (4) Poland
Portland Group Pty Ltd (4) Australia
Infosys BPO Americas LLC. (4) US
Infosys Consulting (Shanghai) Co., Ltd. (formerly Lodestone Management Consultants Co., Ltd) (5) China
Infosys Consulting Sp. z.o.o (32) Poland
Infosys South Africa (Pty) Ltd (9) (17) South Africa
HIPUS Co., Ltd (20) Japan
(1)
(2)
(3)

(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
Incorporated effective November 27, 2018, wholly-owned subsidiary of Infosys Public Services Inc
(20)
(21)
(22)
(23)
(24)
(25)
(26)
Under liquidation
in US$
2019 2018
Trade receivables
Infosys Limited 832,453 1,169,500
832,453 1,169,500
Unbilled revenue
Infosys Limited 157,395 820
157,395 820
Trade payables
Skava Systems Pvt Ltd 5,339,113 4,237,210
5,339,113 4,237,210
Borrowings (including interest accrued) – –
Infosys Public Services, Inc. 13,430,042 6,108,493
Infosys Technologies S. de R. L. de C. V. (Infosys Mexico) 4,024,545 –
17,454,587 6,108,493
231,129 162,987
Accrued expenses
1,142,617 1,515,994
The details of the related parties transactions entered into by the Company, for the year ended December 31, 2019 and December
in US$
2019 2018
Infosys Limited – 32,849
Skava Systems Pvt Ltd 7,297,289 7,759,185
7,297,289 7,792,034
Sale of services
3,165,323 5,589,477

2019 2018
Finance cost
Infosys Public services 321,550 108,493
Infosys Technologies S. de R. L. de C. V. (Infosys Mexico) 24,544 –
346,094 108,493

The Company is engaged in providing software solutions in a single geography. Based on the ”management approach” as
defined in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the performance and allocates resources based
on analysis of performance of the Company as whole. Its operations are, therefore, considered to constitute a single segment
in the context of Ind AS 108 - ‘Segment Reporting’.
2.19 Business transfer
On October 10, 2019, the Board of Directors of the Company have approved the business transfer of the Company to the Holding
Company. The Company is in the process of executing the Business Transfer Agreement and related documents to transfer the
business, subject to securing the requisite regulatory approvals for a consideration based on an independent valuation.
for B S R & Co. LLP

Director Director
Partner


Brilliant Basics Limited
Annual Report and Financial Statements, March 31, 2020

Company Information
Directors A K Verma
R K Singisetti
S A Sorokin
Registered number 08011232
Registered office The Bower 10th/11th Floor

207 211 Old Street
London
EC1V 9NR
Independent auditor Blick Rothenberg Audit LLP

Chartered Accountants & Statutory Auditor
16 Great Queen Street
Covent Garden
London
WC2B 5AH
398 I Brilliant Basics Limited Infosys Subsidiary Financials 2019-20

Director’s Report
The directors present their report and the financial statements for the year ended March 31, 2020.
Directors
A K Verma
R K Singisetti
S A Sorokin
Disclosure of information to auditor
• so far as the director is aware, there is no relevant audit information of which the company’s auditor is unaware, and
information and to establish that the company’s auditor is aware of that information.
Small companies exemptions
In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of
the Companies Act 2006.
This report was approved by the board and signed on its behalf.
A K Verma
Director
Date: June 2, 2020
Infosys Subsidiary Financials 2019-20 Brilliant Basics Limited I 399

Directors’ Responsibilities Statement
The directors are responsible for preparing the directors’ report and the financial statements in accordance with applicable
law and regulations.
elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards
(United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial
Reporting Standard applicable in the UK and Republic of Ireland’. Under company law the directors must not approve the
financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the
profit or loss of the Company for that period.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s

To the members of Brilliant Basics Ltd
Opinion
We have audited the financial statements of Brilliant Basics Ltd (the ‘company’) for the year ended March 31, 2020, which
comprise the profit and loss account, the Balance Sheet and the notes to the financial statements, including a summary of
significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law
and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard
applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).
• give a true and fair view of the state of the company’s affairs as at March 31, 2020 and of its profit for the year then ended;
Basis for opinion
• the directors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
• the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant
doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve
months from the date when the financial statements are authorised for issue.
Other information
annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements
• the information given in the directors’ report for the financial year for which the financial statements are prepared is
• the directors’ report has been prepared in accordance with applicable legal requirements.
have not identified material misstatements in the directors’ report.
• we have not received all the information and explanations we require for our audit; or

• the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take
advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a
strategic report.
As explained more fully in the directors’ responsibilities statement on page 400, the directors are responsible for the preparation
of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors
In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going
Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s members in accordance with Chapter 3 of Part 16 of the Companies Act 2006.
Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state
to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the company’s members for our audit work, for this report, or for the
opinions we have formed.
Christopher Shepherd
(senior statutory auditor)
for and on behalf of Blick Rothenberg Audit LLP
Statutory Auditor

Covent Garden
London
WC2B 5AH
Date: June 2, 2020

in £
Particulars Note For the years ended March 31
2020 2019
Turnover 11,623,497 9,836,927
Cost of sales (7,634,318) (5,845,104)
Gross profit 3,989,179 3,991,823
Other operating income 74,822 −
Operating profit 1,226,489 190,644
Interest payable and similar expenses (1,074) (10,232)
Profit before tax 1,225,415 180,412
Tax on profit (194,441) 290,187
Profit for the financial year 1,030,974 470,599
There are no items of other comprehensive income for either the year or the prior year other than the profit for the year.
Accordingly, no statement of other comprehensive income has been presented.

Balance Sheet
in £
Particulars Note As at March 31,
2020 2019
Fixed assets
Tangible assets 4 116,033 121,975
Current assets
Debtors: amounts falling due
within one year 5 1,216,572 2,076,350
Cash at bank and in hand 1,111,161 763,181
2,327,733 2,839,531
Creditors: amounts falling
due within one year 6 (1,588,712) (3,137,426)
Net current assets/(liabilities) 739,021 (297,895)
Net assets/(liabilities) 855,054 (175,920)
Called up share capital 7 100 100
Profit and loss account 854,954 (176,020)
Total equity 855,054 (175,920)
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small
companies’ regime within Part 15 of the Companies Act 2006 and in accordance with Section 1A of Financial Reporting Standard
102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
A K Verma
Director
Date: June 2, 2020
The notes on pages 405 to 409 form part of these financial statements.

1. General information with the stage of completion of the contract when all of the
following conditions are satisfied:
The Company is a private company limited by shares and
• the amount of revenue can be measured reliably;
is incorporated in England and Wales. The address of its
• it is probable that the Company will receive the
registered office is The Bower 10th/11th Floor, 207 211 Old
consideration due under the contract;
Street, London, EC1V 9NR.
• the stage of completion of the contract at the end of the
The financial statements are presented in Pound Sterling (£). reporting period can be measured reliably; and
• the costs incurred and the costs to complete the contract
2. Accounting policies can be measured reliably.
2.1 Basis of preparation of financial statements 2.4 Tangible fixed assets
The financial statements have been prepared under the
Tangible fixed assets under the cost model are stated at
historical cost convention unless otherwise specified within
historical cost less accumulated depreciation and any
these accounting policies and in accordance with Financial
accumulated impairment losses. Historical cost includes
expenditure that is directly attributable to bringing the asset
applicable in the UK and the Republic of Ireland (‘FRS 102’)
to the location and condition necessary for it to be capable of
and the Companies Act 2006.
operating in the manner intended by management.
The following principal accounting policies have been applied:
Depreciation is charged so as to allocate the cost of assets less
2.2 Going concern their residual value over their estimated useful lives, using the
straight line method.
The directors have considered whether the Company has
been affected by the economic impact and restrictions Depreciation is provided on the following basis:
that have ensued following the World Health Organisation
Short term leasehold property over the term of the lease
announcement on 11 March 2020 that COVID 19 represents
Plant and machinery 5 years
an international pandemic. This is likely to have an adverse
Fixtures and fittings 5 years
impact on the economy as a whole.
Office equipment 5 years
The directors have received confirmation from its ultimate Computer equipment 3-5 years
parent undertaking and principal customer, Infosys Limited, The assets’ residual values, useful lives and depreciation
that the existing business arrangement between the entities methods are reviewed, and adjusted prospectively if
will continue ensuring that the Company will remain appropriate, or if there is an indication of a significant change
profitable. The consolidated financial statements of Infosys since the last reporting date.
Limited for the year ended March 31, 2020 were approved
on 20 April 2020. These consolidated accounts are publicly Gains and losses on disposals are determined by comparing
available from www.infosys.com. and show the group has the proceeds with the carrying amount and are recognised in
significant liquid assets and reserves as at March 31, 2020 the profit and loss account.
and have been prepared on a going concern basis. 2.5 Financial instruments
Having considered post year end trading, financial results The Company has elected to apply Sections 11 and 12 of FRS
and cash reserves, and after making enquiries, the directors 102 in respect of financial instruments.
have a reasonable expectation that the Company has adequate
Financial assets and financial liabilities are recognised
resources to continue in operational existence and meet its
when the Company becomes party to the contractual
liabilities as they fall due for the foreseeable future, being a
period of at least twelve months from the date these financial
statements were approved. Accordingly, they continue to adopt Financial liabilities and equity instruments are classified
the going concern basis in preparing the financial statements. according to the substance of the contractual arrangements
entered into. An equity instrument is any contract that
2.3 Revenue evidences a residual interest in the assets of the Company
Revenue is recognised to the extent that it is probable that after deducting all of its liabilities.
the economic benefits will flow to the Company and the The company’s policies for its major classes of financial assets
revenue can be reliably measured. Revenue is measured as and financial liabilities are set out below.
the fair value of the consideration received or receivable,
excluding discounts, rebates, value added tax and other Financial assets
sales taxes. The following criteria must also be met before Basic financial assets, including trade and other debtors, cash
revenue is recognised: and bank balances and intercompany financing are initially
recognised at transaction price, unless the arrangement
Rendering of services constitutes a financing transaction, where the transaction is
Revenue from a contract to provide services is recognised in measured at the present value of the future receipts discounted
the period in which the services are provided in accordance at a market rate of interest for a similar debt instrument.

Financing transactions are those in which payment is deferred Offsetting of financial assets and financial
beyond normal business terms or is financed at a rate of liabilities
interest that is not a market rate.
Financial assets and liabilities are offset and the net amount
Such assets are subsequently carried at amortized cost using reported in the Balance Sheet when there is an enforceable
the effective interest method, less any impairment. right to set off the recognised amounts and there is an
Financial liabilities intention to settle on a net basis or to realise the asset and
Basic financial liabilities, including trade and other creditors settle the liability simultaneously.
and loans from fellow group companies, are initially recognised 2.6 Cash and cash equivalents
at transaction price, unless the arrangement constitutes a
Cash is represented by cash in hand and deposits with financial
financing transaction, where the debt instrument is measured
institutions repayable without penalty on notice of not more
at the present value of the future payments discounted at a
than 24 hours. Cash equivalents are highly liquid investments
market rate of interest for a similar debt instrument. Financing
that mature in no more than three months from the date of
acquisition and that are readily convertible to known amounts
of cash with insignificant risk of change in value.
is not a market rate.
Debt instruments are subsequently carried at amortized cost, 2.7 Share capital
using the effective interest rate method. Ordinary shares are classified as equity. Incremental costs
directly attributable to the issue of new ordinary shares
or options are shown in equity as a deduction, net of
Financial assets measured at cost and amortized cost tax, from the proceeds.
are assessed at the end of each reporting period for
objective evidence of impairment. If objective evidence of 2.8 Foreign currency translation
impairment is found, an impairment loss is recognised in the
Functional and presentational currency
The company’s functional and presentational currency
is Pound Sterling (£).
asset’s carrying amount and the best estimate of the amount Transactions and balances
the Company would receive for the asset if it were to be sold Foreign currency transactions are translated into the
at the reporting date. functional currency using the spot exchange rates at the dates
For financial assets measured at amortized cost, the of the transactions.
impairment loss is measured as the difference between the At each period end foreign currency monetary items are
asset’s carrying amount and the present value of estimated translated using the closing rate. Non monetary items
cash flows discounted at the asset’s original effective interest measured at historical cost are translated using the exchange
rate. If the financial asset has a variable interest rate, the rate at the date of the transaction and non monetary items
discount rate for measuring any impairment loss is the measured at fair value are measured using the exchange rate
current effective interest rate determined under the contract. when fair value was determined.
If there is a decrease in the impairment loss arising from Foreign exchange gains and losses resulting from the
an event occurring after the impairment was recognised, settlement of transactions and from the translation at
the impairment is reversed. The reversal is such that period end exchange rates of monetary assets and liabilities
the current carrying amount does not exceed what the denominated in foreign currencies are recognised in the
carrying amount would have been had the impairment not profit and loss account except when deferred in other
previously been recognised. The impairment reversal is comprehensive income as qualifying cash flow hedges.
recognised in profit or loss.
Foreign exchange gains and losses that relate to borrowings
Derecognition of financial assets and financial and cash and cash equivalents are presented in the profit and
liabilities loss account within ‘interest receivable and similar income’
and ‘interest payable and similar charges’. All other foreign
Financial assets are derecognised when (a) the contractual
exchange gains and losses are presented in the profit and loss
rights to the cash flows from the asset expire or are settled, or
(b) substantially all the risks and rewards of the ownership of
the asset are transferred to another party or (c) despite having 2.9 Finance costs
retained some significant risks and rewards of ownership,
Finance costs are charged to the profit and loss account over
control of the asset has been transferred to another party
the term of the debt using the effective interest method so
who has the practical ability to unilaterally sell the asset to an
that the amount charged is at a constant rate on the carrying
unrelated third party without imposing additional restrictions.
amount. Issue costs are initially recognised as a reduction in
Financial liabilities are derecognised when the liability the proceeds of the associated capital instrument.
is extinguished, that is when the contractual obligation is
discharged, cancelled or expires.

2.10 Share based payments The current income tax charge is calculated on the basis of
Where share options are awarded to employees, the fair value tax rates and laws that have been enacted or substantively
of the options at the date of grant is charged to the profit and enacted by the Balance Sheet date in the countries where the
loss account over the vesting period. Non market vesting Company operates and generates income.
conditions are taken into account by adjusting the number Deferred tax arises from timing differences that are differences
of equity instruments expected to vest at each Balance Sheet between taxable profits and total comprehensive income as
date so that, ultimately, the cumulative amount recognised stated in the financial statements. These timing differences
over the vesting period is based on the number of options that arise from the inclusion of income and expenses in tax
eventually vest. Market vesting conditions are factored into the assessments in periods different from those in which they
fair value of the options granted. The cumulative expense is are recognised in the financial statements.
not adjusted for failure to achieve a market vesting condition. Deferred tax balances are recognised in respect of all timing
The fair value of the award also takes into account non vesting differences that have originated but not reversed by the
conditions. These are either factors beyond the control of Balance Sheet date, except that:
either party (such as a target based on an index) or factors • The recognition of deferred tax assets is limited to the
which are within the control of one or other of the parties (such extent that it is probable that they will be recovered against
as the Company keeping the scheme open or the employee the reversal of deferred tax liabilities or other future taxable
maintaining any contributions required by the scheme). profits; and
Where the terms and conditions of options are modified before • Any deferred tax balances are reversed if and when all
they vest, the increase in the fair value of the options, measured conditions for retaining associated tax allowances have
immediately before and after the modification, is also charged been met.
to profit and loss account over the remaining vesting period. Deferred tax is not recognised in respect of permanent
Where equity instruments are granted to persons other than differences. Deferred tax is determined using tax rates and
employees, the profit and loss account is charged with fair laws that have been enacted or substantively enacted by
value of goods and services received. the Balance Sheet date.
2.11 Operating leases 2.15 Research and development

Rentals paid under operating leases are charged to the profit In the research phase of an internal project it is not possible
and loss account on a straight line basis over the lease term. to demonstrate that the project will generate future economic
benefits and hence all expenditure on research shall be
2.12 Pensions recognised as an expense when it is incurred. Intangible assets
are recognised from the development phase of a project if and
Defined contribution pension plan only if certain specific criteria are met in order to demonstrate
The Company operates a defined contribution plan for its the asset will generate probable future economic benefits
employees. A defined contribution plan is a pension plan and that its cost can be reliably measured. The capitalised
under which the Company pays fixed contributions into a development costs are subsequently amortized on a straight
separate entity. Once the contributions have been paid the line basis over their useful economic lives.
Company has no further payment obligations.
If it is not possible to distinguish between the research
The contributions are recognised as an expense in the profit phase and the development phase of an internal project,
and loss account when they fall due. Amounts not paid are the expenditure is treated as if it were all incurred in the
shown in accruals as a liability in the Balance Sheet. The research phase only.
assets of the plan are held separately from the Company in
independently administered funds. 3. Employees
2.13 Holiday pay accrual The average number of employees, including the directors,
during the year was 92 (2019-65).
A liability is recognised to the extent of any unused holiday
pay entitlement which is accrued at the Balance Sheet date
and carried forward to future periods. This is measured at the
undiscounted salary cost of the future holiday entitlement so
accrued at the Balance Sheet date.
2.14 Current and deferred taxation
tax. Tax is recognised in the profit and loss account, except
that a charge attributable to an item of income and expense
recognised as other comprehensive income or to an item
recognised directly in equity is also recognised in other
comprehensive income or directly in equity respectively.
Current tax is the amount of income tax payable in respect of
taxable profit for the year or prior years.

4. Tangible fixed assets
in £
Particulars Short term Fixtures and Office Computer Total
leasehold fittings equipment equipment
property
improvements
Cost
At 1 April 2019 17,938 42,971 7,650 167,868 236,427
Additions − 13,114 − 53,532 66,646
Disposals (17,938) − − − (17,938)
At March 31, 2020 − 56,085 7,650 221,400 285,135
Depreciation
At 1 April 2019 9,847 41,212 2,393 61,000 114,452
Charge − 1,436 1,471 61,590 64,497
Disposals (9,847) − − − (9,847)
At March 31, 2020 − 42,648 3,864 122,590 169,102
Net book value
At March 31, 2020 − 13,437 3,786 98,810 116,033
At 31 March 2019 8,091 1,759 5,257 106,868 121,975
5. Debtors
in £
2020 2019
Trade debtors 150,879 312,048
Amounts owed by group undertakings 756,431 822,374
Other debtors 233,857 390,770
Prepayments and accrued income 49,353 260,971
Deferred taxation 26,052 290,187
1,216,572 2,076,350
6. Creditors: amounts falling due within one year

in £
2020 2019
Trade creditors 298,045 477,341
Amounts owed to group undertakings 884,761 1,720,144
Other taxation and social security 135,441 192,803
Other creditors 129,083 163,975
Accruals and deferred income 141,382 583,163
1,588,712 3,137,426
7. Share capital
in £
2020 2019
Shares classified as equity
Allotted, called up and fully paid
100 Ordinary shares of £1 each 100 100
8. Share based payments

The parent company, Infosys Limited, has a share option scheme for certain employees (including directors). Restricted stock
units (RSUs) are exercisable at a price equal to the face value of the parent company’s share on the date of the grant. The vesting
period is usually over 4 years. Vesting of the restricted stock units is subject to continued employment within the group.
Restricted stock units are forfeited if the employee leaves the Company before the options vest.
The total expense relating to the share based payments for the year was £27,047 (2019: £19,406).

9. Commitments under operating leases
At March 31, 2020 the Company had future minimum lease payments under non cancellable operating leases as follows:
in £
2020 2019
Not later than 1 year 4,251 65,715
Later than 1 year and not later than 5 years − 4,251
4,251 69,966

The Company has taken advantage of the exemption contained in FRS 102 section 33 “Related Party Disclosures” from disclosing
transactions with entities which are a wholly owned part of the group.
11.Parent undertaking and controlling party
The parent undertaking of the smallest group of undertakings for with group financial statements are drawn up and of which
the Company is a member is Infosys Limited, whose registered office is Electronics City, Hosur Road, Bangalore, 560 100,
Karnataka, India. Group financial statements are available from www.infosys.com.

Detailed Profit and Loss Account
in £
Particulars For the year ended 31st March
2020 2019
Turnover 11,623,497 9,836,927
Cost of sales (7,634,318) (5,845,104)
Gross profit 3,989,179 3,991,823
Other operating income 74,822 −
Less: overheads − −
Administration expenses (2,837,512) (3,801,179)
Operating profit 1,226,489 190,644
Interest payable (1,074) (10,232)
Profit before taxation 1,225,415 180,412
in £
2020 2019
Turnover
Provision of consultancy services 11,623,497 9,836,927
in £
2020 2019
Cost of sales
Direct staff and subcontractor costs 7,270,805 5,350,108
Travel and entertainment 357,765 457,036
Other direct costs 5,748 37,960
7,634,318 5,845,104
in £
2020 2019
Other operating income
Sundry income 74,822 −
in £
2020 2019
Administrative expenses
Directors salaries 351,735 372,710
Directors pension cost 2,570 6,100
Staff salaries 1,088,075 1,798,489
Staff private health insurance 90,324 57,761
Employers’ national insurance 155,884 201,701
Staff pension costs 29,922 29,574
Staff training 3,405 586
Motor running costs 5,953 8,029
Hotels, travel and subsistence 152,658 184,397
Printing and stationery 18,421 24,611
Postage 3,919 4,310
Telephone and fax 23,538 19,571
Computer costs 39,319 16,198
Advertising and promotion 67,024 60,687
Trade subscriptions 206,252 192,885
Legal and professional 116,620 93,254
Auditor’s remuneration 12,000 12,000
Accountancy fees 19,063 16,217
Bank charges 8,264 16,132
Bad debts − 79,075
Gains on foreign exchange (832) (18,973)

2020 2019
Sundry expenses 48,516 30,688
Rent 313,764 494,031
Rates 524 21,642
Light and heat 183 907
Cleaning 4,474 3,004
Insurances 2,845 720
Repairs and maintenance 504 10,210
Depreciation 64,497 64,663
Loss on disposal of tangible assets 8,091 −
2,837,512 3,801,179
in £
Particulars For the year ended March 31,
2020 2019
Interest payable and similar expenses
Bank loan interest payable - 4,089
Other loan interest payable 1,074 6,143
1,074 10,232

Infosys Consulting S.R.L (Argentina)
To the Members of Infosys Consulting S.R.L
Opinion
We have audited the Ind AS financial statements of Infosys Consulting S.R.L (registered in Argentina) (‘the company’), which
comprises the Balance Sheet as at 31st December 2019, the Statement of Profit and Loss (including other comprehensive
income), the Statement of Cash Flow and the Statement of Changes in Equity for the year then ended, and notes to the financial
statement including a summary of significant accounting policies and other explanatory information (herein after referred to
as ‘Ind AS financial statements’)
Basis for opinion
Responsibilities of Management’s and those charged with Governance for the financial Statement:
prescribed under section 133 of the Act, read with relevant rule issued there under
statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as going
Our objective are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error and to issue an auditor’s report that includes our opinion. Reasonable assurance
414 | Infosys Consulting S.R.L (Argentina) Infosys Subsidiary Financials 2019-20

for Shenoy & Kamath

Chartered Accountants,
M Rathnakar Kamath
Partner
Membership Number. 202841.
UDIN : 20202841AAABSM8785
Place: Bengaluru.
Infosys Subsidiary Financials 2019-20 Infosys Consulting S.R.L (Argentina) | 415

Balance Sheet
in `
Particulars Note no. As at December 31
2019 2018
ASSETS
Non-current assets
Capital work-in-progress - 97,14,095
Deferred tax assets (net) 2.13 2,31,97,052 -
Total non-current assets 2,96,88,328 1,01,25,439
Current assets
Financial assets
Trade receivables 2.3 7,59,98,381 6,53,18,027
Cash and cash equivalents 2.4 3,79,05,516 1,32,92,285
Loans 2.2 50,400 -
Other financial assets 2.2 1,22,11,451 2,26,05,638
Other current assets 2.5 2,99,52,555 90,08,217
Total current assets 15,61,18,303 11,02,24,167
Total assets 18,58,06,631 12,03,49,606
Equity
Equity share capital 2.7 7,43,28,400 7,43,28,400
Other equity (5,89,59,214) (11,02,54,468)
Total equity 1,53,69,186 (3,59,26,068)
Liabilities
Borrowings 2.8 2,80,32,503 4,06,98,271
Deferred tax liabilities (net) 2.15 2,32,255 -
Total non-current liabilities 2,82,64,758 4,06,98,271
Current liabilities
Trade payables 2.9 7,02,75,283 7,79,27,788
Other financial liabilities 2.10 1,89,59,350 2,18,92,101
2.11 5,07,89,967 1,17,86,013
Provisions 2.12 1,78,982 3,88,827
Income tax liabilities, net 2.13 19,69,105 35,82,674
Total current liabilities 14,21,72,687 11,55,77,403
Total equity and liabilities 18,58,06,631 12,03,49,606

for Shenoy & Kamath for and on behalf of the Board of Directors of Infosys Consulting S.R.L
Firm’s Registration Number:006673S
M. Rathnakar Kamath Martin de Pablo

Partner Director
Bengaluru
March 16, 2020

in `, except equity share and per equity share data
Particulars Note Year ended December 31
2019 2018
Revenue from operations 2.14 21,45,51,124 18,17,72,183
Total income 21,45,51,124 18,17,72,183
Expenses
Employee benefit expenses 2.15 10,94,00,624 10,94,73,356
Cost of technical sub-contractors 59,31,232 1,11,35,006
Travel expenses 41,28,698 1,77,08,723
Consultancy and professional charges 1,08,75,456 1,22,21,484
Depreciation expense 2.1 42,25,701 3,07,777
Other expenses 2.15 6,27,95,563 6,56,35,388
Total expenses 19,82,07,727 21,74,12,869
Profit/(loss) before tax 1,63,43,397 (3,56,40,686)
Tax expense
Current tax 2.13 2,10,54,491 1,51,80,416
Deferred tax 2.13 (2,89,16,371) -
Profit/(Loss) for the year 2,42,05,277 (5,08,21,102)
Other comprehensive income / (loss)
Exchange differences on translation 96,09,976 1,92,58,198
Total other comprehensive income/(loss), net of tax 96,09,976 1,92,58,198
Total comprehensive income/(loss) for the year 3,38,15,253 (3,15,62,904)
Equity shares of par value ARS 100 each
Basic and diluted (`) 273.20 (573.60)
equity share
Basic and Diluted 88,600 88,600


Partner Director
Bengaluru
March 16, 2020

in `
Particulars Note No. Year ended December 31
2019 2018
Profit/(Loss) for the year 2,42,05,277 (5,08,21,102)
Depreciation expense 42,25,701 3,07,777
Income tax expense (78,61,880) 1,51,80,416
Impairment loss recognized / (reversed) under expected credit
loss model (1,94,006) 72,800
Finance Cost 19,44,612 8,62,596
Provision for post-sales client support and warranties (1,70,602) 16,41,397
Exchange differences on translation of assets and liabilities 1,80,31,305 1,81,89,652
Trade receivables and unbilled revenue (1,04,86,348) (2,06,04,092)
Other financial assets and other assets (1,05,50,151) (40,89,291)
Trade payables (76,52,505) 2,71,02,423
Other financial liabilities, other liabilities and provisions 3,60,71,203 (1,75,34,058)
Cash generated from operations 4,75,62,606 2,96,91,482
Income taxes (paid)/refunded 2.14 (2,26,68,060) (35,28,992)
Net cash from operating activities 2,48,94,546 (3,32,20,474)
Expenditure on property, plant and equipment (31,00,535) (1,02,74,146)
Loans to employees (50,400) -
Net cash used in investing activities (31,50,935) (1,02,74,146)
Capital Infusion- Capital Reserves 1,74,80,000 -
Loan taken from/(repaid to) parent company (1,26,65,768) 2,54,04,041
Finance Cost (19,44,612) -
Net cash from financing activities 28,69,620 2,54,04,041
Net increase/(decrease) in cash and cash equivalents 2,46,13,231 (1,80,90,579)
Cash and cash equivalents at the beginning of the year 1,32,92,285 3,13,82,864
Cash and cash equivalents at the end of the year 3,79,05,516 1,32,92,285


Partner Director
Bengaluru
March 16, 2020

in `
capital Reserves and Other attributable to
Surplus comprehensive equity holders
income of the Company
Retained Exchange
earnings difference on
translation
Balance as of January 1, 2018 7,43,28,400 (6,08,11,482) (1,78,80,082) (43,63,164)
31, 2018
Exchange differences on translation - - 1,92,58,198 1,92,58,198
Loss for the year - (5,08,21,102) - (5,08,21,102)
Balance as of December 31, 2018 7,43,28,400 (11,16,32,584) 13,78,116 (3,59,26,068)
31, 2019
Capital Reserves - 1,74,80,000 - 1,74,80,000
Exchange differences on translation - - 96,09,976 96,09,976
Profit for the year - 2,42,05,277 - 2,42,05,277
Balance as of December 31, 2019 7,43,28,400 (6,99,47,307) 1,09,88,092 1,53,69,185


Partner Director
Bengaluru
March 16, 2020

2.1 Property, Plant and equipment
The changes in the carrying value of property, plant and equipment for the year ended December 31, 2019 are as follows
in `
Particulars Plant and Office Computer Furniture Leasehold Total
machinery Equipment equipment and fixtures Improvement
Gross carrying value as of January 1,
2019 - 35,546 15,46,435 4,01,583 - 19,83,564
Additions 28,806 1,63,945 5,78,875 19,95,770 1,00,47,234 1,28,14,630
Deletions - - - - - -
Translation difference (7,134) (52,702) (6,93,421) (6,30,625) (24,64,416) (38,48,298)
Gross carrying value as of December
31, 2019 21,672 1,46,789 14,31,889 17,66,728 75,82,818 1,09,49,896
January 1, 2019 - (17,393) (11,81,702) (3,73,125) - (15,72,220)
Depreciation (3,466) (37,302) (2,35,602) (4,32,238) (35,17,093) (42,25,701)
Translation difference 446 13,099 4,56,705 2,16,274 6,52,777 13,39,301
December 31, 2019 (3,020) (41,596) (9,60,599) (5,89,089) (28,64,316) (44,58,620)
Carrying value as of December 31,
2019 18,652 1,05,193 4,71,290 11,77,639 47,18,502 64,91,276
Carrying value as of January 1, 2019 - 18,153 364,733 28,458 - 4,11,344
in `
machinery Equipment equipment and Improvements.
fixtures
January 1, 2018 - 64,175 20,81,740 7,25,020 - 28,70,935
Additions/ Adjustments - - 8,59,047 - - 8,59,047
Deletions - - - (2,98,996) - (2,98,996)
Translation difference - (28,629) (13,94,352) (24,441) - (14,47,422)
December 31, 2018 - 35,546 15,46,435 4,01,583 - 19,83,564
January 1, 2018 - (18,567) (17,49,347) (6,46,287) - (24,14,201)
Depreciation - (9,878) (2,76,810) (21,089) - (3,07,777)
Translation difference - 11,052 8,44,455 2,94,251 - 11,49,758
December 31, 2018 - (17,393) (11,81,702) (3,73,125) - (15,72,220)
December 31, 2018 - 18,153 3,64,733 28,458 - 4,11,344
Carrying value as of January 1, 2018 - 45,608 3,32,393 78,733 - 4,56,734

Company overview comparatives have not been retrospectively adjusted. The

following is a summary of new and/or revised significant
Infosys Consulting S.R.L. (registered in Argentina) is a wholly-
accounting policies related to revenue recognition.
owned subsidiary of Infosys Consulting Holding AG (Infosys
Lodestone) (formerly Lodestone Holding AG). The Company Revenue is recognized upon transfer of control of promised
renders professional management consulting services, thereby products or services to customers in an amount that reflects
enabling its clients to enhance business performance. the consideration we expect to receive in exchange for those
products or services.
1.1 Accounting year Arrangements with customers for software related services are
The accounting year of the Company is from either on a fixed-timeframe or on a time-and-material basis.
January 1 to December 31.
1.5.1 Time & Material
1.2 Basis of preparation of financial statements Revenue on time-and-material contracts are recognized as
These financial statements are prepared in accordance with the related services are performed and revenue from the
Indian Accounting Standards (Ind AS) under the historical end of the last invoicing to the reporting date is recognized
cost convention on the accrual basis. The Ind AS are as unbilled revenue.
prescribed under Section 133 of the Act read with Rule 3 of
1.5.2 Fixed price
and relevant amendment rules issued thereafter. Revenue from fixed-price, fixed-timeframe contracts, where
where a newly issued accounting standard is initially adopted
1.5.3 Unbilled/ Unearned
1.3 Presentation currency
The Company’s presentation currency is the Indian Rupee. assets (which we refer as unbilled revenue) while invoicing in
1.4 Use of estimates excess of revenues are classified as contract liabilities (which
we refer to as unearned revenues).
The preparation of the financial statements in conformity
with Ind AS requires the Management to make estimates and 1.5.5 Volume Discounts
assumptions that affect the reported balances of assets and The Company accounts for volume discounts and pricing
liabilities and disclosures relating to contingent liabilities as incentives to customers as a reduction of revenue based on
at the date of the financial statements and reported amounts the ratable allocation of the discounts/ incentives to each of
of income and expenses during the period. the underlying performance obligation that corresponds to
Accounting estimates could change from period to period. the progress by the customer towards earning the discount/
Actual results could differ from those estimates. Appropriate incentive. Also, when the level of discount varies with
changes in estimates are made as the Management becomes increases in levels of revenue transactions, the Company
aware of changes in circumstances surrounding the estimates. recognizes the liability based on its estimate of the customer’s
Changes in estimates are reflected in the financial statements future purchases. If it is probable that the criteria for the
in the period in which changes are made and, if material, their discount will not be met, or if the amount thereof cannot
effects are disclosed in the notes to the financial statements. be estimated reliably, then discount is not recognized until
Examples of such estimates include computation of percentage the payment is probable and the amount can be estimated
of completion which requires the Company to estimate the reliably. The Company recognizes changes in the estimated
efforts or costs expended to date as a proportion of the total amount of obligations for discounts in the period in
efforts to be expended, impairment losses on financial assets, which the change occurs.
future obligations under employee benefit plans, income 1.5.6 Contract Modification
taxes, post-sales customer support and the useful lives of
Contract modifications are accounted for when additions,
property, plant and equipment.
deletions or changes are approved either to the contract
1.5 Revenue recognition scope or contract price. The accounting for modifications of
The Company derives revenues primarily from contracts involves assessing whether the services added to an
consultancy services. existing contract are distinct and whether the pricing is at the
standalone selling price. Services added that are not distinct
Effective Jan 1, 2019, the Company adopted Ind AS 115 are accounted for on a cumulative catch up basis, while those
“Revenue from Contracts with Customers” using the that are distinct are accounted for prospectively, either as a
cumulative catch-up transition method, applied to contracts separate contract, if the additional services are priced at the
that were not completed as at January 1, 2019. In accordance standalone selling price, or as a termination of the existing
with the cumulative catch-up transition method , the

contract and creation of a new contract if not priced at the Advances paid towards the acquisition of property, plant and
standalone selling price. equipment outstanding at each Balance Sheet date is classified
1.5.7 Tax
The Company presents revenues net of indirect taxes in its under ‘Capital work-in-progress’. Subsequent expenditures
statement of Profit and loss. relating to property, plant and equipment is capitalized only
1.6 Provisions
A provision is recognized if, as a result of a past event, the item can be measured reliably. Repairs and maintenance
Company has a present legal or constructive obligation that costs are recognized in net profit in the Statement of Profit
is reasonably estimable, and it is probable that an outflow of and Loss when incurred. The cost and related accumulated
economic benefits will be required to settle the obligation. depreciation are eliminated from the financial statements
Provisions are determined by discounting the expected upon sale or retirement of the asset and the resultant gains
future cash flows at a pre-tax rate that reflects current or losses are recognized in the Statement of Profit and Loss.
market assessments of the time value of money and the risks Assets to be disposed off are reported at the lower of the
specific to the liability. carrying value or the fair value less cost to sell.
1.7 Post-sales client support 1.10 Financial instruments
The Company provides its clients with a fixed-period
warranty for corrections of errors and telephone support 1.10.1 Initial recognition
on all its fixed-price, fixed-timeframe contracts. Costs The Company recognizes financial assets and financial
associated with such support services are accrued at the time liabilities when it becomes a party to the contractual
when related revenues are recorded and included in cost of provisions of the instrument. All financial assets and liabilities
sales. The Company estimates such costs based on historical are recognized at fair value on initial recognition, except for
experience and the estimates are reviewed annually for any trade receivables which are initially measured at transaction
material changes in assumptions. price. Transaction costs that are directly attributable to the
1.8 Onerous contracts that are not at fair value through profit or loss, are added to
Provisions for onerous contracts are recognized when the the fair value on initial recognition. Regular way purchase
expected benefits to be derived by the Company from a and sale of financial assets are accounted for at trade date.
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 Non-derivative financial instruments
cost of terminating the contract and the expected net cost of (i) Financial assets carried at amortized cost
continuing with the contract. Before a provision is established A financial asset is subsequently measured at amortized cost if
the Company recognizes any impairment loss on the assets it is held within a business model whose objective is to hold
associated with that contract. the asset in order to collect contractual cash flows and the
1.9 Property, plant and equipment contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and
Property, plant and equipment are stated at cost, less interest on the principal amount outstanding.
accumulated depreciation and impairment, if any. Costs
directly attributable to acquisition are capitalized until the (ii) Financial assets at fair value through other
property, plant and equipment are ready for use, as intended comprehensive income
by the Management. The Company depreciates property, A financial asset is subsequently measured at fair value
plant and equipment over their estimated useful lives using through other comprehensive income if it is held within a
the straight-line method. The estimated useful lives of business model whose objective is achieved by both collecting
assets are as follows : contractual cash flows and selling financial assets and the
Computer equipment(1) 3-5 years
Furniture and fixtures(1) 5 years
Office equipment 5 years
(1) For these class of assets, based on technical evaluation,
the Management believes that the useful lives as given above
best represent the period over which the Management expects Financial liabilities are subsequently carried at amortized
to use these assets. Hence the useful lives for these assets is cost using the effective interest method. For trade and other
different from the useful lives as prescribed under Part C of payables maturing within one year from the Balance Sheet
Schedule II of the Companies Act 2013. date, the carrying amounts approximate fair value due to the
short maturity of these instruments.

1.10.3 Fair value of financial instruments has accumulated at the Balance Sheet date. Expense on non-
In determining the fair value of its financial instruments, the accumulating compensated absences is recognized in the
Company uses a variety of methods and assumptions that period in which the absences occur.
are based on market conditions and risks existing at each 1.13 Foreign currency
include discounted cash flow analysis, available quoted Functional currency
market prices and dealer quotes. All methods of assessing The functional currency of the Company is the Argentinian
fair value result in general approximation of value, and such Peso. These financial statements are presented in Indian rupees.
value may never actually be realized. Transactions and translations
1.11 Impairment Foreign-currency denominated monetary assets and liabilities
are translated into the relevant functional currency at
a. Financial assets
exchange rates in effect at the Balance Sheet date. The gains
The Company recognizes loss allowances using the expected or losses resulting from such translations are included in net
credit loss (ECL) model for the financial assets which are profit in the Statement of Profit and Loss. Non-monetary
not fair valued through profit or loss. Loss allowance for assets and non-monetary liabilities denominated in a foreign
trade receivables with no significant financing component is currency and measured at fair value are translated at the
measured at an amount equal to lifetime ECL. For all other exchange rate prevalent at the date when the fair value
financial assets, expected credit losses are measured at an was determined. Non-monetary assets and non-monetary
amount equal to the 12-month ECL, unless there has been a liabilities denominated in a foreign currency and measured
significant increase in credit risk from initial recognition in at historical cost are translated at the exchange rate prevalent
which case those are measured at lifetime ECL. The amount at the date of the transaction.
Transaction gains or losses realized upon settlement of foreign
currency transactions are included in determining net profit
for the period in which the transaction is settled. Revenue,
expense and cash-flow items denominated in foreign currencies
b. Non-financial assets are translated into the relevant functional currencies using the
(i) Property, plant and equipment exchange rate in effect on the date of the transaction.
Property, plant and equipment are evaluated for recoverability The translation of financial statements from functional
whenever events or changes in circumstances indicate that currency to the presentation currency is performed for assets
their carrying amounts may not be recoverable. For the and liabilities using the exchange rate in effect at the Balance
purpose of impairment testing, the recoverable amount (i.e. Sheet date and for revenue, expense and cash-flow items
the higher of the fair value less cost to sell and the value-in- using the average exchange rate for the respective periods.
use) is determined on an individual asset basis unless the asset The gains or losses resulting from such translation are
does not generate cash flows that are largely independent of included in exchange differences on translation under other
those from other assets. In such cases, the recoverable amount components of equity.
is determined for the CGU to which the asset belongs.
1.14 Income taxes
exceeds the estimated recoverable amount of the asset. An statement of profit and loss except to the extent that it
impairment loss is reversed in the statement of profit and loss relates to items recognized directly in equity, in which case
increased to its revised recoverable amount, provided that the amount expected to be paid to or recovered from the tax
this amount does not exceed the carrying amount that would authorities, using the tax rates and tax laws that have been
have been determined (net of any accumulated amortization enacted or substantively enacted by the Balance Sheet date.
and liabilities and their carrying amounts in the financial
1.12 Employee Benefits statements. Deferred tax assets are reviewed at each reporting
The Company has a policy on compensated absences which
are both accumulating and non-accumulating in nature. Deferred income tax assets and liabilities are measured using
The expected cost of accumulating compensated absences tax rates and tax laws that have been enacted or substantively
is determined by actuarial valuation performed by an enacted by the Balance Sheet date and are expected to apply
independent actuary at each Balance Sheet date using projected to taxable income in the years in which those temporary
unit credit method on the additional amount expected to differences are expected to be recovered or settled. The effect
be paid/availed as a result of the unused entitlement that of changes in tax rates on deferred income tax assets and

that includes the enactment or the substantive enactment • Full retrospective: Retrospectively to each prior period
date. A deferred income tax asset is recognized to the extent presented applying Ind AS 8 - Accounting Policies,
that it is probable that future taxable profit will be available Changes in Accounting Estimates and Errors.
against which the deductible temporary differences and tax • Modified retrospective: Retrospectively, with the cumulative
losses can be utilized. The Company offsets current tax assets effect of initially applying the Standard recognized at the
and current tax liabilities, where it has a legally enforceable date of initial application either by:
• Under modified retrospective approach, the lessee records
either to settle on a net basis, or to realize the asset and settle
the lease liability as the present value of the remaining
the liability, simultaneously.
lease payments, discounted at the incremental borrowing
1.15 Cash Flow Statement rate and the right-of-use asset either as:
Cash flows are reported using the indirect method, whereby • Its carrying amount as if the standard had been
profit for the period is adjusted for the effects of transactions applied since the commencement date, but discounted
of a non-cash nature, any deferrals or accruals of past or at lessee’s incremental borrowing rate at the date of
future operating cash receipts or payments and item of initial application. or
income or expenses associated with investing or financing • An amount equal to the lease liability, adjusted by the
cash flows. The cash flows from operating, investing and amount of any prepaid or accrued lease payments related
financing activities of the Company are segregated. to that lease recognized under Ind AS 17 immediately
before the date of initial application.
1.16 Other income
Certain practical expedients are available under both the
Other income is comprised primarily of interest income and
methods. The Company is proposing to use the ‘Modified
exchange gain on translation of other assets and liabilities.
Retrospective Approach’ for transitioning to Ind AS 116,
1.17 Earnings per share and take the cumulative adjustment to retained earnings, on
the date of initial application (January 1, 2020). The effect
of adoption is not expected to material for the company’s
profit after tax by the weighted average number of equity
financial statements
shares outstanding during the period.
1.18 Leases 2.2 Loans
in `
Lease under which the Company assumes substantially all Particulars As at December 31
the risks and rewards of ownership are classified as finance 2019 2018
leases. Such assets acquired are capitalized at fair value of
Current
the asset or present value of the minimum lease payments
Loans to employees 50,400 -
at the inception of the lease, whichever is lower. Lease
Total current loans 50,400 -
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. 2.2 Other financial assets
in `
1.19 Borrowing Cost Particulars As at December 31
Borrowing cost are charged to the Statement of Profit and Loss 2019 2018
in the period in which they ocurred. Current
Security deposits (1) 15,25,524 9,68,717
1.20 Recent Accounting Pronouncements Unbilled Revenues(1) 99,51,814 2,14,02,827
Ind AS 116 - Leases: On March 30, 2019, the Ministry of Rental deposits (1) 12,000 2,12,474
Corporate Affairs (MCA) has notified Ind AS 116 - Leases. Others (1) 7,22,113 21,620
Ind AS 116 will replace the existing leases Standard, Ind AS Total current other financial
17 - Leases and related Interpretations. The Standard sets out assets 1,22,11,451 2,26,05,638
the principles for the recognition, measurement, presentation (1)
Financial assets carried at
and disclosure of leases for both parties to a contract i.e., amortized cost 1,22,11,451 2,26,05,638
the lessee and the lessor. Ind AS 116 introduces a single
lessee accounting model and requires a lessee to recognize
assets and liabilities for all leases with a term of more than 12
months, unless the underlying asset is of low value. Currently,
operating lease expenses are charged to the Statement of Profit
and Loss. The Standard also contains enhanced disclosure
requirements for lessees. Ind AS 116 substantially carries
forward the lessor accounting requirements in Ind AS 17. The
effective date for adoption of Ind AS 116 is annual periods
beginning on or after April 1, 2019. The standard permits two
possible methods of transition:

2.3 Trade receivables Particulars As at December 31
in ` 2019 2018
Particulars As at December 31 Liabilities
2019 2018 Trade payables (Refer to
Current Note No. 2.9) 7,02,75,283 7,79,27,788
Unsecured Borrowings (Refer to
Considered good (1) 7,59,98,381 6,53,18,027 Note 2.8) 2,80,32,503 4,06,98,271
Considered doubtful (13,009) 1,19,283 Other financial
7,59,85,372 6,54,37,310 liabilities (Refer to Note
Less: Allowances for credit No.2.10) 1,04,26,723 1,51,91,493
losses 13,009 (1,19,283) Total 10,87,34,509 13,38,17,552
Total trade receivables 7,59,98,381 6,53,18,027
(1)
Includes dues from All the above financial assets and liabilities are
related parties (Refer to Note carried at amortized cost and the carrying values
No.2.17) 2,08,41,312 1,21,79,760 approximates their fair value.
,
Credit risk
2.4 Cash and cash equivalents Credit risk refers to the risk of default on its obligation by
in `
Particulars As at December 31, exposure to the credit risk at the reporting date is primarily
2019 2018 from trade receivables amounting to ` 7,59,98,381 and
Balances with banks ` 6,53,18,027 as of December 31, 2019 and December 31,
In current and deposit 2018, respectively and unbilled revenue amounting to `
accounts 3,78,91,354 1,31,97,419 1,30,70,075 and ` 2,14,02,827 as of December 31, 2019
Cash on hand 14,162 94,866 and December 31, 2018, respectively. Trade receivables
Total Cash and Cash and unbilled revenue are typically unsecured. Credit risk
equivalents 3,79,05,516 1,32,92,285 has always been managed by the Company through credit
approvals, establishing credit limits and continuously
2.5 Other assets monitoring the creditworthiness of customers to which
in ` the Company grants credit terms in the normal course of
Particulars As at December 31 business. As per Ind AS 109, the Company uses ECL model
2019 2018 to assess the impairment loss or gain. The Company uses a
Current provision matrix to compute the ECL allowance for trade
Others receivables and unbilled revenues. The provision matrix
Prepaid expenses - 7,23,484 takes into account available external and internal credit risk
Unbilled Revenues 31,18,261 - factors such as credit default swap quotes, credit ratings
Withholding taxes and from credit rating agencies and the Company’s historical
others 2,68,34,294 82,84,733 experience for customers.
Total current other assets 2,99,52,555 90,08,217 Credit risk exposure
The allowance for lifetime ECL on customer balances for the
2.6 Financial instruments year ended December 31, 2019 was -`194,006 and reversal
Financial instruments by category for year ended December 31, 2018 was ` 72,800 respectively.
The carrying value and fair value of financial instruments in `
by categories as of December 31, 2019 and December 31, Particulars Year ended December 31,
2018 were as follows: 2019 2018
in ` Balance at the beginning 1,19,283 1,35,962
Particulars As at December 31 Impairment loss recognized /
2019 2018 reversed (1,94,006) 72,800
Assets Translation differences 61,714 (89,479)
Cash and cash Balance at the end (13,009) 1,19,283
equivalents (Refer to
Note No. 2.4) 3,79,05,516 1,32,92,285
generally invest in deposits with banks and financial institutions
Trade receivables (Refer
with high credit ratings assigned by credit rating agencies.
to Note No. 2.3) 7,59,98,381 6,53,18,027
(Refer to Note No.2.2) 1,22,11,451 2,26,05,638
Total 12,61,65,748 10,12,15,950

Liquidity risk
The Company’s principal sources of liquidity are cash and cash equivalents. The Company has taken loan from its parent
company to meet its working capital requirements.
As of December 31, 2019, the Company had a working capital of ` 1,39,45,616 including cash and cash equivalents of
` 3,79,05,516. As of December 31, 2018, the Company had a negative working capital of ` 53,53,236 including cash and
cash equivalents of ` 1,32,92,285
As of December 31, 2019 and December 31, 2018, the outstanding compensated absences were ` 85,32,627 and `
67,00,608 respectively.
2.7 Equity
in `, exceptas otherwise stated
2019 2018
Authorized
88,600 equity shares of ARS 100 par value 7,43,28,400 7,43,28,400
Issued, Subscribed and Paid-Up
88,600 equity shares of ARS 100 par value (Of the above, 83,098 equity shares are
held by the holding company, Infosys Consulting Holding AG (Formerly Lodestone
Holding AG)) (Of the above, 5,502 equity shares are held by the fellow subsidiary,
Infosys Consulting AG.) 7,43,28,400 7,43,28,400
7,43,28,400 7,43,28,400
The details of shareholders holding more than 5% shares as at December 31, 2019 and December 31, 2018 are as follows :
in `, exceptas otherwise stated
Name of the shareholder As at December 31, 2019 As at December 31, 2018
shares shares
(formerly Lodestone Holding AG) 83,098 93.79 83,098 93.79
Infosys Consulting AG 5,502 6.21 5,502 6.21
There is no change in the number of shares during the above mentioned reporting periods.
2.8 Borrowings
in `
2019 2018
Current
Unsecured Loan from Parent Company(refer to note 2.17) 2,80,32,503 4,06,98,271
Total current borrowings 2,80,32,503 4,06,98,271

2.9 Trade payables Provision for post-sales client support
in ` The movement in the provision for post-sales client
Particulars As at December 31, support is as follows :
2019 2018 in `
Trade payables * 7,02,75,283 7,79,27,788 Particulars Year ended December 31
Total trade payables 7,02,75,283 7,79,27,788 2019 2018
*Includes dues to related Balance at the beginning 3,88,827 24,161
parties (Refer to Note Provision recognized /
No.2.17) 6,86,05,296 7,60,89,946 (reversed) (1,70,602) 16,41,397
Exchange difference (39,243) (12,76,731)
2.10 Other financial liabilities Balance at the end 1,78,982 3,88,827
in `
Particulars As at December 31, Provision for post-sales client support and other provisions are
2019 2018 expected to be utilized over a period of six months to one year.
Current
2.13 Income Taxes
Others
Accrued compensation to Income tax expense in the Statement of Profit and Loss comprises:
in `
employees 61,10,557 44,81,338
Accrued expenses (1) 15,18,877 78,45,526 Particulars Year ended December 31,
Compensated absences 85,32,627 67,00,608 2019 2018
Other payables (2) 27,97,289 28,64,629 Current taxes 2,10,54,491 1,51,80,416
Total current other financial Deferred taxes (2,89,16,371) -
liabilities 1,89,59,350 2,18,92,101 Income tax expense (78,61,880) 1,51,80,416
amortized cost 1,04,26,723 1,51,91,493 Current tax expense for the years ended December 31, 2019
(2)
Includes dues to related and December 31, 2018 includes provisions (net of reversals)
parties (Refer to Note amounting to ` 72,74,477 and ` 31,21,631 respectively,
No.2.17) 26,20,661 27,10,653 pertaining to prior periods.
2.11 Other liabilities computed by applying the statutory income tax rate to the
in ` income before income taxes is summarized as follows:
in `
Current 2019 2018
Unearned revenue 2,12,52,678 14,43,780 Profit/(Loss) before
Others income tax 1,63,43,397 (3,56,40,686)
Withholding taxes and Enacted tax rates in
others 2,95,03,094 1,03,42,233 Argentina (%) 30.00% 30.00%
Other Payables 34,195 - Computed expected tax
5,07,89,967 1,17,86,013 expense 49,03,019 (1,06,92,206)
Total current other liabilities 5,07,89,967 1,17,86,013 Tax provisions/ (reversals) 72,74,477 31,21,631
Effect of unrecognized
deferred tax assets (1,68,38,293) 2,19,81,899
2.12 Provisions
in `
Effect of non-deductible
expenses 72,923 52,35,518
Particulars As at December 31, Others (32,74,006) (44,66,426)
2019 2018 Income tax expense (78,61,880) 1,51,80,416
Current
Others The applicable Argentina statutory tax rate for year ended
Post-sales client support 1,78,982 3,88,827 December 31, 2019 and December 31, 2018 is 30%.
Total current Provisions 1,78,982 3,88,827

The details of income tax assets and income tax The charge relating to temporary differences during the
liabilities are as follows : year ended December 31, 2019 are primarily on account of
in ` property, plant and equipment, accrued compensation and
Year ended December 31, compensated absences partially offset by trade receivables.
2019 2018 The credits relating to temporary differences during the
Income tax assets - - year ended December 31, 2018 are primarily on account
Current income tax liabilities 19,69,105 35,82,674 of accrued compensation to employees and compensated
Net current income tax assets absences partially offset by reversal of credits pertaining to
/ (liability) at the end (19,69,105) (35,82,674) property plant and equipment and trade receivables.
The gross movement in the current income tax asset / 2.14 Revenue from operations
in `
in ` Particulars Year ended December 31,
Particulars Year ended December 31, 2019 2018
2019 2018 Income from consultancy
Net current income tax services 21,45,51,124 18,17,72,183
asset / (liability) at the Total revenue from
beginning (35,82,674) 80,68,750 operations 21,45,51,124 18,17,72,183
Income tax paid 2,26,68,060 35,28,992
Current income tax Disaggregate revenue information
expense (Refer to Note The table below presents disaggregated revenues from
No.2.13) (2,10,54,491) (1,51,80,416) contracts with customers by offerings for the year ended
Net current income tax December 31, 2019. The Company believes that this
asset / (liability) at the end (19,69,105) (35,82,674) disaggregation best depicts how the nature, amount, timing
The tax effects of significant temporary differences that resulted and uncertainty of our revenues and cash flows are affected
in deferred income tax assets and liabilities are as follows: by industry, market and other economic factors.
in `
in `
Particulars As at December 31, December 31, 2019
2019 2018 Revenue by offerings
Deferred income tax assets Core 21,38,26,766
Accrued compensation to Digital 7,24,358
employees 18,33,167 - Total 21,45,51,124
Trade receivables (3,903) -
Others 2,13,67,787 - Digital Services
Total deferred income tax
assets 2,31,97,051 - Digital Services comprise of service and solution offerings
Deferred income tax of the Company that enable our clients to transform their
liabilities businesses. These include offerings that enhance customer
Others 2,32,255 - experience, leverage AI-based analytics and big data, engineer
Total deferred income tax digital products and IoT, modernize legacy technology
liabilities 2,32,255 - systems, migrate to cloud applications and implement
Deferred income tax assets advanced cyber security systems.
after set off 2,29,64,796 - Core Services
The gross movement in the deferred income tax account for Core Services comprise traditional offerings of the Company
the year(s) ended December 31, 2019 and December 31, that have scaled and industrialized over a number of years.
2018, are (is) as follows: These primarily include application management services,
in ` proprietary application development services, independent
validation solutions, product engineering and management,
Particular As at December 31,
infrastructure management services, traditional enterprise
2019 2018
application implementation, support and integration services.
at the beginning - - Trade receivables and Contract Balances
Translation differences (59,51,575) - The Company classifies the right to consideration in exchange
Credits / (charge) relating to for deliverables as either a receivable or as unbilled revenue.
temporary differences 2,89,16,371 -
at the end 2,29,64,796 -

A receivable is a right to consideration that is unconditional On account of adoption of Ind AS 115, unbilled revenues of
upon passage of time. Revenue for time and material contracts ` 31,18,261 as at December 31, 2019 has been considered
are recognized as related service are performed. Revenue for as a Non-financial asset.
line basis over the period of the contract. Revenues in excess 2.15 Expenses
in `
of billings is recorded as unbilled revenue and is classified
as a financial asset for these cases as right to consideration is Particulars Year ended December 31,
unconditional upon passage of time. 2019 2018
Salaries including bonus
10,88,80,675 10,93,19,519
Staff welfare 5,19,949 1,53,837
expenses 10,94,00,624 10,94,73,356
revenue for fixed price development contracts (contract asset)
is classified as non financial asset as the contractual right in `
to consideration is dependent on completion of contractual Particulars Year ended December 31,
milestones. Invoicing in excess of earnings are classified 2019 2018
as unearned revenue. Other expenses
Trade receivable and unbilled revenues are presented net of Brand and marketing 65,806 1,95,914
impairment in the Balance Sheet. Operating lease payments 1,11,98,066 1,53,33,719
During the year ended December 31, 2019 , the Company Rates and taxes 1,36,75,681 46,20,654
recognized revenue of `14,43,780 arising from opening Repairs and maintenance 5,10,560 2,78,383
unearned revenue as of January 1, 2019. Insurance 32,34,316 21,51,531
Provision/(Reversal) for
During the year ended December 31, 2019 , ` 81,37,386
post-sales client support and
of unbilled revenue pertaining to fixed price development
warranties (1,70,602) 16,41,397
contracts as of January 1, 2019 has been reclassified
Allowances for credit losses
to Trade receivables upon billing to customers on
on financial assets (reversals) (1,94,006) 72,800
completion of milestones.
Finance cost 19,44,612 8,62,596
Performance obligations and remaining Bank charges 22,56,576 24,10,660
performance obligations Others 3,02,74,554 3,80,67,734
The remaining performance obligation disclosure provides Total other expenses 6,27,95,563 6,56,35,388
the aggregate amount of the transaction price yet to be
recognized as at the end of the reporting period and an 2.16 Leases
explanation as to when the Company expects to recognize
these amounts in revenue. Applying the practical expedient
as given in Ind AS 115, the Company has not disclosed the The lease rentals charged during the period are as follows :
in `
remaining performance obligation related disclosures for
contracts where the revenue recognized corresponds directly Particulars Year ended December 31,
with the value to the customer of the entity’s performance 2019 2018
completed to date, typically those contracts where invoicing Lease rentals recognized
is on time and material basis. Remaining performance during the year 1,11,98,066 1,53,33,719
obligation estimates are subject to change and are affected by
The obligations on long-term, non-cancellable operating
leases payable as per the rentals stated in the respective
of contracts, periodic revalidations, adjustment for revenue
agreements are as follows:
that has not materialized and adjustments for currency. in `
The aggregate value of performance obligations that are Future minimum lease As at December 31,
completely or partially unsatisfied as at December 31, 2019, payable 2019 2018
other than those meeting the exclusion criteria mentioned Not later than 1 year 98,43,253 80,17,722
above, is `5,07,39,667 . Out of this, the Company expects Later than 1 year and not
to recognize revenue of around 100% within the next one later than 5 years 73,82,440 2,02,04,659
year and the remaining thereafter. The contracts can generally Later than 5 years - -
be terminated by the customers and typically includes an
enforceable termination penalty payable by them. The operating lease arrangements are renewable on a periodic
The impact on account of applying the erstwhile Ind AS basis and for most of the leases, extend up to a maximum of
18 Revenue standard instead of Ind AS 115 Revenue from five years from their respective dates of inception and relates
contract with customers on the financials results of the Group to rented premises. Some of these lease agreements have
for the year ended December 31, 2019 is insignificant. price escalation Clauses.

List of holding companies:
Name of holding company Country Holding as at December 31,
2019 2018

Name of subsidiary companies Country
Infosys Austria GmbH(1) (formerly Lodestone Management Consultants GmbH) Austria
Infosys CIS LLC(1)(18) Russia
Lodestone Management Consultants Inc.(5)(11) US
Infosys Consulting (Shanghai) Co., Ltd.(formerly Lodestone Management Consultants Co., Ltd)(5) China
Brilliant Basics (MENA) DMCC(8)(26) UAE

Name of subsidiary companies Country
HIPUS(20) Japan
(1)
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(3)
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(6)
(7)
(8)
(9)
(10)
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(14)
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(18)
(19)
Incorporated effective November 27, 2018, wholly owned subsidiary Infosys Public Services Inc
(20)
(21)
(22)
(23)
(24)
(25)
Effective October 1, 2019, merged into Infosys Consulting Ltda, a majority owned and controlled subsidiary of Infosys Limited
(26)
Under Liquidation

in `
2019 2018
Trade receivables
Infosys Technologia DO Brasil LTDA - 73,89,802
Infy Consulting Company Limited 66,98,191 7,48,035
Infosys Consulting Ltda 1,41,43,121 21,34,618
Infosys Consulting AG - 19,07,305
2,08,41,312 1,21,79,760
Borrowings
Infosys Consulting Holding AG 2,80,32,503 4,06,98,271
2,80,32,503 4,06,98,271
Trade payables
Infosys Consulting Ltda. 2,549 2,699
Infosys Consulting AG 1,20,44,649 84,83,625
Infosys Technologies S. de R. L. de C. V. 69,42,281 66,60,837
Infy Consulting B.V 3,33,316 -
Infy Consulting Company Limited 4,91,47,614 6,08,08,083
6,86,05,296 7,60,89,946
Other Financial Liabilities
Infosys Consulting Holding AG 41,774 40,139
26,20,661 27,10,653
The details of related party transactions, entered into by the company, are as follows:
in `
2019 2018
Financing transactions
Borrowings (net of repayment)
Infosys Consulting Holding AG(1) (1,26,65,768) 2,62,66,637
(1,26,65,768) 2,62,66,637
Purchase of services, shared facilities and personnel
Infosys Consulting GmbH - 1,33,242
Infy Consulting B.V. 3,28,656 81,927
37,29,584 92,32,516
Sale of services
Infosys Technologia DO Brasil LTDA 4,41,235 48,11,515
Infosys Consulting AG 1,56,48,663 4,75,13,353
Infosys Consulting Ltda. 89,34,872 34,48,877
3,16,03,534 5,90,54,226
Includes interest.
(1)

The Company is engaged in providing consultancy service in a single geography. Based on the ‘management approach’, as
defined in Ind AS 108, Segment Reporting, the Chief Operating Decision Maker (CODM) evaluates the performance and
allocates resources based on the analysis of the performance of the Company as a whole. Its operations are, therefore, considered
to constitute a single segment in the context of Ind AS 108, Segment Reporting.

Portland Group Pty. Ltd.
Independent Auditor’s Report to the Board of Directors
Opinion
We have audited the financial report of Portland Group Pty Ltd (the “Company”) which comprises the statement of financial
position as at March 31, 2020, the statement of profit and loss and other comprehensive income, the statement of changes in
equity and the statement of cash flows for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the Company financial position as at March 31, 2020 and of its financial performance for
the year then ended; and
(ii) complying with Australian Accounting Standards – Reduced Disclosure Requirements and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further
described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the
Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements
of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in
accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors
of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report.
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Company’s annual report for the year ended March 31, 2020, but does not include the financial report and our
Our opinion on the financial report does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the
audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a
material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in
accordance with Australian Accounting Standards – Reduced Disclosure Requirements and the Corporations Act 2001 and for
such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Company to continue as a going
directors either intend to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level
of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide
a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
434 | Portland Group Pty. Ltd. Infosys Subsidiary Financials 2019-20

disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit
draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate,
• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the
financial report represents the underlying transactions and events in a manner that achieves fair presentation.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during our audit.
Deloitte Touche Tohmatsu
Harsh Shah
Partner
Sydney, 15 May 2020
Infosys Subsidiary Financials 2019-20 Portland Group Pty. Ltd. | 435

Directors’ report
For the year ended March 31, 2020
The directors present their report together with the financial report of Portland Group Pty. Ltd. (‘the Company’), for the financial
year ended March 31, 2020 and the auditor’s report thereon.
1. Directors
The directors of the Company at any time during or since the end of the financial year are:
Mr. Andrew James Jarvis
Mr. Andrew Stewart Groth
Mr. Abhay Harigobind Das Chauhan
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
2. Principal activities
The principal activities of the Company include provision of sourcing and category management service, project-based
consultancy support and ongoing management services. The Company offers complete clients procurement and supply chain
functions from innovative, high-end strategy to effective, low-cost transactional processing and resale of software.
There were no significant changes in the nature of the activities of the Company during the year. No matters or circumstances
have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the
Company, the results of those operations, or the state of affairs of the Company in future financial years.
3. Dividends
No dividends were paid during the current year and previous year. The directors do not recommend the payment of a dividend.
4. Operating and financial review
The profit after tax for the year ended March 31, 2020 amounted to $ 1,119,335 (2019: profit after tax of $ 1,548,491). This
was primarily a result of decrease of revenue from $ 28,111,982 for the year ended March 31, 2019 to $ 20,634,925 for the
year ended March 31, 2020.
5. Environmental regulation
The Company’s operations are not regulated by any significant environmental regulation under a law of the commonwealth or
of a state or territory. However, the Board believes that the Company has adequate systems in place for the Management of its
environmental requirements, and is not aware of any breach of those environmental requirements as they apply to the Company.
6. Events subsequent to reporting date
No matters or circumstances have arisen since the end of the financial year and the date of this report which significantly
affected or may significantly affect the operations of the Company, the results of those operations, or the state of affairs of the
Company in future financial years.
7. Likely developments
The Company will continue to pursue its policy of increasing the profitability and market share of its major business sectors
during the next financial year.
Further information about likely developments in the operations of the Company and the expected results of those operations
in future financial years has not been included in this report because disclosure of the information would be likely to result in
unreasonable prejudice to the Company.
8. Indemnification and insurance of officers and auditors
No indemnities have been given or insurance premiums paid, during or since the end of the financial year, for any person who
is or has been an officer or auditor of the Company.
9. Lead auditor’s independence declaration
The Lead auditor’s independence declaration forms part of the directors’ report for the financial year ended March 31, 2020
10. Estimation of uncertainties relating to the global pandemic COVID-19 (COVID-19)
The Company has considered the possible effects that may result from the pandemic relating to COVID-19 on the carrying
amounts of receivables and unbilled revenues. In developing the assumptions relating to the possible future uncertainties
in the global economic conditions because of this pandemic, the Company, as at the date of approval of these financial
statements has used internal and external sources of information and related information, and economic forecasts. The Company

expects to recover the carrying amount of these assets and will continue to closely monitor any material changes to future
economic conditions.
The Directors are not aware of any other matter or circumstance that has occurred since the end of the financial period that
has significantly affected or may affect the operations of the company, the results of those operations or the state of affairs of
the Company in subsequent financial years.
This report is made with a resolution of the directors:
____________________________
Andrew Jarvis
Managing Director and Chief Executive officer
Dated at Sydney this 13th day of May 2020

Statement of financial position
In Australian dollars
2020 2019
Assets
Current assets
Cash and cash equivalents 12a 28,229,346 25,819,060
Other current assets 12c 25,771 39,610
Prepayments 11 1,899,737 433,348
Non-current assets
Deferred tax assets 16a 537,910 3,712,014
Right-of-use assets 19 705,342 –
Other receivables 10 – 4,869,603
Prepayments 11 251,940 628,310
Total assets 41,308,000 43,172,127
Liabilities
Current liabilities
Trade and other payables 14 1,578,202 1,358,687
Lease liabilities 19 430,792 –
Other current liabilities 15 8,478,289 4,700,176
Current tax liabilities 396,579 3,560,516
Provisions 17 74,930 190,460
Employee benefit obligations 18 3,023,373 2,117,421
Employee benefit obligations 18 602,220 519,103
Other non-current liabilities 15 1,922,100 7,376,380
Net assets 24,389,821 23,349,384
Equity
Share capital 25a 3,389,049 3,389,049
Total equity 24,389,821 23,349,384
Total equity 24,389,821 23,349,384
Total liabilities and equity 41,308,000 43,172,127

Statement of Profit or Loss and other comprehensive income
Particulars Note For the year ended March 31,
2020 2019
Revenue 5 20,634,925 28,111,982
Cost of sales 6 (17,620,378) (24,696,787)
Gross profit 3,014,547 3,415,195
Selling and distribution expenses (27,278) (8,567)
Operating profit 1,403,023 1,934,023
Finance income 7 282,473 307,352
Finance costs 19 (32,187) –
Net finance income 250,286 307,352
Income tax expense 16b & c (533,974) (692,884)
Profit after tax 1,119,335 1,548,491
Items that will never be reclassified to profit or loss: – –
Items that are or may be reclassified subsequently to profit or loss: – –
Other comprehensive income, net of tax – –
Total comprehensive income 1,119,335 1,548,491

Statement of changes in equity
Particulars Share capital Retained Total equity
earnings
Balance as on April 1, 2018 3,389,049 18,411,844 21,800,893
Total other comprehensive income – – –
Profit for the year – 1,548,491 1,548,491
Total comprehensive income – 1,548,491 1,548,491
Issue of ordinary shares – – –
Dividends – – –
Total transactions with owners of the Company – – –
Balance at March 31, 2019 3,389,049 19,960,335 23,349,384
Balance as on April 1, 2019 3,389,049 19,960,335 23,349,384
Impact on account of adoption of AASB 116 – (78,898) (78,898)
Balance as on April 1, 2019 (Restated) 3,389,049 19,881,437 23,270,486
Total comprehensive income 3,389,049 21,000,772 24,389,821
Issue of ordinary shares – – –
Dividends – – –
Total transactions with owners of the Company – – –
Balance at March 31, 2020 3,389,049 21,000,772 24,389,821

Particulars Note For the year ended March 31,
2020 2019
Cash receipts from customers 20,726,053 26,088,359
Cash paid to suppliers and employees (12,035,561) (22,607,792)
Cash generated from operations 8,690,492 3,480,567
Redemption of fixed deposits against bank guarantees – 500,000
Interest received 250,348 342,226
Net Income taxes and GST received / (paid) (5,761,403) 640,462
Net cash from operating activities 12b 3,179,437 4,963,255
Cash flows from Investing activities
Purchase of plant equipment 13 (105,760) (18,198)
Cash flows from financing activities:
Payment of lease liability (663,391) –
Net cash used in financing activities (663,391) –
Net increase / (decrease) in cash and cash equivalents 2,410,286 4,945,057
Cash and cash equivalents at April 1 25,819,060 20,874,003
Cash and cash equivalents as at March 31 12a 28,229,346 25,819,060

1. Reporting entity • Recognition of provisions and contingencies: key

assumptions about the likelihood and magnitude of an
Portland Group Pty. Ltd. (“the Company”) is a company
outflow of resources.
domiciled in Australia. The Company’s registered office and
principal place of business is Level 8, 68 Pitt Street, Sydney • Recognition of deferred tax assets: availability of
NSW 2000, Australia. The parent of the Company is Infosys future taxable profit against which carry forward
BPO Ltd. India and the ultimate parent is Infosys Limited, tax losses can be used.
India. The Company is a for–profit entity and is primarily • The Company uses the percentage-of-completion method
involved in provision of project-based consultancy support in accounting for its fixed-price contracts. Use of the
and ongoing management services to improve the Company’s percentage-of-completion method requires the Company
profitability in the long term. to estimate the efforts or costs expended to date as a
proportion of the total efforts or costs to be expended.
2. Basis of preparation Efforts or costs expended have been used to measure
progress towards completion as there is a direct relationship
(a) Statement of compliance between input and productivity. Provisions for estimated
The Company is a for-profit entity and the financial losses, if any, on uncompleted contracts are recorded in
statements have been prepared as a general purpose financial the period in which such losses become probable based
report to satisfy the directors’ reporting requirements under on the expected contract estimates at the reporting date.
Corporations Act 2001. Reduced disclosure regime has been • AASB 16 requires lessees to determine the lease term as
adopted in the preparation of these financial statements. the non-cancellable period of a lease adjusted with any
In the opinion of the directors, the Company is not publicly option to extend or terminate the lease, if the use of such
accountable nor a reporting entity. The financial report of option is reasonably certain. The Company makes an
the Company has been drawn up as a financial report for assessment on the expected lease term on a lease-by-lease
distribution to the members and for the purpose of fulfilling basis and thereby assesses whether it is reasonably certain
the requirements of the Corporations Act 2001. that any options to extend or terminate the contract will
The financial report has been prepared in accordance with be exercised. In evaluating the lease term, the Company
the recognition, measurement and classification aspects of all considers factors such as any significant leasehold
applicable Australian Accounting Standards (AASBs) adopted improvements undertaken over the lease term, costs
by the Australian Accounting Standards Board (AASB). relating to the termination of the lease and the importance
The annual financial statements were approved by the Board of the underlying asset to Company’s operations taking
of Directors on the 13th day of May 2020 into account the location of the underlying asset and
the availability of suitable alternatives. The lease term
(b) Basis of measurement in future periods is reassessed to ensure that the lease
The financial statements have been prepared on the historical term reflects the current economic circumstances. After
cost basis, unless otherwise stated. considering current and future economic conditions, the
Company has concluded that no changes are required
(c) Functional and presentation currency to lease period relating to the existing lease contracts
These financial statements are presented in Australian dollars, (Refer to Note no. 19).
which is the Company’s functional currency. • The Company has considered the possible effects that
may result from the pandemic relating to COVID-19
(d) Use of estimates and judgments on the carrying amounts of receivables, and unbilled
In preparing these financial statements, management has revenues. In developing the assumptions relating to the
made judgments, estimates and assumptions that affect the possible future uncertainties in the global economic
application of the Company’s accounting policies and the conditions because of this pandemic, the Company, as at
reported amounts of assets, liabilities, income and expenses. the date of approval of these financial statements has used
Actual results may differ from these estimates. internal and external sources of information and related
Estimates and underlying assumptions are reviewed on information, and economic forecasts. The Company
an ongoing basis. Revisions to accounting estimates are expects to recover the carrying amount of these assets and
recognized in the period in which the estimate is revised and will continue to closely monitor any material changes to
in any future periods affected. future economic conditions.
(e) Assumptions and estimation uncertainties

Information about assumptions and estimation uncertainties
that have a significant risk of resulting in a material adjustment
within the year ending March 31, 2020 are:

3. Significant accounting policies are accounted for on a cumulative catch up basis, while those
that are distinct are accounted for prospectively, either as a
The Company has consistently applied the following
separate contract, if the additional services are priced at the
accounting policies to all periods presented in these
standalone selling price, or as a termination of the existing
contract and creation of a new contract if not priced at the
(a) Revenue standalone selling price.
The Company’s main source of income is from provision of Tax
sourcing and category management service, project-based
The Company presents revenues net of indirect taxes in its
consultancy support and ongoing management services. The
Statement of Profit and loss.
entity recognizes revenue using the output method i.e. right
to invoicing based on the consultants being provided and (b) Contracts in progress
costs being incurred as per AASB 15. Contract revenue includes the initial amount agreed in the
Fixed price contract plus any variations in contract work, claims and
incentive payments, to the extent that it is probable that they
will result in revenue and can be measured reliably. When
the outcome of a contract can be estimated reliably, contract
revenue is recognized in profit or loss in proportion to the
stage of completion of the contract. The stage of completion
is assessed by reference to surveys of work performed. When
Time and material the outcome of a contract cannot be estimated reliably,
Revenue on time-and-material contracts are recognized as contract revenue is recognized only to the extent of contract
the related services are performed and revenue from the costs incurred that are likely to be recoverable.
end of the last invoicing to the reporting date is recognized Contract expenses are recognized as incurred unless they
as unbilled revenue. create an asset related to future contract activity. An expected
loss on a contract is recognized immediately in profit or loss.
Uncertainty
Contracts in progress represents the gross amount expected
When there is uncertainty as to measurement or ultimate
to be collected from customers for contract work performed
to date. It is measured at costs plus profits recognized to date
uncertainty is resolved. Efforts or costs expended have been
less progress billings and recognized losses.
used to measure progress towards completion as there is a
direct relationship between input and productivity. Contracts in progress are presented as part of trade and
other receivables in the statement of financial position for
Maintenance all contracts in which costs incurred plus recognized profits
Maintenance revenue is recognized ratably over the term of exceed progress billings and recognized losses. If progress
the underlying maintenance arrangement. billings and recognized losses exceed costs incurred plus
recognized profits, then the difference is presented as deferred
Unbilled / unearned income in the statement of financial position. Customer
Revenues in excess of invoicing are classified as contract advances are presented as deferred income in the statement
assets (which we refer as unbilled revenue) while invoicing in of financial position.
excess of revenues are classified as contract liabilities (which
we refer to as unearned revenues). (c) Foreign currency transactions
Transactions in foreign currencies are translated to the
Licenses
functional currency of the Company at exchange rates at the
Revenue from licenses where the customer obtains a “right dates of the transactions.
to use” the licenses is recognized at the time the license is
Monetary assets and liabilities denominated in foreign
made available to the customer. Arrangements to deliver
currencies at the reporting date are translated to the functional
software products generally have three elements: license,
currency at the exchange rate at the reporting date. Non-
implementation and Annual Technical Services (ATS). The
monetary assets and liabilities that are measured at fair value
Company has applied the principles under AASB 115 to
in a foreign currency are translated to the functional currency
account for revenues from these performance obligations.
at the exchange rate when the fair value was determined.
ATS revenue is recognized ratably over the period in which
Foreign currency differences are generally recognized in
the services are rendered.
profit or loss. Non-monetary items that are measured based
Contract modification on historical cost in a foreign currency are not translated.
Contract modifications are accounted for when additions, (d) Employee benefits
scope or contract price. The accounting for modifications of (i) Short-term employee benefits
contracts involves assessing whether the services added to an Short-term employee benefits are expensed as the related
existing contract are distinct and whether the pricing is at the service is provided. A liability is recognized for the amount
standalone selling price. Services added that are not distinct expected to be paid under short-term cash bonus or

profit-sharing plans if the Company has a present legal or Deferred tax assets and liabilities are offset only if
constructive obligation to pay this amount as a result of past certain criteria are met.
service provided by the employee, and the obligation can A deferred tax asset is recognized for unused tax losses,
be estimated reliably. tax credits and deductible temporary differences, to the
(ii) Defined contribution plans extent that it is probable that future taxable profits will be
available against which they can be utilized. Deferred tax
A defined contribution plan is a post-employment benefit
assets are reviewed at each reporting date and are reduced
plan under which the Company pays fixed contributions
to the extent that it is no longer probable that the related tax
into a separate entity and will have no legal or constructive
benefit will be realized.
obligation to pay further amounts. Obligations for
contributions to defined contribution plans are recognized (iii) Tax exposures
as the related service is provided. Prepaid contributions are In determining the amount of current and deferred tax the
recognized as an asset to the extent that a cash refund or a Company takes into account the impact of uncertain tax
reduction in future payments is available. positions and whether additional taxes and interest may be
(iii) Other long-term employee benefits due. This assessment relies on estimates and assumptions and
may involve a series of judgments about future events. New
The Company’s net obligation in respect of long-term
information may become available that causes the Company
employee benefits is the amount of future benefit that
to change its judgment regarding the adequacy of existing
employees have earned in return for their service in the
tax liabilities; such changes to tax liabilities will impact tax
current and prior periods. That benefit is discounted to
expense in the period that such a determination is made.
determine its present value. The discount rate is the yield
at the repay date on Australian corporate bonds that have (f) Property, plant and equipment
maturity dates approximately the term of the Company’s
obligations. Remeasurements are recognized in profit or loss (i) Recognition and measurement
in the period in which they arise. Items of property, plant and equipment are measured at cost less
accumulated depreciation and accumulated impairment losses.
(iv) Termination benefits
Purchased software that is integral to the functionality of the
Termination benefits are expensed at the earlier of when the related equipment is capitalized as part of that equipment. If
Company can no longer withdraw the offer of those benefits significant parts of an item of property, plant and equipment
and when the Company recognizes costs for a restructuring. If have different useful lives, they are accounted for as separate
benefits are payable more than 12 months after the reporting items (major components) of property, plant and equipment.
date, then they are discounted to their present value.
Any gain and loss on disposal of an item of property, plant
(e) Income tax and equipment is recognized in profit or loss.
Income tax expense comprises current and deferred tax. (ii) Subsequent expenditure
It is recognized in profit or loss except to the extent that
Subsequent expenditure is capitalized only when it is
it relates to items recognized directly in equity or in other
probable that the future economic benefits associated with
comprehensive income.
the expenditure will flow to the Company and its cost can
(i) Current tax be measured reliably. The costs of the day-to-day servicing
Current tax comprises the expected tax payable or receivable of property, plant and equipment are recognized in profit
on the taxable income or loss for the year and any adjustment or loss as incurred.
to tax payable or receivable in respect of previous years. It (iii) Depreciation
is measured using tax rates enacted or substantively enacted
Depreciation is calculated to write off the cost of property,
at the reporting date.
plant and equipment less their estimated residual values using
(ii) Deferred tax the straight-line basis over their estimated useful lives, and
Deferred tax is recognized in respect of temporary differences is generally recognized in profit or loss. The estimated useful
between the carrying amounts of assets and liabilities lives of property, plant and equipment are as follows:
for financial reporting purposes and the amounts used Particulars 2020
for taxation purposes. Deferred tax is not recognized for Plant and machinery 5 years
temporary differences on the initial recognition of assets or Computer equipment 3-5 years
liabilities in a transaction that is not a business combination Furniture and fixtures 5 years
and that affects neither accounting nor taxable profit nor loss.
Deferred tax is measured at the tax rates that are expected to be
reviewed at each reporting date and adjusted if appropriate.
applied to temporary differences when they reverse, using tax
rates enacted or substantively enacted at the reporting date. (g) Financial instruments
The measurement of deferred tax reflects the tax consequences AASB 9 Financial Instruments: Classification and
that would follow the manner in which the Company expects, Measurement (effective for annual periods beginning on or
at the reporting date, to recover or settle the carrying amount after January 1, 2018) – AASB 9 was issued by the IASB in
of its assets and liabilities.

November 2009 and amended in November 2013 to include Cash and cash equivalents
the new requirements for general hedge accounting. Another In the statement of cash flows, cash and cash equivalents
revised version of AASB 9 was issued in July 2014 mainly to includes bank overdrafts that are repayable on demand and
include, a) impairment requirements for financial assets and form an integral part of the Company’s cash management.
b) limited amendments to the classification and measurement
requirements by introducing a ‘fair value through other (iii) Non-derivative financial liabilities – measurement
comprehensive income’ (FVTOCI) measurement category for Non-derivative financial liabilities are initially recognized
certain simple debt instruments. In relation to the impairment at fair value less any directly attributable transaction costs.
of financial assets, AASB 9 requires an expected credit loss Subsequent to initial recognition, these liabilities are measured
model. This standard has not impacted the Company’s at amortized cost using the effective interest rate method.
financial position or performance, as the Company does not
have any financial instruments which are designated through (iv) Share capital
profit or loss category. Ordinary shares
The Company classifies non-derivative financial assets Incremental costs directly attributable to the issue of
into the following categories: financial assets at fair value ordinary shares, net of any tax effects, are recognized as a
through profit or loss, held-to-maturity financial assets, deduction from equity.
loans and receivables.
(h) Impairment
The Company classifies non-derivative financial liabilities
into the other financial liabilities category. (i) Non-derivative financial assets
Financial assets not classified as at fair value through profit
(i) Non‑derivative financial assets and financial
or loss, including an interest in an equity-accounted investee,
liabilities – recognition and derecognition
are assessed at each reporting date to determine whether there
The Company initially recognizes loans and receivables is objective evidence of impairment.
issued on the date that they are originated. All other
Objective evidence that financial assets are impaired includes:
financial assets and financial liabilities are recognized
initially on the trade date. • default or delinquency by a debtor;
The Company derecognizes a financial asset when the • restructuring of an amount due to the Company on terms
contractual rights to the cash flows from the asset expire. that the Company would not consider otherwise;
Any interest in such transferred financial assets that is created • indications that a debtor or issuer will enter bankruptcy;
or retained by the Company is recognized as a separate • adverse changes in the payment status of
asset or liability. borrowers or issuers;
The Company derecognizes a financial liability when its • The disappearance of an active market for a security.
contractual obligations are discharged or cancelled, or expire.
(ii) Financial assets measured at amortized cost
Financial assets and financial liabilities are offset and the net
amount presented in the statement of financial position when, The Company considers evidence of impairment for these
and only when, the Company has a legal right to offset the assets measured at both a specific asset and collective level.
amounts and intends either to settle them on a net basis or to All individually significant assets are assessed for specific
realize the asset and settle the liability simultaneously. impairment. Those found not to be specifically impaired are
then collectively assessed for any impairment that has been
(ii) Non‑derivative financial assets – measurement incurred but not yet identified. Assets that are not individually
Financial assets at fair value through profit or loss significant are collectively assessed for impairment by
A financial asset is classified as at fair value through profit or grouping together assets with similar risk characteristics.
loss if it is classified as held-for-trading or is designated as In assessing collective impairment, the Company uses
such on initial recognition. Directly attributable transaction historical information on the timing of recoveries and
costs are recognized in profit or loss as incurred. Financial the amount of loss incurred, and makes an adjustment if
assets at fair value through profit or loss are measured at current economic and credit conditions are such that the
fair value and changes therein, which take into account any actual losses are likely to be greater or lesser than suggested
dividend income, are recognized in profit or loss. by historical trends.
Held-to-maturity financial assets An impairment loss is calculated as the difference between
These are initially recognized at fair value plus any directly an asset’s carrying amount and the present value of the
attributable transaction costs. Subsequent to initial estimated future cash flows discounted at the asset’s original
recognition, they are measured at amortized cost using the effective interest rate. Losses are recognized in profit or loss
effective interest method. and reflected in an allowance account. When the Company
considers that there are no realistic prospects of recovery of
the asset, the relevant amounts are written off. If the amount
These assets are initially recognized at fair value plus any of impairment loss subsequently decreases and the decrease
directly attributable transaction costs. Subsequent to initial can be related objectively to an event occurring after the
recognition, they are measured at amortized cost using the impairment was recognized, then the previously recognized
effective interest method. impairment loss is reversed through profit or loss.

(iii) Non-financial assets can be estimated reliably, and it is probable that an outflow
At each reporting date, the Company reviews the carrying of economic benefits will be required to settle the obligation.
amounts of its non-financial assets (other than inventories Provisions are determined by discounting the expected
and deferred tax assets) to determine whether there is any future cash flows at a pre-tax rate that reflects current
indication of impairment. If any such indication exists, then market assessments of the time value of money and the risks
the asset’s recoverable amount is estimated. specific to the liability. The unwinding of the discount is
recognized as a finance cost.
For impairment testing, assets are grouped together into the
smallest group of assets that generates cash inflows from Post-sales client support
continuing use that are largely independent of the cash A provision for post sales client support is recognized when
inflows of other assets or CGUs. the underlying services are sold, based on historical post sales
The recoverable amount of an asset or CGU is the greater of client support data and a weighting of all possible outcomes
its value in use and its fair value less costs to sell. Value in against their associated probabilities.
use is based on the estimated future cash flows, discounted to
their present value using a pre-tax discount rate that reflects (n) Capital management
current market assessments of the time value of money and The directors’ policy is to maintain strong capital base so as
the risks specific to the asset or CGU. to maintain investor and creditor confidence and to sustain
An impairment loss is recognized if the carrying amount of future development of the business. There were no changes
an asset or CGU exceeds its recoverable amount. Impairment to the Company’s capital management during the year.
losses are recognized in profit or loss. They are allocated to (o) Goods and service tax
reduce the carrying amount of any goodwill allocated to the
Revenue, expenses and assets are recognized net of the
CGU (or group of CGUs), and then to reduce the carrying
amount of goods and services tax (GST), except where the
amounts of the other assets in the CGU (or group of CGUs)
amount of GST incurred is not recoverable from the Australian
on a pro rata basis An impairment loss is reversed only to
Taxation Office (ATO). In these circumstances, the GST is
the extent that the asset’s carrying amount does not exceed
recognized as part of the cost of acquisition of the asset or as
the carrying amount that would have been determined,
part of the expense.
net of depreciation or amortization, if no impairment loss
had been recognized. Receivables and payables are stated with the amount of
GST included. The net amount of GST recoverable from, or
(i) Other current assets payable to, the ATO is included as a current asset or liability
Other current assets include rental deposits made to lease in the Balance Sheet.
vendors as per lease agreement and Interest accrued but Cash flows are included in the statement of cash flows on a
not due on fixed deposits made to bank. Once the interest gross basis. The GST components of cash flows arising from
amount is received, the asset account is decreased. investing and financing activities, which are recoverable from,
or payable to, the ATO are classified as operating cash flows.
(j) Prepayments
Prepaid expenses are future expenses that are paid in advance (p) Leases
and hence recognized initially as an asset. As the benefits The Company’s lease asset classes primarily consist of leases
of the expenses are recognized, the related asset account is for buildings. The Company assesses whether a contract
decreased and expensed contains a lease, at inception of a contract. A contract is, or
contains, a lease if the contract conveys the right to control
(k) Trade and other payables
the use of an identified asset for a period of time in exchange
Trade payables are obligations to pay for goods or services for consideration. To assess whether a contract conveys the
that have been acquired from suppliers in the ordinary course right to control the use of an identified asset, the Company
of business. Trade payables are classified as current liabilities assesses whether: (1) the contact involves the use of an
if payment is due within one year or less. If not, they are identified asset (2) the Company has substantially all of the
presented as non-current liabilities. The average credit period economic benefits from use of the asset through the period
on purchases is 30 days from the date of invoice. No interest of the lease and (3) the Company has the right to direct
is charged on overdue payables. The Company has financial the use of the asset.
risk management policies in place to ensure that all payables
At the date of commencement of the lease, the Company
are paid within the pre-agreed credit terms.
recognizes a right-of-use asset (“ROU”) and a corresponding
(l) Other current and non-current liabilities lease liability for all lease arrangements in which it is a
Other current and non-current liabilities consist of accrued lessee, except for leases with a term of twelve months or less
expenses and deferred revenue relating to contract revenue (short-term leases) and low value leases. For these short-
majorly. Other liabilities are classified as current if payment term and low value leases, the Company recognizes the lease
is due within 12 months. payments as an operating expense on a straight-line basis over
the term of the lease.
(m) Provisions

Certain lease arrangements include the options to extend or taxes. AASB 16 will result in an increase in cash inflows from
terminate the lease before the end of the lease term. ROU operating activities and an increase in cash outflows from
assets and lease liabilities include these options when it is financing activities on account of lease payments.
reasonably certain that they will be exercised. The following is the summary of practical expedients elected
The ROU assets are initially recognized at cost, which on initial application:
comprises the initial amount of the lease liability adjusted for 1. Applied a single discount rate to a portfolio of leases of
any lease payments made at or prior to the commencement similar assets in similar economic environment with a
date of the lease plus any initial direct costs less any lease similar end date
incentives. They are subsequently measured at cost less
2. Applied the exemption not to recognize right-of-use assets
accumulated depreciation and impairment losses.
and liabilities for leases with less than 12 months of lease
ROU assets are depreciated from the commencement date term on the date of initial application
on a straight-line basis over the shorter of the lease term and
3. Excluded the initial direct costs from the measurement
useful life of the underlying asset. ROU assets are evaluated for
of the right-of-use asset at the date of initial application.
recoverability whenever events or changes in circumstances
indicate their carrying amounts may not be recoverable. For 4. Applied the practical expedient to grandfather the
the purpose of impairment testing, the recoverable amount assessment of which transactions are leases. Accordingly,
(i.e., the higher of the fair value less cost to sell and the AASB 16 is applied only to contracts that were previously
value-in-use) is determined on an individual asset basis identified as leases under AASB 17.
unless the asset does not generate cash flows that are largely The difference between the lease obligation recorded as of
independent of those from other assets. In such cases, the March 31, 2019 under AASB 17 disclosed under Note 19
recoverable amount is determined as Cash Generating Unit of the 2019 annual financial statements and the value of the
(CGU) to which the asset belongs. lease liability as of April 1, 2019 is primarily on account of
The lease liability is initially measured at amortized cost at inclusion of extension and termination options reasonably
the present value of the future lease payments. The lease certain to be exercised, in measuring the lease liability in
payments are discounted using the interest rate implicit in accordance with AASB 16.
the lease or, if not readily determinable, using the incremental The weighted average incremental borrowing rate applied to
borrowing rates in the country of domicile of these leases. lease liabilities as at April 1, 2019 is 2.8%
Lease liabilities are remeasured with a corresponding
adjustment to the related ROU asset if the Company changes (q) Finance income
its assessment if whether it will exercise an extension or a Finance income comprises interest income on funds invested,
termination option. gains on the disposal of available-for-sale financial assets,
Lease liability and ROU assets have been separately presented changes in the fair value of financial assets at fair value
in the Balance Sheet and lease payments have been classified through profit or loss, and reclassifications of amounts
as financing cash flows. previously recognized in other comprehensive income.
Interest income is recognized as it accrues in profit or loss,
Transition using the effective interest method.
Effective from April 1, 2019, the Company adopted AASB Foreign currency gains and losses are reported on a net
16 “Leases” and applied the standard to all lease contracts basis as either finance income or finance cost depending
existing on April 1, 2019 using the modified retrospective on whether foreign currency movements are in a net gain
method and has taken the cumulative adjustment to retained or net loss position.
earnings, on the date of initial application. Consequently, the
Company recorded the lease liability at the present value of (r) Determination of fair values
the lease payments discounted at the incremental borrowing A number of the Company’s accounting policies and
rate and the ROU asset at its carrying amount as if the standard disclosures require the determination of fair value, for
had been applied since the commencement date of the lease, both financial and non-financial assets and liabilities. Fair
but discounted at the Company’s incremental borrowing rate values have been determined for measurement and / or
at the date of initial application. Comparatives as at and for disclosure purposes based on the following methods. When
the year ended March 31, 2019 have not been retrospectively applicable, further information about the assumptions made
adjusted and therefore will continue to be reported under the in determining fair values is disclosed in the notes specific to
accounting policies included as part of our annual financial that asset or liability.
statements for year ended March 31, 2019.
(i) Trade and other receivables
On transition, the adoption of the new standard resulted
The fair value of trade and other receivables, excluding
in recognition of ROU asset of AUD $1,147,929 and a
construction contracts in progress is estimated as the
lease liability of $1,473,690. Further, upon transition, the
present value of future cash flows, discounted at the market
Company reclassified leasehold land previously accounted as
rate of interest. For trade and other receivables maturing
finance lease under “Property, plant and equipment” to ROU
within one year from the Balance Sheet date, the carrying
asset and deferred rent accounted under “Other liabilities”
to retained earnings. The cumulative effect of applying the
of these instruments.
standard of $78 ,898 was adjusted in retained earnings, net of

(ii) Other non-derivative financial liabilities A receivable is a right to consideration that is unconditional
Fair value, which is calculated based on the present value of upon passage of time. Revenue for time and material contracts
future principal and interest cash flows, is discounted at the are recognized as related service are performed. Revenue for
market rate of interest at the reporting date. fixed price maintenance contracts is recognized on a straight
line basis over the period of the contract. Revenues in excess
4. New standards and interpretations not of billings is recorded as unbilled revenue and is classified
as a financial asset for these cases as right to consideration is
yet adopted unconditional upon passage of time
Australian Accounting Standards and Interpretations that have
recently been issued or amended but are not yet mandatory,
have not been early adopted by the Company for the annual
reporting period ended March 31, 2020. The Company has
not yet assessed any material impact of these the new or
amended Accounting Standards and Interpretations.
revenue for fixed price development contracts is classified as
Standards in issue but not yet effective non-financial asset as the contractual right to consideration is
new or revised requirement When effective dependent on completion of contractual milestones
AASB 2018-7 Amendment Effective for annual periods Invoicing in excess of earnings are classified
to Australian Accounting beginning on or after 1 as unearned revenue.
Standards - Definition of April 2020 Trade receivables and unbilled revenues are presented net of
Materia impairment in the Balance Sheet.
AASB 2018-7 Amendment Effective for annual periods
to Australian Accounting beginning on or after 1 6. Cost of sales
Standards - References to April 2020 In Australian dollars
the Conceptual Framework Particulars Year ended March 31,
2020 2019
5. Revenue Travel 926,385 874,320
In Australian dollars Employee benefit expense 11,967,812 10,814,436
Particulars Year ended March 31, Cost of third party software 2,436,259 11,139,397
2020 2019 External contractor expense
Related party revenue 5,039,913 4,280,939 and others 2,289,922 1,868,634
Third party revenue 15,595,012 23,831,043 17,620,378 24,696,787
20,634,925 28,111,982
7. Finance Income
At March 31, 2020 the Company has deferred revenue of In Australian dollars
$1,642,447 (2019: $66,745), which represents the fair value
of that portion of the revenue and the Company has unbilled
2020 2019
revenue of $ 6,241,154 (2019: $9,927,206).
Interest income from
Disaggregate revenue Information deposits with banks 227,170 297,496
The table below presents disaggregated revenues from Other miscellaneous income 55,303 9,856
contracts with customers by contract-type for each of 282,473 307,352
our business segments. The Company believes that this
disaggregation best depicts how the nature, amount, timing 8. Auditors’ remuneration
and uncertainty of our revenues and cash flows are affected In Australian dollars
by industry, market and other economic factors. Particulars Year ended March 31,
Revenues by contract type 2020 2019
In Australian dollars Fees paid to auditors of the
Particulars Year ended March 31, Company
2020 2019 Audit of financial statements
Fixed price 12,750,795 20,156,361 Audit of financial statements
Time and materials 7,884,130 7,955,621 – Deloitte Touché Tohmatsu 21,000 21,000
Total 20,634,925 28,111,982 21,000 21,000

for deliverables as either a receivable or as unbilled revenue.

9. Expenses by nature 12 Cash and cash equivalents
12.a Cash and cash equivalents
2020 2019
Depreciation 90,352 67,063 Particulars As at March 31,
Employee benefits 12,683,012 11,558,811 2020 2019
Rental expenses 1,339 510,905 Cash at Bank 28,229,346 25,819,060
Amortization on ROU assets 442,587 – 28,229,346 25,819,060
Interest expenses on leases
liability 32,187 – 12.b Cash flows from operating activities
10. Trade and other receivables 2020 2019
Reconciliation of cash flow
Particulars As at March 31, from operations with profit
2020 2019 after income tax 1,119,335 1,548,491
Current Adjustments for:
Trade receivables 2,822,434 2,292,877 Depreciation and
Unbilled revenue 6,095,004 5,057,603 amortization 532,939 67,063
8,917,438 7,350,480 Deferred tax assets 3,174,104 (3,144,903)
Amounts due from related Net tax assets (liabilities) (3,163,937) 4,144,544
party (Trade receivables, Finance cost 32,187 –
other receivables and 1,694,628 2,615,195
unbilled revenue - Note 23) 591,020 185,613 Changes in
9,508,458 7,536,093 Trade and other receivables (1,972,365) (4,834,821)
Non-current Other current assets 4,883,443 (4,324,872)
Unbilled revenue – 4,869,603 Prepayments (1,090,018) (904,186)
– 4,869,603 Trade and other payables 219,515 1,271,719
Other liabilities 4,024,976 3,706,472
The average credit period is 30 days. No interest is charged on
Provisions (115,530) 101,572
trade receivables. Based on the Management’s best estimate,
Employee benefits obligation (4,465,212) 7,332,176
impairment in trade receivables amounting to AUD 138,964
Net cash from operating
and AUD 138,365 exist as on March 31, 2020 and March 31,
activities 3,179,437 4,963,255
2019 respectively. Also, an exposure to credit risk from trade
receivables and unbilled revenue amounting to AUD 80,916
and AUD 14,436 exist as on March 31, 2020 and March 12.c Other current assets
31, 2019 respectively.
11. Prepayments 2020 2019
In Australian dollars Current
Particulars As at March 31, Electricity and other deposits 9,338 –
2020 2019 Interest accrued but not
Current received 16,433 39,610
Prepaid expenses 1,875,867 421,559 25,771 39,610
Loans and advances to
employees 23,870 11,789
1,899,737 433,348
Non-current
Prepaid expenses 251,940 628,310
251,940 628,310
13. Property, plant and equipment

Particulars Plant and Furniture Computer Total
machinery and fixtures equipment
Cost
Balance at April 1, 2018 74,702 317,834 532,019 924,555
Additions 1,109 – 17,089 18,198
Disposals – – – –

Particulars Plant and Furniture Computer Total
machinery and fixtures equipment
Balance at March 31, 2019 75,811 317,834 549,108 942,753
Balance at April 1, 2019 75,811 317,834 549,108 942,753
Additions 736 – 105,024 105,760
Disposals – – (85,357) (85,357)
Balance at March 31, 2020 76,547 317,834 568,775 963,156
Balance at April 1, 2018 63,369 287,599 390,633 741,601
Depreciation 7,217 9,422 50,424 67,063
Disposals – – –
Balance at March 31, 2019 70,586 297,021 441,057 808,664
Balance at April 1, 2019 70,586 297,021 441,057 808,664
Depreciation 4,397 9,423 76,533 90,353
Disposals – – (85,357) (85,357)
Balance at March 31, 2020 74,983 306,444 432,233 813,660
Carrying amounts
At March 31, 2019 5,225 20,813 108,051 134,089
At March 31, 2020 1,564 11,390 136,542 149,496
14. Trade and other payables Particulars As at March 31,

In Australian dollars 2020 2019
Particulars As at March 31, Provision for post-sale
2020 2019 customer support 22,270 57,138
Trade payables 1,472,952 1,263,529 Deferred tax liabilities (4,930) –
Amounts due to related party 105,250 95,158 Net deferred tax assets 537,910 3,712,014
1,578,202 1,358,687
(b) Reconciliation of effective tax rate
15. Other current liabilities
In Australian dollars Particulars As at March 31,
2020 2019
2020 2019
Tax using the Company’s
Accrued expenses - cost of
domestic tax rate of 30%
third party software 5,814,259 3,564,578
(2019: 30%) 495,993 672,412
Accrued expenses - others 950,245 966,802
Non-deductible expenses 37,981 20,472
Deferred revenue 1,642,447 66,745
Income tax expense for the
Withholding taxes payable 71,338 102,051
period 533,974 692,884
8,478,289 4,700,176
Non-current
Accrued expenses - cost of (c) Income tax expense
third party software 1,685,537 6,546,050
Accrued expenses - others 236,563 830,330 Particulars As at March 31,
1,922,100 7,376,380 2020 2019
Corporation income tax
Current year 584,733 3,842,253
16. Tax assets and liabilities Adjustments in respect of
(a) Deferred tax assets prior years (3,224,862) (4,466)
In Australian dollars (2,640,129) 3,837,787
Deferred tax expense
Origination and reversal of
2020 2019
temporary differences (186,493) (3,144,903)
Deferred tax assets due to
Write down of previously
timing differences
recognized deferred tax
Provision for doubtful
assets 3,360,596 –
debts 66,424 46,093
Income tax expense for the
Provision for expenses – 3,222,007
period 3,174,103 (3,144,903)
Provision for employee
Total income tax expense 533,974 692,884
benefits 454,146 386,776

17. Provisions The following is the movement in lease liabilities during the
In Australian dollars year ended March 31, 2020
2020 2019 Particulars 2020
Provision for post-service Balance as of April 1, 2019 1,473,690
client support 74,930 190,460 Additions –
74,930 190,460 Deletions –
Finance cost accrued during the period 32,187
The movement in provisions is as follows Payment of lease liabilities (663,391)
Particulars As at March 31, Balance as of March 31, 2020 842,486
2020 2019
Balance at the beginning 190,460 88,888
maturities of lease liabilities as at March 31, 2020 on
Provision recognized /
an undiscounted basis
(reversed) (115,530) 101,572 In Australian dollars
Balance at the end 74,930 190,460
Particulars As at March
31,
18. Employee Benefit Obligations 2020
In Australian dollars Less than one year 448,258
Particulars As at March 31, One to five years 349,068
2020 2019 More than five years 94,539
Current Total 891,865
Provision for employee
bonuses 2,111,775 1,347,271 Operating Leases (Disclosure under previous
Annual leave 667,669 555,923 standard AASB 117)
Long service leave 243,929 214,227
3,023,373 2,117,421 Leases as lessee
Non-current At the end of the reporting period, the future minimum lease
Long service leave 602,220 519,103 payments under non-cancellable leases are payable as follows
602,220 519,103 In Australian dollars
Particulars As at March
19. Leases 31,
2019
Leases as lessee Less than one year 661,549
Following are the changes in the carrying value of right-of-use One to five years 529,876
assets for the year ended March 31, 2020: Total 1,191,425
Particulars 2020 20. Key management personal
Balance as of April 1, 2019 1,147,929
Reclassified on account of adoption of
compensation
AASB 116 – Key Management personnel of the Company are those
Additions – persons having the authority and responsibility for planning,
Deletions – directing and controlling activities of the Company. The
Amortization (442,587) directors of the Company are considered as key managerial
Balance as of March 31, 2020 705,342 personnel of the Company.
The employee compensation is as follows:
The following is the break-up of current and non-current In Australian dollars
lease liabilities as at March 31, 2020 Particulars As at March 31,
2020 2019
Particulars 2020 Short term employee benefits 479,472 366,770
Non-current lease liabilities 411,694
Current lease liabilities 430,792
Total 842,486

21. Financial instruments The details of the amount due to or due from the related
parties as at March 31, 2020 and March 31, 2019 are as follows
Financial instruments by Category In Australian dollars
Particulars As at March 31, 2020 2019
2020 2019 Trade receivables
Financial assets Infosys Limited 419,775 171,673
Cash and cash equivalents 28,229,346 25,819,060 Infosys BPM Limited – –
Trade and other receivables 9,508,458 7,536,093 419,775 171,673
Other current assets 25,771 39,610 Other receivables
37,763,575 33,394,763 Infosys Limited 18,845 13,940
Financial liabilities Infosys Management
Trade and other payables 1,578,202 1,358,687 Consulting Pty. Limited 1,072 –
Other current liabilities 8,757,942 10,758,036 Infosys BPM Limited 5,178 –
10,336,144 12,116,723 25,095 13,940
Unbilled revenues
22. Contingent liabilities and financing HIPUS Co., Ltd. 146,150 –
146,150 –
facilities Trade payables
a. Contingent liabilities Infosys BPM Limited 36,455 44,229
36,455 44,229
In the opinion of the management, there are no contingent
Other payables
liabilities as at the Balance Sheet date.
b. Financing facilities 68,795 50,929
Other receivables and other payables consist of cross charges
from the related parties mentioned above.
2020 2019
Unsecured bank guarantee
facility reviewed annually
24. Capital risk management
and payable at call-Amount The Company manages its capital to ensure it continues as a
used 442,104 403,317 going concern. The capital structure comprises issued capital,
442,104 403,317 cash and retained earnings. There are no externally imposed
capital requirements on the Company.
23. Related party transactions 25. Capital and reserves

The details of the related party transactions entered into by
the Company during the years ended March 31, 2020 and (a) Share capital
March 31, 2019 are as follows: Ordinary shares
In Australian dollars In Australian dollars
2020 2019 2020 2019
Purchase of services On issue at April 1
Infosys BPM Limited 508,241 463,709 (17,450,000 number of
Infosys Management shares) 3,389,049 3,389,049
Consulting Pty. Limited – 62,740 Issued for cash – –
508,241 526,449 On issue at March 31
Sale of services (17,450,000 number of
Infosys Limited 4,670,192 3,166,357 shares) 3,389,049 3,389,049
Infosys BPM Limited 223,570 1,114,502
HIPUS Co., Ltd. 146,150 – All shares rank equally with regard to the
Infosys Poland Sp.z.o.o – 80 Company’s residual assets.
5,039,912 4,280,939
Ordinary shares
The Company does not have authorized capital or par value
in respect of its issued shares. Holders of these shares are
entitled to dividends as declared from time to time and are
entitled to one vote per share at meetings of the Company.

(b) Dividends
2020 2019
Dividend paid – –
– –
Dividend franking account

2020 2019
30% franking credits available to shareholders of Portland Group Pty. Ltd. for
subsequent financial years 8,015,588 7,491,774
8,015,588 7,491,774
The above available amounts are based on the balance of the dividend franking account at year-end adjusted for:
a. franking credits / debits that will arise from the payment / receipts of the current tax liabilities / assets;
b. franking debits that will arise from the payment of dividends recognized as a liability at the year-end;
c. franking credits that will arise from the receipt of dividends recognized as receivables by the tax consolidated company
at the year-end; and
d. franking credits that the entity may be prevented from distributing in subsequent years.
The ability to utilize the franking credits is dependent upon there being sufficient available profits to declare dividends.
26. Events subsequent to reporting date

There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event
of a material and unusual nature likely, in the opinion of the directors of the Company, to affect significantly the operations of
the Company, the results of those operations, or the state of affairs of the Company, in future financial years, other than above.
Please refer note 2 (e) ‘Assumptions and estimation uncertainties’ for the COVID-19 pandemic disclosure.
The Directors are not aware of any other matter or circumstance that has occurred since the end of the financial period that
has significantly affected or may affect the operations of the company, the results of those operations or the state of affairs of
the Company in subsequent financial years.
Directors’ declaration
In the opinion of the directors of the Portland Group Pty. Ltd. (“the Company”):
(a) The Company is not publicly accountable nor a reporting entity;
(b) The financial statements and notes are in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the financial position of the Company as at March 31, 2020 and of its performance
for the financial year ended on that date; and
(ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) to the
extent described in Note 2, and the Corporations Regulations 2001; and
(c) There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due
and payable.
Signed in accordance with a resolution of directors.
____________________________
Andrew Jarvis
Managing Director and Chief Executive officer
Dated at Sydney this 13th day of May 2020

Infosys Middle East FZ LLC
(Formerly known as “CMA Systems FZ-LLC”)

The Shareholder of Infosys Middle East FZ-LLC

Opinion
We have audited the financial statements of Infosys Middle East FZ-LLC (Formerly known as “CMA Systems FZ-LLC”) (“the
Company”), which comprise the statement of financial position as at 31 December 2019, the statements of profit or loss and
other comprehensive income, changes in equity and cash flows for the year then ended, and notes, comprising significant
accounting policies and other explanatory information.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the
Company as at 31 December 2019, and its financial performance and its cash flows for the year then ended in accordance with
International Financial Reporting Standards (IFRS).
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those
standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the Company in accordance with International Ethics Standards Board for Accountants Code of Ethics
for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the financial
statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRS, their
preparation in compliance with the applicable provisions of the Dubai Creative Cluster Private Companies Regulations 2016,
and for such internal control as the Management determines is necessary to enable the preparation of financial statements that
are free from material misstatement, whether due to fraud or error.
Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those
charged with governance are responsible for overseeing the company’s financial reporting process.
Auditors’ Responsibilities for the Audit of the Financial Statements
is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
disclosures made by the Management.
• Conclude on the appropriateness of the Management’s use of the going concern basis of accounting and, based on the audit
attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report.
456 | Infosys Middle East FZ-LLC Infosys Subsidiary Financials 2019-20

We communicate with the Management regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We further report that the financial statements, in all material respects, have been properly prepared in accordance with the
Dubai Creative Cluster Private Companies Regulations 2016 issued pursuant to Law No. (15) Of 2014.
KPMG Lower Gulf Limited
Emilio Pera
Registration number :: 1146
Dubai, United Arab Emirates
Date: May 10, 2020
Infosys Subsidiary Financials 2019-20 Infosys Middle East FZ-LLC | 457

Statement of profit or loss and other comprehensive income
in AED
Particulars Note no. For the year ended
2019 2018
Revenue 9 46,490,265 49,586,450
Staff costs 5 (35,994,432 (41,711,293)
Administrative and general expenses 6 (4,770,165) (5,023,166)
Impairment losses on financial assets 9 – (15,525,433)
(40,764,597) (62,259,892)
Finance cost 14 (392,659) (129,330)
Profit / (Loss) for the year 5,333,009 (12,802,772)
Re-measurement of the net defined benefit liability (704,030) (35,770)
Total other comprehensive income (704,030) (35,770)
Total comprehensive profit / (loss) for the year 4,628,979 (12,838,542)
The notes on pages 462 to 472 form an integral part of these financial statements.
The independent auditors’ report is set out on pages 456 to 457.

in AED
2019 2018
Non-current asset
Property and equipment 7 230,923 421,787
Right-of-use asset 17 6,014,037 –
6,244,960 421,787
Current assets
Other receivables 8 804,702 1,738,406
Due from a related party 9 7,810,129 3,602,373
Cash and cash equivalent 10 3,335,699 6,374,017
11,950,530 11,714,796
Current liabilities
Current portion of lease 17 1,403,266 –
Loan from a related party 9 – 5,634,330
Due to related party 9 99,453 –
4,091,439 8,495,554
Non-current liability
Provision for employees’ end of service benefits 12 17,437,542 16,117,866
Lease liability 17 4,582,384 –
22,019,926 16,117,866
Net assets (7,915,875) (12,476,837)
Represented by:
Share capital 13 300,000 300,000
Retained earnings (8,215,875) (12,776,837)
(7,915,875) (12,476,837)
To the best of our knowledge, the financial statements fairly presents, in all material respects, the financial position, results of
operation and cash flows of the Company as of, and for the year ended December 31, 2019.
These financial statements were approved for issuance by the Managing Director on May 10, 2020
Sriranga Neelathali Sampathkumar

Managing Director

in AED
2019 2018
Profit / (loss) for the year 5,333,009 (12,802,772)
Adjustments for:
Depreciation on property and equipment 7 231,834 544,179
Depreciation on right-of-use asset 17 1,963,515 –
Provision for employees’ end-of-service benefits 12 2,577,628 2,041,493
Interest expense 14 392,659 129,330
Provision for incentives and leave accruals 11 3,688,740 1,838,964
Impairment losses on financial assets 9 – 15,525,433
14,187,385 7,276,627
Changes in:
Change in other receivables 8 958,438 (449,142)
Change in due from a related party 9 (4,207,756) (2,146,771)
Change in due to a related party 9 (99,453) –
Change in trade and other payables 11 (60,735) (1,025,398)
Payment for employees’ end-of-service benefits 12 (1,961,981) (1,484,830)
Payment of incentives and leave accruals 11 (4,021,979) (1,914,976)
Net cash from operating activities 4,793,919 255,510
Investing activity
Acquisition of property and equipment 7 (40,970) (118,137)
Net cash used in investing activity (40,970) (118,137)
Financing activity
Proceeds from loan from a related party 9 – 5,505,000
Payment of loan from a related party 9 (5,505,000) –
Interest paid on loan from a related party 9 (233,850) –
Payment of lease liability 17 (2,052,417) –
Net cash (used in) / from financing activity (7,791,267) 5,505,000
Net decrease in cash and cash equivalents (3,038,318) 5,642,373
Cash and cash equivalents at the beginning of the year 6,374,017 731,644

For the year ended December 31, 2019
in AED
Share capital Retained Total
earnings
At January 1, 2018 300,000 61,705 361,705
Total comprehensive income for the year
Loss for the year – (12,802,772) (12,802,772)
Other comprehensive income for the year – (35,770) (35,770)
At December 31, 2018 300,000 (12,776,837) (12,476,837)
Adjustment of initial application of IFRS 16, net of tax – (68,017) (68,017)
Adjusted balance at January 1, 2019 300,000 (12,844,854) (12,544,854)
Other comprehensive income for the year – (704,030) (704,030)
At December 31, 2019 300,000 (8,215,875) (7,915,875)

Notes
(Forming an integral part of these financial statements) 2.3 Functional and presentation currency
These financial statements are presented in UAE Dirhams
1 Legal status and principal activities (AED), which is the Company’s functional currency.
Infosys Middle East FZ-LLC (formerly known as “CMA
Systems FZ-LLC”) (“the Company”), was incorporated on 2.4 Use of estimates and judgments
September 27, 2007 as a free zone company with limited The preparation of the financial statements in conformity
liability under the provisions of the Dubai Technology and with IFRSs requires the Management to make judgments,
Media Free Zone Private Companies Regulations 2003 estimates and assumptions that affect the application of
(currently known as Dubai Creative Clusters Authority) issued accounting policies and the reported amounts of assets and
under Law No. 1 of 2000 of the Emirate of Dubai establishing liabilities, income and expenses. Actual results may differ
the Dubai Technology, Electronic Commerce & Media Free from these estimates.
Zone (TECOM). The registered address of the Company is Estimates and underlying assumptions are reviewed on
Office 2201-2208, 22nd Floor, Aurora Tower, Dubai Media an ongoing basis. Revisions to accounting estimates are
City, Dubai, P.O. Box 502292, United Arab Emirates (UAE). recognized in the period in which the estimates are revised
The principal activity of the Company is to provide IT and in any future periods affected.
solutions and services. Information about critical judgments in applying accounting
Up to May 7, 2012, the Company was registered under the policies that have the most significant effect on the amounts
name “CMA CGM Systems Global Delivery Centre FZ-LLC” recognized in the financial statements.
and was fully-owned by CMA CGM Systems, France. Effective
from May 8, 2012, the ownership was fully transferred to 3.1 Changes in significant accounting policies
CMA CGM Systems SA, a company registered in France, The following revised new and amended standards have been
(herein referred to as “the former shareholder”), and the adopted in these financial statements.
Company’s legal name was changed to CMA Systems FZ-LLC.
IFRS 16, Leases
During the year 2017, CMA CGM SA entered into a
The Company applied IFRS 16 using the modified retrospective
transfer agreement with Infosys Consulting Pte. Ltd (“the
approach, under which the cumulative of initially applying
Shareholder”) to transfer CMA Systems FZ-LLC, effective
the standard is recognized as an adjustment to the opening
from January 1, 2018, and the Company’s legal name was
balance of retained earnings as on 1 January 2019. Accordingly,
changed to “Infosys Middle East FZ-LLC”.
the comparative figures have not been restated for 2018 i.e. it
is presented, as reported previously under IAS 17.
2 Basis of preparation
3.1.1 Definition of a lease
2.1 Statement of compliance
Previously, the Company determined at contract inception
These financial statements have been prepared in accordance whether an arrangement is or contains a lease under IFRlC
with the International Financial Reporting Standards 4. Under IFRS 16, the Company assesses whether a contract
(“IFRSs”) and the applicable provisions of Dubai Creative is or contains a lease based on the definition of a lease. On
Cluster Private Companies Regulations 2016. transition to IFRS 16, the Company elected to apply the new
2.1.a Going concern definition of leases to all of its contracts.
These financial statements have been prepared on the going Adjustments recognized on adoption of IFRS 16
concern basis notwithstanding the fact that the Company
has accumulated loses and deficiency of net assets as at (a) Leases classified as operating leases under IAS
December 31, 2019 of AED 8,215,875 (December 31, 2018: 17
AED 12,776,837) and AED 7,915,875 (December 31, 2018: At transition, lease liabilities were measured at the present
12,476,837) respectively. The continuation of the Company’s value of the remaining lease payments. Right-of-use assets are
operation is dependent upon the continued support from measured at an amount equal to the lease liability, adjusted
Infosys Limited (Ultimate Holding Company) and the ability by the amount of any prepaid or accrued lease payments. The
of the Company to generate sufficient cash flows to meet Company applied this approach to all leases.
its future obligations. The Ultimate Holding Company have The Company used the following practical expedients when
provided an undertaking to provide necessary financial applying IFRS 16 to leases previously classified as operating
support to enable the Company to meet its obligations, as leases under IAS 17.
they fall due in the foreseeable future.
(i) Applied the exemption not to recognize right-of-
2.2 Basis of measurement use assets and liabilities for leases with less than 12
These financial statements have been prepared under the months of lease term;
historical cost basis. (ii) Excluded initial direct costs from measuring the right-
of-use asset at the date of initial application.

(b) Leases classified as finance leases under IAS 17 3.2 Significant accounting policies
For leases that were classified as finance leases under IAS 17, The following accounting policies, which comply with IFRS,
the carrying amount of the right-of-use asset and the lease have been applied consistently to all periods presented in
liability at January 1, 2019 are determined at the carrying these financial statements. Except for changes in accounting
amount of the lease asset and lease liability under IAS 17 policies for IFRS 16 Leases (Refer to Note 3a), the Company
immediately before that date. There were no finance leases has consistently applied the accounting policies to all year
before the application of IFRS 16. presented unless otherwise stated.
The Company has taken office premises on lease. The Revenue recognition
lease period is one year with an option to extend the lease
for further period. The Company estimates to occupy Revenue comprises services income from the shareholder, to
the premises till March 31, 2024 based on its economic whom it provides services. The Company bills the Shareholder
incentive. On transition to IFRS 16, the Company recognized the costs it incurs for providing its services plus a margin
approximately AED 10 million of right-of-use assets with of 6%. Revenue is measured based on the consideration
a corresponding lease liability of approximately AED 10 specified in a contract with the shareholder. The Company
million with the cumulative effect of applying the standard by recognizes revenue when it transfers control over goods or
adjusting retained earnings by AED 68,017. When measuring services to a shareholder. In view of the risks associated with
lease liabilities, the Company discounted lease payments. The the delivery of its services to and the collection of the amounts
incremental borrowing rate applied on the date of transition due from the Shareholder, the Company considers that it is
is 3.19%. Operating lease commitment as at December 31, acting as a principal in these arrangements and, therefore,
2018 under IAS 17 was approximately AED 2.3 million has recognized the costs and associated revenue on a gross,
which was discounted using incremental borrowing rate and as opposed to a net basis.
approximately AED 10 million was recognized in books. Refer
to Note 17 of the financial statements.
The following table provides information about the nature and timing of the satisfaction of performance obligations in contracts
with customers and the related revenue recognition policies.
Type of service Nature and timing of satisfaction of performance Revenue recognition under IFRS 15
obligations, including significant payment terms
Providing IT The invoices for the services provided are usually Revenue is recognized at a point in time
solutions and payable within the period of 30 days. when the performance obligation is satisfied
services to the by transferring control of the promised goods
Shareholder or services to the customer.
The Company operates in cost-plus model,
where it charges the costs it incurs for
providing its services plus a margin.
Financial instruments A financial asset is measured at amortized cost if it meets both

Recognition and initial measurement of the following conditions and is not designated as at FVTPL:
Trade receivables are initially recognized when they are - it is held within a business model whose objective is to
originated. All other financial assets and financial liabilities hold assets to collect contractual cash flows; and
are initially recognized when the Company becomes a party - its contractual terms give rise on specified dates to cash
to the contractual provisions of the instrument. flows that are solely payments of principal and interest on
A financial asset (unless it is a trade receivable without a the principal amount outstanding.
significant financing component) or financial liability is Financial assets – Business model assessment:
initially measured at fair value plus, for an item not at FVTPL , The Company makes an assessment of the objective of
transaction costs that are directly attributable to its acquisition the business model in which a financial asset is held at a
or issue. A trade receivable without a significant financing portfolio level because this best reflects the way the business
component is initially measured at the transaction price. is managed and information is provided to the Management.
Classification and subsequent measurement The information considered includes:
Financial assets - the stated policies and objectives for the portfolio and
the operation of those policies in practice. These include
On initial recognition, a financial asset is classified as measured whether the Management’s strategy focuses on earning
at amortized cost. Financial assets are not reclassified contractual interest income, maintaining a particular
subsequent to their initial recognition unless the Company interest rate profile, matching the duration of the
changes its business model for managing financial assets, in financial assets to the duration of any related liabilities
which case all affected financial assets are reclassified on the or expected cash outflows or realizing cash flows through
first day of the first reporting period following the change the sale of the assets;
in the business model.

- how the performance of the portfolio is evaluated and Financial assets – Subsequent measurement
reported to the Company’s management; and gains and losses:
- the risks that affect the performance of the business model Financial assets at amortized cost
(and the financial assets held within that business model) A financial instrument is any contract that gives rise to both
and how those risks are managed; a financial asset of the Company and a financial liability or
- how managers of the business are compensated – e.g. equity instrument for another party. The Company principally
whether compensation is based on the fair value of the classifies its financial assets at initial recognition in the
assets managed or the contractual cash flows collected; and following categories:
- the frequency, volume and timing of sales of financial Financial assets at fair value through profit or loss: These
assets in prior periods, the reasons for such sales and assets are subsequently measured at fair value. Net gains
expectations about future sales activity. and losses, including any interest or dividend income, are
Transfers of financial assets to third parties in transactions recognized in profit or loss.
that do not qualify for derecognition are not considered sales Debt investments at FVOCI : These assets are subsequently
for this purpose, consistent with the Company’s continuing measured at fair value. Interest income calculated using the
recognition of the assets. effective interest method, foreign exchange gains and losses
Financial assets – Assessment whether contractual cash flows and impairment are recognized in profit or loss. Other net gains
are solely payments of principal and interest: and losses are recognized in OCI. On derecognition, gains and
losses accumulated in OCI are reclassified to profit or loss.
For the purposes of this assessment, ‘principal’ is defined
as the fair value of the financial asset on initial recognition. Equity investments at FVOCI: These assets are subsequently
‘Interest’ is defined as consideration for the time value of measured at fair value. Dividends are recognized as income
money and for the credit risk associated with the principal in profit or loss unless the dividend clearly represents
amount outstanding during a particular period of time and a recovery of part of the cost of the investment. Other
for other basic lending risks and costs (e.g. liquidity risk and net gains and losses are recognized in OCI and are never
administrative costs), as well as a profit margin. reclassified to profit or loss.
In assessing whether the contractual cash flows are solely Financial assets at amortized cost: These assets are
payments of principal and interest, the Company considers subsequently measured at amortized cost using the effective
the contractual terms of the instrument. This includes interest method. The amortized cost is reduced by impairment
assessing whether the financial asset contains a contractual losses. Interest income, foreign exchange gains and losses and
term that could change the timing or amount of contractual impairment are recognized in profit or loss. Any gain or loss
cash flows such that it would not meet this condition. In on derecognition is recognized in profit or loss.
making this assessment, the Company considers: Financial liabilities – Classification, subsequent measurement
- contingent events that would change the amount or and gains and losses
timing of cash flows; Financial liabilities are classified as measured at amortized
- terms that may adjust the contractual coupon rate, cost or FVTPL. A financial liability is classified as at FVTPL
including variable-rate features; if it is classified as held-for-trading, it is a derivative or it is
designated as such on initial recognition. Financial liabilities
- prepayment and extension features; and
at FVTPL are measured at fair value and net gains and losses,
- terms that limit the Company’s claim to cash flows from including any interest expense, are recognized in profit or
specified assets (e.g. non-recourse features). loss. Other financial liabilities are subsequently measured at
A prepayment feature is consistent with the solely payments amortized cost using the effective interest method. Interest
of principal and interest criterion if the prepayment amount expense and foreign exchange gains and losses are recognized
substantially represents unpaid amounts of principal and in profit or loss. Any gain or loss on de-recognition is also
interest on the principal amount outstanding, which may recognized in profit or loss.
include reasonable additional compensation for early
De-recognition
termination of the contract. Additionally, for a financial asset
acquired at a discount or premium to its contractual par- Financial assets
amount, a feature that permits or requires prepayment at The Company derecognizes a financial asset when the
an amount that substantially represents the contractual par contractual rights to the cash flows from the financial asset
amount plus accrued (but unpaid) contractual interest (which expire, or it transfers the rights to receive the contractual
may also include reasonable additional compensation for cash flows in a transaction in which substantially all of the
early termination) is treated as consistent with this criterion risks and rewards of ownership of the financial asset are
if the fair value of the prepayment feature is insignificant at transferred or in which the Company neither transfers nor
initial recognition. retains substantially all of the risks and rewards of ownership
and it does not retain control of the financial asset.
The Company enters into transactions whereby it transfers
assets recognized in its statement of financial position but
retains either all or substantially all of the risks and rewards

of the transferred assets. In these cases, the transferred assets The depreciation method, useful lives and residual values are
are not derecognized. reviewed at each reporting date and adjusted if appropriate.
Financial liabilities Impairment
The Company derecognizes a financial liability when its Non-derivative financial assets
contractual obligations are discharged or cancelled, or expire.
Financial instruments
The Company also derecognizes a financial liability when its
terms are modified and the cash flows of the modified liability The Company recognizes loss allowances for ECLs on
are substantially different, in which case a new financial financial assets measured at amortized cost.
liability based on the modified terms is recognized at fair value. The Company measures loss allowances at an amount equal
On derecognition of a financial liability, the difference between to lifetime ECLs, except for bank balances for which credit
the carrying amount extinguished and the consideration risk (i.e. the risk of default occurring over the expected life
paid (including any non‑cash assets transferred or liabilities of the financial instrument) has not increased significantly
assumed) is recognized in profit or loss. since initial recognition.
Loss allowances for receivables from a related party are always
Offsetting
measured at an amount equal to lifetime ECLs.
Financial assets and financial liabilities are offset and the
When determining whether the credit risk of a financial asset
net amount presented in the statement of financial position
has increased significantly since initial recognition and when
when, and only when, the Company currently has a legally
estimating ECLs, the Company considers reasonable and
enforceable right to set off the amounts and it intends either
supportable information that is relevant and available without
to settle them on a net basis or to realize the asset and settle
undue cost or effort. This includes both quantitative and
qualitative information and analysis, based on the Company’s
Share capital historical experience and informed credit assessment and
Incremental costs directly attributable to the issuance of including forward-looking information.
ordinary shares are recognized as a deduction from equity. The Company assumes that the credit risk on a financial asset
has increased significantly if it is more than 90 days past due.
Property and equipment
The Company considers a financial asset to be in default when:
Recognition and measurement - the borrower is unlikely to pay its credit obligations to
Items of property and equipment are measured at cost less the Company in full, without recourse by the Company
accumulated depreciation and any accumulated impairment to actions such as realizing security (if any is held); or
losses. Cost includes expenditure that is directly attributable - the financial asset is more than 365 days past due.
to the acquisition of the asset. The cost of self-constructed Lifetime ECLs are the ECLs that result from all possible
assets includes the cost of materials and direct labor, any default events over the expected life of a financial instrument.
other costs directly attributable to bringing the assets to a
working condition for their intended use, the estimated costs 12-month ECLs are the portion of ECLs that result from
of dismantling and removing the items and restoring the site default events that are possible within the12 months after
on which they are located, and capitalized borrowing cost. If the reporting date (or a shorter period if the expected life of
significant parts of an item of property and equipment have the instrument is less than 12 months).
different useful lives, then they are accounted for as separate The maximum period considered when estimating ECLs is
items (major components) of property and equipment. the maximum contractual period over which the Company
Any gain or loss on disposal of an item of property and is exposed to credit risk.
equipment is recognized in the profit or loss. Measurement of ECLs
Subsequent expenditure ECLs are a probability-weighted estimate of credit losses.
Subsequent expenditure is capitalized only if it is probable Credit losses are measured as the present value of all cash
that the future economic benefits associated with the shortfalls (i.e. the difference between the cash flows due to
expenditure will flow to the Company. the entity in accordance with the contract and the cash flows
that the Company expects to receive). ECLs are discounted
Depreciation at the effective interest rate of the financial asset.
Depreciation is calculated to write off the cost of items of Credit-impaired financial assets
property and equipment less their estimated residual values
using the straight-line method over their estimated useful At each reporting date, the Company assesses whether financial
lives, and is generally recognized in the profit or loss. Leased assets carried at amortized cost are credit impaired. A financial
assets are depreciated over the shorter of the lease term asset is ‘credit-impaired’ when one or more events that have a
and their useful life unless it is reasonably certain that the detrimental impact on the estimated future cash flows of the
Company will obtain ownership by the end of lease term. financial asset have occurred. Evidence that a financial asset
is credit-impaired includes the following observable data:
The estimated useful lives of property and equipment for - significant financial difficulty of the borrower or issuer;
current and comparative periods are as follows: - a breach of contract such as a default or being more than
Years 90 days past due;
Office equipment and fixtures 2-5 - the restructuring of a loan or advance by the Company on

terms that the Company would not consider otherwise; considered that there were no realistic prospects of recovery
- it is probable that the borrower will enter bankruptcy or of the asset, the relevant amounts were written off. If the
other financial re-organization; or amount of impairment loss subsequently decreased and the
- the disappearance of an active market for a security decrease was related objectively to an event occurring after the
because of financial difficulties. impairment was recognized, then the previously recognized
Presentation of allowance for ECL in the statement impairment loss was reversed through profit or loss.
of financial position Non-financial assets
Loss allowances for financial assets measured at amortized At each reporting date, the Company reviews the carrying
cost are deducted from the gross carrying amount of the assets. amounts of its non-financial assets, investment property and
Write-off inventories to determine whether there is any indication of
impairment. If any such indication exists, then the asset’s
The gross carrying amount of a financial asset is written
recoverable amount is estimated.
off when the Company has no reasonable expectations of
recovering a financial asset in its entirety or a portion thereof. For impairment testing, assets are grouped together into the
For corporate customers, the Company individually makes smallest group of assets that generates cash inflows from
an assessment with respect to the timing and amount of continuing use that are largely independent of the cash
write-off based on whether there is a reasonable expectation inflows of other assets or CGUs .
of recovery. The Company expects no significant recovery The recoverable amount of an asset or CGU is the greater of
from the amount written off. However, financial assets that its value in use and its fair value less costs to sell. Value in
are written off could still be subject to enforcement activities use is based on the estimated future cash flows, discounted to
in order to comply with the Company’s procedures for their present value using a pre-tax discount rate that reflects
recovery of amounts due. current market assessments of the time value of money and
Non-derivative financial assets the risks specific to the asset or CGU. An impairment loss is
recognized if the carrying amount of an asset or CGU exceeds
Financial assets not classified as at FVTPL were assessed at
its recoverable amount.
each reporting date to determine whether there was objective
evidence of impairment. An impairment loss is reversed only to the extent that the
asset’s carrying amount does not exceed the carrying amount
Objective evidence that financial assets were impaired included:
that would have been determined, net of depreciation or
- default or delinquency by a debtor;
amortization, if no impairment loss had been recognized.
- restructuring of an amount due to the Company on terms
that the Company would not consider otherwise; Provisions
- indications that a debtor or issuer would enter bankruptcy; A provision is recognized in the statement of financial position
- adverse changes in the payment status of borrowers or when the Company has a present legal or constructive
issuers; obligation as a result of a past event, it is probable that
- the disappearance of an active market for a security an outflow of economic benefits will be required to settle
because of financial difficulties; or the obligation and a reliable estimate can be made of the
- observable data indicating that there was a measurable amount of the obligation.
decrease in the expected cash flows from a group of
financial assets. Foreign currency transactions
Financial assets measured at amortized cost Transactions in foreign currencies are translated to the
The Company considered evidence of impairment for these functional currency at the exchange rates at the dates of the
assets at both an individual asset and a collective level. All transactions. Monetary assets and liabilities denominated
individually significant assets were individually assessed in foreign currencies at the reporting date are retranslated
for impairment. Those found not to be impaired were then to the functional currency at the exchange rate at that date.
collectively assessed for any impairment that had been The foreign currency gain or loss on monetary items is the
incurred but not yet individually identified. Assets that difference between amortized cost in the functional currency at
were not individually significant were collectively assessed the beginning of the period, adjusted for effective interest and
for impairment. Collective assessment was carried out by payments during the period and the amortized cost in foreign
grouping together assets with similar risk characteristics. In currency translated at the exchange rate at the end of the
assessing collective impairment, the Company used historical period. Realized and unrealized foreign exchange differences
information on the timing of recoveries and the amount of loss arising on translation are recognized in the profit or loss.
incurred, and made an adjustment if current economic and Leases
credit conditions were such that the actual losses were likely Policy applicable from January 1, 2019
to be greater or lesser than suggested by historical trends.
At inception of a contract the Company assesses whether a
An impairment loss was calculated as the difference between contract is, or contains a lease. A contract is, or contains, a lease
an asset’s carrying amount and the present value of the if contract conveys the right to control the use of an identified
estimated future cash flows discounted at the asset’s original asset for a period of time in exchange for consideration. To
effective interest rate. Losses were recognized in profit or loss assess whether a contract conveys the right to control the use
and reflected in an allowance account. When the Company of an identified asset, the Company assesses whether:

a) The contract involves the use of an identified asset – b) variable lease payments that depend on an index or
this may be specified explicitly or implicitly and should a rate, initially measured using the index or rate as at
be physically distinct asset or represent substantially the commencement date;
all of the capacity of a physically distinct asset. If the c) amounts expected to be payable under a residual value
supplier has a substantive substitution right, then the guarantee; and the exercise price under a purchase
asset is not identified. option that the Company is reasonably certain to
b) exercise, lease payments in an optional renewal period
The Company has the right to obtain substantially
if the Company is reasonably certain to exercise an
all of the economic benefits from use of the asset
extension option, and penalties for early termination
throughout the period of use; and
of a lease unless the Company is reasonably certain
c) The Company has the right to direct the use of the asset. not to terminate early.
The Company has this right when it has the decision-
The lease liability is measured at amortized cost using the
making rights that are most relevant to changing how
effective interest method. It is remeasured when there is
and for what purpose the asset is used. In rare cases
a change in future lease payments arising from a change
where the decision about how and for what purpose
in an index or rate, if there is a change in the Company’s
the asset is used is predetermined, the Company has
estimate of the amount expected to be payable under a
the right to direct the use of the asset if either:
residual value guarantee, or if the Company changes its
i) The Company has the right to operate the asset; or assessment of whether it will exercise a purchase, extension
ii) The Company designed the asset in a or termination option.
way that predetermines how and for what When the lease liability is remeasured in this way, a
purpose it will be used corresponding adjustment is made to the carrying
This policy is applied to contracts entered into, or changed, amount of the right-of-use asset, or is recorded in profit
on or after January 1, 2019. or loss if the carrying amount of the right-of-use asset has
At inception or on assessment of a contract that contains been reduced to zero.
a lease component, the Company identifies the non-lease Short-term leases and leases of low-value assets
component in the contract and break the lease and non- The Company has elected not to recognize right-of-use assets
lease component and present the same separately i.e. lease and lease liabilities for short-term leases of equipment that
component is capitalized as part of right-of-use asset and have a lease term of 12 months or less and leases of low-value
non-lease component is presented separately. assets, including IT equipment. The Company recognizes the
The Company as lessee lease payments associated with these leases as an expense on
Right-of-use asset a straight-line basis over the lease term.
The Company recognizes a right-of-use asset and a lease Policy applicable before January 1, 2019
liability at the lease commencement date. The right-of-use For contracts entered into before January 1, 2019, the
asset is initially measured at cost, which comprises the Company determined whether the arrangement was or
initial amount of the lease liability adjusted for any lease contained a lease based on the assessment of whether:
payments made at or before the commencement date, plus
a) Fulfilment of the arrangement was dependent on the
any initial direct costs incurred and an estimate of costs to
dismantle and remove the underlying asset or to restore the use of a specific asset or assets; and
underlying asset or the site on which it is located, less any b) The arrangement had conveyed a right to use the asset.
lease incentives received. An arrangement conveyed the right to use the asset if
The right-of-use asset is subsequently depreciated using the one of the following was met:
straight-line method from the commencement date to the (i) The purchaser had the ability or right to operate
earlier of the end of the useful life of the right-of-use asset the asset or direct others to operate the asset
or the end of the lease term. The estimated useful lives of in a manner it determines while obtaining or
right-of-use assets are determined on the same basis as those controlling more than an insignificant amount
of property, plant and equipment. In addition, the right-of- of the output or other utility of the asset.
use asset is periodically reduced by impairment losses, if any, (ii) The purchaser had the ability or right to
and adjusted for certain remeasurements of the lease liability. control physical access to the underlying asset
while obtaining or controlling more than an
Lease liability
insignificant amount of the output or other
The lease liability is initially measured at the present value of utility of the asset.
the lease payments that are not paid at the commencement
(iii) Facts and circumstances indicate that it was
date, discounted using the interest rate implicit in the lease remote that one or more parties other than the
or if that rate cannot be readily determined, the Company’s purchaser would take more than an insignificant
incremental borrowing rate. amount of the output, and the price that the
Lease payments in the measurement of the lease liability purchaser would pay for the output was neither
comprise the following: contractually fixed per unit of output nor equal
a) fixed payments, including in-substance fixed payments; to the current market price per unit of output as
of the time of delivery of the output.

The Company as lessee This note presents information about the Company’s exposure
In the comparative period, as a lessee the Company classified to each of the above risks, the Company’s objectives, policies
leases that transfer substantially all of the risks and rewards and processes for measuring and managing risk, and the
of ownership as finance leases. When this was the case, the Company’s management of capital.
leased assets were measured initially at an amount equal The Board of Directors has an overall responsibility
to the lower of their fair value and the present value of the for the Company and oversight of the Company’s risk
minimum lease payments. Minimum lease payments were the management framework.
payments over the lease term that the lessee was required to
Credit risk
make, excluding any contingent rent.
Credit risk is the risk of financial loss to the Company if a
Subsequently, the assets were accounted for in accordance
customer or counterparty to a financial instrument fails to
with the accounting policy applicable to that asset. Assets
meet its contractual obligations. Credit risk is attributable to
held under other leases were classified as operating leases
other receivables, cash at bank and due from a related party.
and were not recognized in the Company’s statement
Cash is held with reputable bank. Balance due from a related
of financial position.
party is considered fully recoverable by the Management.
Payments made under operating leases were recognized in
profit or loss on a straight-line basis over the term of the lease. Liquidity risk
Lease incentives received were recognized as an integral part Liquidity risk is the risk that the Company will encounter
of the total lease expense, over the term of the lease. difficulty in meeting the obligations associated with its
Provision for end of service benefits financial liabilities that are settled by delivering cash or
another financial asset. Liquidity risk mainly relates to trade
The Company’s net obligation in respect of long-term employee
and other payables and due to a related party. The Company’s
benefits is the amount of future benefit that employees have
approach to managing liquidity is to ensure, as far as possible,
earned in return for their service in the current and prior
to maintain sufficient liquidity to meet its liabilities when
periods. That benefit is discounted to determine its present
due, under both normal and stressed conditions, without
value. Re-measurements are recognized in profit or loss in the
incurring unacceptable losses or risking damage to the
period in which they arise.
Company’s reputation.
Employees are not required to contribute to the plan. The
employees’ end of service benefits is an unfunded obligation. Market risk
Market risk is the risk that changes in market prices, such
New and amended standards not effective and not
as foreign exchange rates and interest rates will affect the
yet adopted by the Company
Company’s income or the value of its holdings of financial
New and amended standards not Effective date instruments. The objective of market risk management is to
effective and not yet adopted by the manage and control market risk exposures within acceptable
Company parameters, while optimizing the return on risk.
Sale or Contribution of Assets Available for Currency risk
between an Investor and its Associates optional adoption
Currency risk is the risk that the value of a financial instrument
or Joint Venture (Amendments to / effective
will fluctuate because of changes in foreign exchange rates.
IFRS 10 and IAS 28) date deferred
The majority of the Company’s transactions are conducted in
indefinitely
AED and USD. AED is currently pegged to USD, hence, the
Amendments to References to
Company has no significant exposure to currency risk.
Conceptual Framework in IFRS January 1, 2020
Definition of a Business (Amendments Interest rate risk
to IFRS 3) January 1, 2020 Interest rate risk is the risk that the value of a financial
Definition of Material (Amendments instrument will fluctuate because of changes in market interest
to IAS 1 and IAS 8) January 1, 2020 rates. The Company is not exposed to interest rate risk.
IFRS 17 Insurance contracts January 1, 2021
Capital management
Management anticipates that the application of the above The Board of Directors’ policy is to maintain a strong capital
amendments in future periods will have no material impact base as to maintain shareholders, creditors and market
on the financial information of the Company in the period confidence and to sustain future development of the business.
of initial application. There were no changes in the Company’s approach to capital
management during the year.
4 Financial risk management
Overview 5 Staff costs
The Company has exposure to the following risks from its use in AED
of financial instruments: Particulars For the year ended
• Credit risk; December 31,
2019 2018
• Liquidity risk; and
Salaries and other benefits 33,416,804 39,669,800
• Market risk.

Particulars For the year ended Particulars As at December 31,
December 31, 2019 2018
2019 2018 VAT receivable 15,839 276,268
Provision for employees’ 804,702 1,738,406
end-of-services benefits
(Refer to Note 12) 2,577,628 2,041,493
35,994,432 41,711,293
9 Related party transactions
The Company in the normal course of business carries out
transactions with other business enterprises that fall within
6 Administrative and general expenses the definition of related parties contained in International
in AED
Accounting Standard No. 24. The transactions among related
Particulars For the year ended parties are carried out at terms mutually agreed amongst them.
December 31, Significant transactions entered with related parties
2019 2018 during the year were:
Rent expenses – 2,222,891 in AED
Utilities 59,677 39,838
December 31,
Office maintenance 537,404 548,807
2019 2018
Travel and entertainment
Income received from the
expenses 1,171,496 768,216
Shareholder for services
Depreciation on property
rendered 46,490,265 49,586,450
and equipment (Refer to
Finance cost 104,520 129,330
Note 7) 231,834 544,179
Depreciation on right-of-use in AED
asset (Refer to Note 17) 1,963,515 – Due from a related party As at December 31,
Professional fees 69,598 25,244 2019 2018
Others 274,140 192,158 Infosys Limited (“the
4,770,165 5,023,166 Shareholder”) 7,810,129 3,602,373
7,810,129 3,602,373
7 Property and equipment in AED
in AED
Due to a related party As at December 31,
Particulars Office 2019 2018
equipment Infosys Limited
and fixtures (“the Shareholder”) 99,453 –
Cost 99,453 –
At January 1, 2018 3,043,628
in AED
Additions 118,137
At December 31, 2018 3,161,765 Loan from a related party As at December 31,
At January 1, 2019 3,161,765 2019 2018
Additions 40,970 Infosys Public Services, Inc. – 5,634,330
At December 31, 2019 3,202,735
The loan was granted by Infosys Public Services, Inc. to
Depreciation
finance working capital in relation to the business. The
At January 1, 2018 2,195,799
loan amounting to AED 5,505,000 was granted on January
Charge for the year 544,179
1, 2018. It initially carried an interest of 2.5% paid on an
At December 31, 2018 2,739,978
annual basis and then was amended to 4%, effective April
At January 1, 2019 2,739,978
1, 2019 and then again amended to LIBOR + appropriate
Charge for the year 231,834 spread (0.82%), effective July 1, 2019. The loan was payable
At December 31, 2019 2,971,812 on demand and was fully repaid during the year.
Net book value
At December 31, 2019 230,923 10 Cash and cash equivalent
At December 31, 2018 421,787 in AED
8 Other receivables 2019 2018
in AED Cash at bank 3,335,699 6,374,017
Particulars As at December 31, 3,335,699 6,374,017
2019 2018
Prepayments 577,030 1,181,953
Deposits 125,000 125,000
Advance to employees 86,833 155,185

11 Trade and other payables Reasonable possible changes at reporting to one of the
in AED relevant actuarial assumptions, holding other assumptions
Particulars As at December 31, constant, would have affected the defined benefit obligation.
2019 2018 1% change in discount rate and weighted average rate
Trade payables 130,577 51,332 of compensation levels will result in increase/ decrease of
Accruals 210,449 226,131 liabilities by AED 1,702,392 (2018: AED 1,459,387) and
Other payables 263 3,091 AED 1,625,016 (2018: AED 1,468,484) respectively.
Provision for incentives (i) 1,492,000 1,735,196
Provision for leave accrual 13 Share capital
in AED
(ii) 755,431 845,474
2,588,720 2,861,224 Particulars As at December 31,
2019 2018
(i) Movement of the provision for incentives was: Authorized, issued and paid-
In AED up:
Particulars As at December 31, 300 shares of AED 1,000
2019 2018 each 300,000 300,000
At January 1 1,735,196 2,259,202
Provision made during the 14 Finance cost
year 1,708,606 1,390,970 in AED
Payments made during the Particulars For the year ended
year (1,951,802) (1,914,976) December 31,
At December 31 1,492,000 1,735,196 2019 2018
Interest expense on
(ii) Movement of the provision for leave accrual was borrowings (Refer to Note 9) 104,520 129,330
in AED Interest expense on lease
Particulars As at December 31, liability (Refer to Note 17) 288,139 –
2019 2018 392,659 129,330
At January 1 845,474 535,930
Provision made during the
year 1,980,134 447,994
15 Financial instruments
Reversal made during the Financial assets of the Company comprise other receivables
year (2,070,177) (138,450) (excluding prepayments and advances), due from a related
755,431 845,474 party and cash and cash equivalent. Financial liabilities
include trade and other payables and loans from a related party.
Accounting policies for financial assets are set out in Note 3.
12 Provision for employees’ end-of-service
benefits (a) Credit risk
in AED Exposure to credit risk
Particulars As at December 31, The carrying amounts of financial assets represent the
2019 2018 maximum credit exposure. The maximum exposure to credit
At January 1 16,117,866 15,525,433 risk at the reporting date was:
Included in profit or loss: in AED
Provision made during the Particulars As at December 31,
year (Refer to Note 5) 2,577,628 2,041,493 2019 2018
Included in OCI Cash and cash equivalent 3,335,699 6,374,017
Unrecognized actuarial loss 704,030 35,770 Due from a related party 7,810,129 3,602,373
Gratuity repaid – – Other receivables (excluding
Payments made during the prepayments and advances) 140,839 401,268
year (1,961,981) (1,484,830) 11,286,667 10,377,658
At December 31 17,437,542 16,117,866
Due from related parties and other receivables are considered
The principle actuarial assumptions at the reporting date fully recoverable by the Management.
(expressed as weighted averages) were as follows:
in AED Bank balances
Particulars As at December 31, The Company seeks to limit its credit risk with respect to
2019 2018 banks by dealing with reputable banks only.
Discount rate 3.3% 4.8%
Future salary growth 4% 4%

Amounts due from related parties
Amounts due from related parties arise from transactions in the normal course of business and are stated net of amounts
estimated to be uncollectable. These balances are subject to market credit risks which are closely monitored by the Management.
Credit risk is limited to the carrying values of financial assets in the statement of financial position.
(b) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to
ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and
stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. The Company
maintains adequate reserves, by continuous monitoring, forecast and actual cash flows. The Company does not have any bank
loan. Liability comprises of trade and others payables.
The contractual maturities of the Company’s financial liabilities are as follows:
In AED
2019 Carrying Contractual 1 year or less 1 to 5 years More than 5
amount cashflows years
Trade and other payables 2,588,720 (2,588,720) (2,588,720) – –
Due to a related party 99,453 (99,453) (99,453) – –
Leased liabilities 5,985,650 (6,337,801) (1,543,337) (4,794,464) –
8,673,823 (9,025,974) (4,231,510) (4,794,464) –
in AED
2018 Carrying Contractual 1 year or less 1 to 5 years More than 5
amount cashflows years
Trade and other payables 2,861,224 (2,861,224) (2,861,224) – –
Loan from a related party 5,634,330 (5,634,330) (5,634,330) – –
8,495,554 (8,495,554) (8,495,554) – –
Market rate risk 16 Capital commitments and contingent

Market risk is the risk that changes in market prices, such liabilities
as foreign exchange rates and interest rates will affect the There are no significant capital commitments as at December
Company’s income or the value of its holdings of financial 31, 2019 (December 31, 2018: Nil).
instruments. The objective of market risk management is to
manage and control market risk exposures within acceptable 17 Right-of-use assets and lease liabilities
parameters, while optimizing the return.
The Company has taken office premises on lease. The lease
Currency risk period is one year with an option to extend the lease for
Currency risk is the risk that the value of a financial instrument further period. The Company estimates to occupy the
will fluctuate because of changes in foreign exchange rates. premises till March 31, 2024 based on its economic incentive.
The Company has no significant exposure to currency risk as in AED
most of the Company’s transactions are in AED. Particulars As at
Interest rate risk December
Interest rate risk is the risk that the value of a financial 31,
instrument will fluctuate because of changes in market interest 2019
rates. At the reporting date, the Company is not exposed to Right-of-use assets
interest rate risk as there is no loan outstanding at year end. Balance at the beginning of the year 10,696,946
Additions –
Equity price risk
Derecognition of right-of-use assets (2,719,394)
Equity price risk is the possibility that equity prices will Depreciation on right-of-use assets (1,963,515)
fluctuate affecting the fair value of equity investments and Balance at the end of the year 6,014,037
other instruments that derive their value from a particular Lease liabilities
equity investment or index of equity prices. The Company Maturity analysis
has no exposure to equity price risk. Less than one year 1,403,266
Fair value One to five years 4,582,385
The fair value of the Company’s financial assets and liabilities More than 5 years –
are not materially different from their carrying amounts as Balance at the end of the year 5,985,651

In AED term nature, a defined benefit obligation is highly sensitive to
Particulars 2019 changes in these assumptions. All assumptions are reviewed
Lease liabilities included in the statement of at each reporting date.
financial position at 31 December Impairment losses on receivables
Current portion 1,403,266
Measurement of ECL allowance for related party receivables
Non-current portion 4,582,385
Balance at the end of the year 5,985,651 The measurement of the expected credit loss allowance
Amounts recognized in profit and loss for financial assets measured at amortized cost is an area
Depreciation charge of right-of-use assets 1,963,515 that requires the use of complex models and significant
Interest expense on lease liabilities 288,139 assumptions about future economic conditions and credit
Amounts recognized in Statement of Cash behavior (e.g. the likelihood of customers defaulting and
Flows the resulting losses).
Total cash outflow for leases 2,052,417 Elements of the ECL models that are considered accounting
In AED judgments and estimates include:
Particulars 2018 • Development of ECL models, including various formulas
Amounts recognized in profit and loss and choice of inputs
Lease expense (Lease rental) 2,222,891 • The segmentation of financial assets when their ECL is
assessed on a collective basis; and
• Determination of associations between macroeconomic
18 Accounting estimates and judgment
scenarios and, economic inputs, and their effect on
The following are the key assumptions concerning the probability of default (PDs), exposure at default (EADs)
future, and other key sources of estimation uncertainty at and loss given default (LGDs)
the reporting date, that have a significant risk of causing a
Selection of forward-looking macroeconomic scenarios and
material adjustment to the carrying amounts of assets and
their probability weightings, to derive the economic inputs
liabilities within the next financial year.
into the ECL models. The Company’s policy is to regularly
Residual values and useful lives of property and review its models in the context of actual loss experience and
equipment adjust when necessary.
The Company’s management has reviewed the residual values
and useful lives of property and equipment. The Management 19 Subsequent events
has not highlighted any requirement for an adjustment to the The Company has been closely monitoring the potential
residual lives and remaining useful lives of the assets for the impact of Coronavirus outbreak since early 2020 on its
current or future periods. business due to restrictions imposed by the government,
disruption and liquidity crunch in market where the
Impairment losses on related party balances Company operates. The Company operates with a cost-plus
The Company reviews its receivables to assess impairment model, where it charges the costs it incurs for providing its
at least on a quarterly basis. The Company’s credit risk is services plus a margin to its Ultimate Holding Company. The
primarily attributable to its amounts due from a related Company is honoring its customer by operating even in the
party. In determining whether impairment losses should be challenging economic environment.
recognized in the profit or loss, the Company makes judgments
The Management of the Company believes there is no
as to whether there is any observable data indicating that
financial impact to the Financial Statements as at December
there is a measurable decrease in the estimated future cash
31, 2019 as a result of this subsequent event.
flows. Accordingly, an allowance for impairment is made
where there is an identified loss event or condition which,
20 Comparative figures
based on previous experience, is evidence of a reduction in
the recoverability of the cash flows. Certain comparative figures have been reclassified, wherever
necessary, to conform to the presentation adopted in these
Defined benefit plans (pension benefits) financial statements.
The cost of the defined benefit pension plan and other post-
employment medical benefits and the present value of the
pension obligation are determined using actuarial valuations.
An actuarial valuation involves making various assumptions
that may differ from actual developments in the future. These
include the determination of the discount rate, future salary
increases, mortality rates and future pension increases. Due
to the complexities involved in the valuation and its long-

Panaya Inc
Independent Auditor’s report
To the Members of Panaya Inc
Opinion
We have audited the Ind AS financial statements of Panaya Inc (‘the Company’), which comprises the Balance Sheet as at
December 31, 2019, the Statement of Profit and Loss (including other comprehensive income), the Statement of Cash Flow
of significant accounting policies and other explanatory information (herein after referred to as ‘Ind AS financial statements’)
statements give the information required by the Act in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India including the Ind AS, of the financial position of the Company as at
December 31, 2019 and its financial performance including other comprehensive income and its Cash Flows and the Changes
in Equity for the year ended on that date.
Basis for opinion
Act’) with respect to the preparation of these Ind AS financial statements that give a true and fair view of the financial position,
financial performance including other comprehensive income, Cash Flows and changes in Equity of the Company in accordance
with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed
under section 133 of the Act, read with relevant rule issued thereunder.
474 I Panaya Inc Infosys Subsidiary Financials 2019-20

As required by Section 143(3) of the Act, we report that:
ii) in our opinion proper books of account as required by law have been kept by the Company so far as it appears from
our examination of those books;
For SHENOY & KAMATH

Firm registration number. 006673S
Partner
Membership number. 202841
UDIN : 20202841AAABSV1387
Place: Bengaluru.
Infosys Subsidiary Financials 2019-20 Panaya Inc I 475

Balance Sheet
in US$
2019 2018
ASSETS
Non-current assets
Financial assets
Investments 2.2 39,169,739 39,169,739
Deferred tax assets 2.12 574,355 649,966
Income tax assets 2.12 289,509 –
Current assets
Financial assets
Total assets 104,266,744 98,680,635
Equity
Equity share capital 2.7 – –
Other equity 63,748,916 63,463,348
Total equity 63,748,916 63,463,348
LIABILITIES
Deferred tax liabilities 2.12 20,751 42,112
Borrowings 2.9 10,228,827 4,013,836
Current liabilities
Trade payables 2.8 23,967,284 23,230,025
Income tax liabilities 2.12 100,891 78,880

As per our report of even date attached for and on behalf of Board of Directors of Panaya Inc
for Shenoy & Kamath
Firm’s registration number: 006673S
M. Rathnakar Kamath Deepak Padaki Vibhuti Kumar Dubey

Bengaluru
March 16, 2020


in US$, except share and per share data
2019 2018
Other income, net 2.14 12,055 58,805
Total income 8,331,298 16,530,922
Expenses
Cost of technical sub-contractors 2.15 748,311 6,898,891
Travel expenses 2.15 493,139 624,273
Communication expenses 2.15 38,378 62,741
Depreciation 2.1 82,600 101,315
Other expenses 2.15 712,435 661,680
Total expenses 8,106,679 16,097,601
Profit / (loss) before tax 224,619 433,321
Tax expense:
Current tax 2.12 (115,198) 516,805
Deferred tax 2.12 54,249 (607,852)
Profit / (loss) for the year 285,568 524,368
Equity shares of par value $0.01 each
Basic and diluted 142,784 262,184
Number of shares used in computing earning per share
Basic and diluted 2 2

for Shenoy & Kamath

Bengaluru
March 16, 2020

in US$
2019 2018
Profit / (loss) for the year 285,568 524,368
Adjustments to reconcile net profit to net cash provided by operating activities:
Income tax expense (60,949) (91,047)
Interest expense on loan 214,992 13,836
Trade receivables (298,614) (7,753,206)
Other assets and other financial assets (5,271,387) (4,642,684)
Trade payables 737,259 6,961,583
Other financial liabilities and other liabilities (1,652,359) 733,495
Cash generated from operations (5,962,890) (4,152,340)
Expenditure on property, plant and equipment – (4,259)
Net cash used in investing activities – (4,259)
Additional capital towards securities premium – –
Borrowings 6,000,000 4,000,000
Effect of exchange differences on translation of foreign currency cash and cash
equivalents – –
Net decrease in cash and cash equivalents (115,190) (830,074)
Cash and cash equivalents at the beginning of the year 220,201 1,050,275

for Shenoy & Kamath

Bengaluru
March 16, 2020

in US$
Securities Retained equity holders
premium earnings of the Company
Balance as of January 1, 2018 – 59,509,414 3,429,567 62,938,980
31, 2018
Changes during the year – – – –
Profit for the year – – 524,368 524,368
Balance as of December 31, 2018 – 59,509,414 3,953,935 63,463,348
Balance as of January 1, 2019 – 59,509,414 3,953,935 63,463,348
31, 2019
Profit for the year – – 285,568 285,568
Balance as of December 31, 2019 – 59,509,414 4,239,502 63,748,916

for Shenoy & Kamath

Bengaluru
March 16, 2020

Company overview Effective January 1, 2019, the Company adopted Ind AS 115,
Panaya Inc. (“the Company”) was incorporated in the Revenue from Contracts with Customers using the cumulative
United States of America. The Company is a wholly-owned catch-up transition method, applied to contracts that were
subsidiary of Infosys Limited. not completed as at January 1, 2019. In accordance with
Panaya Inc., USA develops and markets solutions for ERP have not been retrospectively adjusted. The following is a
systems, by identifying the changes on the ERP system summary of new and / or revised significant accounting
through automated analysis. policies related to revenue recognition.
1 Significant accounting policies Revenue is recognized upon transfer of control of promised
products or services to customers in an amount that reflects
1.1 Accounting year the consideration we expect to receive in exchange for those
The accounting year of the Company is from products or services.
1.2 Basis of preparation of financial statements the performance obligations are satisfied over time and where
These financial statements are prepared in accordance with there is no uncertainty as to measurement or collectability
Indian Accounting Standards (Ind AS) under the historical of consideration, is recognized as per the percentage-
cost convention on the accrual basis. The Ind AS are of-completion method.
prescribed under Section 133 of the Act read with Rule 3 of When there is uncertainty as to measurement or ultimate
the Companies (Indian Accounting Standards) Rules, 2015 collectability, revenue recognition is postponed until such
and Companies (Indian Accounting Standards) Amendment uncertainty is resolved. Efforts or costs expended have been
Rules, 2016. The Ind AS are prescribed under Section used to measure progress towards completion as there is a
133 of the Act read with Rule 3 of the Companies (Indian direct relationship between input and productivity.
Unbilled / unearned
Accounting policies have been consistently applied, except
assets (referred to as unbilled revenue) while invoicing in
where a newly-issued accounting standard is initially adopted
excess of revenues are classified as contract liabilities (referred
to as unearned revenue).
Revenue from licenses where the customer obtains a right-to-
1.3 Use of estimates use (ROU) the licenses is recognized at the time the license
The preparation of the financial statements in conformity is made available to the customer. Revenue from licenses
with Ind AS requires the Management to make estimates and where the customer obtains a ROU is recognized over the
assumptions that affect the reported balances of assets and access period. Arrangements to deliver software products
liabilities, and disclosures relating to contingent liabilities as generally have three elements: license, implementation and
at the date of the financial statements and reported amounts Annual Technical Services (ATS). The Company has applied
of income and expenses during the period. Examples of the principles under Ind AS 115 to account for revenues
such estimates include allowances for credit losses, future from these performance obligations. When implementation
obligations under employee benefit plans, income taxes and services are provided in conjunction with the licensing
the useful lives of property, plant, and equipment. arrangement and the license and implementation have
Accounting estimates could change from period to period. been identified as two separate performance obligations,
Actual results could differ from those estimates. Appropriate the transaction price for such contracts are allocated to
changes in estimates are made as the Management becomes each performance obligation of the contract based on their
aware of changes in circumstances surrounding the estimates. relative standalone selling prices. In the absence of standalone
Changes in estimates are reflected in the financial statements selling price for implementation, the performance obligation
in the period in which changes are made and, if material, their is estimated using the expected cost-plus margin approach.
effects are disclosed in the notes to the financial statements. Where the license is required to be substantially customized
as part of the implementation service the entire arrangement
1.4 Revenue recognition fee for license and implementation is considered to be a single
The Company derives its revenue principally from the sale performance obligation and the revenue is recognized using
of its ERP systems analysis services including activation and the percentage-of-completion method as the implementation
monthly service fees. Revenues from services are recognized is performed. Revenue from client training, support and
as services are performed or on a straight-line basis if service other services arising due to the sale of software products is
is ongoing. Revenue is recognized provided that arrangement recognized as the performance obligations are satisfied. ATS
(usually in the form of a purchase order) exists, the fee is revenue is recognized ratably over the period in which the
fixed and determinable and collection is reasonably assured. services are rendered.
If uncertainties exist, revenue is recognized when the
uncertainties are resolved.

Deferred contract cost associated with these will flow to the Company and the cost
Deferred contract costs are incremental costs of obtaining a of the item can be measured reliably. Repairs and maintenance
contract which are recognized as assets and amortized over costs are recognized in net profit in the Statement of Profit
the term of the contract. and Loss when incurred. The cost and related accumulated
Contract modification upon sale or retirement of the asset and the resultant gains
Contract modifications are accounted for when additions, or losses are recognized in the Statement of Profit and Loss.
deletions or changes are approved either to the contract 1.7 Financial instruments
scope or contract price. The accounting for modifications of
contracts involves assessing whether the services added to an 1.7.1 Initial recognition
existing contract are distinct and whether the pricing is at the The Company recognizes financial assets and financial
standalone selling price. Services added that are not distinct liabilities when it becomes a party to the contractual
are accounted for on a cumulative catch-up basis, while those provisions of the instrument. All financial assets and liabilities
that are distinct are accounted for prospectively, either as a are recognized at fair value on initial recognition, except for
separate contract, if the additional services are priced at the trade receivables which are initially measured at transaction
standalone selling price, or as a termination of the existing price. Transaction costs that are directly attributable to the
contract and creation of a new contract if not priced at the acquisition or issue of financial assets and financial liabilities,
standalone selling price. which are not at fair value through profit or loss, are added
to the fair value on initial recognition. Regular way purchase
Tax
Statement of Profit and loss. 1.7.2 Subsequent measurement
1.5 Provisions a. Non-derivative financial instruments

Company has a present legal or constructive obligation that A financial asset is subsequently measured at amortized cost
is reasonably estimable, and it is probable that an outflow of if it is held within a business model whose objective is to
economic benefits will be required to settle the obligation. hold the asset in order to collect contractual cash flows. The
Provisions are determined by discounting the expected contractual terms of the financial asset give rise on specified
future cash flows at a pre-tax rate that reflects current dates to cash flows that are solely payments of principal and
market assessments of the time value of money and the risks interest on the principal amount outstanding.
specific to the liability. (ii) Financial assets at fair value through other comprehensive income
A financial asset is subsequently measured at fair value
1.6 Property, plant and equipment through other comprehensive income, if it is held within a
Property, plant and equipment are stated at cost, less business model whose objective is achieved by both collecting
accumulated depreciation and impairment, if any. Costs contractual cash flows and selling financial assets. The
directly attributable to acquisition are capitalized until the contractual terms of the financial asset give rise on specified
property, plant and equipment are ready for use, as intended dates to cash flows that are solely payments of principal and
by management. The Company depreciates property, plant interest on the principal amount outstanding.
and equipment over their estimated useful lives using (iii) Financial assets at fair value through profit or loss
the straight-line method. The estimated useful lives of A financial asset, which is not classified in any of the above
assets are as follows: categories, is subsequently fair-valued through profit or loss.
Leasehold improvements Over lease term (iv) Financial liabilities
Office equipment (1) 5 years
Financial liabilities are subsequently carried at amortized
cost using the effective interest method. For trade and other
Furniture and fixtures (1) 5 years payables maturing within one year from the Balance Sheet
Depreciation methods, useful lives and residual values are date, the carrying amounts approximate fair value due to the
reviewed periodically, including at each financial year end short maturity of these instruments.
(v) Investment in subsidiaries
Based on technical evaluation the Management believes that the
(1)
useful lives as given above best represent the period over which the Investment in subsidiaries is carried at cost in the separate
Management expects to use these assets. Hence, the useful lives for financial statements.
of Schedule II of the Companies Act 2013. 1.8 Fair value of financial instruments
Advances paid towards the acquisition of property, plant, and In determining the fair value of its financial instruments, the
equipment outstanding at each Balance Sheet date is classified Company uses a variety of methods and assumptions that
as capital advances under other non-current assets and the are based on market conditions and risks existing at each
cost of assets not put to use before such date are disclosed reporting date. The methods used to determine fair value
under ‘Capital work-in-progress’. Subsequent expenditures include discounted cash flow analysis, available quoted
relating to property, plant, and equipment is are capitalized market prices and dealer quotes. All methods of assessing
only when it is probable that future economic benefits

fair value result in general approximation of value, and such The functional currency of the Company is the US Dollars.
value may never actually be realized. These financial statements are presented in US Dollars.
1.9 Impairment Transactions and translations
a. Financial assets Foreign-currency denominated monetary assets and liabilities
The Company recognizes loss allowances using the expected exchange rates in effect at the Balance Sheet date. The gains
credit loss (ECL) model for the financial assets, which are or losses resulting from such translations are included in net
not fair-valued through profit or loss. Loss allowance for profit in the Statement of Profit and Loss. Non-monetary
trade receivables with no significant financing component is assets and non-monetary liabilities denominated in a foreign
measured at an amount equal to lifetime ECL. For all other currency and measured at fair value are translated at the
financial assets, expected credit losses are measured at an exchange rate prevalent at the date when the fair value
amount equal to the 12-month ECL, unless there has been a was determined. Non-monetary assets and non-monetary
significant increase in credit risk from initial recognition in liabilities denominated in a foreign currency and measured
which case those are measured at lifetime ECL. The amount at historical cost are translated at the exchange rate prevalent
of expected credit losses (or reversal) that is required to adjust at the date of the transaction.
is required to be recognized is recognized as an impairment Transaction gains or losses realized upon settlement of foreign
gain or loss in profit or loss. currency transactions are included in determining net profit
b. Non-financial assets expense and cash-flow items denominated in foreign currencies
(i) Property, plant and equipment are translated into the relevant functional currencies using the
Property, plant, and equipment are evaluated for recoverability exchange rate in effect on the date of the transaction.
1.12 Income taxes
purpose of impairment testing, the recoverable amount (i.e., Income tax expense comprises current and deferred income
the higher of the fair value less cost to sell and the value-in- tax. Income tax expense is recognized in net profit in the
use) is determined on an individual asset basis unless the asset Statement of Profit and Loss except to the extent that it
does not generate cash flows that are largely independent of relates to items recognized directly in equity, in which case
those from other assets. In such cases, the recoverable amount it is recognized in other comprehensive income. Current
is determined for the CGU to which the asset belongs. 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
be recognized in the Statement of Profit and Loss is measured
enacted or substantively enacted by the Balance Sheet date.
by the amount by which the carrying value of the assets
Deferred income tax assets and liabilities are recognized for all
temporary differences arising between the tax bases of assets
impairment loss is reversed in the Statement of Profit and Loss
and liabilities, and their carrying amounts in the financial
if there has been a change in the estimates used to determine
the recoverable amount. The carrying amount of the asset is
date and are reduced to the extent that it is no longer probable
have been determined (net of any accumulated amortization In assessing the realizability of deferred income tax assets,
or depreciation) had no impairment loss been recognized for the Management considers whether some portion or all of the
the asset in the previous years. deferred income tax assets will not be realized. The ultimate
1.10 Employee benefits the generation of future taxable income during the periods
in which the temporary differences become deductible. The
Compensated absences
Management considers the scheduled reversals of deferred
The Company has a policy on compensated absences income tax liabilities, projected future taxable income and
which are both accumulating and non-accumulating in tax planning strategies in making this assessment. Based on
nature. The expected cost of accumulating compensated the level of historical taxable income and projections for
absences is determined by actuarial valuation performed future taxable income over the periods in which the deferred
by an independent actuary at each Balance Sheet date using income tax assets are deductible, the Management believes
projected unit credit method on the additional amount that the Company will realize the benefits of those deductible
expected to be paid or availed as a result of the unused differences. The amount of the deferred income tax assets
entitlement that has accumulated at the Balance Sheet date. considered realizable, however, could be reduced in the near
Expense on non-accumulating compensated absences is term if estimates of future taxable income during the carry
recognized in the period in which the absences occur. forward period are reduced.
1.11 Foreign currency 1.13 Cash flow statement
Functional currency Cash flows are reported using the indirect method, whereby
profit for the period is adjusted for the effects of transactions

of a non-cash nature, any deferrals or accruals of past or operating lease expenses are charged to the Statement of Profit
future operating cash receipts or payments and item of and Loss. The standard also contains enhanced disclosure
income or expenses associated with investing or financing requirements for lessees. Ind AS 116 substantially carries
cash flows. The cash flows from operating, investing and forward the lessor accounting requirements in Ind AS 17. The
financing activities of the Company are segregated. effective date for adoption of Ind AS 116 is annual periods
1.14 Other income possible methods of transition:
The Company has adopted Appendix B to Ind AS 21, Foreign • Full retrospective: Retrospectively to each prior period
Currency Transactions and Advance Consideration which presented applying Ind AS 8, Accounting Policies, Changes
clarifies the date of transaction for the purpose of determining in Accounting Estimates and Errors.
the exchange rate to use on initial recognition of the related • Modified retrospective: Retrospectively, with the cumulative
asset, expense or income when an entity has received or paid effect of initially applying the standard recognized at the
advance consideration in a foreign currency. The effect on date of initial application either by:
account of adoption of this amendment was insignificant. • Under modified retrospective approach, the lessee records
1.15 Earnings per share lease payments, discounted at the incremental borrowing
Basic earnings per share is computed by dividing the net rate and the right-of-use asset either as:
profit after tax by the weighted average number of equity • Its carrying amount as if the standard had been applied
shares outstanding during the period. since the commencement date, but discounted at lessee’s
incremental borrowing rate at the date of initial application.
1.16 Leases
or
Ind AS 116, Leases: On March 30, 2019, the Ministry of • An amount equal to the lease liability, adjusted by the
Corporate Affairs (MCA) has notified Ind AS 116, Leases. amount of any prepaid or accrued lease payments related
Ind AS 116 will replace the existing leases Standard, Ind AS to that lease recognized under Ind AS 17 immediately
17, Leases and related Interpretations. The standard sets out before the date of initial application.
the principles for the recognition, measurement, presentation
and disclosure of leases for both parties to a contract i.e.,
the lessee and the lessor. Ind AS 116 introduces a single
and take the cumulative adjustment to retained earnings,
months, unless the underlying asset is of low value. Currently,
on the date of initial application (January 1, 2020). The effect of adoption is not expected to material for the Company’s
1.17 Borrowing cost
Borrowing cost are charged to the Statement of Profit and Loss in the period in which they incurred.
The changes in the carrying value of property, plant and equipment for the year ended December 31, 2019 are follows:
in US $
Particulars Leasehold Office Computer Furniture and Total
improvements equipment equipment fixtures
January 1, 2019 120,950 29,278 244,938 99,231 494,397
Additions / adjustments – – – – –
Deletions / adjustments – – – – –
December 31, 2019 120,950 29,278 244,938 99,231 494,397
January 1, 2019 (62,865) (16,131) (208,127) (44,674) (331,797)
Depreciation (23,610) (4,335) (35,311) (19,344) (82,600)
deletions – – – – –
December 31, 2019 (86,475) (20,466) (243,438) (64,018) (414,397)
Carrying value as of December
31, 2019 34,475 8,811 1,500 35,213 79,999

Carrying value as of January 1,
2019 58,085 13,146 36,811 54,558 162,600
The changes in the carrying value of property, plant and equipment for the year ended December 31, 2018 were follows:
in US $
January 1, 2018 120,950 27,660 243,680 97,847 490,137
Additions / adjustments – 1,617 1,258 1,384 4,259
Deletions / adjustments – – – – –
December 31, 2018 120,950 29,278 244,938 99,231 494,397
January 1, 2018 (39,253) (10,841) (155,397) (24,991) (230,482)
Depreciation (23,612) (5,290) (52,730) (19,683) (101,315)
deletions – – – – –
Particulars Leasehold Office

Particulars Computer FurnitureAsand
at December 31,Total
2019 2018
Accumulated depreciation as of Panaya GmbH,
December 31, 2018 (62,865) (16,131) Germany (208,127) (44,674)
38,841 (331,797)
38,841
Carrying value as of December Panaya Japan Co Ltd,
31, 2018 58,085 13,146 Japan 36,811 54,558
61,298 162,600
61,298
Carrying value as of January 1, Total non-current
2018 81,696.80 16,819
investments 88,283 72,857
39,169,739 259,655
39,169,739
Aggregate amount of
2.2 Investments unquoted investments 39,169,739 39,169,739
in US $ Investments carried at cost 39,169,740 39,169,740
2019 2018 2.3 Trade receivables
Non-current investments in US $
Equity instruments of Particulars As at December 31,
subsidiaries 39,169,740 39,169,740 2019 2018
Total carrying value 39,169,740 39,169,740 Current
in US$ Unsecured
Considered good (1) 41,516,250 41,217,636
2019 2018 (1)
Non-current investments
parties (Refer to Note 2.18) 39,468,909 39,468,909
Unquoted
Investment carried at cost
Investments in 2.4 Cash and cash equivalents
in US$
subsidiaries Particulars As at December 31,
Panaya Ltd, Israel 39,069,600 39,069,600 2019 2018
Balances with banks
accounts 105,007 220,165
Cash on hand 3 36
Total cash and cash equivalents 105,011 220,201

in US$

2019 2018 2019 2018
Current Non-Current
Rental deposits (1) 21,573 21,573 Unsecured loan (1)(2) 10,228,827 4,013,836
Others (1)(2) 22,498,180 17,227,809 Total Non-current
Total current other financial borrowings 10,228,827 4,013,836
assets 22,519,753 17,249,382 (1)
includes dues to related
(1)
Financial assets carried at parties (Refer to Note 2.18) 10,228,827 4,013,836
amortized cost 22,519,753 17,249,382 (2)
The above loan carries an interest of 2.86% p.a. and shall be repayable in
(2)
Includes dues from related full within 12 months from the date of loan agreement, unless extended
parties (Refer to Note 2.18) 22,498,180 17,227,809 by the written consent of both the parties.
2.6 Other assets 2.10 Other financial liabilities

in US $ in US$

2019 2018 2019 2018
Current Current
Prepaid expenses 12,127 11,111 Accrued compensation to
Total current other assets 12,127 11,111 employees (1) 482,034 483,736
Accrued expenses (1) 79,732 85,550
2.7 Equity Compensated absences 35,298 36,574
Other payables (1) 15,579 35,170
Equity share capital Total current other financial
in US$ liabilities 612,643 641,030
(1)
2019 2018 at amortized cost 577,345 604,456
Authorized
Equity share capital (2 2.11 Other liabilities
Equity shares of par value US in US$
$ 0.01 each) Particulars As at December 31,
0 0 2019 2018
Issued, subscribed and paid- Current
up Unearned revenue 5,579,525 7,207,717
Equity share capital (2 Others – Withholding
Equity shares of par value US taxes and others 7,907 3,687
$ 0.01 each) 0 0 Total current other liabilities 5,587,432 7,211,404
Total equity share capital 0 0
2.12 Income taxes
The details of shareholder holding more than
5% shares are follows: Income tax expense in the Statement of
in US $ Profit And Loss comprises:
in US$
Name of the shareholder As at December 31
Infosys Limited 100% 100% 2019 2018
Current taxes (115,198) 516,805
Deferred taxes 54,249 (607,852)
2.8 Trade payables Income tax expense (60,949) (91,047)
in US $
Particulars As at December 31, A reconciliation of the income tax provision to the amount
2019 2018 computed by applying the statutory income tax rate to the
Trade payables (1) 23,967,284 23,230,025 income before income taxes is summarized below:
Total trade payables 23,967,284 23,230,025 in US$
(1)
includes dues to related Particulars Year ended December 31,
parties (Refer to Note 2.18) 23,904,251 23,155,940 2019 2018
Profit before income taxes 224,619 433,321
Enacted tax rates in US 27.00% 27.00%
2.9 Borrowings Computed expected tax
in US $ expense 60,647 116,997

Particulars Year ended December 31, Performance obligations and remaining
2019 2018 performance obligations
Effect of unrecognized The remaining performance obligation disclosure provides the
deferred tax assets (9,060) (354,565) aggregate amount of the transaction price yet to be recognized
Tax provision / reversals (115,198) 18,712 as at the end of the reporting period and an explanation as
Overseas taxes – 122,182 to when the Group expects to recognize these amounts in
Effect of non-deductible revenue. Applying the practical expedient as given in Ind AS
expenses 2,662 5,627 115, the Group has not disclosed the remaining performance
Income tax expense (60,949) (91,047) obligation related disclosures for contracts where the
revenue recognized corresponds directly with the value to
The applicable statutory tax rate for year ended December 31,
the customer of the entity’s performance completed to date,
2019 and December 31, 2018 is 40%.
typically those contracts where invoicing is on time and
The details of income tax assets and income tax material basis. Remaining performance obligation estimates
liabilities are as follows: are subject to change and are affected by several factors,
in US$
including terminations, changes in the scope of contracts,
As at December 31, periodic revalidations, adjustment for revenue that has not
2019 2018 materialized and adjustments for currency.
Income tax assets 289,509 – The aggregate value of performance obligations that are
Deferred tax assets 574,355 649,966 completely or partially unsatisfied as at December 31, 2019,
Deferred tax liabilities (20,751) (42,112) other than those meeting the exclusion criteria mentioned
Current income tax liabilities (100,891) (78,880) above, is US $ 5,579,525 Out of this, the Group expects to
Net current income tax assets recognize revenue of around 93% within the next one year
/ (liability) at the end 742,223 528,974 and the remaining thereafter. The contracts can generally
be terminated by the customers and typically includes an
The gross movement in the current income tax asset/ (liability)
enforceable termination penalty payable by them.
for the year ended are as follows:
in US$ The impact on account of applying the erstwhile Ind AS
18, Revenue standard instead of Ind AS 115, Revenue from
Year ended December 31,
contract with customers on the financials results of the Group
2019 2018
for the year ended December 31, 2019 is insignificant.
Net current income tax asset
/ (liability) at the beginning 528,974 (235,548) 2.14 Other income, net
Income tax paid 152,300 673,475 in US $
Current income tax expense 60,949 91,047 Particulars Year ended December 31,
Net current income tax asset 2019 2018
/ (liability) at the end 742,223 528,974 Miscellaneous income 12,055 58,805
Total other income, net 12,055 58,805
in US$
2.15 Expenses
Particulars Year ended December 31, in US$
Revenue from products and 2019 2018
platforms 8,319,243 16,472,117 Employee benefit expenses
Total revenue from Salaries including bonus 5,557,909 7,561,536
operations 8,319,243 16,472,117 Staff welfare 37,534 71,621
Trade receivables and contract balances expenses 5,595,443 7,633,157
The Company classifies the right to consideration in exchange Cost of technical sub-
for deliverables as either a receivable or as unbilled revenue. contractors
Revenue recognition for fixed-price development contracts
is based on percentage-of-completion method. Invoicing to
different from the timing of billing the customers.
Trade receivable and unbilled revenues are presented net of
During the year ended December 31, 2019, the Company
recognized revenue of US $ 5,435,606 arising from opening
unearned revenue as of January 1, 2019.

Particulars Year ended December 31, five years from their respective dates of inception and relates
2019 2018 to rented premises. Some of these lease agreements have
Technical sub-contractors price escalation Clauses.
– subsidiaries 748,311 6,898,891
Total cost of technical sub-
contractors 748,311 6,898,891 Financial instruments by category
Travel expenses The carrying value and fair value of financial instruments by
Overseas travel expenses 261,458 298,808 categories were as follows:
Overseas boarding and in US$
lodging 191,414 284,551 Particulars Carrying value as on
Perdiem 40,267 40,914 December 31,
Total travel expenses 493,139 624,273 2019 2018
Communication expenses Assets:
Telephone charges 38,378 62,741 Cash and cash equivalents
Total communication (Refer to Note 2.4) 105,011 220,201
expenses 38,378 62,741 Trade receivables (Refer
in US $ Note 2.3) 41,516,250 41,217,636
Particulars Year ended December 31, Other financial assets (Refer
2019 2018 to Note 2.5) (1) 22,519,753 17,249,382
Other expenses Total 64,141,014 58,687,219
Repair and maintenance 400,220 293,581 Liabilities:
Printing and stationery 262 1,712 Trade payables (Refer to
Marketing expenses 16,365 47,030 Note 2.8) 23,967,284 23,230,025
Rent 236,240 240,557 Borrowings (Refer to Note
Rates and taxes, excluding 2.9) 10,228,827 4,013,836
taxes on income 1,374 8,369 Other financial liabilities
Postage and courier 1,507 2,988 (Refer to Note 2.10) 577,345 604,456
Insurance charges 3,585 2,729 Total 34,773,456 27,848,317
Consumables 41,660 52,363 All the above financial instruments are carried at amortized
Bank charges 11,223 11,542 cost and the carrying values approximates their fair value.
Miscellaneous expenses – 809
Total other expenses 712,435 661,680 Financial risk management
2.16 Leases
The Company’s activities expose it to a variety of financial
Obligations on long-term, non-cancellable operating risks: credit risk and liquidity risk.
leases
Credit risk
The lease rentals charged during the period is as under:
in US $ Credit risk refers to the risk of default on its obligation by
2019 2018
from trade receivables amounting to US $ 41,516,251 and US
$ 41,217,636 as of December 31, 2019 and December 31,
during the period 236,240 240,557
2018, respectively. Trade receivables are typically unsecured
The obligations on long-term, non-cancellable operating and are derived from revenue earned from customers
leases payable as per the rentals stated in the respective primarily located in the United States. Credit risk has always
agreements are as follows: been managed by the Company through credit approvals,
in US $ establishing credit limits and continuously monitoring the
Future minimum lease As at December 31, creditworthiness of customers to which the Company grants
payable 2019 2018 credit terms in the normal course of business. On account
Not later than 1 year 152,349 1,194,905 of adoption of Ind AS 109, the Company uses expected
Later than 1 year and not credit loss model to assess the impairment loss or gain. The
later than 5 years Company uses a provision matrix to compute the expected
241,218 1,578,452
credit loss allowance for trade receivables and unbilled
Later than 5 years – –
revenues. The provision matrix takes into account available
The operating lease arrangements are renewable on a periodic
basis and for most of the leases extend up to a maximum of

external and internal credit risk factors such as credit default swap quotes, credit ratings from international credit rating agencies
and the Company’s historical experience for customers.
Liquidity risk
The Company’s principal sources of liquidity are cash and cash equivalents. The Company has taken loan from its related party
to meet its working capital requirements.
As of December 31, 2019, the Company had a working capital of US $ 33,884,890 including cash and cash equivalents of
US $ 105,011. As of December 31, 2018, the Company had a working capital of US $ 27,536,991 including cash and cash
equivalents of US $ 220,201.
Name of Holding Company Country
Panaya Japan Co. Ltd (26) (7) Japan

Infosys South Africa (Pty) Ltd (9)(17) South Africa
HIPUS (20) Japan
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
(20)
(21)
(22)
(23)
(24)
(25)
(26)
Under liquidation
in US $
2019 2018
Trade receivables
Panaya Ltd 39,468,909 39,468,909
39,468,909 39,468,909

2019 2018
Panaya Ltd 22,498,180 17,227,809
22,498,180 17,227,809
Trade payables
Panaya Ltd. 23,904,251 23,155,940
Infosys Ltd 1,955 –
23,906,206 23,155,940
Borrowings
Infosys Public Services Inc 10,228,827 4,013,836
10,228,827 4,013,836
in US $
2019 2018
Panaya Ltd. 748,311 6,898,891
748,311 6,898,891
Finance cost
Infosys Public Services Inc 214,992 13,836
214,992 13,836
Sale of services
Panaya Ltd. – 9,573,225
– 9,573,225

The Company is engaged in developing and marketing solutions in a single geography. Based on the “management approach
“as defined in Ind AS 108, Segment Reporting, the Chief Operating Decision Maker (CODM) evaluates the performance and
allocates resources based on analysis of performance of the Company as a whole. Its operations are, therefore, considered to

Infosys Technologies (Sweden) AB
Auditor’s Report
To the general meeting of the shareholders of Infosys Technologies (Sweden) AB
corporate identity number 556779-1040
Report on the annual accounts

Opinions
We have audited the annual accounts of Infosys Technologies (Sweden) AB for the financial year 2019-01-01 - 2019-12-31.
In our opinion, the annual accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in
all material respects, the financial position of Infosys Technologies (Sweden) AB as of 31 December 2019 and its financial
performance and cash flow for the year then ended in accordance with the Annual Accounts Act. The statutory administration
report is consistent with the other parts of the annual accounts.
We therefore recommend that the general meeting of shareholders adopts the income statement and Balance Sheet.
Basis for Opinions
We conducted our audit in accordance with International Standards on Auditing (ISA) and generally accepted auditing standards
in Sweden. Our responsibilities under those standards are further described in the Auditor’s Responsibilities section. We are
independent of Infosys Technologies (Sweden) AB in accordance with professional ethics for accountants in Sweden and have
otherwise fulfilled our ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions.
Responsibilities of the Board of Directors
The Board of Directors are responsible for the preparation of the annual accounts and that they give a fair presentation in
accordance with the Annual Accounts Act. The Board of Directors are also responsible for such internal control as they determine
is necessary to enable the preparation of annual accounts that are free from material misstatement, whether due to fraud or error.
In preparing the annual accounts, The Board of Directors are responsible for the assessment of the company’s ability to
continue as a going concern. They disclose, as applicable, matters related to going concern and using the going concern basis
of accounting. The going concern basis of accounting is however not applied if the Board of Directors intends to liquidate the
company, to cease operations, or has no realistic alternative but to do so. The going concern basis of accounting is however not
applied if the Board of Directors intends to liquidate the company, to cease operations, or has no realistic alternative but to do so.
Auditor’s responsibility
Our objectives are to obtain reasonable assurance about whether the annual accounts as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and generally accepted
auditing standards in Sweden will always detect a material misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these annual accounts.
• Identify and assess the risks of material misstatement of the annual accounts, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide
a basis for our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
• Obtain an understanding of the company’s internal control relevant to our audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
company’s internal control.
disclosures made by the Board of Directors.
• Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting in preparing the
annual accounts. We also draw a conclusion, based on the audit evidence obtained, as to whether any material uncertainty
exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the annual accounts or, if such disclosures are inadequate, to modify our opinion about the annual accounts.
Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or
conditions may cause the Company to cease to continue as a going concern.
492 | Infosys Technologies (Sweden) AB Infosys Subsidiary Financials 2019-20

• Evaluate the overall presentation, structure and content of the annual accounts, including the disclosures, and whether the
annual accounts represent the underlying transactions and events in a manner that achieves fair presentation.
We must inform the Board of Directors of, among other matters, the planned scope and timing of the audit. We must also
inform of significant audit findings during our audit, including any significant deficiencies in internal control that we identified.
Report on other legal and regulatory requirements

Opinions
In addition to our audit of the annual accounts, we have also audited the administration of the Board of Directors of
Infosys Technologies (Sweden) AB for the financial year 2019-01-01 - 2019-12-31 and the proposed appropriations of the
company’s profit or loss.
We recommend to the general meeting of shareholders that the profit to be appropriated in accordance with the proposal in the
statutory administration report and that the members of the Board of Directors be discharged from liability for the financial year.
Basis for Opinions
We conducted the audit in accordance with generally accepted auditing standards in Sweden. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities section. We are independent of Infosys Technologies (Sweden)
AB in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities
in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions.
Responsibilities of the Board of Directors
The Board of Directors is responsible for the proposal for appropriations of the company’s profit or loss. At the proposal
of a dividend, this includes an assessment of whether the dividend is justifiable considering the requirements which the
company’s type of operations, size and risks place on the size of the company’s equity, consolidation requirements, liquidity
and position in general.
The Board of Directors is responsible for the company’s organization and the administration of the company’s affairs. This
includes among other things continuous assessment of the company’s financial situation and ensuring that the company’s
organization is designed so that the accounting, management of assets and the company’s financial affairs otherwise are
controlled in a reassuring manner.
Our objective concerning the audit of the administration, and thereby our opinion about discharge from liability, is to obtain audit
evidence to assess with a reasonable degree of assurance whether any member of the Board of Directors in any material respect:
• has undertaken any action or been guilty of any omission which can give rise to liability to the company, or
• in any other way has acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association.
Our objective concerning the audit of the proposed appropriations of the company’s profit or loss, and thereby our opinion
about this, is to assess with reasonable degree of assurance whether the proposal is in accordance with the Companies Act.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with generally
accepted auditing standards in Sweden will always detect actions or omissions that can give rise to liability to the company, or
that the proposed appropriations of the company’s profit or loss are not in accordance with the Companies Act.
As part of an audit in accordance with generally accepted auditing standards in Sweden, we exercise professional judgment and
maintain professional skepticism throughout the audit. The examination of the administration and the proposed appropriations
of the company’s profit or loss is based primarily on the audit of the accounts. Additional audit procedures performed are
based on our professional judgment with starting point in risk and materiality. This means that we focus the examination
on such actions, areas and relationships that are material for the operations and where deviations and violations would have
particular importance for the company’s situation. We examine and test decisions undertaken, support for decisions, actions
taken and other circumstances that are relevant to our opinion concerning discharge from liability. As a basis for our opinion
on the Board of Directors’ proposed appropriations of the company’s profit or loss we examined whether the proposal is in
accordance with the Companies Act.
Stockholm June 2, 2020

Deloitte AB
Signature on Swedish original
Andreas Froutnzos
Authorized Public Accountant
Infosys Subsidiary Financials 2019-20 Infosys Technologies (Sweden) AB | 493

Board of Directors report
The annual report is prepared in Swedish Kronas, SEK.
General information about the business
The Company provides end-to-end business solutions that leverage technology, thereby enabling its clients to enhance
business performance. The Company’s operations are to provide solutions that span the entire software lifecycle
encompassing technical consulting, design, development, re-engineering, maintenance, system integration, package
evaluation and implementation, testing and infrastructure management services.
The registered office of the Company is situated in Stockholm.
Ownership structure
Infosys Ltd, (L85110KA1981PLC013115), Hosur Road Bangalore 560 100, India, is
the parent company that prepares the consolidated accounts of the largest Group that Infosys Technologies (Sweden) AB is
part of as a subsidiary.
Expected future developments and significant risks and uncertainties
The Company has taken into account the possible effects the Covid -19 pandemic may have on the reported values of receivables.
In developing the assumptions about any future uncertainties in the global economic conditions due to this pandemic, the
Company has used, at the date of presentation of the annual report, internal and external sources of information and related
information as well as financial forecasts.
The Company counts to recover the carrying amount of these assets and will continue to monitor closely any potential significant
changes in future economic conditions.
Multi-year comparison (K SEK) 2019 2018 2017 2016 2015
Net turnover 74,056 82,170 130,363 145,818 108,437
Profit/(loss) after financial items 6,596 2,817 4,138 (13,543) (56,351)
Total assets 55,530 49,557 55,250 72,594 108,992
Equity-asset ratio (%) 74.98% 70.70% 58.32% 5.63% 9.51%
Average number of employees 44 52 72 102 114
Appropriation of profit/(loss)
Amounts in SEK
At the disposal of the general meeting:
Profit/(loss) brought forward 34,939,015
Profit/(loss) for the year 6,595,894
41,534,909
The board of directors proposes the following:
to be carried forward 41,534,909
41,534,909
For information about the company’s earnings and financial position in other respects, please refer to the income statements,
Balance Sheets and accompanying notes set out below.

Income statement
Amounts in SEK
Particulars Note Year ended December 31,
2019 2018
Net turnover 2 74,056,221 82,169,582
Total operating income 74,056,221 82,169,582
Operating expenses
Other external expenses 3,4 (11,902,742) (16,383,641)
Personnel costs 5 (55,389,582) (63,078,349)
Depreciation and write-down of tangible and intangible assets 6 (5,861) –
Total operating expenses (67,298,185) (79,461,990)
Operating profit/(loss) 6,758,036 2,707,592
Financial items
Other interest income and similar profit/(loss) items 7 – 109,310
Interest expense and similar profit/(loss) items 8 (162,142) –
Profit/(loss) after financial items 6,595,894 2,816,902
Profit/(loss) before tax
Tax on profit for the year 9 – –
Net profit/(loss) for the year 6,595,894 2,816,902

Balance Sheet
Amounts in SEK
2019 2018
ASSETS
Fixed assets
Tangible assets
Equipment, tools fixtures and fittings 6 162,118 –
162,118 –
Financial assets
Other long-term receivables 10 400,000 –
400,000 –
Total fixed assets 562,118 –
Current assets
Current receivables
Trade receivables 4,680,779 318,549
Receivables from group companies 12,547,948 13,160,047
Other receivables – 881,212
Prepaid expenses and accrued income 11 – 292,464
17,228,727 14,652,272
Cash and bank 37,739,510 34,904,754
TOTAL ASSETS 55,530,355 49,557,026
Amounts in SEK
2019 2018
Equity 12
Restricted equity
Share capital 100,000 100,000
Total restricted equity 100,000 100,000
Non-restricted equity
Profit/(loss) brought forward 34,939,015 32,122,113
Profit/(loss) for the year 6,595,894 2,816,902
Total non-restricted equity 41,534,909 34,939,015
Total equity 41,634,909 35,039,015
Current liabilities
Liabilities to group companies 1,742,050 236,782
Current tax liability 1,401,808 –
Accrued expenses and deferred income 13 10,657,276 13,318,035
TOTAL EQUITY AND LIABILITIES 55,530,355 49,557,026

Change in Equity
Amounts in SEK
Particulars Share capital Non-restricted Profit/(loss) for Total Equity
equity the year
Opening amount 2019-01-01 100,000 32,122,113 2,816,902 35,039,015
Appropriation of profits, last year – 2,816,902 (2,816,902) –
Profit/(loss) for the year – – 6,595,894 6,595,894
Closing amount 2019-12-31 100,000 34,939,015 6,595,894 41,634,909

Cash flow analysis
Amounts in SEK
2019 2018
Profit/(loss) after financial items 6,595,894 2,816,902
Adjustments for non-cash items, etc 6.13 8,690 (2,639)
6,604,584 2,814,263
Taxes paid 881,212 2,615,930
Cash flow from operating activities before changes in working capital 7,485,796 5,430,193
Cash flow from changes in working capital
Increase(-)/Decrease(+) in current receivables (3,457,667) 2,999,155
Increase(+)/Decrease(-) in current liabilities (622,564) (8,509,833)
Cash flow from / (used in) operating activities 3,405,565 (80,485)
Acquisition of equipment, tools, fixtures and fittings (167,980) –
Acquisition of financial assets (400,000) –
Repayment of financial receivables (2,829) 2,639
Cash flow from / (used in) investing activities (570,809) 2,639
Cash flow from financing activities – –
Change in cash and cash equivalents 2,834,756 (77,846)
Cash and cash equivalents at beginning of year 34,904,754 34,982,600
Cash and cash equivalents at year-end 15 37,739,510 34,904,754

Notes to the financial statement
Note 1 Notes with accounting concept Receivables are reported to the amount that are excpected to be
The annual report has been prepared in accordance with the received after deductions for individually assessed bad debts.
Annual Accounts Act (1995:1554) and general advice from Balance Sheet total
the Swedish Accounting Standards Board BFNAR 2012:1
The sum of assets or the sum of debts and equity
Annual accounts and consolidated accounts (“K3”).
Accounting currency
Solidity
The annual report is prepared in Swedish Kronas, SEK, and
Part of assets that is financed with equity.
are stated in SEK if nothing else is specified.
Shareholder contributions
Revenue recognition
Shareholder contributions is reported as an increase of the
Sales revenue are recorded when the significant risks and
share of the carrying amount. Shareholders contribution
benefits are associated with transfered ownership to the
purchaser and when revenue amount can be accounted for received by an owner is reported against equity.
in a reliable manner. Cash flow analysis
Foreign currency Cash flow analysis expose change of the business liquid
Monetary assets and liabilities in foreign currency are valued funds during the fiscal year. The cash flow analysis have been
at the currency rate of the closing day. prepared according to the indirect method. The reported cash
flow only includes transactions that have involved in- and
Transactions in foreign currency are converted according to
outflow of payments.
the transaction days current rate.
Leasing agreements
Note 2 Intra-group purchases and sales
Amounts in SEK
Leasing agreements are classified as financial or operational
leasing. Financial leasing exists when the financial risks and
2019 2018
benefits associated with the ownership are transferred to the
Percentage of sales relating to
lessee. In all other cases operational leasing exists.
group companies 83.5% 90.7%
Leasing fees for operational leasing agreements are expensed Percentage of purchases
linear over the leasing period, unless another systematical relating to group companies 15.4% 8.2%
procedure is reflecting the lesses financial benefit over time.
Operating income per region
Remuneration to employees
Remuneration to employees in form of salary, bonus,
2019 2018
paid vacation, paid sickleave etc. are accounted for in
Sweden 75,465,579 74,515,282
line with the vesting.
Denmark 297,359 7,654,300
Income taxes Norway (1,706,717) –
Current tax is calculated on the taxable result for the period. 74,056,221 82,169,582
Taxable result is divided from the accountable result in the
income statement since it is adjusted for non-taxable revenue, Note 3 Auditor’s remuneration
non-taxable costs and the revenue and costs that is taxable or Amounts in SEK
deductible in other periods. Current tax debt is calculated by Particulars Year ended December 31,
the tax rates on the closing day. 2019 2018
Current tax is reported as a cost or revenue in the Fees and expenses
income statement, except when the tax regards Deloitte AB
transactions against equity. Audit assignment 137,000 145,000
137,000 145,000
In such cases tax is reported against equity.
Other receivables
Receivables are reported as current assets, except items with
expiry date more than 12 months after Balance Sheet date,
which are classified as fixed assets.

Note 4 Leasing Note 6 Equipment, tools fixtures and fittings
Amounts in SEK
Operational leasing agreements - lessee
The years total expensed leasing charges for operating 2019 2018
expenses amount to SEK 3 220 474 (3 886 344). Opening cost of
Future minimum lease payments for non-cancellable leases, acquisition – –
falling due for payment as follows: Purchases 167,980 –
Amounts in SEK Closing accumulated cost
Particulars Year ended December 31, of acquisition 167,980 –
2019 2018 Opening depreciation – –
Maturity dates Depreciation for the year (5,862) –
Within one year 3,495,502 882,476 Closing accumulated
Between two and five years 284,200 – depreciation (5,862) –
After five years – – Closing carrying amount 162,118 –
3,779,702 882,476
Note 7 Interest income and similar profit/(loss)
Note 5 Personnel items
Amounts in SEK Amounts in SEK
2019 2018 2019 2018
Average number of Interest income, other – 2,639
employees Exchange rate differences – 106,671
Average number of – 109,310
employees, men 30 36
Average number of Note 8 Interest expense and similar profit/(loss)
employees, women 14 16
items
Total 44 52 Amounts in SEK
Gender distribution of
board and management
2019 2018
Women:
Interest expense, bank (2,829) –
board members – –
Exchange rate differences (159,313) –
other persons in
(162,142) –
company management
including CEO – –
Men: Note 9 Tax on profit for the year
Amounts in SEK
board members 2 2
other persons in Particulars Year ended December 31,
company management 2019 2018
including CEO – – Current tax expense (-)/
Total 2 2 tax income (+)
Wages/Salaries and Tax expense for the period – –
remunerations Adjustments, tax previous
Wages/Salaries and years – –
remunerations amounts to – –
Wages, salaries and
remunerations 37,339,612 43,263,034
Pensions costs 6,764,002 6,696,098
Social security costs 11,285,968 13,119,217
55,389,582 63,078,349

Reconciliation current tax
Amounts in SEK
Particulars Percent Amount Percent Amount
Profit/(loss) before tax 6,595,894 2,816,902
Tax according to current tax rate (21,4% (22%)) 21.4% (1,411,521) (22.0%) (619,718)
Non-deductible costs (0.3%) (17,266) (0.8%) (22,797)
Non-taxable income 0.0% – 0.0% –
Effect of temporary differences (11.1%) (732,201) (25.2%) (711,228)
Taxes, previous year 0.0% – 0.0% –
Effect of changed tax rates /and taxation rules 0.0% – 0.0% –
Loss carry forwards, excluding deferred tax 32.8% 2,160,988 48.1% 1,353,743
Declared effective tax 0.0% – 0.0% –
Note 10 Other long-term receivables

Amounts in SEK
2019 2018
Opening cost of acquisition – –
Paid deposits 400,000 –
Closing carrying amount 400,000 –
Note 11 Prepaid expenses and accrued income

Amounts in SEK
2019 2018
Prepaid insurance – –
Prepaid rent – 222,976
Accrued income – 69,488
– 292,464
Note 12 Equity
Number of shares are 1 000 and quotient value is 100 SEK per share.
Note 13 Accrued expenses and deferred income
Amounts in SEK
2019 2018
Accrued salary 5,837,724 4,046,992
Accrued vacation pay 2,532,236 2,723,865
Other accrued expenses 2,287,316 6,547,178
10,657,276 13,318,035
Note 14 Cash in cash flow

Amounts in SEK
2019 2018
Interest- and dividend income 2,829 -2,639
2,829 -2,639
Note 15 Cash in cash flow

Amounts in SEK
2019 2018
Bank balance 37,739,510 34,904,754
37,739,510 34,904,754

Note 16 Group information
Infosys Ltd, (L85110KA1981PLC013115), Hosur Road Bangalore 560 100, India, is the parent company that prepares the
consolidated accounts of the largest Group that Infosys Technologies (Sweden) is part of as a subsidiary.
Stockholm June 2, 2020
Mohit Joshi Eric Stephen Paternoster

Chairman of the board Member of the board
Auditor’s report was submitted on June 2, 2020

Deloitte AB
Andreas Frountzos
Leading auditor

Infy Consulting B.V.
(formerly Lodestone Management Consultants B.V.)

To the Members of Infy Consulting B.V.

Opinion
We have audited the Ind AS financial statements of Infy Consulting B.V. (‘the company’), which comprises the Balance Sheet as
at 31st December 2019, the Statement of Profit and Loss (including other comprehensive income), the Statement of Cash Flow
and the Statement of Changes in Equity for the year then ended, and notes to the financial statement including a summary
Basis for opinion
504 | Infy Consulting B.V. Infosys Subsidiary Financials 2019-20

For Shenoy & Kamath

UDIN : 20202841AAABST1306
Partner
Place: Bengaluru.
Infosys Subsidiary Financials 2019-20 Infy Consulting B.V. | 505

Balance Sheet
(in `)
2019 2018
ASSETS
Non-current assets
Property, plant and equipment 2.1 – 5,43,434
Capital work-in-progress
Financial assets
Loans 2.2 4,06,267 75,38,898
Income tax assets, net 2.13 41,64,631 2,47,56,000
Total non-current assets 45,70,898 3,28,38,332
Current assets
Financial assets
Loans 2.2 8,31,839 19,26,997
Other financial assets 2.3 82,153 1,19,84,274
Other current assets 2.6 2,84,94,375 61,26,614
Total assets 28,22,89,133 25,34,44,003
Equity
Other equity 12,69,79,198 13,64,68,589
Total equity 13,23,06,207 14,17,95,598
Liabilities
Other non-current liabilities 2.13 8,31,839 –
Total non-current liabilities 8,31,839 –
Current liabilities
Trade payables 2.9 65,51,495 2,25,47,476
Other current liabilities 2.11 3,96,81,985 1,34,51,856
Provisions 2.12 1,04,905 –
Income tax liabilities (net) 2.13 32 32
As per our report of even date attached for and on behalf of the Board of Directors of
for Shenoy & Kamath Infy Consulting B.V.
Firm’s Registration Number : 006673S
M. Rathnakar Kamath Walter Johan Schulze

Partner Director
Bengaluru
March 16,2020

Particulars Note No. Year ended December 31,
2019 2018
Other income, net 2.15 3,01,64,843 1,49,19,176
Total income 55,97,66,002 57,96,08,489
Expenses
Cost of technical sub-contractors 3,53,42,020 90,16,469
Travel expenses 3,33,95,190 5,76,82,550
Cost of software packages and others 2.16 88,39,676 –
Depreciation and amortization expense 2.1 5,35,200 16,74,850
Other expenses 2.16 2,40,69,484 1,69,52,005
Total expenses 46,46,05,654 49,24,58,959
Profit before tax 9,51,60,348 8,71,49,530
Tax expense
Current tax 2.13 2,58,92,506 2,73,31,381
Profit for the Year 6,92,67,842 5,98,18,149
Exchange differences on translation 3,12,767 82,28,200
Total other comprehensive income/(loss), net of tax 3,12,767 82,28,200
Total comprehensive income for the year 6,95,80,609 6,80,46,349
Equity shares of par value EUR 5 each
Basic and Diluted (`) 3,848.21 3,323.23
equity share

Partner Director
Bengaluru
March 16,2020

in `
Retained Exchange
translation
Balance as of January 1, 2018 53,27,009 27,75,69,550 1,05,96,690 29,34,93,249
31, 2018
Dividend Paid – (21,97,44,000) – (21,97,44,000)
Currency translation – – 82,28,200 82,28,200
Profit for the year – 5,98,18,149 – 5,98,18,149
Balance as of December 31, 2018 53,27,009 11,76,43,699 1,88,24,890 14,17,95,598
31, 2019
Dividend Paid – (7,90,70,000) – (7,90,70,000)
Currency translation – – 3,12,767 3,12,767
Balance as of December 31, 2019 53,27,009 10,78,41,541 1,91,37,657 13,23,06,207

Partner Director
Bengaluru
March 16,2020

(in `)
2019 2018
Profit for the year 6,92,67,842 5,98,18,149
Adjustments to reconcile net profit to net cash provided by operating activities
Income tax expense 2,58,92,506 2,73,31,381
(Reversal)/Allowance for credit losses on financial assets (10,48,626) 7,93,800
Interest and dividend income – (16,75,252)
Other adjustments 1,08,947 (1,01,184)
Exchange differences on translation of assets and liabilities 3,16,959 81,21,032
Trade receivables and unbilled revenue 3,55,26,872 (66,62,397)
Other financial assets and other assets (1,04,65,640) 81,29,307
Trade payables (1,59,95,981) (1,99,15,235)
Other financial liabilities, other liabilities and provisions 5,42,25,597 (1,62,34,696)
Income taxes paid (53,01,137) (6,39,42,450)
Net cash from / (used in) operating activities 15,30,62,539 (26,62,695)
Loan to Parent Company – 22,98,10,155
Loans to employees 82,27,789 25,22,882
Interest and dividend received on investments – 16,75,252
Net cash used in investing activities 82,27,789 23,40,08,289
Dividend Paid (7,90,70,000) (21,97,44,000)
Net cash used in financing activities (7,90,70,000) (21,97,44,000)
Net (decrease)/increase in cash and cash equivalents 8,22,20,328 1,16,01,594

Partner Director
Bengaluru
March 16,2020

Company overview cumulative catch-up transition method, applied to contracts

Infy Consulting B.V.(formerly Lodestone Management that were not completed as at January 1, 2019. In accordance
Consultants B.V.) is a wholly-owned subsidiary of Infosys with the cumulative catch-up transition method , the
Consulting Holding AG (Infosys Lodestone) (formerly comparatives have not been retrospectively adjusted. The
Lodestone Holding AG). The Company renders professional following is a summary of new and/or revised significant
management consulting services, thereby enabling its clients accounting policies related to revenue recognition.
to enhance business performance. Revenue is recognized upon transfer of control of promised
1 Significant accounting policies the consideration we expect to receive in exchange for those
1.1 Accounting year
Arrangements with customers for software related services are
1.5.1 T&M
cost convention on the accrual basis, the provisions of the as unbilled revenue.
Companies Act, 2013 (Àct’) (to the extent notified). The Ind
AS are prescribed under Section 133 of the Act read with Rule 1.5.2 FP
3 of the Companies (Indian Accounting Standards) Rules, Revenue from fixed-price, fixed-timeframe contracts, where
2015 and relevant amendment rules issued there after. the performance obligations are satisfied over time and where
Accounting policies have been consistently applied except there is no uncertainty as to measurement or collectability
where a newly issued accounting standard is initially adopted of consideration, is recognized as per the percentage-
or a revision to an existing accounting standard requires a of-completion method.
change in the accounting policy hitherto in use.” 1.5.3 Unbilled/ Unearned
1.3 Presentation currency Revenues in excess of invoicing are classified as contract
The Company’s presentation currency is INR. assets (which we refer as unbilled revenue) while invoicing in
1.4 Use of estimates we refer to as unearned revenues).
The preparation of the financial statements in conformity 1.5.4 Licenses
with Ind AS requires the Management to make estimates and
Revenue from licenses where the customer obtains a “right
made available to the customer. Revenue from licenses where
the customer obtains a “right to access” is recognized over
the access period. Arrangements to deliver software products
Accounting estimates could change from period to period. generally have three elements: license, implementation and
Actual results could differ from those estimates. Appropriate Annual Technical Services (ATS). The Company has applied
changes in estimates are made as the Management becomes the principles under Ind AS 115 to account for revenues
aware of changes in circumstances surrounding the estimates. from these performance obligations. When implementation
Changes in estimates are reflected in the financial statements services are provided in conjunction with the licensing
in the period in which changes are made and, if material, their arrangement and the license and implementation have
effects are disclosed in the notes to the financial statements. been identified as two separate performance obligations,
Examples of such estimates include computation of percentage the transaction price for such contracts are allocated to
of completion which requires the Company to estimate the each performance obligation of the contract based on their
efforts or costs expended to date as a proportion of the total relative standalone selling prices. In the absence of standalone
efforts to be expended, impairment losses on financial assets, selling price for implementation, the performance obligation
future obligations under employee benefit plans, income is estimated using the expected cost plus margin approach.
taxes, post-sales customer support and the useful lives of Where the license is required to be substantially customized
property, plant and equipment. as part of the implementation service the entire arrangement
fee for license and implementation is considered to be a single
1.5 Revenue recognition performance obligation and the revenue is recognized using
The Company derives revenues primarily from the percentage-of-completion method as the implementation
consultancy services. is performed. Revenue from client training, support and
Effective January 1, 2019, the Company adopted Ind AS other services arising due to the sale of software products is
115 “Revenue from Contracts with Customers” using the recognized as the performance obligations are satisfied. ATS

revenue is recognized ratably over the period in which the estimated useful lives using the straight-line method. The
services are rendered. estimated useful lives of assets
1.5.6 Contract Modification are as follows:
Contract modifications are accounted for when additions, Computer equipment (1) 3-5 years
deletions or changes are approved either to the contract Furniture and fixtures (1) 5 years
scope or contract price. The accounting for modifications of Office equipment (1) 5 years
contracts involves assessing whether the services added to an
existing contract are distinct and whether the pricing is at the
reviewed periodically, including at each financial year end
For these class of assets, based on technical evaluation, the Management
(1)
are accounted for on a cumulative catch up basis, while those believes that the useful lives as given above best represent the period
that are distinct are accounted for prospectively, either as a over which management expects to use these assets. Hence the useful
separate contract, if the additional services are priced at the lives for these assets is different from the useful lives as prescribed under
standalone selling price, or as a termination of the existing Part C of Schedule II of the Companies Act 2013.
contract and creation of a new contract if not priced at the Advances paid towards the acquisition of property, plant and
standalone selling price. equipment outstanding at each Balance Sheet date is classified
1.5.7 Tax
The Company presents revenues net of indirect taxes in its under ‘Capital work-in-progress’. Subsequent expenditures
statement of Profit and loss. relating to property, plant and equipment is capitalized only
1.6 Provisions when it is probable that future economic benefits associated
upon sale or retirement of the asset and the resultant gains
or losses are recognized in the Statement of Profit and Loss.
Assets to be disposed off are reported at the lower of the
specific to the liability.
carrying value or the fair value less cost to sell.
1.7 Post-sales client support and warranties
The Company provides its clients with a fixed-period
warranty for corrections of errors and telephone support 1.10.1 Initial recognition
on all its fixed-price, fixed-timeframe contracts. Costs The Company recognizes financial assets and financial
associated with such support services are accrued at the time liabilities when it becomes a party to the contractual
when related revenues are recorded and included in cost of provisions of the instrument. All financial assets and liabilities
sales. The Company estimates such costs based on historical are recognized at fair value on initial recognition, except for
experience and the estimates are reviewed annually for any trade receivables which are initially measured at transaction
material changes in assumptions. price. Transaction costs that are directly attributable to the
1.8 Onerous contracts acquisition or issue of financial assets and financial liabilities,
the future obligations under the contract. The provision is 1.10.2 Subsequent measurement
measured at the present value of the lower of the expected
cost of terminating the contract and the expected net cost of a. Non-derivative financial instruments
continuing with the contract. Before a provision is established (i) Financial assets carried at amortized cost
the Company recognizes any impairment loss on the assets A financial asset is subsequently measured at amortized cost if
associated with that contract. it is held within a business model whose objective is to hold
1.9 Property, plant and equipment the asset in order to collect contractual cash flows and the
Property, plant and equipment are stated at cost, less dates to cash flows that are solely payments of principal and
accumulated depreciation and impairment, if any. Costs interest on the principal amount outstanding.
property, plant and equipment are (ii) Financial assets at fair value through other
ready for use, as intended by management. The Company
depreciates property, plant and equipment over their A financial asset is subsequently measured at fair value
through other comprehensive income if it is held within a

business model whose objective is achieved by both collecting impairment loss is reversed in the statement of profit and loss
contractual cash flows and selling financial assets and the if there has been a change in the estimates used to determine
contractual terms of the financial asset give rise on specified the recoverable amount. The carrying amount of the asset is
dates to cash flows that are solely payments of principal and increased to its revised recoverable amount, provided that
interest on the principal amount outstanding. this amount does not exceed the carrying amount that would
(iii) Financial assets at fair value through profit or loss have been determined (net of any accumulated amortization
(iv) Financial liabilities 1.13 Employee Benefits
Financial liabilities are subsequently carried at amortized cost Compensated absences
consideration recognized in a business combination which
are both accumulating and non-accumulating in nature.
is subsequently measured at fair value through profit and loss.
The expected cost of accumulating compensated absences
For trade and other payables maturing within one year from
is determined by actuarial valuation performed by an
the Balance Sheet date, the carrying amounts approximate fair
independent actuary at each Balance Sheet date using projected
value due to the short maturity of these instruments.
unit credit method on the additional amount expected to
1.11 Fair value of financial instruments 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.
reporting date. The methods used to determine fair value 1.14 Foreign currency
market prices and dealer quotes. All methods of assessing Functional currency
fair value result in general approximation of value, and such The functional currency of the Company is the EUR. These
value may never actually be realized. financial statements are presented in Indian rupees.
credit loss (ECL) model for the financial assets which are or losses resulting from such translations are included in net
not fair valued through profit or loss. Loss allowance for profit in the Statement of Profit and Loss. Non-monetary
(i) Property, plant and equipment are translated into the relevant functional currencies using the
whenever events or changes in circumstances indicate that 1.15 Income taxes
Income tax expense comprises current and deferred income
tax. Income tax expense is recognized in net profit in the
statement of profit and loss except to the extent that it
it is recognized in other comprehensive income. Current
those from other assets. In such cases, the recoverable amount
income tax for current and prior periods is recognized at
the amount expected to be paid to or recovered from the tax
If such assets are considered to be impaired, the impairment to authorities, using the tax rates and tax laws that have been
be recognized in the Statement of Profit and Loss is measured enacted or substantively enacted by the Balance Sheet date.
by the amount by which the carrying value of the assets Deferred income tax assets and liabilities are recognized for all
exceeds the estimated recoverable amount of the asset. An temporary differences arising between the tax bases of assets

and liabilities and their carrying amounts in the financial payments under operating leases are recognized as an
statements. Deferred tax assets are reviewed at each reporting expense on a straight-line basis in the Statement of Profit
date and are reduced to the extent that it is no longer probable and Loss over the lease term
1.20 Recent Accounting Pronouncements
tax rates and tax laws that have been enacted or substantively Ind AS 116 - Leases: On March 30, 2019, the Ministry of
enacted by the Balance Sheet date and are expected to apply Corporate Affairs (MCA) has notified Ind AS 116 - Leases.
to taxable income in the years in which those temporary Ind AS 116 will replace the existing leases Standard, Ind AS
differences are expected to be recovered or settled. The effect 17 - Leases and related Interpretations. The Standard sets out
of changes in tax rates on deferred income tax assets and the principles for the recognition, measurement, presentation
liabilities is recognized as income or expense in the period and disclosure of leases for both parties to a contract i.e.,
that includes the enactment or the substantive enactment the lessee and the lessor. Ind AS 116 introduces a single
date. A deferred income tax asset is recognized to the extent lessee accounting model and requires a lessee to recognize
that it is probable that future taxable profit will be available assets and liabilities for all leases with a term of more than 12
against which the deductible temporary differences and tax months, unless the underlying asset is of low value. Currently,
losses can be utilized. The Company offsets current tax assets operating lease expenses are charged to the Statement of Profit
and current tax liabilities, where it has a legally enforceable and Loss. The Standard also contains enhanced disclosure
right to set off the recognized amounts and where it intends requirements for lessees. Ind AS 116 substantially carries
either to settle on a net basis, or to realize the asset and settle forward the lessor accounting requirements in Ind AS 17. The
the liability simultaneously. effective date for adoption of Ind AS 116 is annual periods
1.16 Cash Flow Statement possible methods of transition:
Cash flows are reported using the indirect method, whereby • Full retrospective: Retrospectively to each prior period
profit for the period is adjusted for the effects of transactions presented applying Ind AS 8 - Accounting Policies,
of a non-cash nature, any deferrals or accruals of past or Changes in Accounting Estimates and Errors.
future operating cash receipts or payments and item of • Modified retrospective: Retrospectively, with the cumulative
income or expenses associated with investing or financing effect of initially applying the Standard recognized at the
cash flows. The cash flows from operating, investing and date of initial application either by:
financing activities of the Company are segregated. Under modified retrospective approach, the lessee records
1.17 Other income lease payments, discounted at the incremental borrowing
Other income is comprised primarily of interest income, rate and the right-of-use asset either as:
dividend income and exchange gain/loss on forward • Its carrying amount as if the standard had been applied
and options contracts and on translation of other assets since the commencement date, but discounted at lessee’s
and liabilities. Interest income is recognized using the incremental borrowing rate at the date of initial application.
effective interest method. or
• An amount equal to the lease liability, adjusted by the
1.18 Earnings per share amount of any prepaid or accrued lease payments related
Basic earnings per share is computed by dividing the net to that lease recognized under Ind AS 17 immediately
profit after tax by the weighted average number of equity before the date of initial application.
shares outstanding during the period. Certain practical expedients are available under both the
1.19 Leases
Lease under which the Company assumes substantially all and take the cumulative adjustment to retained earnings, on
the risks and rewards of ownership are classified as finance the date of initial application (January 1, 2020). The effect
leases. Such assets acquired are capitalized at fair value of of adoption is not expected to material for the company’s
the asset or present value of the minimum lease payments financial statements
at the inception of the lease, whichever is lower. Lease
2.1 Property, Plant and Equipment

(in `)
Particulars Office Computer Furniture and Total
Equipment equipment fixtures
Gross carrying value as of January 1, 2019 59,105 91,97,508 6,13,275 98,69,888
Gross carrying value as of December 31, 2019 59,186 92,10,157 6,14,118 98,83,461
Accumulated depreciation as of January 1, 2019 59,105 86,54,074 6,13,275 93,26,454
Depreciation – 5,35,200 – 5,35,200

Accumulated depreciation as of December 31,
2019 59,186 92,10,157 6,14,118 98,83,461
Carrying value as of December 31, 2019 – – – –
Carrying value as of January 1, 2019 – 5,43,434 – 5,43,434
(in `)
Gross carrying value as of January 1, 2018 56,548 87,99,666 5,86,748 94,42,962
Translation difference 2,557 3,97,842 26,527 4,26,926
Gross carrying value as of December 31, 2018 59,105 91,97,508 6,13,275 98,69,888
Accumulated depreciation as of January 1, 2018 56,548 66,93,039 5,86,748 73,36,335
Depreciation – 16,74,850 – 16,74,850
Translation difference 2,557 2,86,185 26,527 3,15,269
2018 59,105 86,54,074 6,13,275 93,26,454
Carrying value as of December 31, 2018 – 5,43,434 – 5,43,434
Carrying value as of January 1, 2018 – 21,06,627 – 21,06,627
2.2 Loans 2.4 Trade receivables

(in `) (in `)
Particulars As at December 31 Particulars As at December 31
2019 2018 2019 2018
NON-CURRENT Current
Unsecured, considered Unsecured
good Considered good 5,84,95,218 9,29,73,464
Other loans Considered doubtful – 10,76,502
Loans to employees 4,06,267 75,38,898 5,84,95,218 9,40,49,966
Unsecured, considered Less: Allowances for
doubtful credit loss – (10,76,502)
Loan to Parent 5,84,95,218 9,29,73,464
Company – – (1)
Includes dues from
4,06,267 75,38,898 related parties (Refer to
CURRENT Note No.2.18) 5,84,95,218 9,40,49,966
Loan receivables
considered good - 2.5 Cash and cash equivalents
Unsecured (in `)
Other loans Particulars As at December 31
Loans and advances 2019 2018
to employees 8,31,839 19,26,997 Balances with banks
8,31,839 19,26,997 In current accounts 18,98,14,650 10,75,94,322
Total loans 12,38,106 94,65,895 Total Cash and cash
equivalents 18,98,14,650 10,75,94,322
(in `)
2.6 Other assets
Particulars As at December 31 (in `)
2019 2018 Particulars As at December 31
Current 2019 2018
Others (2) 82,153 1,19,84,274 Current
Total 82,153 1,19,84,274 Others
(1)
Financial assets carried Prepaid expenses 2,29,01,026 60,502
at amortized cost 82,153 1,19,84,274 Withholding taxes
(2)
Includes dues from and others 55,93,349 60,66,112
related party (Refer to Total Current other assets 2,84,94,375 61,26,614
Note No.2.18) 82,153 1,19,84,274

2.7 Financial instruments the Company through credit approvals, establishing credit
limits and continuously monitoring the creditworthiness of
Financial instruments by category customers to which the Company grants credit terms in the
The carrying value and fair value of financial instruments by normal course of business. As per Ind AS 109, the Company
categories were as follows: uses ECL model to assess the impairment loss or gain. The
(in `) Company uses a provision matrix to compute the ECL
Particulars As at December 31 allowance for trade receivables and unbilled revenues. The
2019 2018 provision matrix takes into account available external and
Assets internal credit risk factors such as credit default swap quotes,
Cash and cash credit ratings from credit rating agencies and the Company’s
equivalents (Refer to historical experience for customers.
Note No. 2.5) 18,98,14,650 10,75,94,322
Credit risk exposure
Trade receivables (Refer
to Note No. 2.4) 5,84,95,218 9,29,73,464 The reversal for lifetime ECL on customer balances for
Loans (Refer to Note the year ended December 31, 2019 was `10,48,6269 and
No.2.2) 12,38,106 94,65,895 a lifetime ECL provision of ` 7,93,800 for the year ending
Other financial assets December 31, 2018 respectively.
(in `)
(Refer to Note No.2.3) 82,153 1,19,84,274
Total 24,96,30,127 22,20,17,955 Particulars Year ended December 31,
Liabilities 2019 2018
Trade payables (Refer to Balance at the beginning 10,76,502 1,52,462
Note No. 2.9) 65,51,495 2,25,47,476 Impairment loss
Other financial recognized / reversed (10,48,626) 7,93,800
liabilities (Refer to Note Translation differences (27,876) 1,30,240
No.2.10) 7,62,04,591 6,04,31,287 Balance at the end – 10,76,502
Total 8,27,56,086 8,29,78,763
All the above financial assets and liabilities are generally invest in deposits with banks with high credit
carried at amortized cost and the carrying values ratings assigned by credit rating agencies.
approximates their fair value. Liquidity risk
Credit risk The Company’s principal sources of liquidity are cash and
Credit risk refers to the risk of default on its obligation by cash equivalents and the cash flow that is generated from
the counterparty resulting in a financial loss. The maximum operations. The Company believes that the working capital
exposure to the credit risk at the reporting date is primarily is sufficient to meet its current requirements
from trade receivables amounting to ` 5,84,95,218 and As of December 31, 2019, the Company had a working
` 9,29,73,464 as of December 31, 2019 and December capital of `11,98,20,972 including cash and cash equivalents
31, 2018, respectively and unbilled revenue amounting of `18,98,14,650. As of December 31, 2018, the Company
to Nil as of December 31, 2019 and December 31, 2018, had a working capital of `10,89,57,266 including cash and
respectively. Trade receivables and unbilled revenue are cash equivalents of `10,75,94,322.
typically unsecured. Credit risk has always been managed by
2.8 Equity
in `, except as otherwise stated
2019 2018
Authorized
18,000 (18,000) equity shares of EUR 5 par value 53,27,009 53,27,009
18,000 (18,000) equity shares of EUR 5 par value 53,27,009 53,27,009
53,27,009 53,27,009
The details of shareholders holding more than 5% shares are as follows :

Name of the shareholder As at December 31, 2019 As at December 31, 2018
shares shares
(formerly Lodestone Holding AG) 18,000 100.00 18,000 100.00

There is no movement in the number of shares during the 2.13 Income taxes
reporting period ended December 31,2019. Income tax expense in the Statement of Profit and Loss comprises:
(in `)
2.9 Trade payables
(in `) Particulars Year ended December 31,
Particulars As at December 31, 2019 2018
2019 2018 Current taxes 2,58,92,506 2,73,31,381
Trade payables (1)
65,51,495 2,25,47,476 Income tax expense 2,58,92,506 2,73,31,381
Total trade payables 65,51,495 2,25,47,476
(1)
(Refer to Note No.2.18) 18,76,794 77,46,921 computed by applying the statutory income tax rate to the
(in `)
(in `) Particulars Year ended December 31,
2019 2018
Profit before income tax 9,51,60,348 8,71,49,530
2019 2018
Enacted tax rates in
CURRENT
Netherlands (%) 25.00% 25.00%
Others
Accrued compensation
expense 2,37,90,087 2,17,87,383
to employees 3,51,81,323 4,74,20,392
Tax provisions /(reversals) 21,13,598 55,43,998
Accrued expenses (1) 3,89,81,340 52,32,452
Others (11,179) –
Compensated absences 2,66,08,079 1,52,17,754
Income tax expense 2,58,92,506 2,73,31,381
Other payables (2) 20,41,928 77,78,443
TOTAL FINANCIAL The applicable Netherlands statutory tax rate for year ended
LIABILITIES 10,28,12,670 7,56,49,041 December 31, 2019 and December 31, 2018 is 25 %.
Financial liability carried The details of income tax assets and income tax
at amortized cost 7,62,04,591 6,04,31,287 liabilities are as follows :
(1)
Includes dues to related party (in `)
(Refer to Note No.2.18) 81,70,117 7,83,092
(2)
Includes dues to related parties Particulars Year ended December 31,
(Refer to Note No.2.18) 10,85,515 77,78,442 2019 2018
Income tax assets 41,64,631 2,47,56,000
2.11 Other liabilities Current income tax
(in `) liabilities 32 32
Particulars As at December 31, Net current income tax
2019 2018 assets / (liability) at the
NON-CURRENT end 41,64,599 2,47,55,968
Unsecured, considered The gross movement in the current income tax asset /
doubtful (liability) is as follows:
Loans to employees 8,31,839 – (in `)
8,31,839 –
CURRENT
2019 2018
Unearned revenue 2,63,02,643 8
Others
beginning 2,47,55,968 (1,18,55,101)
others 1,33,79,342 1,34,51,848
Income tax paid 53,01,137 6,39,42,450
Total other liabilities 4,05,13,824 1,34,51,856
Current income tax
expense (Refer to Note
2.12 Provisions No.2.13) (2,58,92,506) (2,73,31,381)
(in `)
Particulars As at December 31, asset / (liability) at the end 41,64,599 2,47,55,968
2019 2018
CURRENT 2.14 Revenue from operations
Others (in `)
Post-sales client support
and warranties 1,04,905 –
2019 2018
Total provisions 1,04,905 –
Income from consultancy
services 52,96,01,159 56,46,89,313
52,96,01,159 56,46,89,313

Disaggregate revenue information be terminated by the customers and typically includes an
The table below presents disaggregated revenues from enforceable termination penalty payable by them.
contracts with customers by offerings for the year ended The impact on account of applying the erstwhile Ind AS
December 31, 2019. The Company believes that this 18 Revenue standard instead of Ind AS 115 Revenue from
disaggregation best depicts how the nature, amount, timing contract with customers on the financials results of the Group
and uncertainty of our revenues and cash flows are affected for the year ended December 31, 2019 is insignificant.
by industry, market and other economic factors. 2.15 Other income
(in `)
(in `)
Particulars Year ended Particulars Year ended December 31,
December 31, 2019 2018
2019 Interest received on
Revenue by offerings financial assets carried at
Core 47,66,28,863 amortized cost
Digital 5,29,72,296 Deposits with banks
Total 52,96,01,159 and others – 16,75,252
Exchange gains / (losses)
Digital Services on translation of other
Digital Services comprise of service and solution offerings assets and liabilities (5,83,802) (4,01,224)
of the Company that enable our clients to transform their Miscellaneous income, net 3,07,48,645 1,36,45,148
businesses. These include offerings that enhance customer 3,01,64,843 1,49,19,176
experience, leverage AI-based analytics and big data, engineer
digital products and IoT, modernize legacy technology 2.16 Expenses
systems, migrate to cloud applications and implement (in `)
advanced cyber security systems. Particulars Year ended December 31,
2019 2018
Core Services
Employee benefit
Core Services comprise traditional offerings of the Company expenses
that have scaled and industrialized over a number of years. Salaries including bonus 33,43,31,420 35,56,53,487
These primarily include application management services, Staff welfare 8,08,294 11,98,181
proprietary application development services, independent 33,51,39,714 35,68,51,668
validation solutions, product engineering and management, Cost of software packages
infrastructure management services, traditional enterprise and others
application implementation, support and integration services. Third-party items bought
Performance obligations and remaining performance for service delivery to
obligations clients 88,39,676 –
88,39,676 –
The remaining performance obligation disclosure provides
the aggregate amount of the transaction price yet to be (in `)
recognized as at the end of the reporting period and an Particulars Year ended December 31,
explanation as to when the Company expects to recognize 2019 2018
these amounts in revenue. Applying the practical expedient Other expenses
as given in Ind AS 115, the Company has not disclosed the Power and fuel 1,05,905 1,08,685
remaining performance obligation related disclosures for Brand and marketing 33,08,301 23,68,405
contracts where the revenue recognized corresponds directly Operating lease
with the value to the customer of the entity’s performance payments 1,70,66,972 70,64,512
completed to date, typically those contracts where invoicing Rates and taxes (8,94,037) 18,79,419
is on time and material basis. Remaining performance Repairs and
obligation estimates are subject to change and are affected by maintenance 45,40,145 34,99,286
several factors, including terminations, changes in the scope Insurance 6,26,162 3,70,913
of contracts, periodic revalidations, adjustment for revenue Provision/(Reversals) for
that has not materialized and adjustments for currency. post-sales client support 1,08,947 (1,01,184)
The aggregate value of performance obligations that are (Reversal)/Allowances
completely or partially unsatisfied as at December 31, 2019, for credit losses on
other than those meeting the exclusion criteria mentioned financial assets (10,48,626) 7,93,800
above, is `2,63,02,635 . Out of this, the Company expects Others 2,55,715 9,68,169
to recognize revenue of around 100% within the next one 2,40,69,484 1,69,52,005
year and the remaining thereafter. The contracts can generally

2.17 Leases
The lease rentals charged during the period are as follows :
in `
2019 2018
Lease rentals recognized during the year 1,70,66,972 70,64,512
The obligations on long-term, non-cancellable operating leases payable as per the rentals stated in the respective
in `
2019 2018
Future minimum lease payable
Not later than 1 year 88,02,993 –
Later than 1 year and not later than 5 years 87,40,268 –
The operating lease arrangements are renewable on a periodic basis and for most of the leases, extend up to a maximum
of five years from their respective dates of inception and relates to rented premises. Some of these lease agreements have
Name of the holding company Country Holding as at December 31,
2019 2018
Infosys Consulting Holding AG (Infosys Lodestone) (formerly
Lodestone Holding AG) Switzerland 100% 100%
Infosys Limited (1) India


HIPUS(20) Japan

(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)

(14)
(15)
(16)
(17)
(18)
(19)
(20)
(21)
(22)
(23)
(24)
(25)
(26)
Under Liquidation
(in `)
Particulars As at December 31
2019 2018
Trade receivables
Infosys Limited – 26,34,117
Infosys Consulting Sp. Z.o.o. 8,31,719 8,03,75,316
Infy Consulting Company Ltd. 4,71,69,391 –
Infosys Consulting Belgium 9,03,045 22,26,684
Infosys Consulting SAS 3,78,298 –
Infosys Consulting AG (formerly Lodestone Management Consultants AG) 14,96,237 –
Infosys Consulting Pte Ltd 9,07,218 –
Infosys Consulting Ltda. 4,17,580 –
Lodestone Management Consultants Portugal, Unipessoal, Lda. 33,677 –
S.C. Infosys Consulting S.R.L. 16,62,413 –
Infosys Consulting (Shanghai) Co., Ltd. 3,82,741 –
Infosys Consulting S.R.L. 3,33,316 –
Infosys Management Consulting Pty Limited 7,67,392 –
5,84,95,218 9,40,49,966
Infosys Consulting GmbH – 43,80,316
Infosys Consulting Sp. Z.o.o. – 4,68,020
Infy Consulting Company Ltd. – 23,41,743
Infosys Consulting Belgium – 25,65,839
Infosys Consulting SAS – 1,26,672
Infosys Consulting Pte Ltd – 2,61,256
Infosys Consulting Ltda. – 6,24,186
Lodestone Management Consultants Portugal, Unipessoal, Lda. – 22,863
S.C. Infosys Consulting S.R.L. – 1,32,803
Infosys Consulting (Shanghai) Co., Ltd. – 3,81,041
Infosys Management Consulting Pty Limited – 5,97,495
82,153 1,19,84,274
Trade payables
Infosys Consulting Sp. Z.o.o. 1,76,182 –
Infy Consulting Company Ltd. 17,00,612 77,46,921
1,876,794 7,746,921
Other Financial Liabilities
Infosys Consulting AG – 16,01,896
Infosys Consulting Belgium – 9,38,363
Infosys Consulting Holding AG – 1,50,836
1,085,515 7,778,442

2019 2018
Accrued expenses
81,70,117 7,83,092
(in `)
Particulars For the year ended December 31
2019 2018
Infosys Consulting Belgium S.A. 19,76,110 27,60,507
Infosys Consulting GmbH – 1,37,85,833
Infosys Poland Sp z.o.o 1,73,883 –
1,30,59,601 2,88,25,394
Interest income
– 16,75,252
Sale of services
Infosys Consulting GmbH 6,02,99,702 44,04,959
Infy Consulting Company Ltd. 44,34,83,284 23,54,916
Infosys Consulting S.R.L. 3,29,280 82,502
Infosys Management Consulting Pty Limited 19,50,647 6,00,856
Infosys Consulting (Belgium) NV 5,40,925 17,47,401
Infosys Consulting Ltda. 12,03,240 6,27,697
Infosys Consulting (Shanghai) Co., Ltd. 3,78,106 3,83,185
Lodestone Management Consultants Portugal, Unipessoal, Lda. 33,269 22,991
S.C. Infosys Consulting S.R.L. 16,42,281 1,33,551
Infosys Consulting Pte Ltd. 8,96,232 2,62,726
Infosys Consulting SAS 3,73,717 1,27,385
Infosys Consulting Sp. z.o.o. 17,55,776 4,70,653
53,33,31,680 1,36,45,149

The Company is engaged in providing consultancy service in a single geography. Based on the ‘Management approach’, as

Infosys Consulting (Shanghai) Co. Ltd
To the Members of Infosys Consulting (Shanghai) Co., Ltd.

Opinion
We have audited the Ind AS financial statements of Infosys Consulting (Shanghai) Co., Ltd.(formerly Lodestone Management
Consultants Co., Ltd) (‘the company’), which comprises the Balance Sheet as at 31st December 2019, the Statement of Profit
and Loss (including other comprehensive income), the Statement of Cash Flow and the Statement of Changes in Equity for
the year then ended, and notes to the financial statement including a summary of significant accounting policies and other
explanatory information (herein after referred to as ‘Ind AS financial statements’)
Basis for opinion
524 | Infosys Consulting (Shanghai) Co. Ltd Infosys Subsidiary Financials 2019-20
for Shenoy & Kamath

M Rathnakar Kamath
Partner
UDIN : 20202841AAABSP4775
Place: Bengaluru.
Infosys Subsidiary Financials 2019-20 Infosys Consulting (Shanghai) Co. Ltd | 525
Balance Sheet
in `
2019 2018
Assets
Non-current assets
Property, plant and equipment 2.1 27,37,166 1,15,15,104
Total non-current assets 27,37,166 1,15,15,104
Current assets
Financial assets
Loans 2.2 – 13,83,502
Total assets 11,67,19,689 33,24,77,134
Equity
Other equity (2,26,83,06,427) (2,11,56,44,935)
Total equity (1,83,74,75,217) (1,68,48,13,725)
Liabilities
Borrowings 2.9 1,33,12,45,384 90,22,72,823
Total non-current liabilities 1,33,12,45,384 90,22,72,823
Current liabilities
Trade payables 2.11 9,05,77,596 24,56,57,070
Other current liabilities 2.12 27,68,382 2,82,28,723
Provisions 2.13 1,21,87,949 1,30,91,250
Income tax liabilities, net 2.14 – 68,92,446
Total current liabilities 62,29,49,522 1,11,50,18,036

for Shenoy & Kamath for and on behalf of the Board of Directors of Infosys Consulting (Shanghai) Co. Ltd.
M. Rathnakar Kamath Stone Zhu

Partner Director
Bengaluru
March 16, 2020
2019 2018
Revenue from operations 2.15 46,61,04,376 1,05,33,59,858
Other income, net 2.16 2,60,877 5,69,068
Total income 46,63,65,253 1,05,39,28,926
Expenses
Travel expenses 3,12,40,357 15,37,17,442
Cost of technical sub-contractors 23,48,96,613 64,59,93,107
Finance cost 5,11,54,586 3,12,16,694
Depreciation expense 2.1 76,92,947 1,44,43,510
Other expenses 2.17 4,00,68,837 12,84,86,093
Total expenses 60,67,96,996 1,61,83,34,436
Loss before tax (14,04,31,743) (56,44,05,510)
Tax expense
Current tax 2.14 (68,92,446) (69,39,870)
Loss for the year (13,35,39,297) (55,74,65,640)
Exchange differences on translation (1,91,22,195) (2,92,08,908)
Total other comprehensive income, net of tax (1,91,22,195) (2,92,08,908)
Total comprehensive income/(loss) for the year (15,26,61,492) (58,66,74,548)


Partner Director
Bengaluru
March 16, 2020
in `
surplus comprehensive equity holders of
income the Company
Retained Exchange
translation
Balance as of January 1, 2018 43,08,31,210 (1,54,63,66,230) 1,73,95,843 (1,09,81,39,177)
Changes in equity for the year ended
December 31, 2018
Exchange differences on translation – – (2,92,08,908) (2,92,08,908)
Loss for the year – (55,74,65,640) – (55,74,65,640)
Total Comprehensive income for the year 43,08,31,210 (2,10,38,31,870) (1,18,13,065) (1,68,48,13,725)
Balance as of December 31, 2018 43,08,31,210 (2,10,38,31,870) (1,18,13,065) (1,68,48,13,725)
Changes in equity for the year ended
December 31, 2019
Exchange differences on translation – – (1,91,22,195) (1,91,22,195)
Loss for the year – (13,35,39,297) – (13,35,39,297)
Balance as of December 31, 2019 43,08,31,210 (2,23,73,71,167) (3,09,35,260) (1,83,74,75,217)


Partner Director
Bengaluru
March 16, 2020
in `
2019 2018
Loss for the year (13,35,39,297) (55,74,65,640)
Adjustments to reconcile net profit to net cash provided by operating
activities
Depreciation expense 76,92,947 1,44,43,510
Income tax expense (68,92,446) (69,39,870)
Provision for post-sales client support (10,25,593) 15,42,230
Impairment loss recognized / (reversed) under expected credit loss
model 1,44,750 (11,84,753)
Finance cost 5,11,54,586 3,12,16,694
Loss on sale of asset 12,51,016 3,90,865
Exchange differences on translation of assets and liabilities (2,15,17,085) (3,26,89,369)
Trade receivables and unbilled revenue 13,31,97,502 17,88,19,927
Loans and other financial assets and other assets 86,84,759 16,80,256
Trade payables (15,50,79,474) 8,13,29,061
Other financial liabilities, other liabilities and provisions (32,93,15,958) (6,91,85,164)
Cash used in operations (44,52,44,293) (35,80,42,253)
Net cash used in operating activities (44,52,44,293) (35,80,42,253)
Expenditure on property, plant and equipment, net of sale proceeds 12,16,991 21,77,550
Loans to employees 13,83,502 89,637
Net cash from investing activities 26,00,493 22,67,187
Loan taken from parent company 37,79,40,640 45,25,00,101
Net cash from financing activities 37,79,40,640 45,25,00,101
Net decrease in cash and cash equivalents (6,47,03,160) 9,67,25,035


Partner Director
Bengaluru
March 16, 2020
Company overview not completed as at January 1, 2019. In accordance with

Infosys Consulting (Shanghai) Co. Ltd. (formerly Lodestone
have not been retrospectively adjusted. The following is a
Management Consultants Co., Ltd.) is a wholly-owned
subsidiary of Infosys Consulting Holding AG (formerly
policies related to revenue recognition.
Lodestone Holding AG), Kloten (Switzerland). The Company
renders professional management consulting services, thereby Revenue is recognized upon transfer of control of promised
enabling its clients to enhance business performance. products or services to customers in an amount that reflects
1 Significant accounting policies products or services.
1.1 Accounting year Arrangements with customers for software-related services are
either on a fixed-timeframe or on a time-and-material basis.
The accounting year of the Company is from
January 1 to December 31. 1.5.1 T&M
the related services are performed and revenue from the
These financial statements are prepared in accordance with end of the last invoicing to the reporting date is recognized
Indian Accounting Standards (Ind AS) under the historical as unbilled revenue.
cost convention on the accrual basis. The Ind AS are
prescribed under Section 133 of the Act read with Rule 3 of 1.5.2 FP
the Companies (Indian Accounting Standards) Rules, 2015 Revenue from fixed-price, fixed-timeframe contracts, where
and relevant amendment rules issued thereafter. the performance obligations are satisfied over time and where
Accounting policies have been consistently applied except there is no uncertainty as to measurement or collectability
where a newly issued accounting standard is initially adopted of consideration, is recognized as per the percentage-
or a revision to an existing accounting standard requires a of-completion method.
1.5.3 Unbilled / Unearned
1.3 Presentation currency Revenues in excess of invoicing are classified as contract
The Company’s presentation currency is the Indian Rupee. assets (which we refer as unbilled revenue) while invoicing in
1.4 Use of estimates we refer to as unearned revenues).
1.5.4 Volume discounts
assumptions that affect the reported balances of assets and The Company accounts for volume discounts and pricing
liabilities and disclosures relating to contingent liabilities as incentives to customers as a reduction of revenue based on
at the date of the financial statements and reported amounts the ratable allocation of the discounts / incentives to each of
of income and expenses during the period. the underlying performance obligation that corresponds to
the 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
Examples of such estimates include computation of percentage reliably. The Company recognizes changes in the estimated
of completion which requires the Company to estimate the amount of obligations for discounts in the period in
efforts or costs expended to date as a proportion of the total which the change occurs.
efforts to be expended, impairment losses on financial assets,
future obligations under employee benefit plans, income 1.5.5 Contract modification
taxes, post-sales customer support and the useful lives of Contract modifications are accounted for when additions,
property, plant and equipment. deletions or changes are approved either to the contract
1.5 Revenue recognition contracts involves assessing whether the services added to an
The Company derives revenues primarily from existing contract are distinct and whether the pricing is at the
consultancy services. standalone selling price. Services added that are not distinct
Effective January 1, 2019, the Company adopted Ind AS 115, are accounted for on a cumulative catch up basis, while those
Revenue from Contracts with Customers using the cumulative that are distinct are accounted for prospectively, either as a
catch-up transition method, applied to contracts that were separate contract, if the additional services are priced at the
standalone selling price, or as a termination of the existing Advances paid towards the acquisition of property, plant and
contract and creation of a new contract if not priced at the equipment outstanding at each Balance Sheet date is classified
standalone selling price. as capital advances under other non-current assets and the
1.5.7 Tax
The Company presents revenues net of indirect taxes in its relating to property, plant and equipment is capitalized only
Statement of Profit and Loss. when it is probable that future economic benefits associated
1.6 Provisions
A provision is recognized if, as a result of a past event, the costs are recognized in net profit in the Statement of Profit
Company has a present legal or constructive obligation that and Loss when incurred. The cost and related accumulated
is reasonably estimable, and it is probable that an outflow of depreciation are eliminated from the financial statements
economic benefits will be required to settle the obligation. upon sale or retirement of the asset and the resultant gains
Provisions are determined by discounting the expected or losses are recognized in the Statement of Profit and Loss.
future cash flows at a pre-tax rate that reflects current Assets to be disposed of are reported at the lower of the
market assessments of the time value of money and the risks carrying value or the fair value less cost to sell.
1.7 Post-sales client support
The Company provides its clients with a fixed-period 1.10.1 Initial recognition
warranty for corrections of errors and telephone support The Company recognizes financial assets and financial
on all its fixed-price, fixed-timeframe contracts. Costs liabilities when it becomes a party to the contractual
associated with such support services are accrued at the time provisions of the instrument. All financial assets and liabilities
when related revenues are recorded and included in cost of are recognized at fair value on initial recognition, except for
sales. The Company estimates such costs based on historical trade receivables which are initially measured at transaction
experience and the estimates are reviewed annually for any price. Transaction costs that are directly attributable to the
material changes in assumptions. acquisition or issue of financial assets and financial liabilities,
1.8 Onerous contracts the fair value on initial recognition. Regular way purchase
Provisions for onerous contracts are recognized when the and sale of financial assets are accounted for at trade date.
the future obligations under the contract. The provision is a.Non-derivative financial instruments
measured at the present value of the lower of the expected (i)Financial assets carried at amortized cost
cost of terminating the contract and the expected net cost of A financial asset is subsequently measured at amortized cost if
continuing with the contract. Before a provision is established it is held within a business model whose objective is to hold
the Company recognizes any impairment loss on the assets the asset in order to collect contractual cash flows and the
associated with that contract. contractual terms of the financial asset give rise on specified
1.9 Property, plant and equipment dates to cash flows that are solely payments of principal and
Property, plant and equipment are stated at cost, less
accumulated depreciation and impairment, if any. Costs (ii)Financial assets at fair value through other
directly attributable to acquisition are capitalized until the comprehensive income
property, plant and equipment are ready for use, as intended A financial asset is subsequently measured at fair value
by the Management. The Company depreciates property, through other comprehensive income if it is held within a
plant and equipment over their estimated useful lives using business model whose objective is achieved by both collecting
the straight-line method. The estimated useful lives of contractual cash flows and selling financial assets and the
assets are as follows: contractual terms of the financial asset give rise on specified
Furniture and fixtures (1) 5 years
Plant and machinery (1) 5 years (iii)Financial assets at fair value through profit or loss
Office equipment 5 years A financial asset which is not classified in any of the above
(iv)Financial liabilities
(1) Financial liabilities are subsequently carried at amortized
useful lives as given above best represent the period over which the cost using the effective interest method. For trade and other
Management expects to use these assets. Hence the useful lives for these payables maturing within one year from the Balance Sheet
assets is different from the useful lives as prescribed under Part C of date, the carrying amounts approximate fair value due to the
Schedule II of the Companies Act 2013.
1.10.3 Fair value of financial instruments entitlement that has accumulated at the Balance Sheet date.
In determining the fair value of its financial instruments, the Expense on non-accumulating compensated absences is
Company uses a variety of methods and assumptions that recognized in the period in which the absences occur.
include discounted cash flow analysis, available quoted Functional currency
market prices and dealer quotes. All methods of assessing The functional currency of the Company is the Renminbi Yuan.
fair value result in general approximation of value, and such These financial statements are presented in Indian rupee.
value may never actually be realized. Transactions and translations
1.11 Impairment Foreign-currency denominated monetary assets and liabilities
a.Financial assets
The Company recognizes loss allowances using the expected or losses resulting from such translations are included in net
credit loss (ECL) model for the financial assets which are profit in the Statement of Profit and Loss. Non-monetary
not fair valued through profit or loss. Loss allowance for assets and non-monetary liabilities denominated in a foreign
trade receivables with no significant financing component is currency and measured at fair value are translated at the
measured at an amount equal to lifetime ECL. For all other exchange rate prevalent at the date when the fair value
financial assets, expected credit losses are measured at an was determined. Non-monetary assets and non-monetary
amount equal to the 12-month ECL, unless there has been a liabilities denominated in a foreign currency and measured
significant increase in credit risk from initial recognition in at historical cost are translated at the exchange rate prevalent
which case those are measured at lifetime ECL. The amount at the date of the transaction.
Transaction gains or losses realized upon settlement of foreign
currency transactions are included in determining net profit
expense and cash-flow items denominated in foreign currencies
b.Non-financial assets are translated into the relevant functional currencies using the
(i)Property, plant and equipment exchange rate in effect on the date of the transaction.
Property, plant and equipment are evaluated for recoverability The translation of financial statements from functional
whenever events or changes in circumstances indicate that currency to the presentation currency is performed for assets
their carrying amounts may not be recoverable. For the and liabilities using the exchange rate in effect at the Balance
purpose of impairment testing, the recoverable amount (i.e. Sheet date and for revenue, expense and cash-flow items
the higher of the fair value less cost to sell and the value-in- using the average exchange rate for the respective periods.
use) is determined on an individual asset basis unless the asset The gains or losses resulting from such translation are
does not generate cash flows that are largely independent of included in exchange differences on translation under other
those from other assets. In such cases, the recoverable amount components of equity.
1.14 Income taxes
if there has been a change in the estimates used to determine it is recognized in Other Comprehensive Income. Current
and liabilities and their carrying amounts in the financial
1.12 Employee benefits statements. Deferred tax assets are reviewed at each reporting
The Company has a policy on compensated absences
which are both accumulating and non-accumulating in Deferred income tax assets and liabilities are measured using
nature. The expected cost of accumulating compensated tax rates and tax laws that have been enacted or substantively
absences is determined by actuarial valuation performed enacted by the Balance Sheet date and are expected to apply
by an independent actuary at each Balance Sheet date using to taxable income in the years in which those temporary
projected unit credit method on the additional amount differences are expected to be recovered or settled. The effect
expected to be paid / availed as a result of the unused of changes in tax rates on deferred income tax assets and
that includes the enactment or the substantive enactment The effective date for adoption of Ind AS 115 is financial
date. A deferred income tax asset is recognized to the extent periods beginning on or after April 1, 2018.
that it is probable that future taxable profit will be available The Company will adopt the standard on January 1, 2019
against which the deductible temporary differences and tax by using the cumulative catch-up transition method and
losses can be utilized. The Company offsets current tax assets accordingly comparatives for the year ending or ended
and current tax liabilities, where it has a legally enforceable December 31, 2018 will not be retrospectively adjusted. The
right to set off the recognized amounts and where it intends effect on adoption of Ind AS 115 is expected to be insignificant.
The Company has adopted Appendix B to Ind AS 21, Foreign
Currency Transactions and Advance Consideration which
1.15 Cash Flow Statement clarifies the date of transaction for the purpose of determining
Cash flows are reported using the indirect method, whereby the exchange rate to use on initial recognition of the related
profit for the period is adjusted for the effects of transactions asset, expense or income when an entity has received or paid
of a non-cash nature, any deferrals or accruals of past or advance consideration in a foreign currency. The effect on
future operating cash receipts or payments and item of account of adoption of this amendment was insignificant.
income or expenses associated with investing or financing Ind-AS 116 - Leases: On March 30, 2019, the Ministry of
cash flows. The cash flows from operating, investing and Corporate Affairs (MCA) has notified Ind-AS 116 - Leases.
financing activities of the Company are segregated. Ind-AS 116 will replace the existing leases standard, Ind AS
17, Leases and related interpretations. The standard sets out
1.16 Other income the principles for the recognition, measurement, presentation
Other income is comprised primarily of interest income and and disclosure of leases for both parties to a contract i.e.,
exchange gain on translation of other assets and liabilities. the lessee and the lessor. Ind AS 116 introduces a single
1.17 Leases assets and liabilities for all leases with a term of more than 12
Lease under which the Company assumes substantially all months, unless the underlying asset is of low value. Currently,
the risks and rewards of ownership are classified as finance operating lease expenses are charged to the Statement of Profit
leases. Such assets acquired are capitalized at fair value of and Loss. The standard also contains enhanced disclosure
the asset or present value of the minimum lease payments requirements for lessees. Ind AS 116 substantially carries
at the inception of the lease, whichever is lower. Lease forward the lessor accounting requirements in Ind-AS 17. The
payments under operating leases are recognized as an effective date for adoption of Ind AS 116 is annual periods
expense on a straight-line basis in the Statement of Profit beginning on or after April 1, 2019. The standard permits two
and Loss over the lease term possible methods of transition:
1.18 Borrowing cost • Full retrospective: Retrospectively to each prior period
presented applying Ind AS 8, Accounting Policies, Changes
Borrowing costs are charged to the Statement of Profit and in Accounting Estimates and Errors.
Loss in the period in which they incurred.
• Modified retrospective: Retrospectively, with the cumulative
1.19 Recent accounting pronouncements effect of initially applying the standard recognized at the
Ind AS 115, Revenue from Contract with Customers: On date of initial application either by:
March 28, 2018, Ministry of Corporate Affairs has notified • Under modified retrospective approach, the lessee records
the Ind AS 115, Revenue from Contract with Customers. the lease liability as the present value of the remaining
The core principle of the new standard is that an entity lease payments, discounted at the incremental borrowing
should recognize revenue to depict the transfer of promised rate and the right-of-use asset either as:
goods or services to customers in an amount that reflects • Its carrying amount as if the standard had been
the consideration to which the entity expects to be entitled applied since the commencement date, but discounted
in exchange for those goods or services. Further the new at lessee’s incremental borrowing rate at the date of
standard requires enhanced disclosures about the nature, initial application. or
amount, timing and uncertainty of revenue and cash flows
amount of any prepaid or accrued lease payments related
The standard permits two possible methods of transition: to that lease recognized under Ind AS 17 immediately
• Retrospective approach - Under this approach the standard before the date of initial application.
will be applied retrospectively to each prior reporting Certain practical expedients are available under both the
period presented in accordance with Ind AS 8. methods. The Company is proposing to use the ‘Modified
• Accounting policies, changes in accounting Retrospective Approach’ for transitioning to Ind AS 116, and
estimates and errors take the cumulative adjustment to retained earnings, on the
• Retrospectively with cumulative effect of initially applying date of initial application (January 1, 2020). The effect of
the standard recognized at the date of initial application adoption is not expected to be material for the company’s
(Cumulative catch-up approach) financial statements
in `
Particulars Plant and Office Computer Furniture Total
machinery equipment equipment and fixtures
Gross carrying value as of January 1, 2019 1,61,544 3,59,873 4,23,12,735 1,21,03,955 5,49,38,107
Additions – – – – –
Deletions (3,18,636) – (7,36,267) (97,44,280) (1,07,99,183)
Translation difference 1,57,092 3,542 7,25,135 37,26,770 46,12,539
Gross carrying value as of December 31, 2019 – 3,63,415 4,23,01,603 60,86,445 4,87,51,463
Accumulated depreciation as of January 1, 2019 (93,115) (3,47,919) (3,69,73,852) (60,08,117) (4,34,23,003)
Depreciation (17,480) (12,039) (43,69,889) (32,93,539) (76,92,947)
Accumulated depreciation on deletions 2,17,662 – 7,81,557 73,31,957 83,31,176
Translation difference (1,07,067) (3,457) (7,27,960) (23,91,039) (32,29,523)
2019 – (3,63,415) (4,12,90,144) (43,60,738) (4,60,14,297)
Carrying value as of December 31, 2019 – – 10,11,459 17,25,707 27,37,166
Carrying value as of January 1, 2019 68,429 11,954 53,38,883 60,95,838 1,15,15,104
in `
Particulars Plant and Office Computer Furniture and Total
machinery equipment equipment fixtures
Gross carrying value as of January 1, 2018 1,56,138 4,38,400 4,08,14,938 1,34,02,104 5,48,11,580
Additions / Adjustments 1,61,914 3,11,732 – 10,70,551 15,44,197
Deletions / Adjustments – – (38,58,554) (28,32,725) (66,91,279)
Translation difference (1,56,508) (3,90,259) 53,56,351 4,64,025 52,73,609
Gross carrying value as of December 31, 2018 1,61,544 3,59,873 4,23,12,735 1,21,03,955 5,49,38,107
Accumulated depreciation as of January 1,
2018 (58,769) (3,79,249) (2,73,25,325) (29,62,288) (3,07,25,631)
Depreciation (32,859) (20,134) (89,21,074) (54,69,443) (1,44,43,510)
Accumulated depreciation on deletions – – 1,47,272 24,31,395 25,78,667
Translation difference (1,487) 51,464 (8,74,725) (7,781) (8,32,529)
2018 (93,115) (3,47,919) (3,69,73,852) (60,08,117) (4,34,23,003)
Carrying value as of December 31, 2018 68,429 11,954 53,38,883 60,95,838 1,15,15,104
Carrying value as of January 1, 2018 97,369.00 59,151 1,34,89,613 1,04,39,816.00 2,40,85,949
2.2 Loans 2.6 Other assets
in ` in `
2019 2018 2019 2018
Current Current
Unsecured, considered good Others
Other loans Prepaid expenses 6,18,386 27,82,398
Loans and advances to Withholding taxes and
employees – 13,83,502 others 8,498 7,96,236
Total current loans – 13,83,502 Total current other assets 6,26,884 35,78,634

in `
Particulars As at December 31 The carrying value and fair value of financial instruments
2019 2018 by categories as of December 31, 2019 and December 31,
Current 2018 were as follows:
Unsecured in `
Considered good (1) 4,24,67,121 17,75,31,442
Considered doubtful 1,41,545 11,58,081
2019 2018
4,26,08,666 17,86,89,523
Assets
Less: Allowance for
Cash and cash
credit losses 1,41,545 11,58,081
equivalents (Refer to
Note 2.4) 4,21,58,435 10,68,61,595
(1)
parties (refer to Note 2.19) 1,56,12,783 Trade receivables
17,23,78,015
(Refer to Note 2.3) 4,24,67,121 17,75,31,442
Loans (Refer to Note
2.4 Cash and cash equivalents 2.2) – 13,83,502
in `
Particulars As at December 31, (Refer to Note 2.6) 2,87,30,083 3,16,06,857
2019 2018 Total 11,33,55,639 31,73,83,396
Balances with banks Liabilities
In current and deposit Trade payables (Refer
accounts 4,21,06,848 10,67,94,676 to Note 2.11) 9,05,77,596 24,56,57,070
Cash on hand 51,587 66,919 Borrowings (Refer to
Total cash and cash Note 2.9) 1,33,12,45,384 90,22,72,823
equivalents 4,21,58,435 10,68,61,595 Other financial
liabilities (Refer to
2.5 Other financial assets Note 2.10) 50,78,02,642 81,01,35,534
in ` Total 1,92,96,25,622 1,95,80,65,427
2019 2018 All the above financial assets and liabilities are
Current carried at amortized cost and the carrying values
Security deposits 1,02,60,000 1,01,60,000 approximates their fair value.
Rental deposits 18,08,361 47,21,617 Liquidity risk
Unbilled revenues 47,77,903 19,21,668 The Company’s principal sources of liquidity are cash and
Others (1) 1,18,83,819 1,48,03,572 cash equivalents and the cash flow that is generated from
Total current other financial operations. The Company has taken loan from its parent
assets 2,87,30,083 3,16,06,857 company to meet its working capital requirements.
The above financial assets
carried at amortized cost 2,87,30,083 3,16,06,857 As of December 31, 2019 and December 31, 2018, the
(1)
Includes dues from related outstanding compensated absences were ` 96,12,953 and
parties (Refer note no. 2.19) 1,18,83,819 1,48,03,572 `11,013,013, respectively.
Credit risk 2.9 Borrowings
Credit risk refers to the risk of default on its obligation by in `
the counterparty resulting in a financial loss. The maximum Particulars As at December 31,
exposure to the credit risk at the reporting date is primarily 2019 2018
from trade receivables amounting to ` 4,24,67,121 and ` Non-current
17,75,31,442 as of December 31, 2019 and December Unsecured Loan from
31, 2018, respectively and unbilled revenue amounting Parent Company
to ` 47,77,903 and ` 19,21,668 as of December 31, 2019 (Refer to Note 2.19) 1,33,12,45,384 90,22,72,823
and December 31, 2018, respectively. Trade receivables Total non-current
and unbilled revenue are typically unsecured. Credit risk borrowings 1,33,12,45,384 90,22,72,823
has always been managed by the Company through credit (1)
Includes dues to
approvals, establishing credit limits and continuously fellow subsidiaries (Refer
monitoring the creditworthiness of customers to which to Note 2.19) 1,33,12,45,384 90,22,72,823
the Company grants credit terms in the normal course of
business. As per Ind-AS 109, the Company uses ECL model 2.10 Other financial liabilities
to assess the impairment loss or gain. The Company uses a in `
provision matrix to compute the ECL allowance for trade Particulars As at December 31,
receivables and unbilled revenues. The provision matrix 2019 2018
takes into account available external and internal credit risk Current
factors such as credit default swap quotes, credit ratings Others
from credit rating agencies and the Company’s historical Accrued
experience for customers. compensation to
Credit risk exposure employees 66,71,480 5,08,24,803
Accrued expenses (1) 4,44,14,193 8,17,54,901
The provision for lifetime ECL on customer balances for the
Compensated
year ended December 31, 2019 was ` 1,44,750 and reversal
absences 96,12,953 1,10,13,013
for the year ended December 31, 2018 was ` 11,84,753.
Other payables 45,67,16,969 67,75,55,830
Particulars Year ended December 31, 51,74,15,595 82,11,48,547
2019 2018 Total current other
Balance at the beginning 11,59,802 22,53,827 financial liabilities 51,74,15,595 82,11,48,547
Impairment loss recognized / Financial liability
reversed 1,44,750 (11,84,753) carried at amortized
Amounts written off – – cost 50,78,02,642 81,01,35,534
Translation differences (11,34,166) 90,728 (1)
Includes dues to
Balance at the end 1,70,386 11,59,802 related parties (Refer
note 2.19) 45,76,17,306 67,96,10,232
generally invest in deposits with banks with high credit
ratings assigned by credit rating agencies. 2.11 Trade payables
in `
2.8 Equity Particulars As at December 31,
Equity share capital 2019 2018
in `, except as otherwise stated Trade payables (1) 9,05,77,596 24,56,57,070
Total trade payables 9,05,77,596 24,56,57,070
Particulars As at December 31, (1)
Includes dues to
2019 2018
related parties (Refer to
Authorized
Note 2.19) 6,84,87,073 18,13,62,833
Equity shares of USD
69,30,000 43,08,31,210 43,08,31,210
Issued, subscribed and
paid-up
Equity shares of USD
69,30,000 43,08,31,210 43,08,31,210
(wholly-owned by Infosys
Consulting Holding AG)
43,08,31,210 43,08,31,210
2.12 Other liabilities A reconciliation of the income tax provision to the amount
in ` computed by applying the statutory income tax rate to the
Particulars As at December 31, income before income taxes is summarized as follows:
in `
2019 2018
Current Particulars Year ended December 31,
Unearned revenue 15,49,639 94,64,262 2019 2018
Others Profit / (Loss) before
Withholding taxes and income tax (14,04,31,743) (56,44,05,510)
others 12,18,743 1,87,64,461 Enacted tax rates in
Others (1) – – China (%) 25.00% 25.00%
Total current other liabilities 27,68,382 2,82,28,723 Computed expected tax
(1)
Includes dues to related expense (3,51,07,936) (14,11,01,378)
parties (Refer to Note 2.19) – 67,72,13,379 Tax reversals /
(provisions) (68,33,323) (69,39,870)
2.13 Provisions Effect of unrecognized
in ` deferred tax assets 3,50,87,519 14,11,01,378
Others (38,706) –
2019 2018
Current The applicable China statutory tax rate for the year ended
Others December 2019 and December 2018 is 25%.
Post-sales client support 1,21,87,949 1,30,91,250
The details of income tax assets and income tax
Total current provisions 1,21,87,949 1,30,91,250
liabilities are as follows:
in `
Provision for post-sales client support
The movement in the provision for post-sales client support Year ended December 31,
and others is as follows: 2019 2018
in ` Current income tax liabilities – 68,92,446
Net current income tax assets
/ (liability) at the end – (68,92,446)
2019 2018
Balance at the beginning 1,30,91,250 1,12,00,918 The gross movement in the current income tax asset /
Provision recognized / (liability) is as follows:
(reversed) (10,25,593) 15,42,230 in `
Provision utilized – –
Year ended December 31,
Exchange difference 1,22,292 3,48,102
2019 2018
Balance at the end 1,21,87,949 1,30,91,250
Provision for post-sales client support and warranties and / (liability) at the beginning (68,92,446) (1,33,10,527)
other provisions are expected to be utilized over a period of Current income tax expense
six months to one year. (Refer to Note 2.14) 68,92,446 69,39,870
Translation difference – (5,21,789)
2.14 Income taxes Net current income tax asset
Income tax expense in the Statement of Profit and Loss comprises: / (liability) at the end – (68,92,446)
in `
Particulars Year ended December 31, 2.15 Revenue from operations
2019 2018 in `
Current taxes (68,92,446) (69,39,870) Particulars Year ended December 31,
Income tax expense (68,92,446) (69,39,870) 2019 2018
Income from consultancy
Current tax expense for the year ended December 31, 2019
services 46,61,04,376 1,05,33,59,858
includes reversals amounting to ` 68,92,446 pertaining
Total revenue from
to prior periods. Current tax expense for the year ended
operations 46,61,04,376 1,05,33,59,858
December 31, 2018 includes reversals amounting to `
69,39,870 pertaining to prior periods.
for deliverables as either a receivable or as unbilled revenue.
A receivable is a right to consideration that is unconditional
upon passage of time. Revenue for time and material contracts
are recognized as related service are performed. Revenue for
line basis over the period of the contract. Revenues in excess in `
of billings is recorded as unbilled revenue and is classified Particulars Year ended December 31,
as a financial asset for these cases as right to consideration is 2019 2018
unconditional upon passage of time. Other expenses
Performance obligations and remaining performance Power and fuel 3,44,159 2,89,191
obligations Brand and marketing 34,46,660 86,19,852
Operating lease payments 1,33,96,636 2,35,46,054
The remaining performance obligation disclosure provides Rates and taxes 2,93,649 59,31,373
the aggregate amount of the transaction price yet to be Repairs and maintenance 44,94,825 99,55,281
recognized as at the end of the reporting period and an
Insurance 5,33,849 7,56,447
Provision for post-sales
client support (10,25,593) 15,42,230
as given in Ind-AS 115, the Company has not disclosed the
Impairment loss
recognized / (reversed) on
contracts where the revenue recognized corresponds directly
financial assets 1,44,750 (11,84,753)
with the value to the customer of the entity’s performance
Others 1,84,39,902 7,90,30,418
completed to date, typically those contracts where invoicing
Total other expenses
is on time and material basis. Remaining performance
4,00,68,837 12,84,86,093
of contracts, periodic revalidations, adjustment for revenue 2.18 Leases
that has not materialized and adjustments for currency. Obligations on long-term, non-cancellable operating leases
The aggregate value of performance obligations that are The lease rentals charged during the period are as follows:
completely or partially unsatisfied as at December 31, 2019, in `
other than those meeting the exclusion criteria mentioned Particulars Year ended December 31,
above, is ` NIL. Out of this, the Group expects to recognize 2019 2018
revenue of around 100% within the next one year and Lease rentals recognized
the remaining thereafter. The contracts can generally be during the year 1,33,96,636 2,35,46,054
terminated by the customers and typically includes an
enforceable termination penalty payable by them. The obligations on long-term, non-cancellable operating
The impact on account of applying the erstwhile Ind-AS
18 Revenue standard instead of Ind-AS 115 Revenue from in `
for the year ended December 31, 2019 is insignificant. Future minimum lease As at December 31,
payable 2019 2018
2.16 Other income Not later than 1 year 36,32,110 77,45,456
in ` Later than 1 year and not
Particulars Year ended December 31, later than 5 years – 20,86,970
2019 2018 Later than 5 years – –
Interest received on
financial assets carried at The operating lease arrangements are renewable on a periodic
amortized cost basis and for most of the leases, extend up to a maximum of
Deposits with banks and five years from their respective dates of inception and relates
others 87,396 1,58,141 to rented premises. Some of these lease agreements have
Miscellaneous income, price escalation Clauses.
net 1,73,481 4,10,927
Total other income 2,60,877 5,69,068
2.17 Expenses
in `
2019 2018
Employee benefit
expenses
Salaries including
bonus 22,37,29,015 59,43,28,164
Staff welfare 16,54,236 86,71,053
expenses 22,53,83,251 60,29,99,217
Name of the holding company Country Holding as at December 31
2019 2018
(1)
Holding company of Infosys Consulting Holding AG (Infosys Lodestone) (formerly Lodestone Holding AG) from October 22,2012.
Infosys Canada Public Services Inc.(19) Canada
Portland Group Pty. Ltd.(4) Australia
Infosys BPO Americas LLC(4) US
Infosys Management Consulting Pty. Limited(5) Australia
Infosys Consulting Company Ltd.(5) UK
Infosys Consulting B.V.(5) The Netherlands
Panaya Japan Co. Ltd.(26)(7) Japan
Infosys Consulting Pte. Limited (Infosys Singapore)(1) Singapore
Fluido Norway A / S(15) Norway
Fluido Denmark A / S(15) Denmark
Infosys Compaz Pte. Ltd. (formerly Trusted Source Pte. Ltd) (16) Singapore
Infosys South Africa (Pty.) Ltd.(9)(17) South Africa
WDW Communications, Inc.(12) US
WongDoody, Inc.(12) US
HIPUS(20) Japan
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Wholly-owned subsidiary of Infosys Consulting Pte. Ltd.
(10)
(11)
(12)
(13)
(14)
On October 11, 2018, Infosys Consulting Pte. Ltd., acquired 100% of the voting interests in Fluido Oy and its subsidiaries
(15)
(16)
On November 16, 2018, Infosys Consulting Pte. Ltd, acquired 60% of the voting interest in Infosys Compaz Pte. Ltd.
(17)
(18)
(19)
Incorporated effective November 27, 2018, wholly-owned subsidiary Infosys Public Services Inc.
(20)
On April 1, 2019, Infosys Consulting Pte. Ltd., acquired 81% of the voting interests in HIPUS Co., Ltd., Japan
(21)
On May 23, 2019, Infosys Consulting Pte. Ltd., acquired 75% of the voting interests in Stater N.V.
(22)
(23)
(24)
(25)
(26)
Under liquidation
(in `)
2019 2018
Trade receivables
Infosys Technologies (China) Co. Limited (Infosys China) 25,003 93,29,246
Infosys Consulting GmbH 6,58,960 9,90,11,312
Infosys Consulting Company Limited 32,48,589 3,75,15,751
Infosys Consulting Pte. Ltd. – 2,19,42,067
1,56,12,783 17,23,78,015
Other Receivables
Infosys Consulting Company Limited – 13,466
Infosys Consulting Pte. Ltd. 1,18,83,819 1,41,47,707
1,18,83,819 1,48,03,572
Borrowings
Infosys Consulting Holding AG 1,33,12,45,384 90,22,72,823
1,33,12,45,384 90,22,72,823
Trade payables
Infosys Consulting B.V. 3,82,741 –
Infosys Consulting Company Limited 1,41,285 1,33,590
Infosys Consulting Pte. Ltd. 4,79,78,162 9,81,26,307
6,84,87,073 18,13,62,833
Other payables
Infosys Consulting Company Limited – 8,66,42,952
Infosys Consulting B.V. – 3,81,041
45,66,56,629 67,72,13,379
Provision for expense
9,60,677 23,96,853
in `
2019 2018
Loans (net of repayment)(1)
Infosys Consulting Holding AG 1,33,12,45,384 48,37,16,795
1,33,12,45,384 48,37,16,795
Purchase of services, shared facilities and personnel
Infosys Consulting AG 29,63,867 1,34,22,855
Infosys Consulting Pte. Ltd. 46,01,264 68,81,319
Infosys Consulting B.V. 3,77,389 3,83,888
Infosys Consulting Company Limited 1,40,247 1,34,773
80,82,767 2,16,14,227
Interest expense
5,11,54,586 3,12,16,694
Sale of services
Infosys Technologies (China) Co. Limited (Infosys China) 38,36,643 1,81,81,193
Infosys Consulting AG (formerly Lodestone Management Consultants AG) 14,68,41,931 2,03,50,383
Infosys Consulting GmbH (formerly Lodestone Management Consultants GmbH) 8,43,57,324 43,94,46,656
Infosys Consulting Company Limited (formerly Lodestone Management Consultants
Ltd.) 6,51,49,430 11,93,32,679
Infosys Consulting Pte. Ltd. (formerly Lodestone Management Consultants Pte. Ltd.) – (11,08,364)
30,01,85,328 59,62,02,547
(1)
Includes Interest.

defined in Ind-AS 108, Segment Reporting, the Chief Operating Decision Maker (CODM) evaluates the performance and
to constitute a single segment in the context of Ind-AS 108, Segment Reporting.
Skava Systems Private Limited
To The Members of Skava Systems Private Limited

Opinion
We have audited the accompanying financial statements of Skava Systems Private Limited (“the Company”), which comprise the
Balance Sheet as at March 31, 2020, and the Statement of Profit and Loss (including Other Comprehensive Income), Statement
of Changes in Equity and the Statement of Cash Flow for the year then ended, and a summary of the significant accounting
policies and other explanatory information (hereinafter referred to as “the financial statements”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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, and its loss, total comprehensive loss, the changes in Equity
and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards on Auditing specified under section
143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for
the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of
Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant
to our audit of the financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled
our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the
audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Emphasis of Matter
We draw attention to Note 2.20 to the financial statements, which describes the Board of Directors of the Company authorized
executed Business Transfer Agreement and related documents to transfer its business to Infosys Limited (Holding company),
subject to securing the requisite regulatory approvals for a consideration based on an independent valuation.
Our opinion is not modified in respect of this matter.
included in the Board’s Report including Annexures to Board’s Report, but does not include the financial statements and our
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
during the course of our audit or otherwise appears to be materially misstated.
The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the
preparation of these financial statements that give a true and fair view of the financial position, financial performance including
other comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS and other
accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting
frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates
that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that
were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation
and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether
544 I Skava Systems Private Limited Infosys Subsidiary Financials 2019-20

The Board of Directors are also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibility for the Audit of the Financial Statements
appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on
whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable
that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our
work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
1. As required by Section 143(3) of the Act, based on our audit, we report that:
a) We have sought and obtained all the information and explanations, which to the best of our knowledge and belief were
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from
our examination of those books.
Equity and the Statements of Cash Flow dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors of the Company as on March 31, 2020 taken on
record by the Board of Directors, none of the directors is disqualified as on March 31, 2020 from being appointed as a
director in terms of Section 164(2) of the Act.
Infosys Subsidiary Financials 2019-20 Skava Systems Private Limited I 545

g) With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of Section
197 (16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanation given to us, the Company has not
paid any managerial remuneration during the year ended March 31, 2020 and hence reporting under section 197 of
the Act is not applicable.
i. The Company does not have any pending litigations which would impact its financial position;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any
material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection
Fund by the Company.
2. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the Central Government in
terms of Section 143(11) of the Act, we give in “Annexure B” a statement on the matters specified in paragraphs 3
and 4 of the Order.

(Firm’s Registration number : 117366W/W-100018)
Gurvinder Singh
Partner
(Membership number :110128)
UDIN: 20110128AAAABK9903

Annexure “A” to the Independent Auditor’s Report
(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over financial reporting of Skava Systems Private Limited (“the Company”) as
of March 31, 2020 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal
control over financial reporting criteria established by the Company considering the essential components of internal control
stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including
adherence to respective company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors,
the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as
required under the Act.
Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting of the Company
based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls
Over Financial Reporting (the “Guidance Note”) issued by the ICAI and the Standards on Auditing prescribed under Section
143(10) of the Act, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note
require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and maintained and if such controls operated
effectively in all material respects.
Meaning of Internal Financial Controls Over Financial Reporting
of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition,
Limitations of Internal Financial Controls Over Financial Reporting

Opinion
financial reporting were operating effectively as at March 31, 2020, based on the criteria for internal financial control over
financial reporting established by the Company considering the essential components of internal control stated in the Guidance

Gurvinder Singh
Partner

Annexure ‘B’ to the Independent Auditor’s Report
(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our
report of even date)
(c) The Company does not have any immovable properties of freehold or leasehold land and building and hence reporting
under Clause 3 (i) (c) of the order is not applicable.
ii. The Company is in the business of providing software services and does not have any physical inventories. Accordingly,
reporting under Clause 3(ii) of the Order is not applicable to the Company.
iii. The Company has not granted any loans, secured or unsecured, to companies, firms, limited liability Partnerships or
other parties covered in the register maintained under section 189 of the Companies Act, 2013.
iv. The Company has not granted any loans, made investments or provide guarantees and hence reporting under Clause
(iv) of the Order is not applicable to the Company.
v. The Company has not accepted any deposits during the year and does not have any unclaimed deposits as at March 31,
2020 and therefore, reporting under Clause 3(v) of the Order are not applicable to the Company.
vi. The maintenance of cost records has not been specified by the Central Government under section 148(1) of the
Companies Act, 2013 for the business activities carried out by the Company. Thus reporting under Clause 3(vi) of the
order is not applicable to the Company.
(a) The Company has been regular in depositing undisputed statutory dues, including Provident Fund, Employees’ State
Insurance, Income Tax, Goods and Service Tax, Customs Duty, Cess and other material statutory dues applicable to it
with the appropriate authorities.
Goods and Service Tax, Customs Duty, Cess and other material statutory dues in arrears as at March 31, 2020 for a
(c) There are no dues of Provident Fund, Employees’ State Insurance, Income Tax, Goods and Service Tax, Customs Duty,
Cess and other material statutory taxes and duties as on March 31, 2020 on account of disputes.
viii. The Company has not taken any loans or borrowings from any financial institution, banks, government or has not issued
any debentures. Hence, reporting under Clause 3 (viii) of the Order is not applicable to the Company.
xi. In our Opinion and according to the explanation given to us, the Company has not paid any managerial remuneration
during the year ended March 31, 2020 and hence reporting under Clause (xi) of the Order is not applicable to the Company.
xii The Company is not a Nidhi Company and hence reporting under Clause 3 (xii) of the Order is not applicable to the Company.
xiii. In our opinion and according to the information and explanations given to us the Company is in compliance with
Sections 177 and 188 of the Companies Act, 2013 where applicable, for all transactions with the related parties and
the details of related party transactions have been disclosed in the financial statements as required by the applicable
accounting standards.

xiv. During the year, the Company has not made any preferential allotment or private placement of shares or fully or
partly paid convertible debentures and hence reporting under Clause 3 (xiv) of the Order is not applicable to the
Company.
section 192 of the Companies Act, 2013 are not applicable to the Company.
Gurvinder Singh
Partner

Balance Sheet
in `
2020 2019
ASSETS
Non-current assets
Property, plant and equipment 2.1 6,08,27,269 5,40,08,115
Right-of-use assets 2.2 8,36,40,695 –
Financial assets
Other non current assets 2.8 13,42,627 18,30,853
Deferred tax assets (net) 2.14 1,50,46,882 7,79,64,688
Total non-current assets 17,76,96,091 14,89,37,549
Current assets
Financial assets
Investments 2.3 8,13,74,024 5,00,22,217
Loans 2.4 39,24,037 36,67,616
Total assets 62,92,15,051 56,87,95,747
Equity
Other equity 45,11,37,477 46,80,92,542
Total equity 45,13,87,477 46,83,42,542
Liabilities
Financial Liability
Lease Liability 2.2 8,96,70,755 –
Other non current liabilities 2.13 2,44,31,371 2,10,57,076
Current liabilities
Trade payables 2.12
Total outstanding dues of Micro and small enterprises 2,28,027 2,14,260
Total outstanding dues of creditors other than Micro and small
enterprises 1,85,010 3,66,031
Lease liabilities 2.2 1,05,33,275 –

As per our report of even date attached For and on behalf of the Board of Directors of Skava
For Deloitte Haskins & Sells LLP Systems Private Limited
Firm’s registration number:117366W/W-100018
Gurvinder Singh Satish.H.C Manikantha.A.G.S
Membership Number : 110128 DIN - 07196699
DIN - 08067220
Bengaluru
May 28, 2020

2020 2019
Other income, net 2.16 3,50,32,621 2,04,08,430
Total income 50,03,40,389 55,89,41,782
Expenses
Cost of software packages and others 2.17 22,29,488 19,14,350
Depreciation expenses 2.1 & 2.2 3,33,09,259 1,65,79,932
Finance cost 2.2 90,09,555 –
Other expenses 2.17 2,27,31,046 4,14,04,081
Total expenses 42,88,63,134 46,71,37,700
Profit before tax 7,14,77,255 9,18,04,082
Tax expense
Current tax 2.14 1,24,87,127 1,80,99,886
Deferred tax 2.14 6,68,18,970 (1,30,82,895)
Profit/(loss) for the year (78,28,842) 8,67,87,091
Remeasurement of the net defined benefit liability, net of tax (20,74,723) (4,29,795)
Total other comprehensive (loss), net of tax (20,74,723) (4,29,795)
Total comprehensive income/ (loss) for the year (99,03,565) 8,63,57,296
Equity shares of par value `10 each
Basic (`) (313) 3,471
Diluted (`) (313) 3,471
equity share
Basic 25,000 25,000
Diluted 25,000 25,000


Membership Number : 110128 DIN - 08067220 DIN - 07196699
Bengaluru
May 28, 2020

in `
capital attributable to
equity holders
of the Company
Reserves and Surplus Other comprehensive
income
Retained earnings Other items of other
Balance as of April 1, 2018 2,50,000 38,46,41,380 (29,06,134) 38,19,85,246
ended March 31, 2019
Remeasurement of net defined
benefit liability/asset, net of tax effect – – (4,29,795) (4,29,795)
Balance as of March 31, 2019 2,50,000 47,14,28,471 (33,35,929) 46,83,42,542
Impact on account of adoption of
Ind AS 116 ( Refer note 2.2) (70,51,500) (70,51,500)
2,50,000 46,43,76,971 (33,35,929) 46,12,91,042
ended March 31, 2020
Remeasurement of net defined
benefit liability/asset, net of tax effect – – (20,74,723) (20,74,723)
Profit/ (Loss) for the year – (78,28,842) – (78,28,842)
Balance as of March 31, 2020 2,50,000 45,65,48,129 (54,10,652) 45,13,87,477


Bengaluru
May 28, 2020

in `
2020 2019
Profit/ (loss) for the year (78,28,842) 8,67,87,091
Adjustments to reconcile net profit/ (loss) to net cash provided by operating activities:
Depreciation expenses 3,33,09,259 1,65,79,932
Income tax expense 7,93,06,097 50,16,991
Finance cost 90,09,555 –
Interest income (50,126) (46,116)
(Gain) on investments carried at fair value through profit or loss (38,51,807) (49,33,615)
Trade receivables (3,87,835) (12,15,06,806)
Loans and other financial assets and other assets 6,50,136 (14,77,103)
Trade payables (1,67,254) (77,31,118)
Other financial liabilities, other liabilities (2,98,11,709) 4,52,31,866
Cash from operations 8,01,77,475 1,79,21,122
Income taxes paid (1,38,85,196) (1,62,30,520)
Net cash from operating activities 6,62,92,279 16,90,602
Expenditure on property, plant and equipment (2,05,50,695) (60,57,530)
Payment to acquire financial assets
Liquid mutual fund units (24,76,00,000) (29,02,00,000)
Liquid mutual fund units 22,01,00,000 29,06,00,000
Interest received on investments 50,447 43,432
Net cash used in investing activities (4,80,00,248) (56,14,098)
Payment of lease liability (1,82,08,680) –
Net cash used in financing activities (1,82,08,680) –
Net increase/ (decrease) in cash and cash equivalents 83,351 (39,23,496)
Restricted cash balance 7,07,305 6,61,871


Bengaluru
May 28, 2020

1. Company overview and significant to recover the carrying amount of these assets as they relate
accounting policies to fellow subsidiary and Holding Company.
1.1 Company overview 1.4 Revenue recognition

Skava Systems Pvt. Ltd.(‘the Company’) is a private limited The Company derives revenues primarily from software
company incorporated and domiciled in India and has its development and related services.
registered office at Coimbatore, Tamil Nadu, India. The Revenue is recognized upon transfer of control of promised
Company is an affiliate of Kallidus Inc. (US), which is a leading products or services to customers at an amount that reflects
provider of digital experience solutions, including mobile the consideration we expect to receive in exchange for those
commerce and in-store shopping experiences to large retail products or services.
client. The Company provides offshore software development Arrangements with customers are on a time-and-material
and related services for Kallidus Inc. On June 2, 2015, Infosys basis. Revenue on time-and-material contracts are recognized
Limited acquired 100% voting rights in Kallidus Inc. (d.b.a as the related services are performed and revenue from the
Skava) and Skava Systems Pvt. Ltd., an affiliate of Kallidus end of the last invoicing to the reporting date is recognized
Inc. by entering into a share purchase agreement. as unbilled revenue.
1.2 Basis of preparation of financial statements The Company presents revenues net of indirect taxes in its
statement of Profit and loss.
Indian Accounting Standards (Ind AS) under the historical 1.5 Provisions and Onerous Contracts
financial instruments which are measured at fair values, the a. Provisions
provisions of the Companies Act, 2013 (‘the Act’) (to the A provision is recognized if, as a result of a past event, the
extent notified). The Ind AS are prescribed under Section Company has a present legal or constructive obligation that
133 of the Act read with Rule 3 of the Companies (Indian is reasonably estimable, and it is probable that an outflow of
Accounting Standards) Rules, 2015 and relevant amendment economic benefits will be required to settle the obligation.
rules issued thereafter. Provisions are determined by discounting the expected
Accounting policies have been consistently applied except future cash flows at a pre-tax rate that reflects current
where a newly-issued accounting standard is initially adopted market assessments of the time value of money and the risks
or a revision to an existing accounting standard requires a specific to the liability.
change in the accounting policy hitherto in use.” b. Onerous contracts
1.3 Use of estimates and judgments Provisions for onerous contracts are recognized when the
The preparation of the financial statements in conformity expected benefits to be derived by the Company from a
with Ind AS requires the Management to make estimates, contract are lower than the unavoidable costs of meeting
judgments and assumptions. These estimates, judgments and the future obligations under the contract. The provision is
assumptions affect the application of accounting policies and measured at the present value of the lower of the expected
the reported amounts of assets and liabilities, the disclosures cost of terminating the contract and the expected net cost of
of contingent assets and liabilities at the date of the financial continuing with the contract. Before a provision is established,
statements and reported amounts of revenues and expenses the Company recognizes any impairment loss on the assets
during the period. Actual results could differ from those associated with that contract.
estimates. Appropriate changes in estimates are made as the 1.6. Property, plant and equipment
Management becomes aware of the 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.
by the Management. The Company depreciates property,
Estimation of uncertainties relating to the global plant and equipment over their estimated useful lives using
health pandemic from COVID-19 (COVID-19): the straight-line method. The estimated useful lives of
The Company has considered the possible effects that may assets are as follows:
result from the pandemic relating to COVID-19 on the carrying Plant and machinery(1) 5 years
amounts of receivables. The Company assessed the possible Office equipment 5 years
future uncertainties in the global economic conditions because Computer equipment(1) 3-5 years
of this pandemic, the Company, as at the date of approval of Furniture and fixtures(1) 5 years
these financial statements have made an assessment on the Leasehold Improvements (1) Lower of useful life of the
recoverability of the receivables using the available internal asset or lease term
and external sources of information. The Company expects

Depreciation methods, useful lives and residual values are (iv) Financial liabilities
reviewed periodically, including at each financial year end. Financial liabilities are subsequently carried at amortized
(1)
useful lives as given above best represent the period over which the
Management expects to use these assets. Hence, the useful lives for
payables maturing within one year from the Balance Sheet
these assets is different from the useful lives as prescribed under Part C date, the carrying amounts approximate fair value due to the
of Schedule II of the Companies Act, 2013. short maturity of these instruments.
Advances paid towards the acquisition of property, plant b. Share capital
and equipment outstanding at each Balance Sheet date are
classified as capital advances under other non-current assets Ordinary shares
and the cost of assets not put to use before such date are Ordinary shares are classified as equity. Incremental costs
disclosed under ‘Capital work-in-progress’. Subsequent directly attributable to the issuance of new ordinary shares
expenditures relating to property, plant and equipment are and share options are recognized as a deduction from equity,
capitalized only when it is probable that future economic net of any tax effects.
benefits associated with these will flow to the Company
and the cost of the item can be measured reliably. Repairs 1.8 Impairment
and maintenance costs are recognized in net profit in the a. Financial assets
Statement of Profit and Loss, when incurred. The cost and
related accumulated depreciation are eliminated from the The Company recognizes loss allowances using the expected
financial statements upon sale or retirement of the asset and credit loss (ECL) model for the financial assets which are
the resultant gains or losses are recognized in the Statement not fair valued through profit or loss. Loss allowance for
of Profit and Loss. trade receivables with no significant financing component is
1.7 Financial instruments financial assets, expected credit losses are measured at an
1.7.1 Initial recognition significant increase in credit risk from initial recognition in
The Company recognizes financial assets and financial which case those are measured at lifetime ECL. The amount
liabilities when it becomes a party to the contractual of expected credit losses (or reversal) that is required to adjust
provisions of the instrument. All financial assets and liabilities the loss allowance at the reporting date to the amount that
are recognized at fair value on initial recognition, except for is required to be recognized is recognized as an impairment
trade receivables which are initially measured at transaction gain or loss in profit or loss.
acquisition or issue of financial assets and financial liabilities, b. Non-financial assets
that are not at fair value through profit or loss, are added to (i) Property, plant and equipment
1.7.2 Subsequent measurement their carrying amounts may not be recoverable. For the
a. Non-derivative financial instruments the higher of the fair value less cost to sell and the value-in-
(i) Financial assets carried at amortized cost use) is determined on an individual asset basis unless the asset
A financial asset is subsequently measured at amortized cost if does not generate cash flows that are largely independent of
it is held within a business model whose objective is to hold those from other assets. In such cases, the recoverable amount
the asset in order to collect contractual cash flows and the is determined for the CGU to which the asset belongs.
contractual terms of the financial asset give rise on specified If such assets are considered to be impaired, the impairment to
dates to cash flows that are solely payments of principal and be recognized in the Statement of Profit and Loss is measured
interest on the principal amount outstanding. by the amount by which the carrying value of the assets
(ii) Financial assets at fair value through other impairment loss is reversed in the Statement of Profit and Loss
comprehensive income if there has been a change in the estimates used to determine
A financial asset is subsequently measured at fair value the recoverable amount. The carrying amount of the asset is
through other comprehensive income if it is held within a increased to its revised recoverable amount, provided that
business model whose objective is achieved by both collecting this amount does not exceed the carrying amount that would
contractual cash flows and selling financial assets and the have been determined (net of any accumulated amortization
contractual terms of the financial asset give rise on specified or depreciation) had no impairment loss been recognized for
dates to cash flows that are solely payments of principal and the asset in prior years.
1.9 Employee benefits
1.9.1 Gratuity
categories are subsequently fair valued through profit or loss. The Company provides for gratuity, a defined benefit
retirement plan (‘the Gratuity Plan’) covering eligible

employees. The Gratuity Plan provides a lump-sum payment expense and cash-flow items denominated in foreign currencies
to vested employees at retirement, death, incapacitation are translated into the relevant functional currencies using the
or termination of employment, of an amount based exchange rate in effect on the date of the transaction.
on the respective employee’s salary and the tenure of
employment with the Company. 1.11 Income taxes
Liabilities with regard to the Gratuity Plan are determined by Income tax expense comprises current and deferred income
actuarial valuation, performed by an independent actuary, tax. Income tax expense is recognized in net profit in the
at each Balance Sheet date using the projected unit credit statement of profit and loss except to the extent that it relates
method. The Gratuity scheme is unfunded. The Company to items recognized directly in equity, in which case it is
recognizes the net obligation of the gratuity plan in its Balance recognized in other comprehensive income. Current income
Sheet as an liability. Gains and losses through re-measurements tax for current and prior periods is recognized at the amount
of the net defined benefit liability are recognized in other expected to be paid to or recovered from the tax authorities,
comprehensive income. The Company recognizes the net using the tax rates and tax laws that have been enacted or
obligation of a defined benefit plan in its Balance Sheet as an substantively enacted by the Balance Sheet date. Minimum
asset or liability. Gains and losses through re-measurements alternate tax (MAT) paid in accordance with the tax laws,
of the net defined benefit liability are recognized in other which gives rise to future economic benefits in the form of
comprehensive income. tax credit against future income tax liability, is recognized as
an asset in the Balance Sheet if there is convincing evidence
1.9.2 Provident fund that the Company will pay normal tax after the tax holiday
Eligible employees of the Company receive benefits from period and the resultant asset can be measured reliably.
a provident fund, which is a defined benefit plan. Both Deferred income tax assets and liabilities are recognized for all
the eligible employee and the Company make monthly temporary differences arising between the tax bases of assets
contributions to the provident fund plan equal to a specified and liabilities and their carrying amounts in the financial
percentage of the covered employee’s salary. The Company statements. Deferred tax assets are reviewed at each reporting
has no further obligation under the provident fund plan date and are reduced to the extent that it is no longer probable
beyond its monthly contribution. that the related tax benefit will be realized.
1.9.3 Compensated absences
The Company has a policy on compensated absences enacted by the Balance Sheet date and are expected to apply
which are both accumulating and non-accumulating in to taxable income in the years in which those temporary
nature. The expected cost of accumulating compensated differences are expected to be recovered or settled . The effect
absences is determined by actuarial valuation performed of changes in tax rates on deferred income tax assets and
by an independent actuary at each Balance Sheet date using liabilities is recognized as income or expense in the period
projected unit credit method on the additional amount that includes the enactment or the substantive enactment
expected to be paid / availed as a result of the unused date. A deferred income tax asset is recognized to the extent
entitlement that has accumulated at the Balance Sheet date. that it is probable that future taxable profit will be available
Expense on non-accumulating compensated absences is against which the deductible temporary differences and tax
recognized in the period in which the absences occur. losses can be utilized. The Company offsets current tax assets
1.10 Foreign currency and current tax liabilities, where it has a legally enforceable
Functional currency either to settle on a net basis, or to realize the asset and settle
The functional currency of the Company is the Indian rupee. the liability simultaneously.
These financial statements are presented in Indian rupees. 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
Foreign-currency denominated monetary assets and liabilities realization of deferred income tax assets is dependent upon
are translated into the relevant functional currency at the generation of future taxable income during the periods
exchange rates in effect at the Balance Sheet date. The gains in which the temporary differences become deductible .
or losses resulting from such translations are included in net Management considers the scheduled reversals of deferred
profit in the Statement of Profit and Loss. Non-monetary income tax liabilities, projected future taxable income and
assets and non-monetary liabilities denominated in a foreign tax planning strategies in making this assessment. Based on
currency and measured at fair value are translated at the the level of historical taxable income and projections for
exchange rate prevalent at the date when the fair value future taxable income over the periods in which the deferred
was determined. Non-monetary assets and non-monetary income tax assets are deductible, management believes that
liabilities denominated in a foreign currency and measured the Company will realize the benefits of those deductible
at historical cost are translated at the exchange rate prevalent differences. The amount of the deferred income tax assets
at the date of the transaction. considered realizable, however, could be reduced in the near
Transaction gains or losses realized upon settlement of foreign term if estimates of future taxable income during the carry
currency transactions are included in determining net profit forward are reduced.

1.12 Earnings per equity share The Company as a lessee
Basic earnings per equity share are computed by dividing The Company’s lease asset classes primarily consist of leases
the net profit attributable to the equity holders of the for buildings. The Company assesses whether a contract
Company by the weighted average number of equity shares contains a lease, at inception of a contract. A contract is, or
outstanding during the period. contains, a lease if the contract conveys the right to control
Diluted earnings per equity share is computed by dividing the the use of an identified asset for a period of time in exchange
net profit attributable to the equity holders of the Company for consideration. To assess whether a contract conveys the
by the weighted average number of equity shares considered right to control the use of an identified asset, the Company
for deriving basic earnings per equity share and also the assesses whether: (i) the contract involves the use of an
weighted average number of equity shares that could have identified asset (ii) the Company has substantially all of the
been issued upon conversion of all dilutive potential equity economic benefits from use of the asset through the period
shares. The dilutive potential equity shares are adjusted for the of the lease and (iii) the Company has the right to direct
proceeds receivable had the equity shares been actually issued the use of the asset.
at fair value (i.e. the average market value of the outstanding At the date of commencement of the lease, the Company
equity shares). Dilutive potential equity shares are deemed recognizes a right-of-use asset (“ROU”) and a corresponding
converted as of the beginning of the period, unless issued at lease liability for all lease arrangements in which it is a
a later date. Dilutive potential equity shares are determined lessee, except for leases with a term of twelve months or less
independently for each period presented. (short-term leases) and low value leases. For these short-
The number of equity shares and potentially dilutive equity term and low value leases, the Company recognizes the lease
shares are adjusted retrospectively for all periods presented for payments as an operating expense on a straight-line basis over
any share splits and bonus share issues including for changes the term of the lease.
effected prior to the approval of the financial statements by Certain lease arrangements includes the options to extend
the Board of Directors. or terminate the lease before the end of the lease term. ROU
assets and lease liabilities includes these options when it is
1.13 Cash flow statement reasonably certain that they will be exercised.
Cash flows are reported using the indirect method, whereby The right-of-use assets are initially recognized at cost, which
profit for the period is adjusted for the effects of transactions comprises the initial amount of the lease liability adjusted for
of a non-cash nature, any deferrals or accruals of past or any lease payments made at or prior to the commencement
future operating cash receipts or payments and item of date of the lease plus any initial direct costs less any lease
income or expenses associated with investing or financing incentives. They are subsequently measured at cost less
cash flows. The cash flows from operating, investing and accumulated depreciation and impairment losses.
Right-of-use assets are depreciated from the commencement
1.14 Other income date on a straight-line basis over the shorter of the lease term
Other income is comprised primarily of interest income and useful life of the underlying asset. Right-of-use assets are
and exchange gain / loss on translation of other assets and evaluated for recoverability whenever events or changes in
liabilities. Interest income is recognized using the effective circumstances indicate that their carrying amounts may not
interest method. Dividend income is recognized when the be recoverable. For the purpose of impairment testing, the
right to receive payment is established. recoverable amount (i.e. the higher of the fair value less cost
to sell and the value-in-use) is determined on an individual
1.15 Leases asset basis unless the asset does not generate cash flows that
Ind AS 116 requires lessees to determine the lease term as the are largely independent of those from other assets. In such
non-cancellable period of a lease adjusted with any option cases, the recoverable amount is determined for the Cash
to extend or terminate the lease, if the use of such option Generating Unit (CGU) to which the asset belongs.
is reasonably certain. The Company makes an assessment The lease liability is initially measured at amortized cost at
on the expected lease term on a lease-by-lease basis and the present value of the future lease payments. The lease
thereby assesses whether it is reasonably certain that any payments are discounted using the interest rate implicit in
options to extend or terminate the contract will be exercised. the lease or, if not readily determinable, using the incremental
In evaluating the lease term, the Company considers factors borrowing rates in the country of domicile of these leases.
such as any significant leasehold improvements undertaken Lease liabilities are remeasured with a corresponding
over the lease term, costs relating to the termination of adjustment to the related right-of-use asset if the Company
the lease and the importance of the underlying asset to changes its assessment if whether it will exercise an extension
company’s operations taking into account the location of the or a termination option.
underlying asset and the availability of suitable alternatives. Lease liability and ROU asset have been separately presented
The lease term in future periods is reassessed to ensure that in the Balance Sheet and lease payments have been classified
the lease term reflects the current economic circumstances. as financing cash flows.
After considering current and future economic conditions,
the Company has concluded that no changes are required
to lease period relating to the existing lease contracts
(refer note no 2.2).

Transition an increase in cash outflows from financing activities on
Effective April 1, 2019, the Company adopted Ind AS 116 account of lease payments.
“Leases” and applied the standard to all lease contracts existing The following is the summary of practical expedients elected
on April 1, 2019 using the modified retrospective method and on initial application:
has taken the cumulative adjustment to retained earnings, on 1. Applied the exemption not to recognize right-of-use
the date of initial application. Consequently, the Company assets and liabilities for leases with less than 12 months of
recorded the lease liability at the present value of the lease lease term on the date of initial application
payments discounted at the incremental borrowing rate and 2. Excluded the initial direct costs from the measurement
the right-of-use asset at its carrying amount as if the standard of the right-of-use asset at the date of initial application.
had been applied since the commencement date of the lease, 3. Applied the practical expedient to grandfather the
but discounted at the Company’s incremental borrowing rate assessment of which transactions are leases. Accordingly,
at the date of initial application. Comparatives as at and for Ind AS 116 is applied only to contracts that were previously
the year ended March 31, 2019 have not been retrospectively identified as leases under Ind AS 17.
adjusted and therefore will continue to be reported under the The weighted average incremental borrowing rate applied
accounting policies included as part of our Annual Report for to lease liabilities as at April 1, 2019 is 8.56%
year ended March 31, 2019. The difference between the lease obligation recorded as
On transition, the adoption of the new standard resulted of March 31, 2019 under Ind AS 17 in Annual Financial
in recognition of ‘Right-of-use’ asset of ` 9,57,38,964 and Statements and the value of the lease liability as of April
a lease liability of ` 10,94,03,154. The cumulative effect 1, 2019 is primarily on account of inclusion of extension
of applying the standard, amounting to ` 96,85,178 was and termination options reasonably certain to be exercised,
debited to retained earnings, net of taxes. The effect of in measuring the lease liability in accordance with Ind AS
this adoption is significant on the loss before tax, loss for 116 and discounting the lease liabilities to the present
the period and earnings per share. Ind AS 116 will result value under Ind AS 116.
in an increase in cash inflows from operating activities and

in `
Improvement machinery Equipment equipment and fixtures
1, 2019 97,72,469 1,24,41,840 83,23,858 8,29,66,559 2,68,01,128 14,03,05,854
Additions – – 21,990 2,80,08,154 – 2,80,30,144
March 31, 2020 97,72,469 1,24,41,840 83,45,848 11,09,74,713 2,68,01,128 16,83,35,998
April 1, 2019 76,31,464 1,02,96,583 56,10,209 4,08,13,885 2,19,45,598 8,62,97,739
Depreciation 13,48,781 13,46,672 10,19,493 1,45,36,239 29,59,805 2,12,10,990
March 31, 2020 89,80,245 1,16,43,255 66,29,702 5,53,50,124 2,49,05,403 10,75,08,729
2020 7,92,224 7,98,585 17,16,146 5,56,24,589 18,95,725 6,08,27,269
in `
Improvement machinery Equipment equipment and fixtures
1, 2018 97,72,469 1,24,17,010 65,34,928 4,33,56,625 2,67,71,328 9,88,52,360
Additions – 24,830 17,88,930 3,96,09,934 29,800 4,14,53,494
March 31, 2019 97,72,469 1,24,41,840 83,23,858 8,29,66,559 2,68,01,128 14,03,05,854
April 1, 2018 62,82,683 89,52,972 45,40,044 3,09,93,860 1,89,48,248 6,97,17,807
Depreciation 13,48,781 13,43,611 10,70,165 98,20,025 29,97,350 1,65,79,932
March 31, 2019 76,31,464 1,02,96,583 56,10,209 4,08,13,885 2,19,45,598 8,62,97,739
2019 21,41,005 21,45,257 27,13,649 4,21,52,674 48,55,530 5,40,08,115

2.2 Leases Particulars As at March 31
Following are the changes in the carrying value of right-of-use 2020 2019
assets for the twelve months ended March 31, 2020: Liquid mutual fund units
in ` (refer note 2.3.1) 8,13,74,024 5,00,22,217
Particulars Category of ROU asset Total current investments 8,13,74,024 5,00,22,217
Buildings Market value of investments 8,13,74,024 5,00,22,217
Balance as of April 1, 2019 9,57,38,964
Additions – 2.3.1 Details of investments in liquid mutual fund
Deletion – units
Depreciation (1,20,98,269) The balances held in liquid mutual funds is as follows:
Balance as of March 31, in `
2020 8,36,40,695 Particulars As at March 31, 2020 As at March 31, 2019
The aggregate depreciation expense on ROU assets is included Aditya
under depreciation expense in the statement of Profit and Loss. Birla Sun
The following is the break-up of current and non-current Life Low
lease liabilities as at March 31, 2020 Duration
in ` Fund -
Particulars As at March 31, 2020 Growth
Current lease liabilities 1,05,33,275 - regular
Non-current lease liabilities 8,96,70,755 plan 1,68,237 8,13,74,024 1,11,344 5,00,22,217
Total 10,02,04,030
1,68,237 8,13,74,024 1,11,344 5,00,22,217
The following is the movement in lease liabilities during the
year ended March 31, 2020 2.4 Loans
in `
in `
Particulars Year ended March 31, 2020
Particulars As at March 31
Balance at the beginning 10,94,03,155
2020 2019
Additions –
Current
Finance cost accrued
Unsecured, Considered good
during the period 90,09,555
Other loans
Payment of lease liabilities (1,82,08,680)
Balance at the end 10,02,04,030
Total current loans 39,24,037 36,67,616
maturities of lease liabilities as at March 31, 2020 on an 2.5 Other financial assets
undiscounted basis: in `
in ` Particulars As at March 31
Particulars As at March 31, 2020 2020 2019
Less than one year 1,87,03,848 Non Current
One to five years 7,85,72,844 Rental deposits (1) 1,11,19,096 1,11,19,096
More than five years 3,67,45,449 Total non-current other
Total 13,40,22,141 financial assets 1,11,19,096 1,11,19,096
Current
The Company does not face a significant liquidity risk with Security deposits (1) 2,000 2,000
regard to its lease liabilities as the current assets are sufficient Interest accrued but not
to meet the obligations related to lease liabilities as and due (1) 25,101 25,422
when they fall due. Others (1) (2) 2,05,574 1,40,794
Rental expense recorded for short-term leases was ` 9,88,113 Total current other financial
for the year ended March 31,2020 respectively. assets 2,32,675 1,68,216
Total other financial assets 1,13,51,771 1,12,87,312
2.3 Investments (1)
in `
amortized cost 1,13,51,771 1,12,87,312
Particulars As at March 31 (2)
2020 2019 parties (refer note 2.19) 1,90,574 1,39,700
Current investments
Unquoted investment carried
at fair value through profit
or loss

2.6 Trade receivables Cash and Cash equivalents as at March 31, 2020 and March 31, 2019
(1)
include restricted cash and bank balances of ` 7,07,305 and ` 6,61,871.

in `
The restrictions are primarily on account of Lien marked against the
Particulars As at March 31 deposit accounts with financial institution against corporate credit cards.
2020 2019
Current 2.8 Other assets
Unsecured in `
Considered good (1) 34,98,03,514 34,94,15,679 Particulars As at March 31
Total trade receivables 34,98,03,514 34,94,15,679 2020 2019
(1)
Includes dues from Non current
related parties (refer to Note Others
2.19) 34,98,03,514 34,94,15,679 Prepaid expenses 13,42,627 18,30,853
Total non current other
2.7 Cash and cash equivalents assets 13,42,627 18,30,853
in ` Current
Others
Prepaid expenses 15,01,039 18,83,558
2020 2019
Balances with banks
others 9,23,930 10,24,522
Total current other assets 24,24,969 29,08,080
accounts(1) 1,36,57,005 1,35,92,223
Cash on hand 1,02,736 84,167
Total cash and cash
equivalents 1,37,59,741 1,36,76,390

The carrying value and fair value of financial instruments as at March 2020 by categories were as follows:
in `
Particulars Amortized cost Financial assets/ liabilities at fair Total carrying Total fair value
value through profit or loss value
Designated Mandatory
upon initial
recognition
Assets
(Refer to Note 2.7) 1,37,59,741 – – 1,37,59,741 1,37,59,741
Liquid mutual fund units (Refer
to Note 2.3) – – 8,13,74,024 8,13,74,024 8,13,74,024
Trade receivables (Refer to Note
2.6) 34,98,03,514 – – 34,98,03,514 34,98,03,514
Loans (Refer to Note 2.4) 39,24,037 – – 39,24,037 39,24,037
Other financial assets (Refer to
Note 2.5) 1,13,51,771 – – 1,13,51,771 1,13,51,771
Total 37,88,39,063 – 8,13,74,024 46,02,13,087 46,02,13,087
Liabilities –
Trade payables (Refer to Note
2.12) 4,13,037 – – 4,13,037 4,13,037
to Note 2.11) 3,27,90,049 – – 3,27,90,049 3,27,90,049
Total 3,32,03,086 – – 3,32,03,086 3,32,03,086

The carrying value and fair value of financial instruments as at March 2019 by categories were as follows:
in `
Particulars Amortized cost Financial assets/ liabilities at fair Total carrying Total fair value
value through profit or loss value
Designated Mandatory
upon initial
recognition
Assets:
(Refer Note 2.7) 1,36,76,390 – – 1,36,76,390 1,36,76,390
Liquid mutual fund units (Refer
note 2.3) – – 5,00,22,217 5,00,22,217 5,00,22,217
Trade receivables (Refer Note
2.6) 34,94,15,679 – – 34,94,15,679 34,94,15,679
Loan (Refer to Note 2.4) 36,67,616 – – 36,67,616 36,67,616
Note 2.5) 1,12,87,312 – – 1,12,87,312 1,12,87,312
Total 37,80,46,997 – 5,00,22,217 42,80,69,214 42,80,69,214
Liabilities:
Trade payables (Refer Note
2.12) 5,80,291 – – 5,80,291 5,80,291
Note 2.11) 6,44,84,670 – – 6,44,84,670 6,44,84,670
Total 6,50,64,961 – – 6,50,64,961 6,50,64,961

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
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
The fair value hierarchy of assets and liabilities measured at fair value on a recurring basis are as follows :
in `
Particulars As of March 31, Fair value measurement at end of the reporting
2020 period/year using
Assets
Investments in liquid mutual fund units (Refer
Note 2.3.1) 8,13,74,024 8,13,74,024 – –
The fair value hierarchy of assets and liabilities measured at fair value on a recurring basis are as follows :
in `
Particulars As of March 31, Fair value measurement at end of the reporting
2019 period/year using
Assets
Investments in liquid mutual fund units (Refer
Note 2.3.1) 5,00,22,217 5,00,22,217 – –
Financial risk management Market risk

A major portion of the business is transacted in US Dollars and
consequently the Company is exposed to foreign exchange
The Company’s activities expose it to a variety of financial risk through its sales and services in the United States.
risks: Market risk, credit risk and liquidity risk. The
The analyses of foreign currency risk from monetary assets
Company’s focus is to foresee the unpredictability of financial
and liabilities are as follows :
markets and seek to minimize potential adverse effects on its
financial performance.

in ` 2.11 Other financial liabilities
Particulars As at March 31, in `
2020 2019 Particulars As at March 31,
Accounts receivable 34,51,15,903 34,94,15,679 2020 2019
Current
Credit risk Accrued compensation to
employees (1) 2,00,08,346 5,03,59,688
Capital Creditors 74,79,450 –
Compensated absences 77,62,991 79,97,359
from trade receivables amounting to ` 34,98,03,514
Other payables (1) (2) 1,09,21,232 92,98,047
and `34,94,15,679 as of March 31, 2020 and March 31,
2019 respectively, Trade receivables are derived from 4,80,32,490 7,24,82,029
revenue earned from companies within the group and no Total current other financial
credit risk is perceived. liabilities 4,80,32,490 7,24,82,029
(1)
Credit risk on cash and cash equivalents is limited as we at amortized cost 3,27,90,049 6,44,84,670
generally invest in deposits with banks with high credit ratings (2)
Includes amount due to
assigned by credit rating agencies. Investments primarily are related parties (refer note
investment in liquid mutual fund units. 2.19) 1,09,21,232 92,98,047
Liquidity risk
As of March 31, 2020, the Company had a working capital 2.12 Trade payables
of `38,77,93,513 including cash and cash equivalents of ` in `
1,37,59,741 and current investments of ` 8,13,74,024. As Particulars As at March 31,
of March 31, 2019, the Company had a working capital 2020 2019
of `34,04,62,069 including cash and cash equivalents of Trade payables 4,13,037 5,80,291
`1,36,76,390 and current investments of ` 5,00,22,217.
Total trade payables 4,13,037 5,80,291
As of March 31, 2020 and March 31, 2019, the
outstanding compensated absences were `77,62,991 and ` The principal amount remaining unpaid as at March 31, 2020
79,97,359 respectively. to suppliers under The Micro, Small and Medium Enterprises
Development Act, requiring disclosure under the Micro, Small
2.10 Equity and Medium Enterprises Development Act, 2006 (MSMED
Equity share capital Act) is ` 2,28,027 (Previous Year ` 2,14,260)
Note: The information has been given in respect of
Particulars As at March 31, such vendors to the extent they could be identified as
2020 2019 “Micro and Small” enterprises on the basis of information
Authorized available with the Company.
50,000 (50,000) equity 2.13 Other liabilities
shares 5,00,000 5,00,000 in `
Issued, subscribed and paid- Particulars As at March 31,
up 2020 2019
Equity shares, ` 10 par value 2,50,000 2,50,000 Non current
25,000 (25,000) equity Others
shares fully paid-up Accrued Gratuity 2,44,31,371 2,10,57,076
2,50,000 2,50,000 Total non current other
liabilities 2,44,31,371 2,10,57,076
The details of shareholders holding more than 5% Current
shares are as follows : Others
in `, except as stated otherwise Accrued Gratuity 7,22,631 6,61,956
Name of the As at March 31, Withholding taxes and
shareholder 2020 2019 others 40,24,014 56,71,853
Number % held Number % held Total current other liabilities 47,46,645 63,33,809
of shares of shares
Infosys
Limited 25,000 100 25,000 100
The Company has only one class of shares referred to as

equity shares having a par value of ` 10. Each holder of equity
share is entitled to one vote per share.

2.14 Income taxes five years subject to creation of a Special Economic Zone re-
Income tax expense in the Statement of Profit and Loss comprises: Investment Reserve out of the profit of the eligible SEZ units
in ` and utilization of such reserve by the Company for acquiring
new plant and machinery for the purpose of its business as
per the provisions of the Income Tax Act, 1961
2020 2019
Current taxes 1,24,87,127 1,80,99,886 The details of income tax assets and income tax
Deferred taxes 6,68,18,970 (1,30,82,895) liabilities are as follows :
in `
Income tax expense 7,93,06,097 50,16,991
The Company is under MAT for the year ended March 31, 2020 2019
2020 and March 31, 2019. The Company has entered into Income tax assets 57,19,522 40,14,797
a Business Transfer agreement with its Holding Company, Net current income tax
the Company expects the deferred tax asset on MAT credit assets / (liability) at the end 57,19,522 40,14,797
entitlement will not be recoverable in future and accordingly
deferred tax asset on MAT credit entitlement amounting to The gross movement in the current income tax asset /
`6,88,97,307 is written off during the year. (liability) is as follows:
in `
Current tax expense for the years ended March 31, 2020
and March 31, 2019 includes ( charge)/ reversals (net of Particulars As at March 31,
provisions) amounting to `(9,147 )and `7,99,875 respectively, 2020 2019
pertaining to prior periods. Net current income tax
asset at the beginning 40,14,797 58,38,584
Entire deferred income tax for the years ended March 31,
Income tax paid, net of
2020 and March 31, 2019 relates to origination and reversal
refund 1,38,85,196 1,62,30,520
of temporary differences.
Current income tax
A reconciliation of the income tax provision to the amount expense (1,24,87,127) (1,80,99,886)
computed by applying the statutory income tax rate to the Income tax on other
income before income taxes is summarized as follows: comprehensive income 3,06,656 45,579
in `
Particulars Year ended March 31, asset at the end 57,19,522 40,14,797
2020 2019
Profit before income tax 7,14,77,255 9,18,04,082 The tax effects of significant temporary differences that resulted
Enacted tax rates in India 27.820% 27.820% in deferred income tax assets and liabilities are as follows:
Computed expected tax in `
expense 1,98,84,972 2,55,39,896 Particulars As at March 31,
Tax (reversals)/Charge 9,147 (7,99,875) 2020 2019
Deferred tax and MAT Deferred income tax assets
credit of earlier years – (8,39,117) Property, plant and
MAT credit written off 6,88,97,307 – equipment 51,07,177 49,98,685
Effect of differential tax Gratuity and others assets 51,16,462 40,68,696
rates on account of MAT 78,53,696 – Lease Liability (Including
Tax effect due to non- adjustment to opening
taxable income for Indian retained earnings
tax purposes (1,58,42,538) (1,81,56,397) Rs.39,79,012) 48,23,243 –
Effect of non-deductible MAT Credit Entitlement
expenses 5,57,858 5,25,205 (refer note below) – 6,88,97,307
Others (20,54,345) (12,52,721) Total deferred income tax
Income tax expense 7,93,06,097 50,16,991 assets 1,50,46,882 7,79,64,688
The applicable Indian statutory tax rate for fiscal year 2020 The gross movement in the deferred income tax
is 27.820% and fiscal year 2019 is 27.820%. account as follows:
in `
In India, the Company has benefited from certain tax
incentives that the Government of India has provided to the Particulars As at March 31,
export of software for the units registered under the Special 2020 2019
Economic Zones Act, 2005 (SEZ). SEZ units which began the Net deferred income tax
provision of services on or after April 1, 2005 are eligible for a asset at the beginning 7,79,64,688 6,48,81,793
deduction of 100 percent of profits or gains derived from the Debit relating to temporary
export of services for the first five years from the financial year differences - others 11,56,258 1,30,82,895
in which the unit commenced the provision of services and
50 percent of such profits or gains for further five years. Up
to 50% of such profits or gains is also available for a further

Particulars As at March 31, Particulars Year ended March 31,
2020 2019 2020 2019
Debits relating to Gain on investments
temporary differences - carried at fair value through
lease 48,23,243 – profit or loss 38,51,807 49,33,615
MAT credit written off Exchange gains on
(refer note below) (6,88,97,307) – translation of assets and
Net deferred income tax liabilities 3,11,30,688 1,51,79,149
asset at the end 1,50,46,882 7,79,64,688 Miscellaneous income – 2,49,550
Total other income 3,50,32,621 2,04,08,430
The Income tax paid under MAT provisions being over and
above normal tax liability can be carried forward for a period 2.17 Expenses
of ten years from the year of recognition (with effect from AY in `
2018-19, MAT credit can be carried forward up to fifteen years
from the year of recognition) and is available for set off against
2020 2019
future tax liabilities computed under normal tax provisions,
to the extent of excess of MAT liability. The Deferred income
Salaries including bonus 32,43,43,824 36,81,52,813
tax asset for MAT credit entitlement is ` Nil and `6,88,97,307
Contribution to
as on March 31, 2020 and March 31, 2019 respectively.
provident and other
Temporary differences - others during the year ended March funds 1,41,50,926 1,48,10,534
31, 2020 and March 31, 2019 are primarily on account of Share based payments to
property, plant and equipment, gratuity and other assets employees 16,23,187 21,68,033
The Company intends to transfer Deferred income tax as at Staff welfare 1,22,61,917 1,34,68,231
March 31, 2020 of ` 1,50,46,882 to its Holding company Total employee benefit
on completion of the process of finalizing Business Transfer expenses 35,23,79,854 39,85,99,611
Agreement to transfer its business to Holding company. Cost of software packages
Minimum alternate tax (MAT) paid in accordance with the tax and others
laws, which gives rise to future economic benefits in the form For own use 22,29,488 19,14,350
of tax credit against future income tax liability, is recognized Total cost of software
as an asset in the Balance Sheet if there is convincing evidence packages and others 22,29,488 19,14,350
that the Company will pay normal tax after the tax holiday Other expenses
period and the resultant asset can be measured reliably. The Power and fuel 72,55,086 70,60,264
Mat credit closing balance as at March 31, 2020 and March Short Term lease 9,88,113 –
31, 2019 is ` Nil and ` 6,88,97,307. MAT credit taken during Operating lease – 2,03,00,342
the year ended March 31, 2020 and March 31, 2019 is ` Nil Rates and taxes 24,020 6,689
and ` 1,25,91,111. MAT credit in the books as at April 1, 2019 Repairs and maintenance 1,02,75,862 96,46,806
has been written off in the current year as the Company has Consumables 8,53,809 11,81,851
entered into a Business Transfer agreement with its Holding Insurance 3,77,486 3,60,936
Company, the Company expects the deferred tax asset on Auditor’s remuneration
MAT credit entitlement will not be recoverable in future. Statutory audit fees 7,00,000 7,00,000
Contributions towards
2.15 Revenue from operations corporate social
in `
responsibility ( Refer to
Particulars Year ended March 31, note 2.17.1) 20,00,000 18,86,753
2020 2019 Others 2,56,670 2,60,440
Income from software Total other expenses 2,27,31,046 4,14,04,081
development services 46,53,07,768 53,85,33,352
Total revenue from 2.17.1 Corporate Social Responsibility
operation 46,53,07,768 53,85,33,352
As per Section 135 of the Companies Act, 2013, a company,
meeting the applicability threshold, needs to spend at least
2.16 Other income 2% of its average net profit for the immediately preceding
in `
three financial years on corporate social responsibility
Particulars Year ended March 31, (CSR) activities. The areas for CSR activities are destitute
2020 2019 care and rehabilitation, infrastructure for differently abled
Interest received on rehabilitation and sanitation.
financial assets carried at
A CSR committee has been formed by the Company as per
amortized cost
the Act. The funds are spent on those activities which are
Deposits with banks and
specified in Schedule VII of the Companies Act, 2013.
others 50,126 46,116

a) The gross amount required to be spent by the Company Breakup of other comprehensive income based on
during the year is ` 20,00,000 assumptions is as follows :
in `
b) The details of the amounts spent during the year on CSR
activities are as follows: Particulars Year ended March 31,
2020 2019
(Gain) / loss from change in
Particulars In Cash Yet to Total experience assumptions (8,12,526) (7,55,976)
paid in (Gain) / loss from change in
Cash financial assumptions 31,16,056 12,31,350
(i)Construction / 23,03,530 4,75,374
acquisition of any asset – – –
(ii)On purposes other The weighted-average assumptions used to determine net
than (i) above 20,00,000 – 20,00,000 periodic benefit cost for the year ended March 31, 2020 and
March 31, 2019 are as follows set out below:
2.18 Employee benefits Particulars Year ended March 31,
a.Gratuity 2020 2019
Discount rate 7.10% 7.50%
The following tables set out the status of the gratuity
Weighted average rate of
plans and the amounts recognized in the Company’s
increase in compensation
financial statements :
in `
levels 5.0% 5.0%
Particulars As at March 31 The weighted-average assumptions used to determine benefit
2020 2019 obligations as at ended March 31, 2020 and March 31, 2019
Change in benefit obligations are as follows set out below:
Benefit obligations at the Particulars Year ended March 31,
beginning 2,17,19,032 1,69,49,849 2020 2019
Service cost 44,51,404 46,16,452 Discount rate 6.20% 7.10%
Net interest on the net defined Weighted average rate of
benefit liability / asset 13,75,367 12,29,597 increase in compensation
Remeasurements Actuarial levels 5.00% 5.00%
(gains) / losses 23,03,530 4,75,374 Weighted average duration of
Benefits paid defined benefit obligation 5.9 Years 6.1 Years
(46,95,331) (15,52,240)
Benefit obligations at the end 2,51,54,002 2,17,19,032 Assumptions regarding future mortality experience are set in
accordance with the published statistics by the Life Insurance
Amount recognized in the Statement of Profit and Loss under Corporation of India.
employee benefit expenses is as follows :
in ` 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.
2020 2019
Service cost 44,51,404 46,16,452 As of March 31, 2020, every percentage point increase /
Net interest on the net defined decrease in discount rate will affect our gratuity benefit
benefit liability / asset 13,75,367 12,29,597 obligation by approximately `.38,22,377.
Net gratuity cost 58,26,771 58,46,049 As of March 31, 2020, every percentage point increase / decrease
in weighted average rate of compensation levels will affect our
Amount recognized in statement of other comprehensive gratuity benefit obligation by approximately `37,88,638.
income is as follows :
Sensitivity for significant actuarial assumptions is computed
in `
by varying one actuarial assumption used for the valuation
Particulars Year ended March 31, of the defined benefit obligation by one percentage, keeping
2020 2019 all other actuarial assumptions constant.
Actuarial (gains) / losses 23,03,530 4,75,374
The maturity profile of defined benefit obligation is as follows :
23,03,530 4,75,374 in `
Within 1 year 7,44,696
1-2 years 9,80,952
2-3 years 12,82,231
3-4 years 15,19,136
4-5 years 18,12,448
5-10 years 1,28,07,680

b. Provident fund Company make monthly contributions to this provident fund
The Company contributed ` 1,38,42,427 during the year plan equal to a specified percentage of the covered employee’s
ended March 31, 2020 and ` 1,42,65,403 during the year salary. The Company has no further obligations under the
ended March 31, 2019. Eligible employees of the Company provident fund plan beyond its monthly contributions.
receive benefits from a provident fund, which is a defined
contribution plan. Both the eligible employee and the

Name of the holding company Country Holding as at March 31,
2020 2019

(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
(20)
(21)
(22)
(23)
(24)
(25)

(26)
Under Liquidation
(27)
(28)
(29)
(30)
(31)
(32)
The details of amounts due to or due from related parties as at March 31, 2020, and March 31, 2019 are as follows:
in `
2020 2019
Trade receivables
Kallidus Inc. 34,51,15,903 34,94,15,679
Infosys ltd 46,87,611 –
34,98,03,514 34,94,15,679
Infosys ltd 1,90,574 1,39,700
1,90,574 1,39,700
Infosys ltd 1,09,21,232 92,98,047
1,09,21,232 92,98,047
The details of related parties transactions entered into by Company for the year ended March 31, 2020, and March 31,
2019 are as follows:
in `
2020 2019
Sale of software development services
Kallidus Inc. 46,06,20,157 53,85,33,352
Infosys ltd 46,87,611 –
46,53,07,768 53,85,33,352
2.20 Proposed transfer

On October 10, 2019, the Board of Directors of the Company authorized the Company to execute a Business Transfer
Agreement and related documents to transfer its principal business to Infosys Limited (Holding company), subject to securing
the requisite regulatory approvals for a consideration based on an independent valuation. As at the date of approval of these
financial statements, the Company is in the process of finalising the Business Transfer Agreement and obtaining requisite
regulatory approvals. On Business Transfer Agreement taking effect, the Company’s business will be transferred as a going
concern on a slump sale basis to Holding company and the board of directors of the Company will decide the future business
strategy of the Company.
defined in Ind AS 108, Segment reporting the Chief Operating Decision Maker (CODM) evaluates the performance and allocates
constitute a single segment in the context of Ind AS 108 Segment Reporting.

Infosys Consulting (Belgium) N.V.
To the Members of Infosys Consulting (Belgium) N.V.

Opinion
We have audited the Ind AS financial statements of Infosys Consulting (Belgium) N.V. (‘the company’), which comprises
the Balance Sheet as at 31st December 2019, the Statement of Profit and Loss (including other comprehensive income), the
Statement of Cash Flow and the Statement of Changes in Equity for the year then ended, and notes to the financial statement
including a summary of significant accounting policies and other explanatory information (herein after referred to as ‘ Ind AS
financial statements’)
Basis for opinion
572 I Infosys Consulting (Belgium) N.V. Infosys Subsidiary Financials 2019-20

iii) the Balance Sheet, the Statement of Profit and Loss and the Statement of Cash Flow and Statement of Changes in
Equity dealt with by this Report are in agreement with the books of account and
iv) in our opinion, the aforesaid Ind AS financial statements comply with the Accounting Standards specified under
Section 133 of the Act, read with relevant rule issued there under.
For Shenoy & Kamath

Partner
UDIN: 20202841AAABSO1917
Place: Bengaluru.
Infosys Subsidiary Financials 2019-20 Infosys Consulting (Belgium) N.V. I 573

Balance Sheet
in `
2019 2018
ASSETS
Non-current assets
Property, plant and equipment 2.1 – 2,09,789
Financial assets
Loans 2.3 35,47,700 –
Current assets
Financial assets
Loans 2.3 68,98,033 1,29,02,338
Total assets 9,78,18,164 15,34,98,470
Equity
Other equity (22,51,82,310) (25,17,95,322)
Total equity (19,07,07,204) (21,73,20,216)
Liabilities
Borrowings 2.10 19,55,62,362 27,34,50,537
Current liabilities
Trade payables 2.12 62,28,932 3,11,96,335
Income tax liabilities (net) 2.14 1,97,781 30,62,623
As per our report of even date attached for and on behalf of the Board of Directors of Infosys
for Shenoy & Kamath Consulting (Belgium) N.V.
Firm’s registration number:006673S
M. Rathnakar Kamath Andrew Duncan Gopal Rao

Bengaluru
March 16, 2020

2019 2018
Other income, net 2.16 20,86,558 27,25,364
Total income 35,81,33,206 33,20,28,560
Expenses
Travel expenses 1,64,00,371 2,21,59,776
Finance Cost 18,59,943 21,04,836
Depreciation and amortization expenses 2.1 2,06,733 3,26,837
Other expenses 2.17 1,28,82,260 78,82,830
Total expenses 33,40,11,939 30,82,31,304
Profit / (Loss) before tax 2,41,21,267 2,37,97,256
Tax expense
Current tax 2.14 (2,37,47,84) (41,62,015)
Profit / (Loss) for the Year 2,64,96,051 27,95,92,71
Exchange differences on translation 1,16,961 (1,10,76,480)
Total other comprehensive income / (loss), net of tax 1,16,961 (1,10,76,480)
Total comprehensive income / (loss) for the Year 2,66,13,012 1,68,82,791
Profit / (Loss) per equity share
Equity shares of par value EUR 489.32 each
Basic and Diluted (`) 26,496.05 27,959.27
Weighted average equity shares used in computing income/
(loss) per equity share

Bengaluru
March 16, 2020

in `
capital Reserves and Surplus Other attributable to
comprehensive equity holders
Retained Other reserves Exchange
translation
Balance as of January 1, 2018 3,44,75,106 (36,10,95,336) 1,72,355 9,22,44,868 (23,42,03,007)
Currency translation – – – (1,10,76,480) (1,10,76,480)
Profit for the year – 27,959,271 – – 2,79,59,271
Balance as of December 31, 3,44,75,106 (33,31,36,065) 1,72,355 8,11,68,388 (21,73,20,216)
2018
Currency translation – – – 1,16,961 1,16,961
Profit for the year – 2,64,96,051 – – 2,64,96,051
Balance as of December 31, 3,44,75,106 (30,66,40,014) 1,72,355 8,12,85,349 (19,07,07,204)
2019

Bengaluru
March 16, 2020

in `
2019 2018
Profit for the Year 2,64,96,051 2,79,59,271
Interest expense 18,30,017 21,04,836
Exchange differences on translation of assets and liabilities (3,70,041) (1,07,68,305)
Trade receivables 1,47,88,119 (39,82,864)
Other financial assets and other assets (11,18,846) 2,10,89,004
Trade payables (2,49,67,403) (49,56,224)
Other financial liabilities and other liabilities 2,34,27,102 2,79,75,843
Income taxes paid – –
Net cash from in operating activities 3,79,16,948 5,55,86,383
Net cash from in investing activities 24,56,605 73,23,161
Loan taken / (repaid) from parent company (7,78,88,175) 1,37,75,775
Interest expense (18,00,091) (21,04,836)
Interest expense on lease liability (29,926) –
Net cash (used in) / from by financing activities (7,97,18,192) 1,16,70,939
Net increase/ (decrease) in cash and cash equivalents (3,93,44,639) 7,45,80,483
Cash and cash equivalents at the beginning of the Year 7,57,19,587 11,39,104
Cash and cash equivalents at the end of the Year 3,63,74,948 7,57,19,587

Bengaluru
March 16, 2020


Infosys Consulting (Belgium) N.V. is a wholly-owned the cumulative catch-up transition method, the comparatives
subsidiary of Infosys Consulting Holding AG (formerly have not been retrospectively adjusted. The following is a
Lodestone Holding AG), Kloten (Switzerland). The Company summary of new and / or revised significant accounting
renders professional management consulting services, thereby policies related to revenue recognition:
enabling its clients to enhance business performance. Revenue is recognized upon transfer of control of promised
1.1 Accounting year products or services.
Arrangements with customers for software-related services are
either on a fixed-timeframe or on a time-and-material basis.
1.5.1 T&M
the related services are performed and revenue from the
Indian Accounting Standards (Ind AS) under the historical
end of the last invoicing to the reporting date is recognized
cost convention on the accrual basis, the provisions of the
as unbilled revenue.
Companies Act, 2013 (`the Act’) (to the extent notified). The
Ind AS are prescribed under Section 133 of the Act read with 1.5.2 Unbilled / Unearned
Rule 3 of the Companies (Indian Accounting Standards) Rules, Revenues in excess of invoicing are classified as contract
2015 and relevant amendments and rules issued thereafter. assets (referred to as unbilled revenue) while invoicing in
Accounting policies have been consistently applied except excess of revenues are classified as contract liabilities (referred
where a newly-issued accounting standard is initially adopted to as unearned revenues).
1.5.3 Contract modification
1.3 Presentation currency deletions or changes are approved either to the contract
These financial statements are presented in Indian Rupee. scope or contract price. The accounting for modifications of
1.4 Use of estimates existing contract are distinct and whether the pricing is at the
The preparation of the financial statements in conformity standalone selling price. Services added that are not distinct
with Ind AS requires the Management to make estimates and are accounted for on a cumulative catch-up basis, while those
assumptions that affect the reported balances of assets and that are distinct are accounted for prospectively, either as a
liabilities, and disclosures relating to contingent liabilities as separate contract, if the additional services are priced at the
at the date of the financial statements and reported amounts standalone selling price, or as a termination of the existing
of income and expenses during the period. contract and creation of a new contract if not priced at the
Accounting estimates could change from period to period. standalone selling price.
Actual results could differ from those estimates. Appropriate 1.5.4 Tax
Statement of Profit and loss.
in the period in which changes are made and, if material, their 1.6 Provisions
Examples of such estimates include computation of percentage Company has a present legal or constructive obligation that
of completion which requires the Company to estimate the is reasonably estimable, and it is probable that an outflow of
efforts or costs expended to date as a proportion of the total economic benefits will be required to settle the obligation.
efforts to be expended, impairment losses on financial assets, Provisions are determined by discounting the expected
future obligations under employee benefit plans, income future cash flows at a pre-tax rate that reflects current
taxes and the useful lives of property, plant and equipment market assessments of the time value of money and the risks
and intangible assets. specific to the liability.
1.5 Revenue recognition 1.7 Post-sales client support and others
The Company derives revenues primarily from The Company provides its clients with a fixed-period post-
consultancy services. sales support for corrections of errors and support on all its
Effective January 1, 2019, the Company adopted Ind AS 115, fixed-price and fixed-timeframe contracts. Costs associated
Revenue from Contracts with Customers, using the cumulative with such support services are accrued at the time when
catch-up transition method, applied to contracts that were related revenues are recorded and included in cost of sales.
not completed as at January 1, 2019. In accordance with The Company estimates such costs based on historical

experience and the estimates are reviewed annually for any costs can be measured reliably. The costs which can be
material changes in assumptions. capitalized include the cost of material, direct labor, overhead
costs that are directly attributable to preparing the asset
1.8 Onerous contracts for its intended use.
expected benefits to be derived by the Company from a 1.11 Financial instruments
contract are lower than the unavoidable costs of meeting 1.11.1 Initial recognition
continuing with the contract. Before a provision is established,
associated with that contract.
1.9 Property, plant, and equipment acquisition or issue of financial assets and financial liabilities,
Property, plant and equipment are stated at cost, less which are not at fair value through profit or loss, are added
accumulated depreciation and impairment, if any. Costs to the fair value on initial recognition. Regular way purchase
directly attributable to acquisition are capitalized until the and sale of financial assets are accounted for at trade date.
property, plant and equipment are ready for use, as intended 1.11.2 Subsequent measurement
and equipment over their estimated useful lives using Non-derivative financial instruments
the straight-line method. The estimated useful lives of (i) Financial assets carried at amortized cost
assets are as follows :
Computer equipment (1) 3-5 years it is held within a business model whose objective is to hold
Furniture and fixtures (1) 5 years the asset in order to collect contractual cash flows and the
Office Equipment (1) 5 years contractual terms of the financial asset give rise on specified
Leasehold improvement Over lease term dates to cash flows that are solely payments of principal and
Depreciation methods, useful lives and residual values are interest on the principal amount outstanding.
reviewed periodically, including at each financial year end. (ii) Financial assets at fair value through other
(1) Based on technical evaluation, the Management believes comprehensive income
that the useful lives as given above best represent the period A financial asset is subsequently measured at fair value
over which the Management expects to use these assets. through other comprehensive income if it is held within a
Hence the useful lives for these assets is different from the business model whose objective is achieved by both collecting
useful lives as prescribed under Part C of Schedule II of the contractual cash flows and selling financial assets. The
Companies Act, 2013. contractual terms of the financial asset give rise on specified
Advances paid towards the acquisition of property, plant and dates to cash flows that are solely payments of principal and
equipment outstanding at each Balance Sheet date is classified interest on the principal amount outstanding.
cost of assets not put to use before such date are disclosed (iii) Financial assets at fair value through profit or loss
under ‘Capital work-in-progress’. Subsequent expenditures A financial asset, which is not classified in any of the above
relating to property, plant and equipment is capitalized only categories, is subsequently fair-valued through profit or loss.
item can be measured reliably. Repairs and maintenance Financial liabilities are subsequently carried at amortized
costs are recognized in net profit in the Statement of Profit cost using the effective interest method. For trade and other
and Loss when incurred. The cost and related accumulated payables maturing within one year from the Balance Sheet
depreciation are eliminated from the financial statements date, the carrying amounts approximate fair value due to the
upon sale or retirement of the asset and the resultant gains short maturity of these instruments.
or losses are recognized in the Statement of Profit and Loss. 1.12 Fair value of financial instruments
1.10 Intangible assets In determining the fair value of its financial instruments, the
Intangible assets are recorded at the consideration paid Company uses a variety of methods and assumptions that
for acquisition of such assets and are carried at cost less are based on market conditions and risks existing at each
accumulated amortization and impairment. Research costs are reporting date. The methods used to determine fair value
expensed as incurred. Software product development costs include discounted cash flow analysis, available quoted
are expensed as incurred, unless technical and commercial market prices and dealer quotes. All methods of assessing
feasibility of the project is demonstrated, future economic fair value result in general approximation of value, and such
benefits are probable, the Company has an intention and value may never actually be realized.
ability to complete and use or sell the software and the

not fair-valued through profit or loss. Loss allowance for profit in the Statement of Profit and Loss. Non-monetary
are translated into the relevant functional currencies using the
(i) Property, plant, and equipment
Property, plant, and equipment are evaluated for recoverability
The translation of financial statements from functional
currency to the presentation currency is performed for assets
and liabilities using the exchange rate in effect at the Balance
purpose of impairment testing, the recoverable amount (i.e.,
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 exchange differences on translation under other
those from other assets. In such cases, the recoverable amount
components of equity.
If such assets are considered to be impaired, the impairment to 1.16 Income taxes
the asset in previous years. temporary differences arising between the tax bases of assets
The Company has a policy on compensated absences that the related tax benefit will be realized.
absences is determined by actuarial valuation performed enacted by the Balance Sheet date, and are expected to apply
expected to be paid or availed as a result of the unused of changes in tax rates on deferred income tax assets and
entitlement that has accumulated at the Balance Sheet date. liabilities is recognized as income or expense in the period
Expense on non-accumulating compensated absences is that includes the enactment or the substantive enactment
recognized in the period in which the absences occur. date. A deferred income tax asset is recognized to the extent
1.15 Foreign currency against which the deductible temporary differences and tax
Functional currency losses can be utilized. The Company offsets current tax assets
The functional currency of the Company is the Euro. These and current tax liabilities, where it has a legally enforceable
financial statements are presented in Indian Rupee. right to set off the recognized amounts and where it intends
1.17 Cash Flow Statement leases. Such assets acquired are capitalized at fair value of
Cash flows are reported using the indirect method, whereby the asset or present value of the minimum lease payments
profit for the period is adjusted for the effects of transactions at the inception of the lease, whichever is lower. Lease
of a non-cash nature, any deferrals or accruals of past or payments under operating leases are recognized as an expense
future operating cash receipts or payments and item of on a straight-line basis in the Statement of Profit and Loss
income or expenses associated with investing or financing over the lease term.
cash flows. The cash flows from operating, investing and 1.22 Recent accounting pronouncements
Ind AS 116, Leases: On March 30, 2019, the Ministry of
1.18 Other income Corporate Affairs (MCA) has notified Ind AS 116, Leases.
Other income is comprised primarily of interest income and Ind AS 116 will replace the existing leases Standard, Ind AS
exchange gain / loss on translation of other assets and liabilities. 17, Leases and related Interpretations. The Standard sets out
Interest Income is recognized using effective interest method. the principles for the recognition, measurement, presentation
1.19 Earnings per share the lessee and the lessor. Ind AS 116 introduces a single
Basic earnings per share is computed by dividing the net lessee accounting model and requires a lessee to recognize
profit after tax by the weighted average number of equity assets and liabilities for all leases with a term of more than 12
shares outstanding during the period. months, unless the underlying asset is of low value. Currently,
1.20 Borrowing cost and Loss. The Standard also contains enhanced disclosure
Borrowing cost are charged to the Statement of Profit and Loss requirements for lessees. Ind AS 116 substantially carries
in the period in which they are incurred. forward the lessor accounting requirements in Ind AS 17. The
The Company designates certain foreign exchange forward effective date for adoption of Ind AS 116 is annual periods
and options contracts as cash flow hedges to mitigate the risk beginning on or after April 1, 2019. The standard permits two
of foreign exchange exposure on highly probable forecast cash possible methods of transition:
transactions. When a derivative is designated as a cash flow • Full retrospective – Retrospectively to each prior period
hedging instrument, the effective portion of changes in the fair presented applying Ind AS 8, Accounting Policies, Changes
value of the derivative is recognized in other comprehensive in Accounting Estimates and Errors.
income and accumulated in the cash flow hedging reserve. • Modified retrospective – Retrospectively, with the
Any ineffective portion of changes in the fair value of the cumulative effect of initially applying the Standard
derivative is recognized immediately in the net profit in the recognized at the date of initial application. Under
Statement of Profit and Loss. If the hedging instrument no modified retrospective approach, the lessee records the
longer meets the criteria for hedge accounting, then hedge lease liability as the present value of the remaining lease
accounting is discontinued prospectively. If the hedging payments, discounted at the incremental borrowing rate
instrument expires or is sold, terminated or exercised, the and the right-of-use asset either as:
cumulative gain or loss on the hedging instrument recognized • Its carrying amount as if the standard had been
in cash flow hedging reserve till the period the hedge was applied since the commencement date, but discounted
effective remains in cash flow hedging reserve until the at lessee’s incremental borrowing rate at the date of
forecasted transaction occurs. The cumulative gain or loss initial application. or
previously recognized in the cash flow hedging reserve is
transferred to the net profit in the Statement of Profit and Loss
amount of any prepaid or accrued lease payments related
upon the occurrence of the related forecasted transaction.
to that lease recognized under Ind AS 17 immediately
If the forecasted transaction is no longer expected to occur,
before the date of initial application.
then the amount accumulated in cash flow hedging reserve is
reclassified to net profit in the Statement of Profit and Loss. Certain practical expedients are available under both the
1.21 Leases Retrospective Approach’ for transitioning to Ind AS 116, and
Accounting policy take the cumulative adjustment to retained earnings, on the
date of initial application (January 1, 2020). The effect of
Lease under which the Company assumes substantially all adoption is not expected to be material for the Company’s
the risks and rewards of ownership are classified as finance financial statements.

in `
2019 1,43,36,582 7,79,597 67,07,810 18,47,749 2,36,71,738

Deletions – – – – –
Translation difference 19,715 1,072 9,225 2,541 32,553
31, 2019 1,43,56,297 7,80,669 67,17,035 18,50,290 2,37,04,291
January 1, 2019 (1,43,36,582) (7,79,597) (64,98,021) (18,47,749) (2,34,61,949)
Depreciation – – (2,06,733) – (2,06,733)
Accumulated depreciation on deletions – – – – –
Translation difference (19,715) (1,072) (12,281) (2,541) (35,609)
December 31, 2019 (1,43,56,297) (7,80,669) (67,17,035) (18,50,290) (2,37,04,291)
2019 – – – – 0
Carrying value as of January 1, 2019 – – 2,09,789 – 2,09,789
in `
2018 1,37,16,447 7,45,875 64,17,661 17,67,824 2,26,47,807
Deletions – – – – –
Translation difference 6,20,135 33,722 2,90,149 79,925 10,23,931
31, 2018 1,43,36,582 7,79,597 67,07,810 18,47,749 2,36,71,738
January 1, 2018 (1,37,16,447) (7,45,875) (59,07,641) (17,67,824) (2,21,37,787)
Depreciation – – (3,26,837) – (3,26,837)
Accumulated depreciation on deletions – – – – –
Translation difference (6,20,135) (33,722) (2,63,543) (79,925) (9,97,325)
December 31, 2018 (1,43,36,582) (7,79,597) (64,98,021) (18,47,749) (2,34,61,949)
2018 – – 2,09,789 – 2,09,789
Carrying value as of January 1, 2018 – – 5,10,020 – 5,10,020
2.2 Intangible assets The changes in the carrying value of acquired intangible
The changes in the carrying value of acquired intangible assets for the year ended December 31, 2018 are follows:
in `
assets for the year ended December 31, 2019 are follows:
in ` Particulars Software Total
Particulars Software Total Gross carrying value as of
Gross carrying value as of January 1, 2018 26,84,297 26,84,297
January 1, 2019 26,84,297 26,84,297 Additions/Adjustments – –
Additions / Adjustments – – Deletions/Adjustments – –
Deletions / Adjustments – – Gross carrying value as of
Gross carrying value as of December 31, 2018 26,84,297 26,84,297
December 31, 2019 26,84,297 26,84,297 Accumulated amortization as
Accumulated amortization as of January 1, 2019 (26,84,297) (26,84,297)
of January 1, 2019 (26,84,297) (26,84,297) Amortization expense – –
Amortization expense – – Deletion – –
Deletion – – Accumulated amortization as
Accumulated amortization as of December 31, 2018 (26,84,297) (26,84,297)
of December 31, 2019 (26,84,297) (26,84,297) Carrying value as of
Carrying value as of December 31, 2018 – –
December 31, 2019 – –

2.3 Loans 2.6 Cash and cash equivalents
in ` in `
2019 2018 2019 2018
Non-current Balances with banks
Unsecured, considered good In current accounts 3,63,74,948 7,57,19,587
Loans to employees 35,47,700 – Total cash and cash
35,47,700 equivalents 3,63,74,948 7,57,19,587
Unsecured, considered
doubtful 2.7 Other assets
Loans to employees – – in `
35,47,700
Less: Allowance for
2019 2018
doubtful loans to
employees – – Current
35,47,700 – Others
Current Prepaid expenses 39,651 5,16,888
Unsecured, considered good Withholding taxes and
Loans to employees 68,98,033 1,29,02,338 others 72,54,200 60,78,145
68,98,033 1,29,02,338 Total current other assets 72,93,851 65,95,033
Total loans 1,04,45,733 1,29,02,338
2.4 Other financial assets Financial instruments by category
in `
The carrying value and fair value of financial instruments by
Particulars As at December 31, categories were as follows:
2019 2018 in `
Current Particulars As at December 31,
Rental deposits 13,57,695 – 2019 2018
Others (1) 5,06,556 14,44,223 Assets
18,64,251 14,44,223 Cash and cash equivalents
Total current other financial (Refer to Note 2.6) 3,63,74,948 7,57,19,587
assets 18,64,251 14,44,223 Trade receivables (Refer to
Financial assets carried at Note 2.5) 4,18,39,381 5,66,27,500
amortized cost 18,64,251 14,44,223 Loans (Refer to Note 2.3) 1,04,45,733 1,29,02,338
(1)
Includes dues from related Other financial assets (Refer
parties (Refer to Note 2.19) 5,06,556 14,44,223 to Note 2.4) 18,64,251 14,44,223
Total 9,05,24,313 14,66,93,648
Liabilities
2.5 Trade receivables Trade payables (Refer to
in ` Note 2.12) 62,28,932 3,11,96,335
Particulars As at December 31, Borrowings (Refer to Note
2019 2018 2.10) 19,55,62,362 27,34,50,537
Current Other financial liabilities
Unsecured (Refer to Note 2.11) 6,48,16,494 5,13,70,490
Considered Total
26,66,07,788 35,60,17,362
good (1) 4,18,39,381 5,66,27,500
Trade receivables – All the above financial assets are carried at amortized cost and
Credit impaired – the carrying values approximates their fair value.
4,18,39,381 5,66,27,500
Less: Allowances for credit Financial risk management
losses –
(1)
Includes dues from related The Company’s activities expose it to a variety of financial
parties (Refer to Note 2.19) 3,45,28,805 5,66,27,500 risks: market risk, credit risk and liquidity risk. The
Company’s focus is to foresee the unpredictability of
financial markets and seek to minimize potential adverse
effects on its financial performance. The primary market risk
to the Company is foreign exchange risk. The Company’s

exposure to credit risk is influenced mainly by the individual Particulars As at December 31
characteristic of each customer and the concentration of risk 2019 2018
from the top few customers.
Equity shares, EUR 489.32
Credit risk par value 3,44,75,106 3,44,75,106
1,000 (1,000) equity shares
fully paid-up
3,44,75,106 3,44,75,106
from trade receivables amounting to ` 4,17,87,969 and ` The details of shareholders holding more than 5%
5,66,27,500 crore as of December 31, 2019 and December 31, shares are as follows :
2018, respectively. Trade receivables are typically unsecured. in `, except as otherwise stated
Credit risk has always been managed by the Company
Name of the As at December 31,
through credit approvals, establishing credit limits and
shareholder 2019 2018
continuously monitoring the creditworthiness of customers
Number % held Number % held
to which the Company grants credit terms in the normal
of shares of shares
course of business. On account of adoption of Ind AS 109,
Infosys
the Company uses ECL model to assess the impairment loss
Consulting
or gain. The Company uses a provision matrix to compute the
Holding AG
ECL allowance for trade receivables and unbilled revenues.
(formerly
The provision matrix takes into account available external
Lodestone
and internal credit risk factors such as credit default swap
Holding AG) 999 99.90 999 99.90
quotes, credit ratings from international credit rating agencies
2.10 Borrowings
Credit risk exposure in `, except as otherwise stated
The reversal for lifetime ECL on customer balances for the Particulars As at December 31,
year ended December 31, 2019 was nil. 2019 2018
in ` Non-current
Particulars For the year ended Unsecured loan from parent
December 31, (Refer to Note 2.19) (1) 19,55,62,362 27,34,50,537
2019 2018 Total borrowings
Balance at the beginning – – 19,55,62,362 27,34,50,537
Impairment loss recognized / (1)
The loans were given in accordance with the terms and conditions of the
reversed – – loan agreement and carries an interest rate of 0.75% per annum each,
Translation differences – – and are repayable at the discretion of the lender.
Balance at the end – –
Credit risk on cash and cash equivalents is limited as we in `
generally invest in banks with high credit ratings assigned by Particulars As at December 31,
international and domestic credit rating agencies. 2019 2018
Non-current
Liquidity risk
Loans and advances to
The Company’s principal sources of liquidity are cash and employees 68,98,033 50,53,575
cash equivalents. The Company has taken loan from its parent 68,98,033 50,53,575
company to meet its working capital requirement. Current
As of December 31, 2019 and December 31, 2018 the Others
Company had cash and cash equivalents of ` 3,63,74,948 Accrued compensation
and ` 7,57,19,587 respectively. to employees 2,31,22,632 1,57,25,955
Accrued expenses (1) 4,12,65,349 2,05,07,925
2.9 Equity Compensated absences 1,24,56,124 56,59,483
Equity share capital Other payables (2) 4,28,513 1,51,36,610
in `, except as stated otherwise 7,72,72,618 5,70,29,973
Particulars As at December 31 Total financial liabilities 8,41,70,651 6,20,83,548
2019 2018 Financial liability carried at
amortized cost 6,48,16,494 5,13,70,490
Authorized (1)
Equity shares, EUR 489.32
par value 3,44,75,106 3,44,75,106 (2)
1,000 (1,000) equity shares 3,44,75,106 3,44,75,106
parties (Refer to Note 2.19) 4,28,513 1,49,54,382
Issued, subscribed and paid-
up

2.12 Trade payables Particulars Year ended December 31,
in ` 2019 2018
Particulars As at December 31, Current income tax liabilities 1,97,781 30,62,623
2019 2018 Net current income tax assets
Trade payables (1) 62,28,932 3,11,96,335 / (liability) at the end (1,97,781) (30,62,623)
Total trade payables 62,28,932 3,11,96,335
The gross movement in the current income tax asset /
(1) (liability) is as follows:
parties (Refer to Note 2.19) 61,77,520 1,19,32,299 in `
2.13 Other liabilities 2019 2018
in ` Net current income tax asset
Particulars As at December 31, / (liability) at the beginning (30,62,623) (68,89,857)
2019 2018 Income tax paid – –
Current Current income tax expense
Others (Refer to Note 2.14) 23,74,784 41,62,015
Withholding taxes and Translation difference 4,90,058 (3,34,781)
others 23,65,642 10,25,643 Net current income tax asset
Total current other / (liability) at the end (1,97,781) (30,62,623)
liabilities 23,65,642 10,25,643
2.14 Income taxes in `
Income tax expense in the Statement of Profit and Loss comprises: Particulars Year ended December 31,
in ` 2019 2018
Particulars Year ended December 31, Income from consultancy
2019 2018 services 35,60,46,648 32,93,03,196
Current taxes (23,74,784) (41,62,015) Total revenue from
Income tax expense (23,74,784) (41,62,015) operations 35,60,46,648 32,93,03,196
Current tax expense for the years ended December 31,

2019 and December 31, 2018 includes reversals (net
of provisions) amounting to `25,59,859 and provisions The table below presents disaggregated revenues from
(net of reversals) amounting to ` 43,83,159 respectively, contracts with customers by offerings for the year ended
pertaining to prior periods. December 31, 2019. The Company believes that this
disaggregation best depicts how the nature, amount, timing
and uncertainty of our revenues and cash flows are affected
by industry, market and other economic factors.
income before income taxes is summarized as follows: in `
in `
2019
2019 2018
Revenue by offerings
Profit before income tax 2,41,21,267 2,37,97,256
Core 34,35,75,953
Enacted tax rates (%) 29.58 29.58
Digital 1,24,70,695
Total
expense 71,35,071 70,39,228
35,60,46,648
Tax provisions / (reversals) (25,59,859) (43,83,159)
deferred tax assets on loss (70,36,004) (70,39,228) Digital Services
Others 86,008 2,21,144 Digital Services comprise of service and solution offerings
Income tax expense (23,74,784) (41,62,015) of the Company that enable our clients to transform their
businesses. These include offerings that enhance customer
The applicable Belgium statutory tax rates for the year ended experience, leverage AI-based analytics and big data, engineer
December 31, 2019 and December 31, 2018 is 29.58%. digital products and IoT, modernize legacy technology
The details of income tax assets and income tax systems, migrate to cloud applications and implement
liabilities are as follows : advanced cybersecurity systems.
in `
2019 2018
Income tax assets – –

Core Services 2.17 Expenses
in `
Core Services comprise traditional offerings of the Company
that have scaled and industrialized over a number of years. Particulars Year ended December 31,
These primarily include application management services, 2019 2018
proprietary application development services, independent Employee benefit expenses
validation solutions, product engineering and management, Salaries including bonus 19,29,35,161 22,26,83,639
infrastructure management services, traditional enterprise Share-based payments to
application implementation, support and integration services. employees 89,669 –
Staff welfare 18,66,130 13,73,184
Performance obligations and remaining performance Total employee benefit
obligations expenses 19,48,90,960 22,40,56,823
in `
these amounts in revenue. Applying the practical expedient Other expenses
as given in Ind AS 115, the Company has not disclosed the Brand and marketing 1,03,868 1,15,959
remaining performance obligation related disclosures for Operating lease payments 95,37,337 74,87,446
contracts where the revenue recognized corresponds directly Rates and taxes 6,11,910 7,98,371
with the value to the customer of the entity’s performance Repairs and maintenance 6,19,863 2,30,475
completed to date, typically those contracts where invoicing Insurance 2,42,540 2,49,169
is on time and material basis. Remaining performance Auditor’s remuneration 6,37,743 6,54,608
obligation estimates are subject to change and are affected by Others 11,28,999 (16,53,198)
several factors, including terminations, changes in the scope Total other expenses 1,28,82,260 78,82,830
of contracts, periodic revalidations, adjustment for revenue
that has not materialized and adjustments for currency. 2.18 Leases
The aggregate value of performance obligations that are Obligations on long-term, non-cancellable operating leases
completely or partially unsatisfied as at December 31, 2019,
other than those meeting the exclusion criteria mentioned The lease rentals charged during the period are as follows :
in `
above, is nil. The contracts can generally be terminated by the
customers and typically includes an enforceable termination Particulars Year ended December 31,
penalty payable by them. 2019 2018
The impact on account of applying the erstwhile Ind AS 18,
during the year 95,37,337 74,87,446
Revenue instead of Ind AS 115, Revenue from contract with
customers on the financials results of the Group for the year The obligations on long-term, non-cancellable operating
ended December 31, 2019 is insignificant. leases payable as per the rentals stated in the respective
2.16 Other income agreements are as follows:
in `
in `
Particulars Year ended December 31, Future minimum lease As at December 31,
payable 2019 2018
2019 2018
Exchange gains / (losses) on Not later than 1 year 31,62,801 24,09,273
foreign currency forward Later than 1 year and not
and options contracts – – later than 5 years 24,77,732 –
Miscellaneous income, net 20,86,558 27,25,364 Later than 5 years – –
Total other income 20,86,558 27,25,364 The operating lease arrangements are renewable on a periodic
basis and for most of the leases, extend up to a maximum of
10 years from their respective dates of inception and relates
to rented premises. Some of these lease agreements have

Name of the holding company Country Holding as at December 31,
2019 2018
Infosys Consulting Holding AG (Infosys Lodestone) Switzerland 99.90% 99.90%

List of fellow subsidiaries
Infosys Tecnologia DO Brasil Ltda. (Infosys Brasil) (25) Brazil
Infosys Americas Inc. (Infosys Americas) US
Infosys Public Services, Inc. (Infosys Public Services) US

Fluido Oy (9)(14) Finland
HIPUS (20) Japan
Stater N.V.. (21) The Netherlands
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
(20)
(21)
On May 23, 2019, Infosys Consulting Pte. Ltd, acquired 75% of the voting interests in Stater N.V
(22)
(23)
(24)
(25)
(26)
Under liquidation
The details of amounts due to or due from related parties as at December 31, 2019 and December 31, 2018 are as follows
in `
2019 2018
Trade receivables
Infosys Consulting AG 51,412 95,92,671
Infy Consulting Company Ltd. 3,44,77,393 4,49,95,859
3,45,28,805 5,66,27,500
Loans (1)

2019 2018
19,55,62,362 27,34,50,537
Trade payables
Infosys Consulting AG 36,73,975 –
Infy Consulting B.V. 9,03,045 22,26,684
61,77,520 1,19,32,299
Other payables
Infosys Consulting AG – 72,191
Infosys Consulting SAS – 11,86,596
Infy Consulting B.V. – 25,65,838
4,28,513 1,49,54,382
Other receivables
5,06,556 14,44,223
Accrued expenses
2,19,077 1,25,373
The above loans were given in accordance with the terms and conditions of the loan agreement and carries an interest rate of 0.75% per annum.
(1)
in `
Particulars For the year ended December 31
2019 2018
Loans (net of repayment)
Infosys Consulting Holding AG (7,96,93,973) 1,37,75,775
(7,96,93,973) 1,37,75,775
Purchase of shared services, facilities & personnel
1,06,48,491 1,94,32,627
Interest expenses
Infosys Consulting Holding AG 18,05,798 20,57,949
18,05,798 20,57,949
Sale of services
Infy Consulting Company Ltd. 32,47,77,025 29,84,29,730
35,60,46,647 32,93,03,197
Management Fees
19,76,110 26,20,709


Infosys BPO Americas LLC
To,
The Board of Directors
Infosys BPO Americas, LLC
We have audited the accompanying financial statements of Infosys BPO Americas, LLC (a Delaware corporation), which
comprise the Balance Sheets as of March 31, 2020 and 2019 and the related statements of operations, changes in member’s
equity, and cash flows for the years then ended, and the related notes to the financial statements.
Management’s responsibility for the financial statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting
principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of
internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in
accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
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 entity’s preparation and fair presentation of the financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Infosys
BPO Americas, LLC, as of March 31, 2020 and 2019 and the results of its operations and its cash flows for the years then ended
in accordance with accounting principles generally accepted in the United States of America.
Sudhir Pai CPA, PLLC
Certified Public Accountants
Irving, TX
Date: May 11, 2020
Infosys BPO Americas, LLC
592 I Infosys BPO Americas LLC Infosys Subsidiary Financials 2019-20

Balance Sheet
(in US$)
Particulars Notes As at March 31,
2020 2019
Assets
Current assets
Cash and cash equivalents 3 981,734 2,275,969
Accounts receivables, net of doubtful balances 244,402 116,939
Unbilled revenue 763,424 141,373
Prepayments and other assets 92,951 35,547
Non-current assets
Plant and equipment 18,080 −
Total non-current assets 18,080 −
Total assets 2,100,591 2,569,828
Current liabilities
Loan from related parties − 513,596
Provisions 4,643 5,494
Total current liabilities 954,242 1,151,136
Other non-current liabilities − −
Total non-current liabilities − −
Total liabilities 954,242 1,151,136
Member’s equity
Member’s equity 3,000,000 3,000,000
Accumulated deficit (1,853,651) (1,581,308)
Total member’s equity 1,146,349 1,418,692
Total liabilities and member’s equity 2,100,591 2,569,828

Prem Pereira
Authorized Signatory
Date: May 11, 2020
Infosys Subsidiary Financials 2019-20 Infosys BPO Americas LLC I 593

Statements of comprehensive income
(in US$)
Notes Year ended March 31,
2020 2019
Revenue 3,059,634 1,370,863
Cost of revenue 4 3,082,499 1,296,280
Gross profit / (loss) (22,865) 74,583
Other expenses:
Selling and marketing expenses 237 50,855
Administrative expenses 266,285 338,487
Total other expenses 5 266,522 389,342
Operating loss (289,387) (314,759)
Interest expense 4,329 12,500
Miscellaneous income (21,373) (2)
Loss before income taxes (272,343) (327,257)
Income tax expense − −
Net Profit / (Loss) (272,343) (327,257)
Other comprehensive income − −
Total comprehensive loss (272,343) (327,257)

Prem Pereira
Date: May 11, 2020

Statements of changes in member’s equity
(in US$)
Particulars Member’s Additional paid Accumulated Total member’s
equity in capital deficit equity
Balance as of April 1, 2018 1,000,000 − (1,254,051) (254,051)
Changes in members equity for the year ended
March 31, 2019
Shares issued to member − 2,000,000 − 2,000,000
Net loss for the period − − (327,257) (327,257)
Balance as of March 31, 2019 1,000,000 2,000,000 (1,581,308) 1,418,692
Changes in members equity for the period ended
March 31, 2020
Net loss for the period − − (272,343) (272,343)
Balance as of March 31, 2020 1,000,000 2,000,000 (1,853,651) 1,146,349

Prem Pereira
Date: May 11, 2020

Statement of cash flows
(in US$)
2020 2019
Net loss for the period (272,343) (327,257)
Provision for service level risk on revenue contracts (851) 5,494
Allowance for doubtful accounts 8,103 1,559
Depreciation 4,669 −
Exchange difference 2 (2)
Interest expense 4,328 12,500
Cash operating loss (256,091) (307,706)
Accounts receivable (129,228) (117,643)
Prepayments and other assets (57,404) 49,765
Unbilled revenues (628,392) (142,227)
Other liabilities and provisions 311,715 217,381
Net cash used in operating activities (753,562) (156,064)
Expenditure on property, plant and equipment (22,749) −
Net cash used in investing activities (22,749) −
Capital Infusion − 2,000,000
Repayment of loan to related parties (517,924) −
Net cash from / (used in) financing activities (517,924) 2,000,000
Net changes in cash and cash equivalents (1,294,235) 1,843,936
Cash and cash equivalents at the beginning of the period 2,275,969 432,033
Cash and cash equivalents at the end of the period 981,734 2,275,969
Supplementary information
Interest paid during the period 17,295 −

Prem Pereira
Date: May 11, 2020

Infosys BPO Americas, LLC related services are rendered. Revenue related to fixed-price
agreements is recognized on a percentage of completion basis
over the term of the agreement. In measuring progress towards
Financial statements for the year ended March completion, the input (efforts expended) method has been
31, 2020 used. Provision for estimated losses, if any, on uncompleted
Notes to the financial statements for the year contracts are recorded in the period in which such losses
ended March 31, 2020 become probable based on the current estimates. Costs and
earnings in excess of billings are classified as unbilled revenue
1. Company overview and significant while billings in excess of costs and earnings are classified as
accounting policies unearned revenue. The Company has adopted ASC 606 from
April 1, 2019 using the modified retrospective method and
1.1 Company overview
does not have major impact on the Company on adoption.
Infosys BPO Americas, LLC, (“the Company”) is a mortgage
fulfillment services based business that provides end to end 1.5 Plant and equipment
mortgage fulfillment services. Property and equipment are stated at cost, less accumulated
The Company was formed in November 2015 as a limited depreciation. The Company depreciates property and
liability company under the provisions of the Delaware equipment over their estimated useful lives using the straight-
Limited Liability Company Act (“the Act”). The Company was line method. The estimated useful lives of assets are as follows:
formed by Infosys BPM Limited (formerly known as Infosys Computer equipment 3-5 years
BPO Limited), a subsidiary of Infosys Limited. Office furniture and
1.2 Basis of preparation of financial statements equipment 5 years
The accompanying financial statements have been prepared Leasehold improvements are amortized on a straight line basis
in conformity with US Generally Accepted Accounting over the lesser of the remaining lease term or the estimated
Principles to reflect the financial position and results of useful life of the asset.
operations of the Company. The financial statements have For computer equipment, based on internal assessment and
been presented in United States Dollars. independent technical evaluation carried out by external
valuers the Management believes that the useful lives as given
1.3 Use of estimates above best represent the period over which Management
The preparation of financial statements is in conformity with expects to use these assets.
US Generally Accepted Accounting Principles (US GAAP) The cost of software purchased for internal use is accounted
requires management to make estimates and assumptions under FASB ASC Topic 350-40 (SOP 98-1), Accounting for
that affect the reported amounts of assets and liabilities, the Costs of Computer Software Developed or Obtained for
revenues and expenses and disclosure of contingent assets Internal Use. Deposits paid towards the acquisition of these
and liabilities. Appropriate changes in estimates are made long lived assets outstanding at each Balance Sheet date and
as management becomes aware of changes in circumstances the cost of assets not put to use before such date are disclosed
surrounding the estimates. Changes in estimates are reflected under “Capital work-in-progress”. Costs of improvements
in the financial statements in the period in which changes are that substantially extend the useful life of particular assets
made and, if material, their effects are disclosed in the notes are capitalized. Repairs and maintenance cost are charged to
to the financial statements. earnings when incurred. The cost and related accumulated
Estimation of uncertainties relating to the global depreciation are removed from the financial statements upon
pandemic from COVID-19 (COVID-19) sale or disposition of the asset.
The Company has considered the possible effects that may The Company evaluates the recoverability of these assets
result from the COVID-19 pandemic on the carrying amounts whenever events or changes in circumstances indicate that
of receivables and unbilled revenues. In developing the their carrying amounts may not be recoverable. Recoverability
assumptions relating to the possible future uncertainties in of assets to be held and used is measured by a comparison
the global economic conditions because of this pandemic, of the carrying amount of an asset to future undiscounted
the Company, as at the date of approval of these financial net cash flows expected to be generated by the asset. If such
statements has used internal and external sources of assets are considered to be impaired, the impairment to be
information and related information and economic forecasts. recognized is measured by the amount by which the carrying
The Company expects to recover the carrying amount of value of the assets exceeds the fair value. Assets to be disposed
these assets and will continue to closely monitor any material are reported at the lower of the carrying value or the fair value
changes to future economic conditions. less the cost to sell.
1.4 Revenue recognition 1.6 Cash and cash equivalents

Revenue from mortgage fulfillment services, which principally Cash and cash equivalents comprise cash and cash
relates to implementation, enhancement, training and support on deposit with banks.
services associated with the Company’s products, is derived
under both time-and-material and fixed-price agreements.
Revenue on time-and-material contracts is recognized as the

1.7 Accounts receivable 5. Other expenses
Accounts receivable are recorded at the invoiced amount. The In US$
Company’s accounts receivable relate principally to revenue Particulars For the year ended March 31,
earned from customers located in the United States. 2020 2019
The Company maintains an allowance for doubtful accounts Salaries 72,137 187,358
to provide coverage for losses from client receivables. In Legal and professional
establishing the required allowance, management considers charges 78,647 33,381
historical losses adjusted to take into account current market Others(insurance, rates
conditions and customers’ financial condition, the amount and taxes) 115,738 168,602
of receivables in dispute, the current receivables aging and Total 266,522 389,342
current payment patterns. Account balances are charged off
against the allowance after all means of collection have been 6. Related party transactions
exhausted and the potential for recovery is considered remote. Name of the related party and their relationships:
1.8 Employee benefit obligations Holding Company- Infosys BPM Limited (formerly
The employees of the Company are entitled to compensated known as IBPO Limited)
absences which is non-accumulating in nature. Expense on The details of the related party transactions entered into by
non-accumulating compensated absences is recognized in the the Company during the years ended March 31, 2020 and
period in which the absences occur. March 31, 2019 as follows
In US$
1.9 Income taxes
Loan Repayment For the year ended March 31,
Income taxes are accounted using the asset and liability 2020 2019
method. Deferred tax assets and liabilities are recognized Infosys Public Services
for the future tax consequences attributable to differences Limited 517,925 −
between the financial statement carrying amounts of existing 517,925 −
assets and liabilities, and their respective tax bases. Deferred
tax assets and liabilities are measured using enacted tax rates in US$
expected to apply to taxable income in the years in which Capital infusion For the Year ended March 31,
those temporary differences are expected to be recovered or 2020 2019
settled. The effect of changes in tax rates on deferred tax Infosys BPM Limited − 2,000,000
assets and liabilities is recognized as income or expense in the − 2,000,000
period that includes the enactment date. The measurement
of deferred tax assets is reduced, if necessary, by a valuation The details of the amount due to or due from the related
allowance if it is more likely than not that some portion or parties as at March 31, 2020 and March 31, 2019 as follows
in US$
all of the assets will not be realized. Changes in valuation
allowance from period to period are reflected in the income Loans As at March 31,
statement of the period of change. 2020 2019
Infosys Public Services
2. Member’s equity Limited − 513,596
At March 31, 2020, the Company had one member, Infosys − 513,596
BPM Limited (“the Member”). The Member owns 100% of
the interests of the Company. 7. Subsequent events
3. Cash and cash equivalents The Company has evaluated all events or transactions that
In US$ occurred after the Balance Sheet date through the date that the
Particulars As at March 31, financial statements were available for issue. The Company
2020 2019 is not aware of any additional subsequent events that would
-Current account 981,734 2,275,969 require recognition or disclosure in the financial statements.
For Infosys BPO Americas, LLC
4. Cost of revenue Prem Pereira
In US$
2020 2019 Date: May 11, 2020
Salaries 1,587,350 723,344
Subcontractor charges 1,078,110 566,432
Others 417,039 6,504
Total 3,082,499 1,296,280

Infosys Consulting S.R.L. (Romania)
To the Members of Infosys Consulting S.R.L.
Opinion
We have audited the Ind AS financial statements of Infosys Consulting S.R.L (registered in Romania) (‘the company’), which
comprises the Balance sheet as at 31st December 2019, the Statement of Profit and Loss (including other comprehensive
income), the Statement of Cash Flow and the Statement of Changes in Equity for the year then ended, and notes to the financial
statement including a summary of significant accounting policies and other explanatory information (herein after referred to
as ‘ Ind AS financial statements’)
Basis for opinion
600 I Infosys Consulting S.R.L. (Romania) Infosys Subsidiary Financials 2019-20

For Shenoy & Kamath

UDIN : 20202841AAABSR1753
Partner
Place: Bengaluru.
Infosys Subsidiary Financials 2019-20 Infosys Consulting S.R.L. (Romania) I 601

Balance Sheet
in RON
2019 2018
ASSETS
Non-current assets
Capital work-in-progress – 3,082,381
Current assets
Financial assets
Cash and cash equivalents 2.5 390,016 1,389,645
Loans 2.2 315,207 336,512
Other financial assets 2.3 1,588,045 900,836
Total assets 28,101,547 15,359,328
Equity
Other equity 6,312,005 2,854,935
Total equity 16,230,305 12,773,235
Liabilities
Current liabilities
Borrowings 5,041,096 –
Trade payables 2.10 926,661 345,682
Other current liabilities 2.11 1,861,619 –
Income tax liabilities, net 2.12 371,185 370,001

As per our report of even date attached for and on behalf of the Board of Directors of Infosys Consulting S.R.L.
for Shenoy & Kamath
M. Rathnakar Kamath Cristin Florescu Umashankar Lakshmipathy

Bengaluru
March 16, 2020

in RON, except equity share and per equity share data
2019 2018
Other income, net 2.14 326,407 68,544
Total income 61,995,145 19,798,160
Expenses
Cost of technical sub-contractors 486,160 243,372
Consultancy and professional charges 1,804,430 694,382
Depreciation expenses 2.1 2,435,200 161,520
Other expenses 2.15 6,764,051 1,286,540
Total expenses 57,709,126 18,537,636
Tax expense
Current tax 2.12 828,949 82,955
Equity shares of RON 100 par value each
Basic (RON) 34.86 11.87
Diluted (RON) 34.86 85.41
equity share
Basic 99,183 99,183
Diluted 99,183 13,787

for Shenoy & Kamath

Bengaluru
March 16, 2020

in RON
Securities Retained General Other equity holders
premium earnings reserve reserves of the Company
Balance as at January 1, 2018 6,00,000 8,00,000 28,63,081 147,887 120,000 45,30,968
Increase in share capital 9,318,300 – – – – 9,318,300
Dividend paid during the year – – (2,253,601) – – (2,253,601)
Profit for the year – – 1,177,569 – – 1,177,569
Balance as at December 31, 2018 9,918,300 8,00,000 17,87,049 1,47,887 1,20,000 1,27,73,236
Profit for the year – – 3,457,070 – – 3,457,070
Balance as at December 31, 2019 9,918,300 800,000 5,244,119 147,887 120,000 16,230,306

for Shenoy & Kamath

Bengaluru
March 16, 2020

in RON
2019 2018
Depreciation expense 2.1 2,435,200 161,520
Income tax expense 2.12 828,949 82,955
Trade receivables (3,020,564) (2,527,392)
Other financial assets and other assets (3,381,383) (3,219,039)
Other financial liabilities, other liabilities and provisions 3,661,890 970,368
Cash generated from operations 4,603,237 (3,005,362)
Net cash from / (used in) operating activities 3,775,472 (3,166,062)
Expenditure on property, plant and equipment net of sale proceeds (9,796,406) (6,272,696)
Loans to employees 21,305 (301,958)
Proceeds from Issue of share capital – 9,318,300
Loan taken from holding company 5,041,096 –
Finance cost (41,096) (6,313)
Dividend paid – (2,253,601)
Net decrease in cash and cash equivalents (999,629) (2,682,330)
Cash and cash equivalents at the beginning of the year 2.5 1,389,645 4,071,975
Cash and cash equivalents at the end of the year 2.5 390,016 1,389,645

for Shenoy & Kamath

Bengaluru
March 16, 2020

Company overview catch-up transition method, applied to contracts that were

Infosys Consulting S.R.L. (formerly S.C. Infosys Consulting not completed as at January 1, 2019. In accordance with
S.R.L.) (registered in Romania) became a wholly-owned the cumulative catch-up transition method, the comparatives
subsidiary of Infosys Limited effective February 1, have not been retrospectively adjusted. The following is a
2019. The Company renders professional management summary of new and/or revised significant accounting
consulting services, thereby enabling its clients to enhance policies related to revenue recognition.
business performance. Revenue is recognized upon transfer of control of promised
1.1 Accounting year
Arrangements with customers for software related services are
1.5.1 T&M
Companies Act, 2013 (Àct’) (to the extent notified). The
Ind AS are prescribed under Section 133 of the Act read 1.5.2 Licenses
with Rule 3 of the Companies (Indian Accounting Standards) Revenue from licenses where the customer obtains a right
Rules, 2015 and relevant rules issued thereafter. Accounting to use the licenses is recognized at the time the license is
policies have been consistently applied except where a newly- made available to the customer. Revenue from licenses where
issued accounting standard is initially adopted or a revision the customer obtains a right to access is recognized over the
to an existing accounting standard requires a change in the access period. Arrangements to deliver software products
accounting policy hitherto in use. generally have three elements: license, implementation and
1.3 Presentation currency Annual Technical Services (ATS). The Company has applied
The Company’s presentation currency is Romanian Lei (RON). from these performance obligations. When implementation
1.4 Use of estimates services are provided in conjunction with the licensing
arrangement and the license and implementation have
been identified as two separate performance obligations,
the transaction price for such contracts are allocated to
each performance obligation of the contract based on their
relative standalone selling prices. In the absence of standalone
selling price for implementation, the performance obligation
is estimated using the expected cost-plus margin approach.
Accounting estimates could change from period to period. Where the license is required to be substantially customized
Actual results could differ from those estimates. Appropriate as part of the implementation service the entire arrangement
changes in estimates are made as the Management becomes fee for license and implementation is considered to be a single
aware of changes in circumstances surrounding the estimates. performance obligation and the revenue is recognized using
Changes in estimates are reflected in the financial statements the percentage-of-completion method as the implementation
in the period in which changes are made and, if material, their is performed. Revenue from client training, support and
effects are disclosed in the notes to the financial statements. other services arising due to the sale of software products is
Examples of such estimates include computation of percentage recognized as the performance obligations are satisfied. ATS
of completion which requires the Company to estimate the revenue is recognized ratably over the period in which the
efforts or costs expended to date as a proportion of the total services are rendered.
efforts to be expended, impairment losses on financial assets,
future obligations under employee benefit plans, income 1.5.3 Volume discounts
taxes, post-sales customer support and the useful lives of The Company accounts for volume discounts and pricing
property, plant and equipment. incentives to customers as a reduction of revenue based on
the ratable allocation of the discounts / incentives to each of
1.5 Revenue recognition the underlying performance obligation that corresponds to
The Company derives revenues primarily from the progress by the customer towards earning the discount
consultancy services. / incentive. Also, when the level of discount varies with
Effective January 1, 2019, the Company adopted Ind AS 115, increases in levels of revenue transactions, the Company
Revenue from Contracts with Customers using the cumulative recognizes the liability based on its estimate of the customer’s

future purchases. If it is probable that the criteria for the directly attributable to acquisition are capitalized until the
discount will not be met, or if the amount thereof cannot property, plant and equipment are ready for use, as intended
be estimated reliably, then discount is not recognized until by the Management. The Company depreciates property,
the payment is probable and the amount can be estimated plant and equipment over their estimated useful lives using
reliably. The Company recognizes changes in the estimated the straight-line method. The estimated useful lives of
amount of obligations for discounts in the period in assets are as follows:
which the change occurs. Plant and machinery 5 years
1.5.4 Contract modification Office equipment 5 years
Computer equipment 3-5 years
Furniture and fixtures 5 years
scope or contract price. The accounting for modifications of Leasehold improvements - Over the lease tenure
existing contract are distinct and whether the pricing is at the
are accounted for on a cumulative catch-up basis, while those Based on technical evaluation, the Management believes
that are distinct are accounted for prospectively, either as a that the useful lives as given above best represent the
separate contract, if the additional services are priced at the period over which Management expects to use these assets.
standalone selling price, or as a termination of the existing Hence, the useful lives for these assets is different from the
contract and creation of a new contract if not priced at the useful lives as prescribed under Part C of Schedule II of the
standalone selling price. Companies Act 2013.
Advances paid towards the acquisition of property, plant and
1.5.5 Tax equipment outstanding at each Balance Sheet date is classified
The Company presents revenues net of indirect taxes in its as capital advances under other non-current assets and the
Statement of Profit and loss. cost of assets not put to use before such date are disclosed
1.6 Provisions
A provision is recognized if, as a result of a past event, the when it is probable that future economic benefits associated
Company has a present legal or constructive obligation that with these will flow to the Company and the cost of the
is reasonably estimable, and it is probable that an outflow of item can be measured reliably. Repairs and maintenance
economic benefits will be required to settle the obligation. costs are recognized in net profit in the Statement of Profit
Provisions are determined by discounting the expected and Loss when incurred. The cost and related accumulated
future cash flows at a pre-tax rate that reflects current depreciation are eliminated from the financial statements
market assessments of the time value of money and the risks upon sale or retirement of the asset and the resultant gains
specific to the liability. or losses are recognized in the Statement of Profit and Loss.
1.7 Post-sales client support 1.10 Financial instruments
1.10.1 Initial recognition
sales support for corrections of errors and support on all its
fixed-price, fixed-timeframe contracts. Costs associated with The Company recognizes financial assets and financial
such support services are accrued at the time when related liabilities when it becomes a party to the contractual
revenues are recorded and included in cost of sales. The provisions of the instrument. All financial assets and liabilities
Company estimates such costs based on historical experience are recognized at fair value on initial recognition, except for
and the estimates are reviewed annually for any material trade receivables which are initially measured at transaction
changes in assumptions. price. Transaction costs that are directly attributable to the
1.8 Onerous contracts that are not at fair value through profit or loss, are added to
Provisions for onerous contracts are recognized when the the fair value on initial recognition. Regular way purchase
expected benefits to be derived by the Company from a and sale of financial assets are accounted for at trade date.
measured at the present value of the lower of the expected a. Non-derivative financial instruments
continuing with the contract. Before a provision is established,
the Company recognizes any impairment loss on the assets A financial asset is subsequently measured at amortized cost if
associated with that contract. it is held within a business model whose objective is to hold
1.9 Property, plant and equipment contractual terms of the financial asset give rise on specified
Property, plant and equipment are stated at cost, less dates to cash flows that are solely payments of principal and
accumulated depreciation and impairment, if any. Costs interest on the principal amount outstanding.

(ii) Financial assets at fair value through other by the amount by which the carrying value of the assets
comprehensive income exceeds the estimated recoverable amount of the asset. An
A financial asset is subsequently measured at fair value impairment loss is reversed in the statement of profit and loss
through other comprehensive income if it is held within a if there has been a change in the estimates used to determine
business model whose objective is achieved by both collecting the recoverable amount. The carrying amount of the asset is
contractual cash flows and selling financial assets and the increased to its revised recoverable amount, provided that
contractual terms of the financial asset give rise on specified this amount does not exceed the carrying amount that would
dates to cash flows that are solely payments of principal and have been determined (net of any accumulated amortization
interest on the principal amount outstanding. or depreciation) had no impairment loss been recognized for
1.13 Employee benefits
categories are subsequently fair valued through profit or loss. Compensated absences
Financial liabilities are subsequently carried at amortized The expected cost of accumulating compensated absences
cost using the effective interest method. For trade and other is determined by actuarial valuation performed by an
payables maturing within one year from the Balance Sheet independent actuary at each Balance Sheet date using projected
date, the carrying amounts approximate fair value due to the unit credit method on the additional amount expected to
short maturity of these instruments. be paid/availed as a result of the unused entitlement that
1.11 Fair value of financial instruments
In determining the fair value of its financial instruments, the period in which the absences occur.
Functional currency
market prices and dealer quotes. All methods of assessing The functional currency of the Company is the Romanian
fair value result in general approximation of value, and such Lei. These financial statements are presented in its
value may never actually be realized. functional currency.

a. Financial assets are translated into the relevant functional currency at
not fair valued through profit or loss. Loss allowance for profit in the Statement of Profit and Loss. Non-monetary
the loss allowance at the reporting date to the amount that Transaction gains or losses realized upon settlement of foreign
is required to be recognized is recognized as an impairment currency transactions are included in determining net profit
gain or loss in profit or loss. for the period in which the transaction is settled. Revenue,
are translated into the relevant functional currencies using the
(i) Property, plant and equipment exchange rate in effect on the date of the transaction.
whenever events or changes in circumstances indicate that 1.15 Income taxes
their carrying amounts may not be recoverable. For the Income tax expense comprises current and deferred income
purpose of impairment testing, the recoverable amount (i.e. tax. Income tax expense is recognized in net profit in the
the higher of the fair value less cost to sell and the value-in- Statement of Profit and Loss except to the extent that it
use) is determined on an individual asset basis unless the asset relates to items recognized directly in equity, in which case
does not generate cash flows that are largely independent of it is recognized in other comprehensive income. Current
those from other assets. In such cases, the recoverable amount income tax for current and prior periods is recognized at
is determined for the CGU to which the asset belongs. the amount expected to be paid to or recovered from the tax

Deferred income tax assets and liabilities are recognized for all at the inception of the lease, whichever is lower. Lease
temporary differences arising between the tax bases of assets payments under operating leases are recognized as an expense
and liabilities and their carrying amounts in the financial on a straight-line basis in the Statement of Profit and Loss
statements. Deferred tax assets are reviewed at each reporting over the lease term.
that the related tax benefit will be realized. 1.20 Recent accounting pronouncements
Deferred income tax assets and liabilities are measured using Ind AS 116, Leases: On March 30, 2019, the Ministry of
tax rates and tax laws that have been enacted or substantively Corporate Affairs (MCA) has notified Ind AS 116, Leases.
enacted by the Balance Sheet date and are expected to apply Ind AS 116 will replace the existing leases Standard, Ind AS
to taxable income in the years in which those temporary 17, Leases and related Interpretations. The Standard sets out
differences are expected to be recovered or settled. The effect the principles for the recognition, measurement, presentation
of changes in tax rates on deferred income tax assets and and disclosure of leases for both parties to a contract i.e.,
liabilities is recognized as income or expense in the period the lessee and the lessor. Ind AS 116 introduces a single
that includes the enactment or the substantive enactment lessee accounting model and requires a lessee to recognize
date. A deferred income tax asset is recognized to the extent assets and liabilities for all leases with a term of more than 12
that it is probable that future taxable profit will be available months, unless the underlying asset is of low value. Currently,
against which the deductible temporary differences and tax operating lease expenses are charged to the Statement of Profit
losses can be utilized. The Company offsets current tax assets and Loss. The Standard also contains enhanced disclosure
and current tax liabilities, where it has a legally enforceable requirements for lessees. Ind AS 116 substantially carries
right to set off the recognized amounts and where it intends forward the lessor accounting requirements in Ind AS 17. The
either to settle on a net basis, or to realize the asset and settle effective date for adoption of Ind AS 116 is annual periods
the liability simultaneously. beginning on or after April 1, 2019. The standard permits two
possible methods of transition:
1.16 Cash Flow Statement • Full retrospective: Retrospectively to each prior period
Cash flows are reported using the indirect method, whereby presented applying Ind AS 8, Accounting Policies, Changes
profit for the period is adjusted for the effects of transactions in Accounting Estimates and Errors.
of a non-cash nature, any deferrals or accruals of past or • Modified retrospective: Retrospectively, with the cumulative
future operating cash receipts or payments and item of effect of initially applying the Standard recognized at the
income or expenses associated with investing or financing date of initial application.
cash flows. The cash flows from operating, investing and • Under modified retrospective approach, the lessee records
financing activities of the Company are segregated. the lease liability as the present value of the remaining
1.17 Earnings per share rate and the right-of-use asset either as:
Basic earnings per share is computed by dividing the net • Its carrying amount as if the standard had been applied
profit after tax by the weighted average number of equity since the commencement date, but discounted at lessee’s
shares outstanding during the period. incremental borrowing rate at the date of initial application.
or
1.18 Other income • An amount equal to the lease liability, adjusted by the
Other income is comprised primarily of interest income, amount of any prepaid or accrued lease payments related
dividend income and exchange gain / loss on forward to that lease recognized under Ind AS 17 immediately
and options contracts and on translation of other assets before the date of initial application.
and liabilities. Interest income is recognized using the Certain practical expedients are available under both the
effective interest method. methods. The Company is proposing to use the ‘Modified
1.19 Leases
and take the cumulative adjustment to retained earnings, on
Lease under which the Company assumes substantially all the date of initial application (January 1, 2020). The effect
the risks and rewards of ownership are classified as finance of adoption is not expected to material for the Company’s
leases. Such assets acquired are capitalized at fair value of financial statements.
the asset or present value of the minimum lease payments

The changes in the carrying value of Property, plant and equipment are as follows:
in RON
machinery equipment equipment and fixtures Improvements
Gross carrying value as at January
1, 2019 2,182 29,731 3,244,199 66,205 – 3,342,317
Additions / Adjustments – 1,045,989 4,255,165 5,915,726 1,700,207 12,917,087
Deletions / Adjustments (2,182) (6,083) (164,964) (66,205) – (239,434)
Other adjustments – 3,186 343,410 – – 346,596
December 31, 2019 – 1,072,823 7,677,810 5,915,726 1,700,207 16,366,566
Accumulated depreciation as at
January 1, 2019 1,323 18,544 141,700 26,836 – 188,403
Depreciation 85 128,433 1,306,564 858,434 141,684 2,435,200
deletions (1,408) (4,152) (164,964) (30,610) – (201,134)
Other Adjustments – 3,186 343,410 – – 346,596
December 31, 2019 – 146,011 1,626,710 854,660 141,684 2,769,065
Carrying value as at December 31,
2019 – 926,812 6,051,100 5,061,066 1,841,891 13,597,501
Carrying value as at January 1,
2019 859 11,187 3,102,499 39,369 1,841,891 3,153,914
The changes in the carrying value of Property, plant and equipment are as follows:
in RON
machinery equipment equipment and fixtures Improvements
Gross carrying value as at January
1, 2018 – – 391,477 107,123 – 498,600
Additions 2,182 29,731 3,214,810 5,496 – 3,252,219
Deletions – – (362,088) (46,414) – (408,502)
December 31, 2018 2,182 29,731 3,244,199 66,205 – 3,342,317
January 1, 2018 – – 337,920 35,561 – 373,481
Depreciation (40) (1,831) 154,945 8,446 – 161,520
deletions – – (351,165) (17,171) – (368,336)
Other Adjustments 1,363 20,375 – – – 21,738
December 31, 2018 1,323 18,544 141,700 26,836 – 188,403
Carrying value as at December 31,
2018 859 11,187 3,102,499 39,369 – 3,153,914
Carrying value as at January 1,
2018 – – 53,557 71,562 – 125,119

2.2 Loans 2.7 Financial instruments
in RON
2019 2018 The carrying value and fair value of financial instruments by
Current categories were as follows:
in RON
Unsecured, considered good
Other loans Particulars As at December 31,
Loans and advances to 2019 2018
employees 315,207 336,512 Assets
Total loans 315,207 336,512 Cash and cash equivalents
(Refer to Note 2.5) 390,016 1,389,645
2.3 Other financial assets Trade receivables (Refer to
in RON Note 2.4) 6,798,882 3,778,318
Loans (Refer to Note 2.2) 315,207 336,512
2019 2018
to Note 2.3) 1,588,045 900,836
Current
Total 9,092,150 6,405,311
Rental deposits (1) 1,588,045 815,058
Liabilities
Others (1) – 85,778
Trade payables (Refer to
Total 1,588,045 900,836
Note 2.10) 926,661 345,682
(1)
amortized cost (Refer to Note
(Refer to Note 2.9) 2,197,607 983,806
2.7) 1,588,045 900,836
Total 3,124,268 1,329,488
2.4 Trade receivables All the above financial assets and financial liabilities
in RON are carried at amortized cost and the carrying values
Particulars As at December 31, approximates their fair value.
2019 2018
Credit risk
Current
Unsecured Credit risk refers to the risk of default on its obligation by
Considered good (1) 6,798,882 3,778,318 the counterparty resulting in a financial loss. The maximum
6,798,882 3,778,318
from trade receivables amounting to RON 6,798,882 and
(1)
RON 3,778,318 as of December 31, 2019 and December
31, 2018, respectively and unbilled revenue amounting to
NIL and NIL as of December 31, 2019 and December 31,
2.5 Cash and cash equivalents 2018, respectively. Trade receivables and unbilled revenue
in RON
are typically unsecured. Credit risk has always been managed
Particulars As at December 31, by the Company through credit approvals, establishing credit
2019 2018 limits and continuously monitoring the creditworthiness of
Balances with banks customers to which the Company grants credit terms in the
In current accounts 390,016 1,389,645 normal course of business. On account of adoption of Ind AS
Total cash and cash 109, the Company uses ECL model to assess the impairment
equivalents 390,016 1,389,645 loss or gain. The Company uses a provision matrix to
compute the ECL allowance for trade receivables and unbilled
2.6 Other assets revenues. The provision matrix takes into account available
in RON external and internal credit risk factors such as credit default
Particulars As at December 31, swap quotes, credit ratings from credit rating agencies and the
2019 2018 Company’s historical experience for customers.
Current
Advances other than capital
Liquidity risk
advance The Company’s principal sources of liquidity are cash
Payment to vendors for and cash equivalents.
supply of goods 4,010,742 810,916 As of December 31, 2019, the Company had a negative
Others working capital of RON 1,641,089 including cash and cash
Prepaid expenses 475,731 439,866 equivalents of RON 390,016. As of December 31, 2018, the
Withholding taxes and Company had a working capital of RON 6,536,940 including
others 925,423 1,466,940 cash and cash equivalents of RON 1,389,645.
Total current other assets 5,411,896 2,717,722 As of December 31, 2019 and December 31, 2018, the
outstanding compensated balances were RON 1,473,074 and
RON 886,604 respectively.
2.8 Equity 2.9 Other financial liabilities
in RON
in RON, except as stated otherwise Particulars As at December 31,
2019 2018
Current
2019 2018
Others
Authorized Accrued compensation to
99,183 (99,183) equity employees (1) 1,949,637 934,887
shares of RON 100 par value, Accrued expenses (1) (2) 148,458 31,097
fully paid 9,918,300 9,918,300 Compensated absences 1,473,074 886,604
Issued, subscribed and paid- Other payables (1)(3) 99,512 17,822
up Total financial liabilities 3,670,681 1,870,410
99,183 (99,183) equity (1)
shares of RON 100 par value, at amortized cost 2,197,607 983,806
fully paid 9,918,300 9,918,300 (2)
9,918,300 9,918,300 parties (Refer to Note 2.17) 61,054 31,097
(3)
The details of shareholders holding more than 5%
parties (Refer to Note 2.17) 84 11,891
shares are as follows :
in RON, except as stated otherwise
Name of the As at As at
2.10 Trade payables
in RON
shareholder December December
31, 2019 31, 2018 2019 2018
Number % held Number % held Trade payables (1) 926,661 345,682
of shares of shares 926,661 345,682
Infosys Includes dues to related
(1)
Consulting parties (Refer to Note 2.17) 824,238 271,490

Holding AG
(formerly 2.11 Other liabilities
Lodestone in RON
Holding AG) – – 99,183 100.00
Infosys
2019 2018
Limited 99,183 100.00 – –
Current
The reconciliation of the number of shares outstanding and Others
the amount of share capital as at December 31, 2019 and Withholding taxes and
December 31, 2018 is as follows : others 1,861,619 –
in RON, except as stated otherwise 1,861,619 –
Particulars As at As at
December December 2.12 Income taxes
31, 2019 31, 2018 Income tax expense in the Statement of Profit and Loss comprises:
Number Amount Number Amount in RON
of shares of shares Particulars Year ended December 31,
Number 2019 2018
of shares Current taxes 828,949 82,955
at the Income tax expense 828,949 82,955
beginning
of the Current tax expense for the years ended December 31, 2019
period 99,183 9,918,300 6,000 600,000 and December 31, 2018 includes reversals (net of provisions)
Issue of amounting to RON 133,220 and RON 104,351 respectively,
shares pertaining to prior periods.
during the A reconciliation of the income tax provision to the amount
year – – 93,183 9,318,300 computed by applying the statutory income tax rate to the
Number of income before income taxes is summarized as follows:
shares at
the end of
the period 99,183 9,918,300 99,183 9,918,300

in RON in RON
Particulars Year ended December 31, Particulars Year ended
2019 2018 December 31,
Profit before income tax 4,286,019 1,260,524 2019
Enacted tax rates in Romania Revenue by offerings
(%) 16.00 16.00 Core 59,094,974
Computed expected tax Digital 2,573,764
expense 685,763 201,684 Total 61,668,738
UTP Provision – 314,634
Tax provisions / (reversal) 55,231 – Digital Services
Tax reversals, overseas and
domestic - Prior year (133,220) (104,351) Digital Services comprise of service and solution offerings
Others 221,175 (118,837) of the Company that enable our clients to transform their
Income tax expense 828,949 293,130 businesses. These include offerings that enhance customer
experience, leverage AI-based analytics and big data, engineer
The applicable Romanian statutory tax rate for the year ended digital products and IoT, modernize legacy technology
December 31 2019 and December 31, 2018 is 16%. systems, migrate to cloud applications and implement
The details of income tax assets and income tax advanced cybersecurity systems.
liabilities are as follows : Core Services
in RON
Core Services comprise traditional offerings of the Company
Particulars As at December 31, that have scaled and industrialized over a number of years.
2019 2018 These primarily include application management services,
Income tax assets – – proprietary application development services, independent
Current income tax liabilities 371,185 370,001 validation solutions, product engineering and management,
Net current income tax assets infrastructure management services, traditional enterprise
/ (liability) at the end (371,185) (370,001) application implementation, support and integration services.
The gross movement in the current income tax asset / Performance obligations and remaining
(liability) is as follows: performance obligations
in RON The remaining performance obligation disclosure provides the
Particulars Year ended December 31, aggregate amount of the transaction price yet to be recognized
2019 2018 as at the end of the reporting period and an explanation as
Net current income tax asset to when the Group expects to recognize these amounts in
/ (liability) at the beginning (370,001) (447,746) revenue. Applying the practical expedient as given in Ind AS
Income tax paid 827,765 160,700 115, the Group has not disclosed the remaining performance
Current income tax expense (828,949) (82,955) obligation related disclosures for contracts where the
Net current income tax asset revenue recognized corresponds directly with the value to
/ (liability) at the end (371,185) (370,001) the customer of the entity’s performance completed to date,
2.13 Revenue from operations material basis. Remaining performance obligation estimates
in RON are subject to change and are affected by several factors,
Particulars Year ended December 31, including terminations, changes in the scope of contracts,
2019 2018 periodic revalidations, adjustment for revenue that has not
Income from consultancy materialized and adjustments for currency.
services 61,668,738 19,729,616 The aggregate value of performance obligations that are
61,668,738 19,729,616 completely or partially unsatisfied as at December 31, 2019,
other than those meeting the exclusion criteria mentioned
Disaggregate revenue information above, is ` NIL. Out of this, the Group expects to recognize
revenue of around 100% within the next one year and
The table below presents disaggregated revenues from the remaining thereafter. The contracts can generally be
contracts with customers by offerings for the year ended terminated by the customers and typically includes an
December 31, 2019. The Company believes that this enforceable termination penalty payable by them.
disaggregation best depicts how the nature, amount, timing
and uncertainty of our revenues and cash flows are affected The impact on account of applying the erstwhile Ind AS 18,
by industry, market and other economic factors. Revenue instead of Ind AS 115, Revenue from contract with
customers on the financials results of the Group for the year
ended December 31, 2019 is insignificant.

2.14 Other income 2.16 Leases
in RON
Obligations on long-term, non-cancellable operating
leases
2019 2018
Miscellaneous income, net 326,407 68,544 The lease rentals charged during the period are as follows :
in RON
326,407 68,544
2.15 Expenses 2019 2018
in RON Lease rentals recognized
during the year 2,073,232 295,527
2019 2018 The obligations on long-term, non-cancellable operating
Employee benefit expenses leases payable as per the rentals stated in the respective
Salaries including bonus 41,255,284 13,797,324 agreements are as follows:
Staff welfare 602,601 3,834 in RON
41,857,885 13,801,158 Future minimum lease payable As at December 31,
Other expenses 2019 2018
Power and fuel 121,681 25,735 Not later than 1 year 15,065,148 1,347,003
Cost of software packages Later than 1 year and
and others for own use 107,738 – not later than 5 years 60,030,240 9,236,589
Brand and marketing 372,207 61,310 Later than 5 years 12,472,673 4,425,866
Operating lease payments 2,073,232 295,527
Rates and taxes 15,850 588 The operating lease arrangements are renewable on a periodic
Repairs and maintenance 1,521,330 260,611 basis and for most of the leases, extend up to a maximum
Consumables 677,163 324,875 of seven years from their respective dates of inception and
Insurance 32,219 6,145 relates to rented premises. Some of these lease agreements
Exchange (gains) / losses have price escalation Clauses.
on translation of other
assets and liabilities 1,653,935 276,382
Others 188,696 35,367
6,764,051 1,286,540

2019 2018
Infosys Consulting Holding AG (Infosys Lodestone) Switzerland 0% 100%
Infosys Limited (effective February 1, 2019) India 100% 0%

Infosys Americas Inc. (Infosys Americas) US

Infosys Public Services, Inc. (Infosys Public Services) US
HIPUS (20) Japan
(1)
(2)
(3)
(4)
(5)
(6)

(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
(20)
(21)
(22)
(23)
(24)
(25)
(26)
Under liquidation
The details of amounts due to or due from related parties as at December 31, 2019 and December 31, 2018 are as follows
in RON
2019 2018
Trade receivables
Infosys Consulting AG 50,289 84,551
Infosys Consulting Sp. z.o.o 34,771 -
Infosys Consulting GmbH 159,723 253,350
Infy Consulting Company Ltd 6,554,099 3,440,417
6,798,882 3,778,318
Trade payables
Infy Consulting Company Ltd 24,096 49,125
Infosys Consulting GmbH – 8,460
Infosys Consulting AG 701,537 213,905
824,238 271,490
Other payables
Infosys Consulting Holding AG (Infosys Lodestone) – 3,790
84 11,891
Accrued expenses
61,054 31,097
Borrowings
5,041,096 –
in RON
2019 2018
Equity
Infosys Consulting Holding AG (Infosys Lodestone) – 9,318,300
– 9,318,300
Borrowings
5,000,000 –

2019 2018
Infy Consulting Company Ltd 25,193 49,657
Infosys Consulting AG 1,065,527 378,811
1,189,751 452,694
Sale of services
Infosys Consulting Sp. z.o.o 159,979 –
61,668,739 19,729,616
Dividend paid
Infosys Consulting Holding AG (Infosys Lodestone)
– 2,253,601
– 2,253,601
Interest expense
Infosys Limited 41,096 –
41,096 6,314

to constitute a single segment in the context of Ind AS 108 Segment Reporting.

Infosys Chile SpA.
Report of Independent Auditors
To the Shareholders and Board of Directors of Infosys Chile SpA.
Report on the Financial Statements

We have audited the accompanying financial statements of Infosys Chile SpA., which comprise the Balance Sheet as of December
31, 2019, and the related statements of income, changes in equity and cash flows for the years ended as well as the related
notes to the financial statements.
Management is responsible for the preparation and fair presentation of these financial statements in accordance with International
Financial Reporting Standards. Such responsibility includes the design, implementation and maintenance of a relevant internal
control to enable the preparation and fair presentation of financial statements that are free from material misstatement, whether
due to ITS mentioned as fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits
in accordance with generally accepted auditing standards in Chile. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit
involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The
procedures selected depend on our 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 auditors consider internal control relevant to
the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
Consequently, we do not express such an opinion. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by Management, as well as evaluating the overall presentation of
the financial statements.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of Infosys Chile SpA., as
of December 31, 2019 and 2018 the results of its operations, changes in equity and its cash flows for the years then ended in
accordance with International Financial Reporting Standards.
Fernando Landa E.
April 3, 2019
620 I Infosys Chile SpA Infosys Subsidiary Financials 2019-20

Statements of Financial Position
in Th$
2019 2018
Assets
Current assets
Cash and cash equivalents 4 527.865 291.21
Trade receivables of related parties 5 157.292 323.823
Other non-financial assets 6 11.668 11.668
Current tax assets 11.737 –
Total current assets 708.562 626.7
Total assets 708.562 626.701
Attached notes from 1 to 13 are an integral part of these financial statements.

in Th$
2019 2018
Liabilities
Current Liabilities
Trade and other payables 7 43.889 55.229
Trade payables of related parties 5 11.292 2.14
Employee benefit liabilities 8 164.961 49.884
Total Current Liabilities 220.142 107.25
Equity
Share capital 9 604.31 604.31
Retained earnings 9 -115.89 -84.863
Total Equity 488.42 519.45
Total Equity and Liabilities 708.562 626.7
Infosys Subsidiary Financials 2019-20 Infosys Chile SpA I 621

Statements of Comprehensive Income
For the years ended December 31, 2019 and 2018
in Th$
Particulars Note no. For the year ended December 31,
2019 2018
Continuing Operations
Revenues 10 1.411.028 323.823
Cost of sales 11 (1.101.172) (-241.82)
Gross profit 309.856 82
Administrative expenses 12 (-324.65) (-166.51)
Other expenses (-4.761) –
Financial expenses (-1.176) (-247)
Exchange difference (-10.296) -106
Profit (Loss) before taxes (-31.027) (-84.863)
Deferred tax income (expense) – –
Profit (Loss) For The Year (-31.027) (-84.863)

Statements of Changes in Equity
Chart of equity movements
in Th$
earnings
Balance at January 1, 2019 604.31 -84.863 519.447
Loss of period – -31.027 -31.027
Balance at December 31, 2019 604.31 -115.89 488.42

in Th$
earnings
Balance at January 1, 2018 1 – 1

Loss of period – -84.863 -84.863
Capital contributions 603.31 – 603.31
Balance at December 31, 2018 604.31 -84.863 519.447

in Th$
2019 2018
Loss of period -31.027 -84.863

Charges (credits) to results that do not represent cash flow:
Exchange difference 10.296 106
Operating activities:
Decreases (increases) in other-non-financial assets - -11.668
Decreases (increases) in trade receivables of related parties 156.234 -323.822
Increases (decreases) in Trade and other payables -11.34 55.229
Increases (decreases) in Trade payables of related parties 9.152 2.14
Increases (decreases) in provisions 115.077 49.884
Current tax asset and liability adjustments -11.737 -
Decreases (increases) in other assets - 1.23
Net cash used in operating activities 236.655 -311.764
Financing activities:
Capital contributions - 602.974
Net cash from financing activities - 602.974
Net increase in cash and cash equivalents 236.655 291.21
Cash and cash equivalents at beginning of year 291.21 -
Cash and cash equivalents at end of year 527.865 291.21

Notes to the financial statements December 31, 2019 and 2018
Note 1 – Corporate Information d) Accounting policies

The Company Infosys Chile SpA is a Company by Shares, Tax The following describes the main accounting policies adopted
ID 76.813.065-5, whose domicile is located in Rosario Norte in the preparation of these classified financial statements.
# 407 Dept. # 1601, Santiago City, Commune Las Condes, As required by IFRS 1, these policies have been defined in
Metropolitan Region. accordance with IFRS, and have been applied consistently to
Its incorporation took place on November 20, 2017, all the years presented in these classified financial statements.
through Public Deed at the 27th Notary Public of Santiago
2.3 Presentation of financial statements
“Eduardo Avello Concha”.
Its main objective is the design, development and e) Statements of financial position
commercialization of software. The Company has determined the current and non-current
The shareholders and their respective participation are: classification as presentation format for its statement
of financial position.
Name shareholder RUT % Capital % Utilities
Infosys Limited 59243420-2 100 100 f) Statements of cash flow
The Company has chosen to present its statement of cash flow
Note 2 – Basis of presentation of the financial in accordance with the indirect method.
statements and applied accounting criteria
g) Functional currency and conversion of foreign
2.1 Covered periods currency
The present financial statements of the Company, include The functional currency of the Company is the Chilean peso.
the following periods: The financial statements are presented in Chilean pesos. The
Accumulated As at December 31, functional currency has been determined considering the
2019 2018 economic environment in which the Company carries out its
Statement of financial position Yes Yes operations and the currency in which its main cash flows are
Statement of comprehensive income Yes Yes generated, as indicated in IAS 21.
Statement of cash flows Yes Yes Transactions other than those made in the functional
Statement of changes in equity Yes Yes currency of the entity will be converted at the exchange rate
in the effective rate on the date of the transaction. Monetary
2.2 Basis of preparation assets and liabilities expressed in currencies other than the
functional currency will be converted back to the closing
a) Financial statements exchange rates of the financial statements.
The information contained in the financial statements as Gains and losses from the conversion are included in the net
of December 31, 2019 is under the responsibility of the profit or loss for the year, within other financial ítems.
Company’s Management, which expressly states that the
principles and criteria included in the International Financial h) Conversion basis
Reporting Standards have been applied in full IFRS. The closing exchange rates used as of December 31, 2019
b) Responsibility for information and financial and 2018 are as follows:
in Th$
statements
The information contained in these consolidated financial 2019 2018
statements is under responsibility of the Company’s
US Dollar 748,74 694,77
Management, which expressly states that the principles and
Euros 839,58 794,75
criteria included in the IFRS have been applied in full.
UF 28.309,94 27.565,79
c) Administration estimations
In the preparation of the classified financial statements, i) Compensation of balances and transactions
certain estimates made by the Company’s Management have As a general rule in the financial statements, neither the assets
been used to quantify some of the assets, liabilities, income, and liabilities, nor the income and expenses are compensated,
expenses and commitments recorded in them. except in those cases in which the compensation is required
These estimates basically refer to: or permitted by a disposition and this presentation is a
reflection of the merits of the transaction.
The fiscal results, which will be submitted before the
respective tax authorities in the future, which have served as j) Cash and cash equivalents
the basis for the recording of the different balances related The cash and equivalent to cash corresponds to that
to the income taxes in these classified financial statements. available in bank accounts.

k) Accruals Standards and Mandatory
The accruals are recognized when the Company has a present interpretations application date
legal or constructive obligation as a result of a past event, and IAS 19 Employee Benefits - January 1, 2019
it is probable that an outflow of resources including economic Modification, reduction
benefits will be required to settle the obligation and a reliable or liquidation of the
estimation of the amount of the obligation. plan
l) Revenue recognition The standards and interpretations, as well as the amendments
The Company recognizes its income corresponding to each to IFRS, which have been issued, but have not yet entered
one of the payment statements approved by the principal. into force as of the date of these financial statements,
Income is recognized to the extent that it is probable that are detailed below. The Company has not applied these
the economic benefits will flow to the Company and can be standards in advance:
reliably measured. Revenue is measured at the fair value of Standards and Mandatory
the payment received, excluding discounts, rebates and other interpretations application date
sale taxes or duties. Conceptual Conceptual
m) Income and Deferred Tax Framework Framework
(revised) January 1, 2020
The Company accounts for Income Tax on the basis of
the taxable net income determined according to the rules Standards and Mandatory
established in the Chilean Income Tax Law and IAS 12. interpretations application date
The entity is in a start-up stage as of December 31, 2019. IFRS 3 Defining a
The deferred tax assets of tax losses and temporary business January 1, 2020
differences will be recognized once the entity turns into profit IAS 1 and IAS 8 Definition of
allow his recovering. material January 1, 2020
IFRS 9, IAS 9 and Reform of the
n) Cost of sales and administrative expenses IFRS 7 Reference Interest
Administrative expenses are mainly composed of Rate January 1, 2020
disbursements associated with salaries or expenses of
personnel directly related to services. Note 4 – Cash and cash equivalents
The administrative expenses are mainly composed of The composition of the item as of December 31, 2019
disbursements associated with legal and advisory services, and 2018 are as follow:
patents, fines, notary fees, parking, telephone, etc. in Th$
Note 3 – New standards, interpretations and Banks As at December 31,
amendments of IFRS 2019 2018
The standards, interpretations and amendments to IFRS that Santander Bank 527.865 291.210
came into effect on the date of the financial statements, their Total 527.865 291.210
nature and impacts are detailed below:
The balance of the bank consists of funds kept in national
Standards and Mandatory currency, in bank account and whose value is equal
interpretations application date to their fair value.
IFRS 16 Leases January 1, 2019
IFRIC 23 Uncertainty over Note 5 – Trade receivables and payables of
Income Tax Treatments January 1, 2019 related parties
The composition of the item as of December 31, 2019
and 2018 are as follow:
Standards and Mandatory
application date a) Trade receivables, currents
interpretations in Th$
IFRS 9 Financial Instruments January 1, 2019
Tax ID Related party Nature As at December 31,
- negative offset
2019 2018
payments
O-E Infosys Provision
IAS 12 Income Taxes - tax January 1, 2019
Limited of services 111.651 62.481
consequences of
O-E Infosys Provision
payments related to
Mexico of services 45.641 261.342
financial instruments
Total 157.292 323.823
classified as equity
IAS 23 Borrowing Costs - January 1, 2019
borrowing costs eligible
to be capitalized

b) Trade payables, currents Note 10 - Revenues
in Th$
The composition of the item as of December 31, 2019 and
Tax ID Related party Nature As at December 31, 2018 are as follows:
2019 2018 in Th$
O-E Infosys Debts Concept For the year ended
Limited payments 11.292 2.14 December 31,
Total 11.292 2.14 2019 2018
Intercompany services to
Note 6 – Other non-financial assets Infosys Limited 1.170.861 261.342
The composition of the item as of December 31, 2019 and Intercompany services to
2018 are as follows: Infosys Mexico 240.167 62.481
in Th$ Total 1.411.028 323.823
Concept As at December 31,
2019 2018 Note 11 – Cost of sales
Guarantee of rental Regus 8.483 8.483 The cost of sales generated during the period ended December
Guarantee of rental Wework 3.185 3.185 31, 2019 and 2018 are detailed below:
Total 11.668 11.668 in Th$
Concept For the year ended
Note 7 – Trade and other payables December 31,
The composition of the item as of December 31, 2019 and 2019 2018
2018 are as follows: Salaries 1.058.180 228.73
in Th$ Others 42.992 13.093
Concept As at December 31, Total 1.101.172 241.823
2019 2018
Professional services and fees Note 12 – Administrative expenses
accrual 26.587 38.731 The administrative expenses generated during the period
Social security, salaries and ended December 31, 2019 and 2018 are detailed below:
taxes payables 10.287 11.087 in Th$
Travel expenses 2.464 - Concept For the year ended
Rental expenses accrual 2.144 2.144 December 31,
IT services accrual 2 2.86 2019 2018
Insurance expenses accrual 407 407 Legal and accountant
Total 43.889 55.229 professional services 194.728 105.368
Rental office and related
Note 8 – Employee benefit liabilities expenses 88.032 57.661
The composition of the item as of December 31, 2019 Travel and related expenses 33.05 -
and 2018 is as follows: Insurances 161 128
in Th$ Others 8.679 3.353
Concept As at December 31, Total 324.65 166.51
2019 2018
Performance bonus accrual 101.655 19.887
CFG Variable pay accrual 20.51 19.729
Unavailed leave accrual 42.795 10.269
Total 164.961 49.884
Note 9 – Equity
As of December 31, 2019 the paid capital of the
Company is Th$ 604.310.-

Panaya GmbH
To the Members of Infosys Panaya GmbH

Opinion
We have audited the Ind AS financial statements of Infosys Panaya GmbH Limited (‘the company’), which comprises the
Balance Sheet as at 31st December 2019, the Statement of Profit and Loss (including other comprehensive income), the
Statement of Cash Flow and the Statement of Changes in Equity for the year then ended, and notes to the financial statements
including a summary of significant accounting policies and other explanatory information (herein after referred to as ‘Ind AS
Basis for opinion
630 I Panaya Gmbh Infosys Subsidiary Financials 2019-20

133 of the Act, read with relevant rule issued there under
.
For Shenoy & Kamath
Partner
UDIN : 20202841AAABSW1991
Place: Bengaluru.
Infosys Subsidiary Financials 2019-20 Panaya Gmbh I 631

Balance Sheet
in `
Particulars Note No. As at December 31,
2019 2018
ASSETS
Non-current assets
Property, plant and equipment 2.1 43,970 1,45,177
Total non - current Assets 43,970 1,45,177
CURRENT ASSETS
Financial assets
Cash and cash equivalents 2.3 71,80,770 2,72,35,711
Total Assets 65,79,48,919 69,52,92,198
Equity
Other equity (1,73,54,144) (2,05,83,571)
Total equity (1,55,41,394) (1,87,70,821)
LIABILITIES
Current liabilities
Trade payables 2.7 59,20,62,710 56,40,55,168
Other financial liabilities 2.8 2,09,83,934 94,73,750
Other liabilities 2.9 6,04,43,669 14,05,34,101

As per our report of even date attached for and on behalf of Board of Directors of Panaya GmbH
for Shenoy & Kamath
M. Rathnakar Kamath David Binny Deepak Padaki

Bengaluru
March 16, 2020

in `
Particulars Note No Year ended December 31,
2019 2018
Other income, net 2.12 – (46,533)
Total income 12,39,33,879 23,80,58,896
Expenses
Consultancy and professional charges 1,07,67,414 61,29,332
Depreciation expense 2.1 99,758 1,37,127
Other expenses 2.13 3,12,18,612 3,66,17,665
Total expenses 12,08,41,861 23,33,19,636
Tax expense:
Current tax 2.10 – –
Exchange differences on translation 1,37,409 (9,24,756)
Total other comprehensive income / (loss), net of tax 1,37,409 (9,24,756)

for Shenoy & Kamath

Bengaluru
March 16, 2020

in `
Particulars Equity share Other Equity Total equity
capital Other attributable to
Reserves & Surplus Comprehensive equity holders
Income of the Company
Securities Retained Exchange
premium earnings Difference on
Translation
Balance as of January 1, 2018 18,12,750 5,21,612 (2,07,13,286) (42,06,401) (2,25,85,325)
Profit for the year – – 47,39,260 – 47,39,260
Exchange – – – (9,24,756) (9,24,756)
differences on translation
Balance as 18,12,750 5,21,612 (1,59,74,026) (51,31,157) (1,87,70,821)
of December 31, 2018
Profit for the year – – 30,92,018 – 30,92,018
Exchange – – – 1,37,409 1,37,409
differences on translation
Balance as 18,12,750 5,21,612 (1,28,82,008) (49,93,748) (1,55,41,394)
of December 31, 2019

for Shenoy & Kamath

Bengaluru
March 16, 2020

in `
2019 2018
Depreciation 99,758 1,37,127
Other adjustments 1,449 (13,535)
Exchange differences on translation of assets and liabilities 1,37,409 (9,24,756)
Trade receivables (71,10,990) (1,99,10,977)
Other financial assets and other assets 2,42,98,121 (7,87,51,091)
Trade payables 2,80,07,542 14,48,41,845
Other financial liabilities and other liabilities (6,85,80,248) (7,25,78,785)
Net cash used in operating activities (2,00,54,941) (2,24,60,912)
Expenditure on property, plant and equipment – –
Net cash from/(used in) investing activities – –
Net cash from/(used in) financing activities – –
Effect of exchange differences on translation of foreign currency cash and cash equivalents – –
Net increase/(decrease) in cash and cash equivalents (2,00,54,941) (2,24,60,912)
Cash and cash equivalents at the end of the year 71,80,770 2,72,35,711

for Shenoy & Kamath

Bengaluru
March 16, 2020

Company overview If uncertainties exist, revenue is recognized when the
Panaya GmbH (“the Company”) is a wholly-owned subsidiary uncertainties are resolved.
of Panaya Inc., USA. The Company develops and markets Effective January 1, 2019, the Company adopted Ind AS
solutions for ERP systems, by identifying the changes on the 115 “Revenue from Contracts with Customers” using the
ERP system through automated analysis. cumulative catch-up transition method, applied to contracts
that were not completed as at January 1, 2019. In accordance
1 Significant accounting policies with the cumulative catch-up transition method , the
1.1 Accounting year comparatives have not been retrospectively adjusted. The
following is a summary of new and/or revised significant
accounting policies related to revenue recognition.
Revenue is recognized upon transfer of control of promised
1.2 Basis of preparation of financial statements products or services to customers in an amount that reflects
These financial statements are prepared in accordance with the consideration we expect to receive in exchange for those
Indian Accounting Standards (Ind AS) under the historical products or services.
cost convention on the accrual basis. The Ind AS are Revenue from fixed-price, fixed-timeframe contracts, where
prescribed under Section 133 of the Act read with Rule 3 of the performance obligations are satisfied over time and where
the Companies (Indian Accounting Standards) Rules, 2015 there is no uncertainty as to measurement or collectability
and Companies (Indian Accounting Standards) Amendment of consideration, is recognized as per the percentage-
Rules, 2016. The Ind AS are prescribed under Section of-completion method.
133 of the Act read with Rule 3 of the Companies (Indian
When there is uncertainty as to measurement or ultimate
uncertainty is resolved. Efforts or costs expended have been
Accounting policies have been consistently applied, except used to measure progress towards completion as there is a
where a newly issued accounting standard is initially adopted direct relationship between input and productivity.
Revenue from licenses where the customer obtains a “right
1.3 Presentation currency made available to the customer. Revenue from licenses where
The Company’s presentation currency is the Indian Rupee. the customer obtains a “right to access” is recognized over
the access period. Arrangements to deliver software products
1.4 Use of estimates generally have three elements: license, implementation and
The preparation of the financial statements in conformity Annual Technical Services (ATS). The Company has applied
with Ind AS requires the Management to make estimates the principles under Ind AS 115 to account for revenues
and assumptions that affect the accounting policies and from these performance obligations. When implementation
reported balances of assets and liabilities and disclosures services are provided in conjunction with the licensing
relating to contingent liabilities as at the date of the arrangement and the license and implementation have
financial statements and reported amounts of revenues and been identified as two separate performance obligations,
expenses during the period. the transaction price for such contracts are allocated to
Accounting estimates could change from period to period. each performance obligation of the contract based on their
Actual results could differ from those estimates. Appropriate relative standalone selling prices. In the absence of standalone
changes in estimates are made as the Management becomes selling price for implementation, the performance obligation
aware of changes in circumstances surrounding the estimates. is estimated using the expected cost plus margin approach.
Changes in estimates are reflected in the financial statements Where the license is required to be substantially customized
in the period in which changes are made and, if material, their as part of the implementation service the entire arrangement
effects are disclosed in the notes to the financial statements. fee for license and implementation is considered to be a single
performance obligation and the revenue is recognized using
Examples of such estimates allowance for credit losses, future the percentage-of-completion method as the implementation
obligations under employee benefit plans, income taxes, and is performed. Revenue from client training, support and
the useful lives of property, plant and equipment. other services arising due to the sale of software products is
1.5 Revenue recognition recognized as the performance obligations are satisfied. ATS
revenue is recognized ratably over the period in which the
The Company derives its revenue principally from the sale
services are rendered.
of its ERP systems analysis services including activation and
monthly service fees. Revenues from services are recognized Deferred contact cost
as services are performed or on a straight-line basis if service Deferred contract costs are incremental costs of obtaining a
is ongoing. Revenue is recognized provided that arrangement contract which are recognised as assets and amortized over
(usually in the form of a purchase order) exists, the fee is the term of the contract.
fixed and determinable and collection is reasonably assured.

Contract modification upon sale or retirement of the asset and the resultant gains
Contract modifications are accounted for when additions, or losses are recognized in the Statement of Profit and Loss.
deletions or changes are approved either to the contract 1.8 Financial instruments
contracts involves assessing whether the services added to an 1.8.1 Initial recognition
existing contract are distinct and whether the pricing is at the The Company recognizes financial assets and financial
standalone selling price. Services added that are not distinct liabilities when it becomes a party to the contractual
are accounted for on a cumulative catch up basis, while those provisions of the instrument. All financial assets and liabilities
that are distinct are accounted for prospectively, either as a are recognized at fair value on initial recognition, except for
separate contract, if the additional services are priced at the trade receivables which are initially measured at transaction
standalone selling price, or as a termination of the existing price. Transaction costs that are directly attributable to the
contract and creation of a new contract if not priced at the acquisition or issue of financial assets and financial liabilities,
standalone selling price. which are not at fair value through profit or loss, are added to
the fair value on initial recognition. Regular way purchase and
Tax
sale of financial assets are accounted at trade date.
statement of Profit and loss. 1.8.2 Subsequent measurement
1.6 Provisions Non-derivative financial instruments
A provision is recognized if, as a result of a past event, the (i) Financial assets carried at amortized cost
Company has a present legal or constructive obligation that A financial asset is subsequently measured at amortized cost
is reasonably estimable, and it is probable that an outflow of if it is held within a business model whose objective is to
economic benefits will be required to settle the obligation. hold the asset in order to collect contractual cash flows. The
Provisions are determined by discounting the expected contractual terms of the financial asset give rise on specified
future cash flows at a pre-tax rate that reflects current dates to cash flows that are solely payments of principal and
market assessments of the time value of money and the risks interest on the principal amount outstanding.
specific to the liability. (ii) Financial assets at fair value through other comprehensive
income
through other comprehensive income, if it is held within a
contractual cash flows and selling financial assets. The
assets are as follows : (iii) Financial assets at fair value through profit or loss
Computer equipment 3-5 years A financial asset, which is not classified in any of the above
Furniture and fixtures 5 years categories, is subsequently fair-valued through profit or loss.
Based on technical evaluation, the Management believes payables maturing within one year from the Balance Sheet
that the useful lives as given above best represent the period date, the carrying amounts approximate fair value due to the
over which the Management expects to use these assets. short maturity of these instruments.
Hence, the useful lives for these assets is different from the
useful lives as prescribed under Part C of Schedule II of the 1.9 Fair value of financial instruments
Companies Act, 2013. In determining the fair value of its financial instruments, the
Advances paid towards the acquisition of property, plant and Company uses a variety of methods and assumptions that
equipment outstanding at each Balance Sheet date is classified are based on market conditions and risks existing at each
as capital advances under other non-current assets and the reporting date. The methods used to determine fair value
cost of assets not put to use before such date are disclosed include discounted cash flow analysis, available quoted
under ‘Capital work-in-progress’. Subsequent expenditures market prices and dealer quotes. All methods of assessing
relating to property, plant and equipment is capitalized only fair value result in general approximation of value, and such
when it is probable that future economic benefits associated value may never actually be realized.
with these will flow to the Company and the cost of the 1.10 Impairment
costs are recognized in net profit in the Statement of Profit a. Financial assets
and Loss when incurred. The cost and related accumulated The Company recognizes loss allowances using the expected
depreciation are eliminated from the financial statements credit loss (ECL) model for the financial assets which are

not fair-valued through profit or loss. Loss allowance for currency and measured at fair value are translated at the
trade receivables with no significant financing component is exchange rate prevalent at the date when the fair value
measured at an amount equal to lifetime ECL. For all other was determined. Non-monetary assets and non-monetary
financial assets, expected credit losses are measured at an liabilities denominated in a foreign currency and measured
amount equal to the 12-month ECL, unless there has been a at historical cost are translated at the exchange rate prevalent
significant increase in credit risk from initial recognition in at the date of the transaction.
which case those are measured at lifetime ECL. The amount Transaction gains or losses realized upon settlement of foreign
of expected credit losses (or reversal) that is required to adjust currency transactions are included in determining net profit
the loss allowance at the reporting date to the amount that for the period in which the transaction is settled. Revenue,
is required to be recognized is recognized as an impairment expense and cash-flow items denominated in foreign currencies
gain or loss in profit or loss. are translated into the relevant functional currencies using the
b. Non-financial assets exchange rate in effect on the date of the transaction.
(i) Property, plant and equipment The translation of financial statements from functional
currency to the presentation currency is performed for assets
and liabilities using the exchange rate in effect at the Balance
Sheet date and for revenue, expense and cash-flow items
using the average exchange rate for the respective periods.
The gains or losses resulting from such translation are
included in exchange differences on translation under other
components of equity.
those from other assets. In such cases, the recoverable amount 1.13 Income taxes
is determined for the CGU to which the asset belongs. Income tax expense comprises current and deferred income
If such assets are considered to be impaired, the impairment to tax. Income tax expense is recognized in net profit in the
be recognized in the Statement of Profit and Loss is measured Statement of Profit and Loss, except to the extent that it
by the amount by which the carrying value of the assets relates to items recognized directly in equity, in which case
exceeds the estimated recoverable amount of the asset. An it is recognized in other comprehensive income. Current
impairment loss is reversed in the Statement of Profit and Loss income tax for current and previous periods is recognized at
if there has been a change in the estimates used to determine the amount expected to be paid to or recovered from the tax
the recoverable amount. The carrying amount of the asset is authorities, using the tax rates and tax laws that have been
increased to its revised recoverable amount, provided that enacted or substantively enacted by the Balance Sheet date.
this amount does not exceed the carrying amount that would Deferred income tax assets and liabilities are recognized for all
have been determined (net of any accumulated amortization temporary differences arising between the tax bases of assets
or depreciation) had no impairment loss been recognized for and liabilities, and their carrying amounts in the financial
the asset in prior years. statements. Deferred tax assets are reviewed at each reporting
1.11 Employee Benefits
Compensated absences
The Company has a policy on compensated absences tax rates and tax laws that have been enacted, or substantively
which are both accumulating and non-accumulating in enacted by the Balance Sheet date, and are expected to apply
nature. The expected cost of accumulating compensated to taxable income in the years in which those temporary
absences is determined by actuarial valuation performed differences are expected to be recovered or settled. The effect
by an independent actuary at each Balance Sheet date using of changes in tax rates on deferred income tax assets and
projected unit credit method on the additional amount liabilities is recognized as income or expense in the period
expected to be paid or availed as a result of the unused that includes the enactment or the substantive enactment
entitlement that has accumulated at the Balance Sheet date. date. A deferred income tax asset is recognized to the extent
Expense on non-accumulating compensated absences is that it is probable that future taxable profit will be available
recognized in the period in which the absences occur. against which the deductible temporary differences and tax
1.12 Foreign currency losses can be utilized. The Company offsets current tax assets
and current tax liabilities, where it has a legally enforceable
Functional currency right to set off the recognized amounts and where it intends
The functional currency of the Company is the EURO. either to settle on a net basis, or to realize the asset and settle
Transactions and translations the liability simultaneously.
Foreign-currency denominated monetary assets and liabilities In assessing the realizability of deferred income tax assets,
are translated into the relevant functional currency at management considers whether some portion or all of the
exchange rates in effect at the Balance Sheet date. The gains deferred income tax assets will not be realized. The ultimate
or losses resulting from such translations are included in net realization of deferred income tax assets is dependent upon
profit in the Statement of Profit and Loss. Non-monetary the generation of future taxable income during the periods
assets and non-monetary liabilities denominated in a foreign in which the temporary differences become deductible.

Management considers the scheduled reversals of deferred the lessee and the lessor. Ind AS 116 introduces a single
income tax liabilities, projected future taxable income and lessee accounting model and requires a lessee to recognize
tax planning strategies in making this assessment. Based on assets and liabilities for all leases with a term of more than 12
the level of historical taxable income and projections for months, unless the underlying asset is of low value. Currently,
future taxable income over the periods in which the deferred operating lease expenses are charged to the Statement of Profit
income tax assets are deductible, management believes that and Loss. The Standard also contains enhanced disclosure
the Company will realize the benefits of those deductible requirements for lessees. Ind AS 116 substantially carries
differences. The amount of the deferred income tax assets forward the lessor accounting requirements in Ind AS 17. The
considered realizable, however, could be reduced in the near effective date for adoption of Ind AS 116 is annual periods
term if estimates of future taxable income during the carry beginning on or after April 1, 2019. The standard permits two
forward period are reduced. possible methods of transition:
• Full retrospective: Retrospectively to each prior period
1.14 Cash Flow Statement
presented applying Ind AS 8 - Accounting Policies,
Cash flows are reported using the indirect method, whereby Changes in Accounting Estimates and Errors.
profit for the period is adjusted for the effects of transactions • Modified retrospective: Retrospectively, with the cumulative
of a non-cash nature, any deferrals or accruals of past or effect of initially applying the Standard recognized at the
future operating cash receipts or payments and item of date of initial application either by:
income or expenses associated with investing or financing • Under modified retrospective approach, the lessee records
cash flows. The cash flows from operating, investing, and the lease liability as the present value of the remaining
financing activities of the Company are segregated. lease payments, discounted at the incremental borrowing
1.15 Other income rate and the right-of-use asset either as:
• Its carrying amount as if the standard had been applied
The Company has adopted Appendix B to Ind AS 21, Foreign since the commencement date, but discounted at lessee’s
Currency Transactions and Advance Consideration which incremental borrowing rate at the date of initial application.
clarifies the date of transaction for the purpose of determining or
the exchange rate to use on initial recognition of the related • An amount equal to the lease liability, adjusted by the
asset, expense or income when an entity has received or paid amount of any prepaid or accrued lease payments related
advance consideration in a foreign currency. The effect on to that lease recognized under Ind AS 17 immediately
account of adoption of this amendment was insignificant. before the date of initial application.
1.16 Leases Certain practical expedients are available under both the
Ind AS 116 - Leases: On March 30, 2019, the Ministry of methods. The Company is proposing to use the ‘Modified
Corporate Affairs (MCA) has notified Ind AS 116 - Leases. Retrospective Approach’ for transitioning to Ind AS 116,
Ind AS 116 will replace the existing leases Standard, Ind AS and take the cumulative adjustment to retained earnings, on
17 - Leases and related Interpretations. The Standard sets out the date of initial application (January 1, 2020). The effect
the principles for the recognition, measurement, presentation of adoption is not expected to material for the company’s
and disclosure of leases for both parties to a contract i.e., financial statements
2.1 Property, Plant and Equipment

Following are the changes in the carrying value of property, plant and equipment for the year ended December 31, 2019:
in `
Particulars Computer Furniture and Total
equipment fixtures
Gross carrying value as of January 1, 2019 21,12,622 1,01,627 22,14,249
Additions/ Adjustments – – –
Deletions/Adjustments – – –
Translation Differences 2,906 140 3,046
Gross carrying value as of December 31, 2019 21,15,528 1,01,767 22,17,295
Accumulated depreciation as of January 1, 2019 (19,67,685) (1,01,387) (20,69,072)
Depreciation (99,619) (140) (99,758)
Accumulated depreciation on deletions – – –
Translation Differences (4,494) – (4,494)
Accumulated depreciation as of December 31, 2019 (20,71,798) (1,01,527) (21,73,324)
Carrying value as of December 31, 2019 43,730 240 43,970
Carrying value as of January 1, 2019 1,44,937 240 1,45,177

Following are the changes in the carrying value of property, plant and equipment for the year ended December 31, 2018:
in `
Particulars Computer Furniture and Total
equipment fixtures
Gross carrying value as of January 1, 2018 20,21,240 97,231 21,18,471
Additions/ Adjustments – – –
Deletions/Adjustments – – –
Translation Differences 91,382 4,396 95,778
Gross carrying value as of December 31, 2018 21,12,622 1,01,627 22,14,249
Accumulated depreciation as of January 1, 2018 (17,65,329) (84,374) (18,49,703)
Depreciation (1,20,114) (17,013) (1,37,127)
Accumulated depreciation on deletions – – –
Translation Differences (82,242) – (82,242)
Accumulated depreciation as of December 31, 2018 (19,67,685) (1,01,387) (20,69,072)
Carrying value as of December 31, 2018 1,44,937 240 1,45,177
Carrying value as of January 1, 2018 2,55,911 12,857 2,68,769
2.2 Trade receivables 2.5 Other assets

in ` in `
2019 2018 2019 2018
Current Current
Unsecured Prepaid expenses – 2,10,717
Considered good (1) 54,21,50,205 53,50,39,215 Withholding taxes and
Total trade receivables 54,21,50,205 53,50,39,215 others 20,14,084 –
(1)
Includes dues from Total current other assets 20,14,084 2,10,717
related parties (Refer
note2.15) 54,17,33,089 53,07,55,750
2.6 Equity
2.3 Cash and Cash Equivalents in `
in `
2019 2018
2019 2018
Authorized 18,12,750 18,12,750
Balances with banks
Issued, Subscribed
In current accounts 71,80,770 2,72,35,711
and Paid-Up (wholly
Total Cash
owned by Panaya Inc.) 18,12,750 18,12,750
and Cash equivalents 71,80,770 2,72,35,711
Total Equity share capital 18,12,750 18,12,750

in ` 2.7 Trade payables
in `
2019 2018
2019 2018
Current
Trade payables (1)
Rental deposits – 6,74,560
59,20,62,710 56,40,55,168
Security deposits 318 –
Total trade payables
Others (1)
59,20,62,710 56,40,55,168
10,65,59,572 13,19,86,818
Includes dues
(1)
Total current
to related parties
other financial assets 10,65,59,890 13,26,61,378
(Refer note no. 2.15) 59,17,42,105 56,36,77,573
Financial assets carried
at amortized cost 10,65,59,890 13,26,61,378
(1)
Includes dues from
related parties (Refer note
no. 2.15) 10,65,59,572 13,19,86,818

2.8 Other financial liablities The applicable statutory tax rate in Germany for year ending
in ` December 31, 2019 and December 31, 2018 is 32.50%.
2019 2018 2.11 Revenue from operations
in `
Current
Accrued Particulars Year ended December 31,
2019 2018
compensation
Revenue from
to employees(1) 1,43,80,146 70,16,937 products and platforms 12,39,33,879 23,81,05,429
Accrued expenses(1) 22,61,247 – Total
Compensated absences 43,42,541 24,56,813 revenue from operations 12,39,33,879 23,81,05,429
Other Payables(1) – –
Trade receivables and Contract Balances
liabilities 2,09,83,934 94,73,750
(1)
Financial liability carried The Company classifies the right to consideration in exchange
at amortized cost 1,66,41,393 70,16,937 for deliverables as either a receivable or as unbilled revenue.
2.9 Other liabilities the clients is based on milestones as defined in the contract.
in `
Particulars As at December 31, different from the timing of billing the customers.
2019 2018
Trade receivable are presented net of impairment
Current
Withholding
and other taxes payable 19,48,321 20,08,735 During the year ended December 31, 2019 , the Company
Unearned revenue recognized revenue of ` 9,87,03,880 arising from opening
5,84,95,348 13,85,25,366 unearned revenue as of January 1, 2019.
Total Performance obligations and remaining
current other liabilities 6,04,43,669 14,05,34,101
The remaining performance obligation disclosure provides the
2.10 Income taxes aggregate amount of the transaction price yet to be recognized
Income tax expense in the statement of profit and loss comprises: as at the end of the reporting period and an explanation as
in ` to when the Group expects to recognize these amounts in
Particulars As at December 31, revenue. Applying the practical expedient as given in Ind AS
2019 2018 115, the Group has not disclosed the remaining performance
Current taxes – – obligation related disclosures for contracts where the
Deferred taxes – – revenue recognized corresponds directly with the value to
Income tax expense – – the customer of the entity’s performance completed to date,
A reconciliation of the income tax provision to the amount material basis. Remaining performance obligation estimates
computed by applying the statutory income tax rate to the are subject to change and are affected by several factors,
income before income taxes is summarized below: including terminations, changes in the scope of contracts,
in ` periodic revalidations, adjustment for revenue that has not
Particulars As at December 31, materialized and adjustments for currency.
2019 2018 The aggregate value of performance obligations that are
Profit before income taxes 30,92,018 47,39,260 completely or partially unsatisfied as at December 31, 2019,
Enacted other than those meeting the exclusion criteria mentioned
tax rates in Germany 32.50% 32.50% above, is ` 5,79,71,839. Out of this, the Group expects to
Computed recognize revenue of around 83% within the next one year
expected tax expense 10,04,906 15,40,260 and the remaining thereafter. The contracts can generally
Effect of unrecognized be terminated by the customers and typically includes an
deferred tax assets (10,04,906) (15,40,260) enforceable termination penalty payable by them.
The impact on account of applying the erstwhile Ind AS
18 Revenue standard instead of Ind AS 115 Revenue from
for the year ended December 31, 2019 is insignificant

2.12 Other income All the above financial instruments are carried at amortized
in ` cost and the carrying values approximates their fair value.
Particulars Year ended December 31, Financial risk management
2019 2018
Exchange gain/(loss) of - (46,533) Credit risk
assets and liabilities Credit risk refers to the risk of default on its obligation by
Total other income – (46,533) the counterparty resulting in a financial loss. The maximum
2.13 Expenses from trade receivables amounting to `542,150,205 and
in ` `535,039,215 as of December 31, 2019 and December 31,
2018, respectively. Trade receivables are majorly derived from
revenue earned from companies within the group and no
2019 2018
credit risk is perceived.
Salaries including bonus 4,86,21,567 5,53,59,515 Liquidity risk
Staff welfare 2,06,612 2,60,929
The company’s principal sources of liquidity are cash
Total
and cash equivalents.
employee benefit expenses 4,88,28,179 5,56,20,444
in ` Company had cash and cash equivalents of `7,180,770 and
Particulars Year ended December 31, `27,235,711 respectively.
2019 2018 The Company has no outstanding borrowings and no
Other expenses liquidity risk is perceived.
Repairs and Maintenance 43,794 15,057
Brand and Marketing 3,56,159 24,84,321
Operating lease payments 12,93,098 23,48,365
Rates and taxes (14) 9,644
Insurance 2,33,142 2,10,704
Commission charges 2,89,52,415 3,11,89,791
Others 3,40,019 3,59,783
Total other expenses 3,12,18,612 3,66,17,665

The carrying value of financial instruments as of December
31, 2019 and December 31, 2018 were as follows:
in `
Particulars Carrying value as on
December 31,
2019 2018
Assets:
(Refer Note No. 2.3) 71,80,770 2,72,35,711
Trade receivables
(Refer Note No. 2.2) 54,21,50,205 53,50,39,215
(Refer Note No. 2.4) 10,65,59,890 13,26,61,378
Total 65,58,90,865 69,49,36,304
Liabilities:
Trade payables
(Refer Note No. 2.7) 59,20,62,710 56,40,55,168
(Refer Note No. 2.8) 1,66,41,393 70,16,937
Total 60,87,04,102 57,10,72,105

Name of Holding Country Holding as at December 31,
Company 2019 31, 2018
Panaya Inc US 100% 100%
Name of Ultimate Holding Company Country

HIPUS(20) Japan
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
(20)
(21)
(22)
(23)
(24)
(25)
(26)
Under Liquidation
in `
2019 2018
Trade receivables
Panaya Ltd 54,17,33,089 53,07,55,750
54,17,33,089 53,07,55,750
Panaya Ltd 10,65,59,572 13,19,86,818
10,65,59,572 13,19,86,818
Trade payables
Panaya Ltd. 59,17,42,105 56,36,77,573
59,17,42,105 56,36,77,573

in `
2019 2018
Panaya Ltd. 2,67,51,807 12,84,60,523
2,67,51,807 12,84,60,523
Sale of services
Panaya Ltd 1,01,23,363 11,05,88,294
1,01,23,363 11,05,88,294

The Company is engaged in developing and marketing solutions in a single geography. Based on the Management approach
as defined in Ind AS 108, Segment Reporting, the Chief Operating Decision Maker (CODM) evaluates the performance and
allocates resources based on analysis of performance of the Company as a whole. Its operations are, therefore, considered to

Infosys Austria GmbH
To the Members of Infosys Austria GmbH

Opinion
We have audited the Ind AS financial statements of Infosys Austria GmbH (‘the company’), which comprises the Balance Sheet
as at 31st December 2019, the Statement of Profit and Loss (including other comprehensive income), the Statement of Cash Flow
Basis for opinion
648 | Infosys Austria GmbH Infosys Subsidiary Financials 2019-20

For Shenoy & Kamath

M Rathnakar Kamath
Partner
Place: Bengaluru.
Infosys Subsidiary Financials 2019-20 Infosys Austria GmbH | 649

Balance Sheet
In EUR
2019 2018
ASSETS
Non-current assets
Property, plant and equipment 2.1 – –
Current assets
Financial assets
Trade receivables 2.4 52,454 –
Cash and cash equivalents 2.2 1,092,236 440,121
Other current assets 2.3 104,850 –
Total current assets 1,249,540 440,121
Total assets 1,256,540 445,371
Equity
Equity share capital 2.6 80,000 80,000
Other equity 385,894 (91,435)
Total equity 465,894 (11,435)
LIABILITIES
Borrowings 2.7 442,174 –
Current liabilities
Borrowings 2.7 – 439,063
Trade payables 2.9 780 –
Other current liabilities 2.10 271,461 –
Total equity and liabilities 1,256,540 445,371

for Shenoy & Kamath for and on behalf of the Board of Directors of Infosys Austria GmbH
M. Rathnakar Kamath Lilly Vasanthini Roberto Busin
Bengaluru
March 16, 2020

In EUR
Particulars Note no. Year ended December 31
2019 2018
Revenue from operations 2.12 652,704 –
Other income, net 2.13 (7,118) 1,419
Total income 645,586 1,419
Expenses
Employee benefit expenses 2.14 83,357 –
Finance Costs 2.15 14,996 1,970
Other expenses 2.14 3,453 832
Profit/(loss) before tax 537,990 (17,118)
Tax expense
Current tax 2.11 60,661 (8,319)
Profit/(loss) for the year 477,329 (8,799)
Total other comprehensive income/(loss), net of tax – –
Total comprehensive income/(loss) for the year 477,329 (8,799)

Bengaluru
March 16, 2020

In EUR
Retained Other items
earnings of other
comprehensive
income
Balance as of January 1, 2018 80,000 (82,636) – (2,636)
31, 2018
Profit/(loss) for the year – (8,799) – (8,799)
Balance as of December 31, 2018 80,000 (91,435) – (11,435)
31, 2019 –
Profit/(loss) for the year – 477,329 – 477,329
Balance as of December 31, 2019 80,000 385,894 – 465,894

Bengaluru
March 16, 2020

In EUR
2019 2018
Profit/(loss) for the year 477,329 (8,799)
Income tax expense 60,661 (8,319)
Changes in assets & liabilities
Other assets (157,304) 5,661
Cash generated from operations 665,750 (5,249)
Income tax paid 1,750 1,750
Net cash from / (used in) operating activities 664,000 (6,999)
Loan from fellow subsidiary, net of repayments 3,111 439,063
Finance cost (14,996) (1,970)
Net cash from / (used in) in financing activities (11,886) 437,093
Net increase/(decrease) in cash and cash equivalents 652,114 430,094
Cash and cash equivalents at the end of the year 1,092,236 440,121

Bengaluru
March 16, 2020

Company Overview and Significant Accounting Policies
Company overview Computer equipment (1) 3-5 years

Infosys Austria GmbH (“Infosys Austria” or “the Company”) Depreciation methods, useful lives, and residual values are
is a wholly-owned subsidiary of Infosys Limited w.e.f. March reviewed periodically, including at each financial year end
2018. The Company renders professional management (1) For these classes of assets, based on internal assessment and
consulting services, thereby enabling its clients to enhance independent technical evaluation carried out by external
evaluators, the Management believes that the useful lives as given
business performance.
above best represent the period over which the Management
expects to use these assets. Hence the useful lives for these assets
1 Significant accounting policies are different from the useful lives as prescribed under Part C of
Schedule II of the Companies Act 2013.
1.1 Accounting year
Advances paid towards the acquisition of property, plant
The accounting year of the Company is from and equipment outstanding at each Balance Sheet date is
January 1 to December 31. classified as capital advances under other non-current assets
1.2 Basis of preparation of financial statements and the cost of assets is not put to use before such dates
are disclosed under ‘Capital work-in-progress’. Subsequent
These financial statements are prepared in accordance with expenditures relating to property, plant and equipment are
Indian Accounting Standards (Ind AS), under the historical capitalized only when it is probable that future economic
cost convention on the accrual basis. The Ind AS are benefits associated with these will flow to the Company
prescribed under Section 133 of the Act read with Rule 3 of and the cost of the item can be measured reliably. Repair
the Companies (Indian Accounting Standards) Rules, 2015 and maintenance costs are recognized in net profit in the
and Companies (Indian Accounting Standards) Amendment Statement of Profit and Loss when incurred. The cost and
Rules, 2016. The Ind AS are prescribed under Section related accumulated depreciation are eliminated from the
133 of the Act read with Rule 3 of the Companies (Indian financial statements upon sale or retirement of the asset and
Accounting Standards) Rules, 2015 and relevant amendment resultant gains or losses are recognized in the Statement of
rules issued thereafter. Profit and Loss. Assets to be disposed off are reported at the
Accounting policies have been consistently applied except lower of the carrying value or the fair value less cost to sell.
or a revision to an existing accounting standard requires a 1.6 Financial instruments
change in the accounting policy hitherto in use.” 1.6.1 Initial recognition
1.3 Presentation currency The Company recognizes financial assets and financial
The Company’s presentation currency is Euro. liabilities when it becomes a party to the contractual
1.4 Use of estimates are recognized at a fair value on initial recognition, except for
The preparation of the financial statements in conformity trade receivables, which are initially measured at transaction
with Ind AS requires the Management to make estimates and price. Transaction costs that are directly attributable to the
assumptions that affect the reported balance of assets and acquisition or issue of financial assets and financial liabilities,
liabilities, and disclosures relating to contingent liabilities as that are not at a fair value through profit or loss, are added to
at the date of the financial statements and reported amount the fair value on initial recognition. Regular way of purchase
of income and expenses during the period. and sale of financial assets are accounted for at trade date.
Accounting estimates could change from period to period. 1.6.2 Subsequent measurement
Actual results could differ from those estimates. Appropriate a.Non-derivative financial instruments
aware of the changes in circumstances surrounding the (i)Financial assets carried at amortized cost
estimates. Changes in estimates are reflected in the financial A financial asset is subsequently measured at an amortized
statements in the period in which changes are made and, cost if it is held within a business model whose objective is
if material, their effects are disclosed in the notes to the to hold the asset in order to collect contractual cash flows
financial statements. and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of
1.5 Property, plant and equipment principal and interest on the principal amount outstanding.
Property, plant and equipment are stated at cost, less (ii)Financial assets at fair value through other
accumulated depreciation and impairment, if any. Costs comprehensive income
A financial asset is subsequently measured at a fair value
the straight-line method. The estimated useful lives of the

dates to cash flows that are solely payments of principal and increased to its revised recoverable amount, provided that
interest on the principal amount outstanding. this amount does not exceed the carrying amount that would
(iii)Financial assets at fair value through profit or loss have been determined (net of any accumulated amortization
A financial asset, which is not classified in any of the above
(iv)Financial liabilities 1.9 Foreign currency
Financial liabilities are subsequently carried at an amortized Functional currency
cost using the effective interest method, except for contingent
The functional currency of the Company is the EURO.
consideration recognized in a business combination, which is
subsequently measured at a fair value through profit and loss. Transactions and translations
For trade and other payables maturing within one year from Foreign-currency denominated monetary assets and liabilities
the Balance Sheet date, the carrying amounts approximate fair are translated into the relevant functional currency at
value due to the short maturity of these instruments. exchange rates in effect at the Balance Sheet date. The gains
or losses resulting from such translations are included in net
1.7 Fair value of financial instruments profit in the Statement of Profit and Loss. Non-monetary
In determining the fair value of its financial instruments, the assets and non-monetary liabilities denominated in a foreign
Company uses a variety of methods and assumptions that currency and measured at fair value are translated at the
are based on market conditions and risks existing at each exchange rate prevalent at the date when the fair value
reporting date. The methods used to determine a fair value was determined. Non-monetary assets and non-monetary
include discounted cash flow analysis, available quoted liabilities denominated in a foreign currency and measured
market prices and dealer quotes. All methods of assessing at historical cost are translated at the exchange rate prevalent
the fair value result in general approximation of value, and at the date of the transaction.
such value may never actually be realized. Transaction gains or losses realized upon settlement of
1.8 Impairment foreign currency transactions are included in determining
net profit for the period in which the transaction is settled.
a. Financial assets Revenue, expense, and cash-flow items denominated in
The Company recognizes loss allowances using the expected foreign currencies are translated into the relevant functional
credit loss (ECL) model for the financial assets, which are currencies using the exchange rate in effect on the
not fair valued through profit or loss. Loss allowance for date of the transaction.
1.10 Income taxes
financial assets, expected credit losses are measured at an Income tax expense comprises current and deferred income
amount equal to the 12-month ECL, unless there has been a tax. Income tax expense is recognized in net profit in the
significant increase in credit risk from initial recognition in statement of profit and loss except to the extent that it
which case those are measured at lifetime ECL. The amount relates to items recognized directly in equity, in which case
of expected credit losses (or reversal) that is required to adjust it is recognized in other comprehensive income. Current
the loss allowance at the reporting date to the amount that income tax for current and prior periods is recognized at
is required to be recognized is recognized as an impairment the amount expected to be paid to or recovered from the tax
gain or loss in the Statement of Profit or Loss. authorities, using the tax rates and tax laws that have been
b. Non-financial assets Deferred income tax assets and liabilities are recognized for all
(i)Property, plant and equipment temporary differences arising between the tax bases of assets
Property, plant and equipment are evaluated for recoverability and liabilities and their carrying amounts in the financial
whenever events or changes in circumstances indicate that statements. Deferred tax assets are reviewed at each reporting
their carrying amounts may not be recoverable. For the date and are reduced to the extent that it is no longer probable
purpose of impairment testing, the recoverable amount (i.e. that the related tax benefit will be realized.
the higher of the fair value less cost to sell and the value-in- Deferred income tax assets and liabilities are measured using
use) is determined on an individual asset basis unless the asset tax rates and tax laws that have been enacted or substantively
does not generate cash flows that are largely independent of enacted by the Balance Sheet date and are expected to apply
those from other assets. In such cases, the recoverable amount to taxable income in the years in which those temporary
is determined for the CGU to which the asset belongs. differences are expected to be recovered or settled. The effect
If such assets are considered to be impaired, the impairment to of changes in tax rates on deferred income tax assets and
be recognized in the Statement of Profit and Loss is measured liabilities is recognized as income or expense in the period
by the amount by which the carrying value of the assets that includes the enactment or the substantive enactment
exceeds the estimated recoverable amount of the asset. An date. A deferred income tax asset is recognized to the extent
impairment loss is reversed in the statement of profit and loss that it is probable that future taxable profit will be available
if there has been a change in the estimates used to determine against which the deductible temporary differences and tax
the recoverable amount. The carrying amount of the asset is losses can be utilized. The Company offsets current tax assets

right to set off the recognized amounts and where it intends • Retrospectively with cumulative effect of initially applying
either to settle on a net basis, or to realize the asset and settle the standard recognized at the date of initial application
the liability simultaneously. (Cumulative catch-up approach)
1.11 Cash Flow Statement The effective date for adoption of Ind AS 115 is financial
periods beginning on or after April 1, 2018.
Cash flows are reported using the indirect method, where
profit for the period is adjusted for the effects of transactions The Company adopted the standard on January 1, 2019
of a non-cash nature, any deferrals or accruals of past or by using the cumulative catch-up transition method and
future operating cash receipts or payments, and item of accordingly comparatives for the year ending or ended
income or expenses associated with investing or financing December 31, 2018 is not retrospectively adjusted. The effect
cash flows. The cash flows from operating, investing, and on adoption of IndAS 115 is insignificant.
financing activities of the Company are segregated. Ind AS 116-Leases: On March 30, 2019, the Ministry of
Corporate Affairs (MCA) notified Ind AS 116-Leases. Ind
1.12 Other Income AS 116 will replace the existing leases Standard, Ind AS
Other income is comprised primarily of interest income and 17-Leases and related Interpretations. The Standard sets out
exchange gain/loss on translation of other assets and liabilities. the principles for the recognition, measurement, presentation,
Interest income is recognized using effective interest method. and disclosure of leases for both parties to a contract i.e., the
lessee and the lessor. Ind AS 116 introduces a single lessee
1.13 Borrowing Cost accounting model and requires a lessee to recognize assets
Borrowing cost is charged to the Statement of Profit and Loss and liabilities for all leases with a term of more than 12
in the period in which they are incurred. months, unless the underlying asset is of low value. Currently,
1.14 Leases and Loss. The Standard also contains enhanced disclosure
Lease under which the Company assumes substantially all requirements for lessees. Ind AS 116 substantially carries
the risks and rewards of ownership are classified as finance forward the less or accounting requirements in Ind AS 17.
leases. Such assets acquired are capitalized at fair value of The effective date for adoption of Ind AS 116 is annual
the asset or present value of the minimum lease payments periods beginning on or after April 1, 2019. The standard
at the inception of the lease, whichever is lower. Lease permits two possible methods of transition:
payments under operating leases are recognized as an expense • Full retrospective: Retrospectively to each prior period
on a straight-line basis in the Statement of Profit and Loss presented applying Ind AS 8-Accounting Policies, Changes
over the lease term. in Accounting Estimates, and Errors.
1.15 Recent accounting pronouncements • Modified retrospective: Retrospectively, with the cumulative
The Company has adopted Appendix B to Ind AS 21: effect of initially applying the Standard recognized at the
Foreign currency transactions and advance consideration, date of initial application either by:
which clarifies the date of the transaction for the purpose • Under modified retrospective approach, the lessee records
of determining the exchange rate to use on initial the lease liability as the present value of the remaining
recognition of the related asset, expense or income, when lease payments, discounted at the incremental borrowing
an entity has received or paid advance consideration in a rate and the right-of-use asset either as:
foreign currency.The effect on account of adoption of this • Its carrying amount as if the standard had been applied
amendment was insignificant. since the commencement date, but discounted at
Ind AS115, Revenue from Contract with Customers: On lessee’s incremental borrowing rate at the date of
March 28, 2018, Ministry of Corporate Affairs has notified initial application or
the Ind AS 115, Revenue from Contract with Customers. • An amount equal to the lease liability, adjusted by the
The core principle of the new standard is that an entity amount of any prepaid or accrued lease payments related
should recognize revenue to depict the transfer of promised to that lease recognized under Ind AS 17 immediately
goods or services to customers in an amount that reflects before the date of initial application.
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
and take the cumulative adjustment to retained earnings, on
the date of initial application (January 1, 2020). The effect
The standard permits two possible methods of transition: of adoption is not expected to material for the company’s
• Retrospective approach - Under this approach, the standard financial statements.
will be applied retrospectively to each prior reporting
period presented in accordance with Ind AS 8-Accounting
Policies, Changes in Accounting Estimates and Errors

The impact on account of applying the erstwhile Ind AS 2.2 Cash and cash equivalents
18 Revenue standard instead of Ind AS 115 Revenue from In EUR
contract with customers on the financial result of the Group Particulars As at December 31
for the year ended December 31, 2019 is insignificant. 2019 2018
2.1 Property, Plant and Equipment Balances with banks
In current accounts 1,092,236 440,121
The changes in the carrying value of property, plant and Total Cash and cash
equipment for the year ended December 31, 2019 are as follows: equivalents 1,092,236 440,121
InEUR
Particulars Computer Total
2.3 Other assets
equipment In EUR
January 1, 2019 892 892
2019 2018
Additions – –
Current
Deletions – –
Others
Employee loans 838 –
December 31, 2019 892 892
others 104,012 –
of January1, 2019 892 892
Total other assets 104,850 –
Depreciation – –
deletions – – 2.4 Trade receivables
In EUR
of December 31, 2019 892 892 Particulars As at December 31
Carrying value as of 2019 2018
December 31, 2019 – – Current
Carrying value as of January Unsecured
1, 2019 – – Considered good 52,454 –
52,454 –
The changes in the carrying value of property, plant and Total Trade Receivables 52,454 –
equipment for the year ended December 31, 2018 are as follows:
In EUR
equipment Financial instruments by category
Gross carrying value as of The carrying value and fair value of financial instruments by
January 1, 2018 892 892 categories were as follows:
Additions – – (In EUR)
Deletions – – Particulars As at December 31
Gross carrying value as of 2019 2018
December 31, 2018 892 892 Assets:
Accumulated depreciation as Cash and cash equivalents
of January 1, 2018 892 892 (Refer note. 2.2) 1,092,236 440,121
Depreciation – – Trade receivables
Accumulated depreciation on (Refer note. 2.4) 52,454 –
deletions – – Total 1,144,690 440,121
Accumulated depreciation as Liabilities:
of December 31, 2018 892 892 Trade payables 780 –
Carrying value as of Borrowings
December 31, 2018 – – (Refer note. 2.7) – 439,063
Carrying valueas of January Other financial liabilities
1, 2018 – – (Refer note. 2.8) 9,565 11,738
Total 10,345 450,801
All the above financial instruments are carried at an amortized

cost and the carrying values approximates their fair value.

Financial risk management The Company has been acquired by Infosys
Limited In March 2018.
The Company’s activities expose it to a variety of financial 2.7 Borrowings
In EUR
Credit risk 2019 2018
Credit risk refers to the risk of default on its obligation by Non-current
the counterparty resulting in a financial loss. The maximum Unsecured Loan from Fellow
exposure to the credit risk at the reporting date is primarily subsidiary* (Refer note. 2.15) 442,174 439,063
from trade receivables amounting to EUR 52,454 as at 442,174 439,063
December 31, 2019. Credit risk has always been managed Total Borrowings 442,174 439,063
by the Company through credit approvals, establishing credit
limits and continuously monitoring the creditworthiness of *The loan was given in accordance with the terms
customers to which the Company grants credit terms in the and conditions of the loan agreement and carries an
normal course of business. On account of the adoption of interest rate of 3.5% per annum, and is repayable at the
Ind AS 109, the Company uses expected credit loss model discretion of the lender.
to assess the impairment loss or gain. The Company uses
a provision matrix to compute the expected credit loss In EUR
allowance for trade receivables and unbilled revenues. The
provision matrix takes into account available external and Particulars As at December 31
internal credit risk factors such as credit default swap quotes, 2019 2018
credit ratings from credit rating agencies and the Company’s Current
historical experience for customers. Others
Accrued expenses – 8,240
Credit risk on cash and cash equivalents is limited as we Other payables(1) 9,565 3,498
generally invest in banks with high credit ratings assigned 9,565 11,738
by credit rating agencies.
Total financial liabilities 9,565 11,738
Liquidity risk Financial liability carried at
The Company’s principal sources of liquidity are cash and amortized cost 9,565 11,738
cash equivalents. The Company has taken loan from its
(1)
related party to meet its working capital requirements. parties (Refer note. 2.12) 939 3,498
Company had cash and cash equivalents of EUR 1,092,236
2.9 Trade payables
and EUR 440,121 respectively. Particulars As at December 31
2019 2018
2.6 Equity Trade payables 780 –
Equity share capital 780 –
In EUR
Particulars As at December 31, 2.10 Other liabilities
2019 2018 Particulars As at December 31
Authorized 2019 2018
Equity share capital 80,000 80,000 Current
Issued, Subscribed and Paid- Unearned revenue 113,644 –
Up – – Others
Equity share capital 80,000 80,000 Withholding taxes and others 157,817 –
80,000 80,000 271,461 –
The details of shareholder holding more than 5% shares as at

2.11 Income taxes
December 31, 2019 and December 31, 2018 are set out below:
Income tax expense in the statement of profit and loss comprises:
In EUR
Name of the shareholder As at December 31 Particulars Year ended December 31
2019 2018 2019 2018
Infosys Limited 100% 100% Current taxes 60,661 (8,319)
Income tax expense 60,661 (8,319)

A reconciliation of the income tax provision to the amount 2.14 Expenses
computed by applying the statutory income tax rate to the In EUR
income before income taxes is summarized below: Particulars Year ended December 31,
In EUR
2019 2018
Particulars Year ended December 31, Employee benefit expenses
2019 2018 Salaries, including bonus 83,357 –
Profit before income taxes 537,990 (17,118) 83,357 –
Enacted tax rates in Austria 25.00% 25.00%
In EUR
expense 134,498 (4,280) Particulars Year ended December 31,
Tax Provision/Reversals 60,661 (8,319) 2019 2018
Effect of unrecognized Other expenses
deferred tax assets (134,498) 4,280 Repairs and Maintenance – 2
Income tax expense 60,661 (8,319) Rent 2,345 –
Others 1,108 830
The applicable Austria statutory tax rate for years ended 3,453 832
December 31, 2019 and December 31, 2018 is 25%.
The details of income tax assets and income tax 2.15 Finance costs
liabilities are as follows: In EUR
In EUR Particulars Year ended December 31,
Particulars As at December 31 2019 2018
2019 2018 Interest expense on loan
Income tax assets 7,000 5,250 from fellow subsidiary 14,996 1,970
Current income tax liabilities 66,666 6,005 Total finance costs 14,996 1,970
assets/(liability) at the end (59,666) (755) 2.16 Leases
The gross movement in the current income tax asset/(liability) Obligations on long-term, non-cancellable operating leases
for the year ended are as follows: The lease rentals charged during the period are as follows:
In EUR In EUR
2019 2018 2019 2018
Net current income tax asset/ during the year 2,345 –
(liability) at the beginning (755) (10,824)
The obligations on long-term, non-cancellable operating
Current income tax expense (60,661) 8,319
Net current income tax asset/ In EUR
(liability) at the end (59,666) (755)
Future minimum lease As at December 31
payable 2019 2018
In EUR Not later than 1 year 2,151 –
Later than 1 year and not
later than 5 years – –
2019 2018
Income from software
services 652,704 – The operating lease arrangement is renewable
Total revenue from operation 652,704 – on a periodic basis.
2.13 Other income

In EUR
2019 2018
Exchange gains/(losses) on
and liabilities (7,118) 1,419
Total other income (7,118) 1,419

Name of Holding Companies Country Holding as at December 31,
2019 2018
Infosys Technologies O Brazil LTDA. (Infosys Brazil) Brazil
Infosys Chile SpA (2) Chile
Infosys Consulting Ltd a.(3) Brazil
Infosys CIS LLC (1) (22) Russia
Infosys Technologies (Australia) Pvt. Limited (Infosys Australia) (4) Australia
Infosys Canada Public Services Ltd (24) Canada
Portland Group Pty. Ltd (5) Australia
Infosys Consulting (Shanghai) Co. Ltd. (formerly Lodestone Management Consultants Co., Ltd.) (6) China
Infosys Consulting Company Ltd (6) UK
Infosys Consulting B.V. (6) The Netherlands
S.C. Infosys Consulting S.R.L. (1) Romania
Noah Consulting LLC (Noah) (9) US
Noah Information Management Consulting Inc. (Noah Canada) (10) Canada
Brilliant Basics Holdings Limited (Brilliant Basics) (11) UK
Brilliant Basics (MENA) DMCC (12) UAE
Infosys Consulting Pte. Limited (Infosys Singapore) (1) Singapore

Infosys Compaz Pte. Ltd (formerly Trusted Source Pte. Ltd) (13) (20) Singapore
(1)
Wholly–owned subsidiary of Infosys Limited
(2)
(3)
(4)
Under liquidation
(5)
(6)
(7)
(8)
(9)
(10)
Wholly-owned subsidiary of Noah. Liquidated effective December 20, 2017
(11)
On September 8, 2017, Infosys acquired 100% of the voting interests in Brilliant Basics Holding Limited
(12)
Wholly–owned subsidiary of Brilliant Basics Holding Limited.
(13)
Wholly–owned subsidiary of Infosys Consulting Pte. Ltd
(14)
(15)
(16)
Wholly–owned subsidiary of WongDoody
(17)
(18)
(19)
Wholly–owned subsidiary of Fluido Oy
(20)
(21)
(22)
(23)
(24)
Liquidated effective May 9, 2017, wholly-owned subsidiary Infosys Public Services Inc
In EUR
2019 2018
Borrowings (1)
Infosys Public Services, Inc. USA (Infosys Public Services) – 439,063
Infosys Consulting Pte. Ltd. 442,174 –
442,174 439,063
Other payables
Infosys Limited 939 –
939 3,498

The above loan was given in accordance with the terms and conditions of the loan agreement and carries an interest rate of 2.6% per annum.
(1)
In EUR
2019 2018
Borrowings net of repayment (1)
442,174 439,063
Interest expense
14,996 1,970
Includes interest.
(1)

defined in Ind AS 108, Segment reporting the Chief Operating Decision Maker (CODM) evaluates the performance and allocates
constitute a single segment in the context of Ind AS 108.

Infosys Consulting s.r.o.
To the Members of Infosys Consulting s.r.o
Opinion
We have audited the Ind AS financial statements of Infosys Consulting s.r.o (‘the company’), which comprises the Balance Sheet
as at 31st December 2019, the Statement of Profit and Loss (including other comprehensive income), the Statement of Cash
Flow and the Statement of Changes in Equity for the year then ended, and notes to the financial statement including a summary
Basis for opinion
664 | Infosys Consulting s.r.o. Infosys Subsidiary Financials 2019-20

For Shenoy & Kamath

Chartered accountants,
PARTNER
UDIN : 20202841AAABSS7862
Place: Bengaluru.
Infosys Subsidiary Financials 2019-20 Infosys Consulting s.r.o | 665

Balance Sheet
(in `)
2019 2018
ASSETS
Non-current assets
Current assets
Financial assets
Other current assets 2.5 67,454 1,30,369
Total assets 2,04,12,376 1,81,26,638
Equity
Other equity 1,34,21,383 1,08,37,005
Total equity 1,42,11,160 1,16,26,782
Liabilities
Current liabilities
Trade payables 2.9 4,74,442 7,505
Income tax liabilities, net 2.11 27,901 11,40,365
for Shenoy & Kamath for and on behalf of the Board of Directors of Infosys Consulting s.r.o.
M. Rathnakar Kamath Andrew Duncan

Partner Director
Bengaluru
March 16, 2020

2019 2018
Other income, net 2.13 56,224 0
Total income 2,76,17,923 3,02,51,939
Expenses
Depreciation expenses 2.1 37,841 84,476
Other expenses 2.14 2,12,955 9,47,439
Total expenses 2,55,29,010 2,82,84,201
Tax expense
Current tax 2.11 (3,33,827) (9,11,048)
Exchange differences on translation 1,61,638 (3,86,20,346)
Total other comprehensive income, net of tax 1,61,638 (3,86,20,346)
Total comprehensive income for the year 25,84,378 (3,57,41,560)
Equity shares of par value CZK 1 each
Basic & Diluted 12.11 14.39
equity share
Basic & Diluted 2,00,000 2,00,000

Partner Director
Bengaluru
March 16, 2020

(in `)
capital Reserves and Other comprehensive income attributable to
Surplus equity holders
Retained Other reserves Other items of the Company
earnings of other
comprehensive
income
Balance as of January 1, 2018 789,777 43,475,231 58,464 3,044,870 47,368,342
Exchange difference on
translation (38,620,346) (38,620,346)
Balance as of December 31,
2018 789,777 46,354,017 58,464 (35,575,476) 11,626,782
Exchange difference on
translation 161,638 161,638
Balance as of December 31,
2019 789,777 48,776,757 58,464 (35,413,838) 14,211,160

Partner Director
Bengaluru
March 16, 2020

(in `)
2019 2018
Exchange differences on translation of assets and liabilities 1,61,946 (3,86,25,445)
Trade receivables (7,38,305) 3,44,401
Loans and other financial assets and other assets 68,445 2,94,177
Trade payables 4,66,937 (1,32,685)
Other financial liabilities, other liabilities and provisions 3,46,887 (7,74,454)
Cash generated from operations 24,32,664 (3,68,41,792)
Income taxes paid (7,78,637) 36,12,702
Net cash from / (used in) operating activities 16,54,027 (3,32,29,090)
Net cash from investing activities – –
Net increase/(decrease) in cash and cash equivalents 16,54,027 (3,32,29,090)

Partner Director
Bengaluru
March 16, 2020

Company overview with the cumulative catch-up transition method , the
Infosys Consulting s.r.o. “the Company” is a wholly- comparatives have not been retrospectively adjusted. The
owned subsidiary of Infosys Consulting Holding AG, following is a summary of new and/or revised significant
Kloten (Switzerland). The Company renders professional accounting policies related to revenue recognition.
management consulting services, thereby enabling its clients Revenue is recognized upon transfer of control of promised
to enhance business performance. products or services to customers in an amount that reflects
1 Significant accounting policies products or services.
1.1 Accounting year 1.5.1 T&M
The accounting year of the Company is from Revenue on time-and-material contracts are recognized as
January 1 to December 31. the related services are performed and revenue from the
end of the last invoicing to the reporting date is recognized
1.2 Basis of preparation of financial statements as unbilled revenue.
These financial statements are prepared in accordance
with Indian Accounting Standards (Ind AS) under the 1.5.4 Contract Modification
historical cost convention on the accrual basis. The Ind Contract modifications are accounted for when additions,
AS are prescribed under Section 133 of the Act read with deletions or changes are approved either to the contract
Rule 3 of the Companies (Indian Accounting Standards) scope or contract price. The accounting for modifications of
Rules, 2015 and Companies (Indian Accounting Standards) contracts involves assessing whether the services added to an
Amendment Rules, 2016. existing contract are distinct and whether the pricing is at the
Accounting policies have been consistently applied, except standalone selling price. Services added that are not distinct
where a newly issued accounting standard is initially adopted are accounted for on a cumulative catch up basis, while those
or a revision to an existing accounting standard requires a that are distinct are accounted for prospectively, either as a
change in the accounting policy hitherto in use. separate contract, if the additional services are priced at the
1.3 Presentation currency contract and creation of a new contract if not priced at the
The Company’s presentation currency is the Indian Rupee. standalone selling price.
1.4 Use of estimates 1.5.5 Tax

The preparation of the financial statements in conformity The Company presents revenues net of indirect taxes in its
with Ind AS requires the Management to make estimates and statement of Profit and loss.
assumptions that affect the reported balances of assets and 1.6 Provisions
liabilities, and disclosures relating to contingent liabilities as
at the date of the financial statements and reported amounts A provision is recognized if, as a result of a past event, the
of revenues and expenses during the period. Examples of such Company has a present legal or constructive obligation that
estimates include computation of percentage of completion is reasonably estimable, and it is probable that an outflow of
which requires the Company to estimate the efforts or costs economic benefits will be required to settle the obligation.
expended to date as a proportion of the total efforts to be Provisions are determined by discounting the expected
expended, provisions for doubtful debts, future obligations future cash flows at a pre-tax rate that reflects current
under employee benefit plans, income taxes, post-sales market assessments of the time value of money and the risks
customer support and the useful lives of fixed assets. specific to the liability
Accounting estimates could change from period to period. 1.7 Onerous contracts
Actual results could differ from those estimates. Appropriate Provisions for onerous contracts are recognized when the
changes in estimates are made as the Management becomes expected benefits to be derived by the Company from a
aware of changes in circumstances surrounding the estimates. contract are lower than the unavoidable costs of meeting
Changes in estimates are reflected in the financial statements the future obligations under the contract. The provision is
in the period in which changes are made and, if material, their measured at the present value of the lower of the expected
effects are disclosed in the notes to the financial statements. cost of terminating the contract and the expected net cost of
1.5 Revenue recognition continuing with the contract. Before a provision is established
The Company derives revenues primarily from associated with that contract.
consultancy services.
Effective January 1, 2019, the Company adopted Ind AS 1.8 Property, plant, and equipment
115 “Revenue from Contracts with Customers” using the Property, plant, and equipment are stated at cost, less
cumulative catch-up transition method, applied to contracts accumulated depreciation and impairment, if any. Costs
that were not completed as at January 1, 2019. In accordance directly attributable to acquisition are capitalized until the

property, plant and equipment are ready for use, as intended flows that are solely payments of principal and interest on the
by the Management. The Company depreciates property, principal amount outstanding.
plant and equipment over their estimated useful lives using Financial liabilities
assets are as follows :
Computer equipment (1) 3-5 years payables maturing within one year from the Balance Sheet
date, the carrying amounts approximate fair value due to the
For computer equipment, based on technical evaluation the Management
(1)
1.10 Fair value of financial instruments
believes that the useful lives as given above best represent the period
over which the Management expects to use these assets. Hence the In determining the fair value of its financial instruments, the
useful lives for computer equipment is different from the useful lives as Company uses a variety of methods and assumptions that
prescribed under Part C of Schedule II of the Companies Act 2013. are based on market conditions and risks existing at each
Advances paid towards the acquisition of property, plant and reporting date. The methods used to determine fair value
equipment outstanding at each Balance Sheet date is classified include discounted cash flow analysis, available quoted
as capital advances under other non-current assets and the market prices and dealer quotes. All methods of assessing
cost of assets not put to use before such date are disclosed fair value result in general approximation of value, and such
under ‘Capital work-in-progress’. Subsequent expenditures value may never actually be realized.
1.11 Impairment
with these will flow to the Company and the cost of the Financial assets
item can be measured reliably. Repairs and maintenance The Company recognizes loss allowances using the expected
costs are recognized in net profit in the Statement of Profit credit loss (ECL) model for the financial assets which are
and Loss when incurred. The cost and related accumulated not fair-valued through profit or loss. Loss allowance for
depreciation are eliminated from the financial statements trade receivables with no significant financing component is
upon sale or retirement of the asset and the resultant gains measured at an amount equal to lifetime ECL. For all other
or losses are recognized in the Statement of Profit and Loss. financial assets, expected credit losses are measured at an
Assets to be disposed off are reported at the lower of the amount equal to the 12-month ECL, unless there has been a
carrying value or the fair value less cost to sell. significant increase in credit risk from initial recognition in
of expected credit losses (or reversal) that is required to
1.9.1 Initial recognition adjust the loss allowance at the reporting date to the amount
The Company recognizes financial assets and financial that is required to be recognized is an impairment gain or
liabilities when it becomes a party to the contractual loss in profit or loss.
provisions of the instrument. All financial assets and liabilities Non-financial assets
price. Transaction costs that are directly attributable to the Property, plant and equipment are evaluated for recoverability
acquisition or issue of financial assets and financial liabilities, whenever events or changes in circumstances indicate that
which are not at fair value through profit or loss, are added their carrying amounts may not be recoverable. For the
to the fair value on initial recognition. Regular way purchase purpose of impairment testing, the recoverable amount (i.e.
and sale of financial assets are accounted for at trade date. the higher of the fair value less cost to sell and the value-in-
1.9.2 Subsequent measurement Non-derivative does not generate cash flows that are largely independent of
financial instruments Financial assets carried at those from other assets. In such cases, the recoverable amount
amortized cost is determined for the CGU to which the asset belongs.
A financial asset is subsequently measured at amortized cost if If such assets are considered to be impaired, the impairment to
it is held within a business model whose objective is to hold be recognized in the Statement of Profit and Loss is measured
the asset in order to collect contractual cash flows and the by the amount by which the carrying value of the assets
contractual terms of the financial asset give rise on specified exceeds the estimated recoverable amount of the asset. An
dates to cash flows that are solely payments of principal and impairment loss is reversed in the Statement of Profit and Loss
interest on the principal amount outstanding. Financial assets if there has been a change in the estimates used to determine
at fair value through other comprehensive income. A financial the recoverable amount. The carrying amount of the asset is
asset is subsequently measured at fair value through other increased to its revised recoverable amount, provided that
comprehensive income if it is held within a business model this amount does not exceed the carrying amount that would
whose objective is achieved by both collecting contractual have been determined (net of any accumulated amortization
cash flows and selling financial assets, and the contractual or depreciation) had no impairment loss been recognized for
terms of the financial asset give rise on specified dates to cash the asset in previous years.

The Company has a policy on compensated absences that the related tax benefit will be realized.
absences is determined by actuarial valuation performed enacted by the Balance Sheet date and are expected to apply
expected to be paid or availed as a result of the unused of changes in tax rates on deferred income tax assets and
entitlement that has accumulated at the Balance Sheet date. liabilities is recognized as income or expense in the period
Expense on non-accumulating compensated absences is that includes the enactment or the substantive enactment
recognized in the period in which the absences occur. date. A deferred income tax asset is recognized to the extent
1.13 Foreign currency that it is probable that future taxable profit will be available
Functional currency losses can be utilized. The Company offsets current tax assets
The functional currency of the Company is the Czech Krona. and current tax liabilities, where it has a legally enforceable
These financial statements are presented in Indian Rupees right to set off the recognized amounts and where it intends
Transactions and translations the liability simultaneously.
Foreign-currency-denominated monetary assets and In assessing the realizability of deferred income tax assets,
liabilities are translated into the relevant functional currency management considers whether some portion or all of the
at exchange rates in effect at the Balance Sheet date. The gains deferred income tax assets will not be realized. The ultimate
or losses resulting from such translations are included in net realization of deferred income tax assets is dependent upon
profit in the Statement of Profit and Loss. Non- monetary the generation of future taxable income during the periods
assets and non-monetary liabilities denominated in a foreign in which the temporary differences become deductible.
currency and measured at fair value are translated at the Management considers the scheduled reversals of deferred
exchange rate prevalent at the date when the fair value income tax liabilities, projected future taxable income and
was determined. Non-monetary assets and non-monetary tax planning strategies in making this assessment. Based on
liabilities denominated in a foreign currency and measured the level of historical taxable income and projections for
at historical cost are translated at the exchange rate prevalent future taxable income over the periods in which the deferred
at the date of the transaction. income tax assets are deductible, management believes that
Transaction gains or losses realized upon settlement of foreign the Company will realize the benefits of those deductible
currency transactions are included in determining net profit differences. The amount of the deferred income tax assets
for the period in which the transaction is settled. Revenue, considered realizable, however, could be reduced in the near
expense and cash-flow items denominated in foreign currencies term if estimates of future taxable income during the carry
are translated into the relevant functional currencies using the forward period are reduced.
The translation of financial statements from functional
currency to the presentation currency is performed for assets Cash flows are reported using the indirect method, whereby
and liabilities using the exchange rate in effect at the Balance profit for the period is adjusted for the effects of transactions
Sheet date and for revenue, expense and cash flow items of a non-cash nature, any deferrals or accruals of past or
using the average exchange rate of the respective periods. future operating cash receipts or payments and item of
The gains or losses resulting from such translation are income or expenses associated with investing or financing
included in exchange differences on translation under other cash flows. The cash flows from operating, investing and
components of equity. financing activities of the Company are segregated.
1.14 Income taxes 1.16 Other income

Income tax expense comprises current and deferred income Other income is comprised primarily of interest income and
tax. Income tax expense is recognized in net profit in the exchange gain / loss on translation of other assets and liabilities.
Statement of Profit and Loss except to the extent that it 1.17 Earnings per share
it is recognized in other comprehensive income. Current Basic earnings per share is computed by dividing the net
income tax for current and prior periods is recognized at profit after tax by the weighted average number of equity
the amount expected to be paid to or recovered from the tax shares outstanding during the period.
authorities, using the tax rates and tax laws that have been

1.18 Recent Accounting Pronouncements Particulars Computer Total
Ind AS 116 - Leases: On March 30, 2019, the Ministry of equipment
Corporate Affairs (MCA) has notified Ind AS 116 - Leases. Depreciation (37,841) (37,841)
Ind AS 116 will replace the existing leases Standard, Ind AS Translation difference (8,076) (8,076)
17 - Leases and related Interpretations. The Standard sets out Accumulated depreciation
the principles for the recognition, measurement, presentation as of December 31, 2019 (8,00,747) (8,00,747)
and disclosure of leases for both parties to a contract i.e., Carrying value as of
the lessee and the lessor. Ind AS 116 introduces a single January 1, 2019 9,606 9,606
assets and liabilities for all leases with a term of more than 12 The changes in the carrying value of property, plant and
months, unless the underlying asset is of low value. Currently, equipment for the year ended December 31, 2018 are as follows:
(in `)
and Loss. The Standard also contains enhanced disclosure Particulars Computer Total
requirements for lessees. Ind AS 116 substantially carries equipment
forward the lessor accounting requirements in Ind AS 17. The Gross carrying value as of
effective date for adoption of Ind AS 116 is annual periods January 1, 2018 7,74,106 7,74,106
beginning on or after April 1, 2019. The standard permits two Additions/
possible methods of transition: Adjustments(1) – –
• Full retrospective: Retrospectively to each prior period Translation difference 28,479 28,479
presented applying Ind AS 8 - Accounting Policies, Gross carrying value as of
Changes in Accounting Estimates and Errors. December 31, 2018 8,02,585 8,02,585
• Modified retrospective: Retrospectively, with the cumulative Accumulated depreciation
effect of initially applying the Standard recognized at the as of January 1, 2018 (6,46,974) (6,46,974)
date of initial application either by: Depreciation (84,476) (84,476)
Under modified retrospective approach, the lessee records Translation difference (23,380) (23,380)
the lease liability as the present value of the remaining Accumulated depreciation
lease payments, discounted at the incremental borrowing as of December 31, 2018 (7,54,830) (7,54,830)
rate and the right-of-use asset either as: Carrying value as of
• Its carrying amount as if the standard had been applied December 31, 2018 47,755 47,755
since the commencement date, but discounted at lessee’s Carrying value as of
incremental borrowing rate at the date of initial application. January 1, 2018 1,27,132 1,27,132
or Includes asset purchased from related parties (Refer to Note 2.15)
(1)

amount of any prepaid or accrued lease payments related 2.2 Other financial assets
(in `)
to that lease recognized under Ind AS 17 immediately
before the date of initial application. Particulars As at December 31
Certain practical expedients are available under both the 2019 2018
methods. The Company is proposing to use the ‘Modified Current
Retrospective Approach’ for transitioning to Ind AS 116, Rental deposits (1) 48,194 47,732
and take the cumulative adjustment to retained earnings, on Others (1) 9,775 15,767
the date of initial application (January 1, 2020). The effect 57,969 63,499
of adoption is not expected to material for the company’s
(1)
Financial assets carried
financial statements at amortized cost 57,969 63,499
2.1 Property, Plant and Equipment 2.3 Trade receivables

The changes in the carrying value of property, plant and (in `)
equipment for the year ended December 31, 2019 are as follows: Particulars As at December 31
(in `) 2019 2018
Particulars Computer Total Current
equipment Unsecured
Gross carrying value as of Considered good (1) 29,38,918 22,00,613
January 1, 2019 8,02,585 8,02,585 29,38,918 22,00,613
Translation difference 7,768 7,768 (1)
Gross carrying value as of parties (refer to Note 2.16) 29,38,918 22,00,613
December 31, 2019 8,10,353 8,10,353
as of January 1, 2019 (7,54,830) (7,54,830)

2.4 Cash and cash equivalents As of December 31, 2019, the Company had a working
(in `) capital of `1,42,01,554 including cash and cash equivalents
Particulars As at December 31 of `1,73,38,429. As of December 31, 2018, the Company had
2019 2018 a working capital of `1,15,79,027 including cash and cash
Balances with banks equivalents of `1,56,84,402
In current accounts 1,73,38,429 1,56,84,402 2.7 Equity
Total Cash and Cash
Equivalents 1,73,38,429 1,56,84,402 Equity share capital
2.5 Other assets
(in `) 2019 2018
Authorized
2,00,000 (2,00,000)
2019 2018
Equity Shares of CZK 1
Current
par value 7,89,777 7,89,777
Others
Prepaid expenses 56,737 30,322
paid-up
Withholding taxes
2,00,000 (2,00,000)
and others 10,717 1,00,047
Equity Shares of CZK 1
Total other assets 67,454 1,30,369
par value 7,89,777 7,89,777
[Of the above, 2,00,000
2.6 Financial instrument (2,00,000) equity shares
Financial instruments by category are held by the holding
company, Infosys
The carrying value of financial instruments are as follows :
(in `)
Consulting Holding AG
(formerly Lodestone
Particulars As at December 31 holding AG)]
2019 2018 7,89,777 7,89,777
Assets
(Refer to Note 2.4) 1,73,38,429 1,56,84,402 (in `)
Trade receivables (Refer to
Note 2.3) 29,38,918 22,00,613 Particulars As at December 31,
Other financial assets 2019 2018
(Refer to Note 2.2) (1) 57,969 63,499 Current
Total 2,03,35,316 1,79,48,514 Others
Liabilities Accrued
Trade payables (Refer to compensation to
Note 2.9) 4,74,442 7,505 employees 21,94,269 17,59,819
Other financial liabilities Accrued expenses 10,19,166 9,64,085
(Refer to Note 2.8) 35,66,615 31,11,819 Compensated
Total 40,41,057 31,19,324 absences 15,80,644 16,81,223
Other payables (1) 3,53,180 3,87,915
All the above financial instruments are carried at amortized 51,47,259 47,93,042
cost and the carrying values approximates their fair value. Total financial liabilities 51,47,259 47,93,042
Financial risk management at amortized cost 35,66,615 31,11,819
Credit risk (1)
Credit risk refers to the risk of default on its obligation by parties (Refer to Note 2.15) 26,977 5,33,935
exposure to the credit risk at the reporting date is primarily 2.9 Trade payables
(in `)
from trade receivables amounting to ` 24,64,476 and
`22,00,613 as of December 31, 2019 and December 31, Particulars As at December 31,
2018, respectively. Majority of trade receivables are derived 2019 2018
from revenues earned from companies within the group. No Trade payables * 4,74,442 7,505
credit risk is perceived. 4,74,442 7,505
* Includes dues to fellow
Liquidity risk
subsidiaries (Refer to Note
The Company’s principal sources of liquidity are cash and cash 2.15) 4,74,442 –
equivalents and the cash flow that is generated from operations.

2.10 Other liabilities The gross movement in the current income tax asset /
(in `) (liability) is as follows:
(in `)
2019 2018 Particulars For the year ended December 31,
Current 2019 2018
Others Net current income
Withholding taxes tax asset / (liability) at
and others 5,51,614 5,58,944 the beginning (11,40,365) 15,61,289
5,51,614 5,58,944 Income tax paid/
(received) 7,78,637 (36,12,702)
2.11 Income taxes Current income tax
expense 3,33,827 9,11,048
Income tax expense in the Statement of Profit and Loss comprises:
(in `)
Net current income
tax asset / (liability) at
Particulars For the year ended December 31, the end (27,901) (11,40,365)
2019 2018
Current taxes (3,33,827) (9,11,048)
Income tax expense (3,33,827) (9,11,048 (in `)
Current tax expense for the year ended December 31, 2019 Particulars Year ended December 31,
and December 31, 2018 includes reversals (net of provisions) 2019 2018
amounting to ` (7,29,971) and ` (13,24,757), respectively Income from
pertaining to previous periods. Consultancy services 2,75,61,699 3,02,51,939
A reconciliation of the income tax provision to the amount 2,75,61,699 3,02,51,939
computed by applying the statutory income tax rate to the Performance obligations and remaining
income before income taxes is summarized as follows: performance obligations
(in `)
2019 2018
recognized as at the end of the reporting period and an
Profit before income
tax 20,88,913 19,67,738
Enacted tax rates in
as given in Ind AS 115, the Company has not disclosed the
Czech Republic(%) 19.00% 19.00%
Computed expected
tax expense 3,96,893 3,73,870
with the value to the customer of the entity’s performance
Tax provisions /
(reversals) (7,29,971) (13,24,757)
Others (749) 39,839
The applicable Czech Republic statutory tax rate for year of contracts, periodic revalidations, adjustment for revenue
ending December 31, 2019 and December 31, 2018 is 19%. that has not materialized and adjustments for currency.
The details of income tax assets and income tax The aggregate value of performance obligations that are
liabilities are as follows : completely or partially unsatisfied as at December 31, 2019,
(in `) other than those meeting the exclusion criteria mentioned
above, is ` NIL. The contracts can generally be terminated
by the customers and typically includes an enforceable
2019 2018
termination penalty payable by them.
Income tax assets – –
Current income tax The impact on account of applying the erstwhile Ind AS
liabilities 27,901 11,40,365 18 Revenue standard instead of Ind AS 115 Revenue from
Net current income contract with customers on the financials results of the Group
tax assets / (liability) at for the year ended December 31, 2019 is insignificant.
the end (27,901) (11,40,365)

2.13 Other income
(in `)
2019 2018
Exchange gains / (losses) on translation of other assets and liabilities 18,381 –
Miscellaneous income, net 37,843 –
56,224 –
2.14 Expenses
(in `)
2019 2018
Salaries including bonus 1,81,27,970 2,08,79,888
1,81,27,970 2,08,79,888
(in `)
2019 2018
Other expenses
Brand and marketing – 480
Operating lease payments 1,29,286 1,28,636
Rates and taxes 24,290 18,051
Exchange gains/(losses) on translation of other assets and liabilities – 66,662
Others 59,379 7,33,610
2,12,955 9,47,439

List of holding companies
Name of the holding company Country Holding as at
December 31, December 31,
2019 2018
Name of the utimate holding company Country


HIPUS(20) Japan
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)

(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
(20)
(21)
(22)
(23)
(24)
(25)
(26)
Under Liquidation
Infosys has provided guarantee for performance of certain contracts entered into by its subsidiaries.
(In`)
2019 2018
Trade receivables
Infy Consulting Company Ltd. – 1,201
29,38,918 22,00,613
Trade payables
Infosys Consulting GmbH 1,615 –
Infy Consulting Company Ltd. 1,47,791 –
4,74,442 –
Other payables
Infosys Limited 26,977 5,33,935
26,977 5,33,935
Accrued expenses
4,70,531 –
(In`)
2019 2018
Infy Consulting Company Ltd 1,43,035 –
4,61,459 5,39,483
Sale of services
Infosys Limited 36,466 –
2,77,32,023 3,02,51,939


Lodestone Management Consultants Portugal, Unipessoal, Lda
To the Members of Lodestone Management Consultants Portugal, Unipessoal, Lda

Opinion
We have audited the Ind AS financial statements of Lodestone Management Consultants Portugal, Unipessoal, Lda (‘the
company’), which comprises the Balance Sheet as at 31st December 2019, the Statement of Profit and Loss (including other
comprehensive income), the Statement of Cash Flow and the Statement of Changes in Equity for the year then ended, and
notes to the financial statement including a summary of significant accounting policies and other explanatory information
(herein after referred to as ‘ Ind AS financial statements’)
Basis for opinion
680 I Lodestone Management Consultants Portugal, Unipessoal, Lda Infosys Subsidiary Financials 2019-20
iii) the Balance Sheet, the Statement of Profit and Loss and the Statement of Cash Flow and Statement of Changes in
iv) in our opinion, the aforesaid Ind AS financial statements comply with the Accounting Standards specified under
For Shenoy & Kamath

Partner
UDIN : 20202841AAABSU4451
Place: Bengaluru.
Infosys Subsidiary Financials 2019-20 Lodestone Management Consultants Portugal, Unipessoal, Lda I 681
Balance Sheet
in `
2019 2018
ASSETS
Non-current assets
Property, plant and equipment 2.1 – –
Other non-current assets 2.4 4,592 2,66,156
Income tax assets, net 2.11 17,89,769 22,77,628
Current assets
Financial assets
Trade receivables 2.2 – 66,690
Other financial assets 2.5 59,05,695 –
Total assets 7,87,65,699 9,07,84,505
Equity
Other equity (5,96,35,522) (6,61,72,905)
Total equity 4,63,62,863 3,98,25,480
Liabilities
Current liabilities
Trade payables 2.8 3,26,374 1,87,80,798
Income tax liabilities, net 2.11 96,67,419 1,58,22,392

As per our report of even date attached for and on behalf of the Board of Directors of Lodestone
for Shenoy & Kamath Management Consultants Portugal, Unipessoal, Lda.
M. Rathnakar Kamath Marcus Steinert

Partner Director
Bengaluru
March 16, 2020
in `
2019 2018
Other income, net 2.13 5,46,431 93,994
Total income 1,43,96,620 5,56,58,598
Expenses
Employee benefit expenses 2.14 70,72,764 3,02,62,302
Travel expenses 44,87,928 1,70,95,536
Cost of technical sub-contractors 4,28,584 –
Finance cost – 10,195
Other expenses 2.14 7,10,208 5,06,698
Total expenses 1,39,72,482 5,16,15,316
Profit / (loss) before tax 4,24,138 40,43,282
Tax expense
Current tax 2.11 (59,63,391) (34,53,159)
Profit / (loss) for the year 63,87,529 74,96,441
Exchange differences on translation 1,49,854 13,61,514
Total other comprehensive income / (loss), net of tax 1,49,854 13,61,514
Total comprehensive income / (loss) for the year 65,37,383 88,57,955
Profit / (loss) per equity share
Equity shares of par value
Basic and diluted (`) 63,87,529.00 74,96,441.00
Weighted average equity shares used in computing income /
(loss) per equity share
Basic and diluted 1 1


Partner Director
Bengaluru
March 16, 2020
in `
surplus comprehensive equity holders
Retained Exchange
translation
Balance as at January 1, 2018 10,59,98,385 (7,45,45,127) (4,85,733) 3,09,67,525
31, 2018
Additional capital infusion – – – –
Exchange differences on translation – – 13,61,514 13,61,514
Profit for the year – 74,96,441 – 74,96,441
Balance as at January 1, 2019 10,59,98,385 (6,70,48,686) 8,75,781 3,98,25,480
31, 2019
Additional capital infusion – – – –
Exchange differences on translation – – 1,49,854 1,49,854
Profit for the year – 63,87,529 – 63,87,529
Balance as at December 31, 2019 10,59,98,385 (6,06,61,157) 10,25,635 4,63,62,863


Partner Director
Bengaluru
March 16, 2020
in `
2019 2018
Income tax expense 2.11 (59,63,391) (34,53,159)
Interest expense – 10,195
Exchange differences on translation of assets and liabilities 1,49,854 13,51,319
Trade receivables 66,690 74,50,221
Loans and other financial assets and other assets (57,14,051) (90,149)
Trade payables (1,84,54,424) 1,84,11,087
Other financial liabilities, other liabilities and provisions 60,53,208 (2,00,20,553)
Cash generated from operations (1,74,74,585) 1,11,55,402
Income taxes paid 2,96,277 (5,25,720)
Net cash from / (used in) operating activities (1,71,78,308) 1,06,29,682
Loans to employees – 45,08,373
Net cash from investing activities – 45,08,373
Loan repaid – (1,56,12,315)
Net cash used in financing activities – (1,56,12,315)
Net decrease / increase in cash and cash equivalents (1,71,78,308) (4,74,260)
Cash and cash equivalents at the beginning of the year 2.4 8,68,36,172 8,73,10,432
Cash and cash equivalents at the end of the year 2.4 6,96,57,864 8,68,36,172


Partner Director
Bengaluru
March 16, 2020
Siggnificant accounting policies
Company overview catch-up transition method, applied to contracts that were

not completed as at January 1, 2018. In accordance with
Lodestone Management Consultants Portugal, Unipessoal,
Lda is a wholly-owned subsidiary of Infosys Consulting
have not been retrospectively adjusted. The following is a
Holding AG (formerly Lodestone Holding AG), Kloten
(Switzerland). The Company renders professional
policies related to revenue recognition.
management consulting services, thereby enabling its clients
to enhance business performance. Revenue is recognized upon transfer of control of promised
1.1 Accounting year Arrangements with customers for software related services are
The accounting year of the Company is from either on a time-and-material basis.
1.5.1 T&M
Companies Act, 2013 (`the Act’) (to the extent notified).
The Ind AS are prescribed under Section 133 of the Act read 1.5.2 Contract modification
with Rule 3 of the Companies (Indian Accounting Standards) Contract modifications are accounted for when additions,
Rules, 2015 and relevant rules issued thereafter. deletions or changes are approved either to the contract
Accounting policies have been consistently applied except scope or contract price. The accounting for modifications of
where a newly-issued accounting standard is initially adopted contracts involves assessing whether the services added to an
or a revision to an existing accounting standard requires a existing contract are distinct and whether the pricing is at the
change in the accounting policy hitherto in use. standalone selling price. Services added that are not distinct
are accounted for on a cumulative catch-up basis, while those
1.3 Presentation currency that are distinct are accounted for prospectively, either as a
The Company’s presentation currency is Indian Rupee. separate contract, if the additional services are priced at the
1.4 Use of estimates contract and creation of a new contract if not priced at the
The preparation of the financial statements in conformity standalone selling price.
assumptions that affect the reported balances of assets and 1.5.3 Tax
liabilities and disclosures relating to contingent liabilities as The Company presents revenues net of indirect taxes in its
at the date of the financial statements and reported amounts Statement of Profit and loss.
1.6 Provisions
Examples of such estimates include computation of percentage specific to the liability.
of completion which requires the Company to estimate the
efforts or costs expended to date as a proportion of the total 1.7 Onerous contracts
efforts to be expended, impairment losses on financial assets, Provisions for onerous contracts are recognized when the
future obligations under employee benefit plans, income expected benefits to be derived by the Company from a
taxes, post-sales customer support and the useful lives of contract are lower than the unavoidable costs of meeting
property, plant and equipment. the future obligations under the contract. The provision is
The Company derives revenues primarily from continuing with the contract. Before a provision is established
consultancy services. the Company recognizes any impairment loss on the assets
Effective January 1, 2019, the Company adopted Ind AS 115, associated with that contract.
Revenue from Contracts with Customers using the cumulative
1.8 Property, plant and equipment dates to cash flows that are solely payments of principal and
Property, plant and equipment are stated at cost, less interest on the principal amount outstanding.
accumulated depreciation and impairment, if any. Costs (ii) Financial assets at fair value through other
directly attributable to acquisition are capitalized until the comprehensive income
and equipment over their estimated useful lives using
Computer equipment 3-5 years dates to cash flows that are solely payments of principal and
reviewed periodically, including at each financial year end (iii) Financial assets at fair value through profit or loss
Based on technical evaluation, the Management believes A financial asset which is not classified in any of the above
that the useful lives as given above best represent the period categories are subsequently fair valued through profit or loss.
over which the 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 Financial liabilities are subsequently carried at amortized
Companies Act 2013. cost using the effective interest method. For trade and other
payables maturing within one year from the Balance Sheet
Advances paid towards the acquisition of property, plant and
date, the carrying amounts approximate fair value due to the
equipment outstanding at each Balance Sheet date is classified
cost of assets not put to use before such date are disclosed 1.11 Fair value of financial instruments
market prices and dealer quotes. All methods of assessing
fair value result in general approximation of value, and such
upon sale or retirement of the asset and the resultant gains
or losses are recognized in the Statement of Profit and Loss. 1.12 Impairment
1.10 Financial instruments a. Financial assets
1.10.1 Initial recognition The Company recognizes loss allowances using the expected
financial assets, expected credit losses are measured at an
significant increase in credit risk from initial recognition in
1.10.2 Subsequent measurement gain or loss in profit or loss.
a. Non-derivative financial instruments b. Non-financial assets
(i) Financial assets carried at amortized cost (i) Property, plant and equipment
A financial asset is subsequently measured at amortized cost if Property, plant and equipment are evaluated for recoverability
it is held within a business model whose objective is to hold whenever events or changes in circumstances indicate that
the asset in order to collect contractual cash flows and the their carrying amounts may not be recoverable. For the
contractual terms of the financial asset give rise on specified purpose of impairment testing, the recoverable amount (i.e.
does not generate cash flows that are largely independent of it is recognized in other comprehensive income. Current
those from other assets. In such cases, the recoverable amount income tax for current and prior periods is recognized at
is determined for the CGU to which the asset belongs. the amount expected to be paid to or recovered from the tax
by the amount by which the carrying value of the assets Deferred income tax assets and liabilities are recognized for all
exceeds the estimated recoverable amount of the asset. An temporary differences arising between the tax bases of assets
impairment loss is reversed in the statement of profit and loss and liabilities and their carrying amounts in the financial
if there has been a change in the estimates used to determine statements. Deferred tax assets are reviewed at each reporting
the recoverable amount. The carrying amount of the asset is date and are reduced to the extent that it is no longer probable
increased to its revised recoverable amount, provided that that the related tax benefit will be realized.
this amount does not exceed the carrying amount that would Deferred income tax assets and liabilities are measured using
have been determined (net of any accumulated amortization tax rates and tax laws that have been enacted or substantively
or depreciation) had no impairment loss been recognized for enacted by the Balance Sheet date and are expected to apply
the asset in prior years. to taxable income in the years in which those temporary
1.13 Employee benefits of changes in tax rates on deferred income tax assets and
Compensated absences liabilities is recognized as income or expense in the period
The expected cost of accumulating compensated absences
is determined by actuarial valuation performed by an
losses can be utilized. The Company offsets current tax assets
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
period in which the absences occur. In assessing the realizability of deferred income tax assets,
the Management considers whether some portion or all of the
1.14 Foreign currency deferred income tax assets will not be realized. The ultimate
Functional currency realization of deferred income tax assets is dependent upon
The functional currency of the Company is the Romanian Lei. in which the temporary differences become deductible.
These financial statements are presented in Indian Rupee. Management considers the scheduled reversals of deferred
Transactions and translations 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 Company will realize the benefits of those deductible
profit in the Statement of Profit and Loss. Non-monetary
differences. The amount of the deferred income tax assets
assets and non-monetary liabilities denominated in a foreign
considered realizable, however, could be reduced in the near
currency and measured at fair value are translated at the
term if estimates of future taxable income during the carry
exchange rate prevalent at the date when the fair value
forward period are reduced.
was determined. Non-monetary assets and non-monetary
liabilities denominated in a foreign currency and measured 1.16 Cash Flow Statement
Cash flows are reported using the indirect method, whereby
Transaction gains or losses realized upon settlement of foreign of a non-cash nature, any deferrals or accruals of past or
currency transactions are included in determining net profit future operating cash receipts or payments and item of
for the period in which the transaction is settled. Revenue, income or expenses associated with investing or financing
expense and cash-flow items denominated in foreign currencies cash flows. The cash flows from operating, investing and
are translated into the relevant functional currencies using the financing activities of the Company are segregated.
1.17 Other income
1.15 Income taxes Other income is comprised primarily of exchange gain
Income tax expense comprises current and deferred income or loss on translation of other assets and liabilities and
tax. Income tax expense is recognized in net profit in the miscellaneous income, net.
statement of profit and loss except to the extent that it
1.18 Earnings per share Particulars Computer Total
Basic earnings per share is computed by dividing the net equipment
profit after tax by the weighted average number of equity Accumulated depreciation as
shares outstanding during the period. at January 1, 2019 9,30,432 9,30,432
Translation difference 1,280 1,280
1.19 Recent accounting pronouncements Accumulated depreciation as
Ind AS 116, Leases: On March 30, 2019, the Ministry of at December 31, 2019 9,31,712 9,31,712
Corporate Affairs (MCA) has notified Ind AS 116, Leases. Carrying value as at
Ind AS 116 will replace the existing leases Standard, Ind AS December 31, 2019 – –
17, Leases and related Interpretations. The Standard sets out Carrying value as at January
the principles for the recognition, measurement, presentation 1, 2019 – –
the lessee and the lessor. Ind AS 116 introduces a single The changes in the carrying value of property, plant and
lessee accounting model and requires a lessee to recognize equipment for the year ended December 31, 2018 are as follows:
in `
months, unless the underlying asset is of low value. Currently, Particulars Computer Total
operating lease expenses are charged to the Statement of Profit equipment
and Loss. The Standard also contains enhanced disclosure Gross carrying value as at
requirements for lessees. Ind AS 116 substantially carries January 1, 2018 8,90,186 8,90,186
forward the lessor accounting requirements in Ind AS 17. The Translation difference 40,246 40,246
effective date for adoption of Ind AS 116 is annual periods Gross carrying value as at
beginning on or after April 1, 2019. The standard permits two December 31, 2018 9,30,432 9,30,432
possible methods of transition: Accumulated depreciation as
• Full retrospective: Retrospectively to each prior period at January 1, 2018 8,90,186 8,90,186
presented applying Ind AS 8, Accounting Policies, Changes Translation difference 40,246 40,246
in Accounting Estimates and Errors. Accumulated depreciation as
• Modified retrospective: Retrospectively, with the cumulative at December 31, 2018 9,30,432 9,30,432
effect of initially applying the Standard recognized at the Carrying value as at
date of initial application either by: December 31, 2018 – –
• Under modified retrospective approach, the lessee records Carrying value as at January
the lease liability as the present value of the remaining 1, 2018 – –
rate and the right-of-use asset either as: 2.2 Trade receivables
• Its carrying amount as if the standard had been applied in `
since the commencement date, but discounted at lessee’s Particulars As at December 31,
incremental borrowing rate at the date of initial application, 2019 2018
or Current
• An amount equal to the lease liability, adjusted by the Unsecured – considered
amount of any prepaid or accrued lease payments related good (1) – 66,690
to that lease recognized under Ind AS 17 immediately – 66,690
before the date of initial application. Includes dues from related
(1)
Certain practical expedients are available under both the parties (Refer to Note 2.15) – 66,690
and take the cumulative adjustment to retained earnings, on 2.3 Cash and cash equivalents
the date of initial application (January 1, 2020). The effect in `
of adoption is not expected to material for the Company’s Particulars As at December 31,
financial statements 2019 2018
2.1 Property, plant and equipment Balances with banks
The changes in the carrying value of property, plant and
accounts 6,96,57,864 8,68,36,172
equipment for the year ended December 31, 2019 are as follows:
in ` Total cash and cash
equivalents 6,96,57,864 8,68,36,172
equipment
January 1, 2019 9,30,432 9,30,432
Translation difference 1,280 1,280
December 31, 2019 9,31,712 9,31,712
2.4 Other assets Consequently, the Company is exposed to foreign exchange
in ` risk through its sales and services in the United States and
Particulars As at December 31, elsewhere, and purchases from overseas suppliers in various
2019 2018 foreign currencies. The Company holds derivative financial
Non-current instruments such as foreign exchange forward and option(s)
Others contracts to mitigate the risk of changes in exchange rates
Prepaid expenses 4,592 2,66,156 on foreign currency exposures. The exchange rate between
4,592 2,66,156 the rupee and foreign currencies has changed substantially
Current in recent years and may fluctuate substantially in the future.
Others Consequently, the results of the Company’s operations are
Withholding taxes and adversely affected as the rupee appreciates / depreciates
others 14,07,779 13,37,859 against these currencies.
14,07,779 13,37,859 Credit risk
Total other assets 14,12,371 16,04,015
2.5 Other financial assets exposure to the credit risk at the reporting date is primarily
in `
from trade receivables amounting to NIL as at December 31,
Particulars As at December 31, 2019 and December 31, 2018, respectively and unbilled
2019 2018 revenue amounting to NIL as at December 31, 2019 and
Current December 31, 2018, respectively. Trade receivables and
Other•s (1) (2) 59,05,695 – unbilled revenue are typically unsecured. Credit risk has
59,05,695 – always been managed by the Company through credit
Total other financial assets 59,05,695 – approvals, establishing credit limits and continuously
(1)
Financial assets carried monitoring the creditworthiness of customers to which
at amortized cost (Refer to the Company grants credit terms in the normal course
Note 2.6) 59,05,695 – of business. On account of adoption of Ind AS 109, the
(2)
Includes dues to related Company uses ECL model to assess the impairment loss or
parties (Refer to Note 2.15) 59,05,695 – gain. The Company uses a provision matrix to compute the
ECL allowance for trade receivables and unbilled revenues.
2.6 Financial instruments The provision matrix takes into account available external
Financial instruments by category and internal credit risk factors such as credit default swap
quotes, credit ratings from international credit rating agencies
The carrying value and fair value of financial instruments
by categories as at December 31, 2019 and December 31,
2018 were as follows: Liquidity risk
in `
The Company’s principal sources of liquidity are cash and
Particulars As at December 31, cash equivalents and the cash flow that is generated from
2019 2018 operations. The Company believes that the working capital
Assets is sufficient to meet its current requirements
As at December 31, 2019, the Company had a working
(Refer to Note 2.3) 6,96,57,864 8,68,36,172
capital of `4,45,68,502 including cash and cash equivalents
Trade receivables (Refer to
of `6,96,57,864. As at December 31, 2018, the Company had
Note 2.2) – 66,690
a working capital of `3,72,81,696 including cash and cash
Total 6,96,57,864 8,69,02,862
equivalents of `8,68,36,172.
Liabilities
Trade payables (Refer to As of December 31, 2019 and December 31, 2018 the
Note 2.8) 3,26,374 1,87,80,798 outstanding compensated absences were ` NIL and
Other financial liabilities `38,62,455 respectively.
(Refer to Note 2.9) 1,95,11,642 94,93,561 2.7 Equity
Total 1,98,38,016 2,82,74,359
All the above financial assets and liabilities are in `, except as otherwise stated
carried at amortized cost and the carrying values Particulars As at December 31,
approximates their fair value. 2019 2018
Authorized
Financial risk management Equity shares of EUR
Market risk 700,000 par value 10,59,98,385 10,59,98,385
The Company operates internationally and a major
paid-up
portion of the business is transacted in several currencies.
Particulars As at December 31, Current tax expense for the years ended December 31, 2019
2019 2018 and December 31, 2018 includes reversals (net of provisions)
Equity shares of EUR amounting to ` 58,93,581 and ` 46,22,202 respectively,
700,000 par value 10,59,98,385 10,59,98,385 pertaining to prior periods.
(wholly-owned by Infosys A reconciliation of the income tax provision to the amount
Consulting Holding AG) computed by applying the statutory income tax rate to the
10,59,98,385 10,59,98,385 in `
There is no change in the number of shares during 2019 2018
the reporting period. Profit before income tax 4,24,138 40,43,282
2.8 Trade payables Enacted tax rates in Portugal
in ` (%) 21.00% 21.00%
Particulars As at December 31, Computed expected tax
2019 2018 expense 89,069 8,49,089
Trade payables (1)
3,26,374 1,87,80,798 Overseas taxes 2,10,414 –
3,26,374 1,87,80,798 Tax provisions / (reversals) (58,93,581) (46,22,202)
includes dues to related
(1) Effect of unrecognized
parties (Refer to Note 2.15) 3,26,374 1,87,77,121 deferred tax assets – (5,94,362)
Others (3,69,293) 9,14,316
2.9 Other liabilities
in `
The applicable statutory tax rate for the year ended December
Particulars As at December 31, 31, 2019 and December, 31, 2018 is 21%.
2019 2018 The details of income tax assets and income tax
Current liabilities are as follows :
Others in `
As at December 31,
others 28,97,401 29,99,819
2019 2018
Total other liabilities 28,97,401 29,99,819
Income tax assets 17,89,769 22,77,628
2.10 Other financial liabilities Current income tax
in ` liabilities 96,67,419 1,58,22,392
Particulars As at December 31, Net current income tax
2019 2018 assets / (liability) at the end (78,77,650) (1,35,44,764)
Current
The gross movement in the current income tax asset /
Others (liability) is as follows :
Accrued compensation in `
to employees (1) – 25,60,853
Accrued expenses (1) (2) 39,36,229 48,16,859
2019 2018
Compensated absences – 38,62,455
Other payables (1) (3) 1,55,75,413 21,15,849
Total financial liabilities 1,95,11,642 1,33,56,016
beginning (1,35,44,764) (1,75,23,643)
Income tax paid (2,96,277) 5,25,720
amortized cost (1) 1,95,11,642 94,93,561
Current income tax
(2)
expense 59,63,391 34,53,159
parties (Refer to Note 2.15) – 2,50,675
(3)
asset / (liability) at the end (78,77,650) (1,35,44,764)
parties (Refer to Note 2.15) 1,55,75,413 21,15,849

in `
2.11 Income taxes Particulars Year ended December 31,
Income tax expense in the Statement of Profit and Loss comprises: 2019 2018
in ` Income from consultancy
Particulars Year ended December 31, services 1,38,50,189 5,55,64,604
2019 2018 1,38,50,189 5,55,64,604
Current taxes (59,63,391) (34,53,159)
Income tax expense (59,63,391) (34,53,159) Performance obligations and remaining
The remaining performance obligation disclosure provides 2.13 Other income
the aggregate amount of the transaction price yet to be in `
these amounts in revenue. Applying the practical expedient Miscellaneous income, net 5,46,431 93,994
as given in Ind AS 115, the Company has not disclosed the 5,46,431 93,994
2.14 Expenses
with the value to the customer of the entity’s performance in `
2019
of contracts, periodic revalidations, adjustment for revenue Salaries including bonus 70,72,764 3,02,38,383
that has not materialized and adjustments for currency. Staff welfare – 23,919
70,72,764 3,02,62,302
The aggregate value of performance obligations that are
completely or partially unsatisfied as at December 31, 2019, in `
other than those meeting the exclusion criteria mentioned Particulars Year ended December 31,
above, is nil. The contracts can generally be terminated by the 2019 0
customers and typically includes an enforceable termination Other expenses
penalty payable by them. Printing and stationery 2,706 85,497
The impact on account of applying the erstwhile Ind AS 18, Rates and taxes 6,241 6,501
Revenue instead of Ind AS 115, Revenue from contract with Insurance 25,026 28,627
customers on the financials results of the Group for the year Exchange losses on
ended December 31, 2019 is insignificant. translation of other assets
and liabilities 6,41,412 3,40,460
Others 34,823 45,613
7,10,208 5,06,698
2019 2018
Infosys Consulting Holding AG (Infosys Lodestone) Switzerland 100% 100%
Holding company of Infosys Consulting Holding AG (Infosys Lodestone) from October 22,2012
(1)

HIPUS (20) Japan
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
(20)
(21)
(22)
(23)
(24)
(25)
Effective October 1, 2019, merged into Infosys Consulting Ltda, a majority-owned and controlled subsidiary of Infosys Limited.
(26)
Under liquidation
in `
2019 2018
Trade receivables
– 66,690
Prepaid and other financial assets
Infosys Consulting GmbH 39,39,219 –
59,05,695 –
Trade payables
3,26,374 1,87,77,121
Other payables
Infosys Limited 755 1,66,892
Infosys Consulting AG – 17,14,693
Infy Consulting Company Ltd 1,55,74,658 –
1,55,75,413 21,15,849
Accrued expenses
Infosys Limited – 2,50,675
– 2,50,675
The details of the related parties transactions entered into by the Company, are as follows:
in `
2019 2018
Infosys Consulting Holding AG (Infosys Lodestone) – –
– –
Interest expense
– 10,195
Unsecured loan taken (net of repayment)
Infosys Consulting Holding AG (Infosys Lodestone) – (1,56,12,315)
2019 2018
– (1,56,12,315)
Infosys Consulting GmbH 4,28,584 36,914
7,49,961 9,43,501
Sale of services
Infy Consulting Company Ltd 40,59,775 2,44,76,115
1,38,50,535 5,55,64,604

The Company is engaged in providing consultancy service in a single geography. Based on the Management approach, as defined
in Ind AS 108, Segment Reporting, the Chief Operating Decision Maker (CODM) evaluates the performance and allocates
Brilliant Basics Holdings Limited
Company information
Directors A.K. Verma

R.K. Singisetti
S.A. Sorokin
Registered number 09767352
Registered office The Bower

10/11th Floor
207 211 Old Street
London
EC1V 9NR
Independent auditor Blick Rothenberg Audit LLP

Chartered Accountants & Statutory Auditor
Covent Garden
London
WC2B 5AH
698 I Brilliant Basics Holdings Limited Infosys Subsidiary Financials 2019-20

Directors Report
The directors present their report and the financial statements for the year ended March 31, 2020.
Directors
A.K. Verma
R.K. Singisetti
S.A. Sorokin
Disclosure of information to auditor
• so far as the director is aware, there is no relevant audit information of which the company’s auditor is unaware, and
information and to establish that the company’s auditor is aware of that information.
Small companies’ exemptions
In preparing this report, the directors have taken advantage of the small companies’ exemptions provided by section 415A of
the Companies Act 2006.
This report was approved by the board and signed on its behalf.
A.K. Verma
Director
Date: June 2, 2020
Infosys Subsidiary Financials 2019-20 Brilliant Basics Holdings Limited I 699

Directors’ Responsibilities Statement
The directors are responsible for preparing the directors’ report and the financial statements in accordance with applicable
law and regulations.
elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards
(United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial
Reporting Standard applicable in the UK and Republic of Ireland’. Under company law the directors must not approve the
financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the
profit or loss of the Company for that period.
• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s

To the members of Brilliant Basics Holdings Limited for the year ended March 31, 2020
Opinion
We have audited the financial statements of Brilliant Basics Holdings Limited (“the Company”) for the year ended March 31,
2020, which comprise the profit and loss account, the Balance Sheet, the statement of changes in equity and the notes to
the financial statements, including a summary of significant accounting policies. The financial reporting framework that has
been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting
Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally
Accepted Accounting Practice).
• give a true and fair view of the state of the Company’s affairs as at March 31, 2020 and of its loss for the year then ended;
Basis for opinion
• the directors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
• the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant
doubt about the Company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve
months from the date when the financial statements are authorized for issue.
Other information
annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements
• the information given in the directors’ report for the financial year for which the financial statements are prepared is
• the directors’ report has been prepared in accordance with applicable legal requirements.
have not identified material misstatements in the directors’ report.

• we have not received all the information and explanations we require for our audit.
As explained more fully in the directors’ responsibilities statement on Page 700 the directors are responsible for the preparation
of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors
In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going
Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the Company’s members in accordance with Chapter 3 of Part 16 of the Companies Act 2006.
Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state
to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the Company’s members for our audit work, for this report, or for the
opinions we have formed.
Christopher Shepherd
(senior statutory auditor)
for and on behalf of
Blick Rothenberg Audit LLP
Statutory Auditor
Covent Garden
London
WC2B 5AH
Date: June 2, 2020

In £
Particulars Note Year ended March 31,
2020 2019
Administrative expenses (5,826) (15,837)
Operating loss 3 (5,826) (15,837)
Interest payable and similar expenses 5 (93,063) (105,765)
Loss before taxation (98,889) (121,602)
Tax on loss 6 – –
Loss for the financial year (98,889) (121,602)
There are no items of other comprehensive income for either the year or the prior year other than the loss for the year.
Accordingly, no statement of other comprehensive income has been presented.

Balance Sheet
In £
2020 2019
Fixed assets
Investments 7 2 2
2 2
Current assets
Debtors: amounts falling due
within one year 8 897,110 1,992,147
Cash at bank and in hand 9 421,928 955,455
1,319,038 2,947,602
Creditors: amounts falling
due within one year 10 (60,501) (1,590,176)
Net assets 1,258,539 1,357,428
Called up share capital 11 7 7
Share premium account 12 1,503,743 1,503,743
Profit and loss account 12 (245,211) (146,322)
Total equity 1,258,539 1,357,428
The financial statements were approved and authorized for issue by the board and were signed on its behalf by:
A.K. Verma
Director
Date: June 2, 2020
The notes on pages 706 to 709 form part of these financial statements

In £
Particulars Called up share Share premium Profit and loss Total equity
capital account account
At April 1, 2018 6 3,744 (24,720) (20,970)
Comprehensive income for the year
Loss for the financial period – – (121,602) (121,602)
Total comprehensive income for the year – – (121,602) (121,602)
Shares issued during the financial period 1 1,499,999 – 1,500,000
Total transactions with owners 1 1,499,999 – 1,500,000
At April 1, 2019 7 1,503,743 (146,322) 1,357,428
Comprehensive income for the year
Loss for the financial year – – (98,889) (98,889)
Total comprehensive income for the year – – (98,889) (98,889)
At March 31, 2020 7 1,503,743 (245,211) 1,258,539

1. General information customer, Infosys Limited, that the existing business

arrangement between the entities will continue ensuring
The principal activity of Brilliant Basics Holdings Limited is
that the Company will remain profitable. The consolidated
that of an investment holding company.
financial statements of Infosys Limited for the year ended
Brilliant Basics Holdings Limited is a private company limited March 31, 2020 were approved on April 20, 2020. These
by shares incorporated in England and Wales. The address of consolidated accounts are publicly available from www.
its registered office is The Bower, 10/11th Floor, 207 211 Old infosys.com. and show the Group has significant liquid assets
Street, London, EC1V 9NR. and reserves as at March 31, 2020 and have been prepared
The financial statements are presented in Pound Sterling (£). on a going concern basis.
Having considered post year end trading, financial results
2. Accounting policies and cash reserves, and after making enquiries, the directors
2.1 Basis of preparation of financial have a reasonable expectation that the Company has adequate
resources to continue in operational existence and meet its
statements
liabilities as they fall due for the foreseeable future, being a
These financial statements have been prepared under the period of at least twelve months from the date these financial
historical cost convention unless otherwise specified within statements were approved. Accordingly, they continue to adopt
these accounting policies and in accordance with Financial the going concern basis in preparing the financial statements.
applicable in the UK and Republic of Ireland (“FRS 102”) and 2.3 Valuation of investments
the Companies Act 2006. Investments in subsidiaries are measured at cost less
The Company was, at the year end, a wholly owned accumulated impairment.
subsidiary of Infosys Limited, a company incorporated in
India, whose registered address is Electronics City, Hosur
Road, Bengaluru 560 100, India. In accordance with the The Company has elected to apply Sections 11 and 12 of FRS
exemption given in Section 400 of the Companies Act 102 in respect of financial instruments.
2006, the Company is not required to produce, and has not Financial assets and financial liabilities are recognized
published, consolidated accounts. when the Company becomes party to the contractual
The Company has taken advantage of the following disclosure provisions of the instrument.
exemptions in preparing these financial statements, as Financial liabilities and equity instruments are classified
permitted by FRS 102: according to the substance of the contractual arrangements
• Section 3 Financial Statement Presentation paragraph entered into. An equity instrument is any contract that
3.17(d) (inclusion of statement of cash flows); evidences a residual interest in the assets of the Company
after deducting all of its liabilities.
• Section 7 Statement of Cash Flows (inclusion of
statement of cash flows); The Company’s policies for its major classes of financial assets
and financial liabilities are set out below.
• Section 11 Financial Instruments paragraph 11.41(b),
11.41(c), 11.41(e), 11.41(f), 11.42, 11.44, 11.45, Financial assets
11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c)
Basic financial assets, including other debtors, cash and
(disclosure relating to financial instruments);
bank balances, intercompany working capital balances
• Section 33 Related Party Disclosures paragraph 33.7 and intercompany financing, are initially recognized at
(disclosures of key management personnel compensation). transaction price, unless the arrangement constitutes a
The Company has included in the consolidated financial financing transaction, where the transaction is measured at
statements of Infosys Limited for the year ended March the present value of the future receipts discounted at a market
31, 2020 and these financial statements may be obtained rate of interest for a similar debt instrument. Financing
from www.infosys.com. transactions are those in which payment is deferred beyond
The following principal accounting policies have been applied: normal business terms or is financed at a rate of interest that
is not a market rate.
2.2 Going concern Such assets are subsequently carried at amortized cost using
The directors have considered whether the Company has the effective interest method, less any impairment.
been affected by the economic impact and restrictions
that have ensued following the World Health Organization Financial liabilities
announcement on March 11, 2020 that COVID-19 represents Basic financial liabilities, including trade and other creditors
an international pandemic. This is likely to have an adverse and loans from fellow group companies, are initially recognized
impact on the economy as a whole. at transaction price, unless the arrangement constitutes a
The directors have received confirmation from its ultimate financing transaction, where the debt instrument is measured
parent undertaking and it’s trading subsidiary’s principal at the present value of the future payments discounted at a

market rate of interest for a similar debt instrument. Financing 2.6 Share capital
Ordinary shares are classified as equity.
is not a market rate. 2.7 Foreign currency translation
Debt instruments are subsequently carried at amortized cost, Functional and presentation currency
using the effective interest rate method
The Company’s functional and presentational currency
Impairment of financial assets is Pound Sterling (£).
Financial assets measured at cost and amortized cost Transactions and balances
are assessed at the end of each reporting period for
Foreign currency transactions are translated into the
objective evidence of impairment. If objective evidence of
functional currency using the spot exchange rates at the dates
impairment is found, an impairment loss is recognized in the
of the transactions.
At each period end foreign currency monetary items are
translated using the closing rate. Non-monetary items
measured at historical cost are translated using the exchange
asset’s carrying amount and the best estimate of the amount
rate at the date of the transaction and non-monetary items
the Company would receive for the asset if it were to be sold
measured at fair value are measured using the exchange rate
when fair value was determined.
For financial assets measured at amortized cost, the
Foreign exchange gains and losses resulting from the
settlement of transactions and from the translation at
asset’s carrying amount and the present value of estimated
period end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognized in the
rate. If the financial asset has a variable interest rate, the
profit and loss account except when deferred in other
discount rate for measuring any impairment loss is the
comprehensive income as qualifying cash flow hedges.
current effective interest rate determined under the contract.
Foreign exchange gains and losses that relate to borrowings
If there is a decrease in the impairment loss arising from
and cash and cash equivalents are presented in the profit and
an event occurring after the impairment was recognized,
loss account within ‘finance income or costs’. All other foreign
the impairment is reversed. The reversal is such that
exchange gains and losses are presented in the profit and loss
the current carrying amount does not exceed what the
carrying amount would have been had the impairment not
previously been recognized. The impairment reversal is 2.8 Current and deferred taxation
recognized in profit or loss.
Derecognition of financial assets and financial tax. Tax is recognized in the profit and loss account, except
liabilities that a charge attributable to an item of income and expense
Financial assets are derecognized when (a) the contractual recognized as other comprehensive income or to an item
rights to the cash flows from the asset expire or are settled, or recognized directly in equity is also recognized in other
(b) substantially all the risks and rewards of the ownership of comprehensive income or directly in equity respectively.
the asset are transferred to another party or (c) despite having Current tax is the amount of income tax payable in respect of
retained some significant risks and rewards of ownership, taxable profit for the year or prior years.
control of the asset has been transferred to another party Deferred tax arises from timing differences that are differences
who has the practical ability to unilaterally sell the asset to an between taxable profits and total comprehensive income as
unrelated third party without imposing additional restrictions. stated in the financial statements. These timing differences
Financial liabilities are derecognized when the liability arise from the inclusion of income and expenses in tax
is extinguished, that is when the contractual obligation is assessments in periods different from those in which they
discharged, cancelled or expires. are recognized in the financial statements.
Deferred tax balances are recognized in respect of all timing
Offsetting of financial assets and financial liabilities
differences that have originated but not reversed by the
Financial assets and liabilities are offset and the net amount Balance Sheet date, except that:
reported in the Balance Sheet when there is an enforceable • The recognition of deferred tax assets is limited to the
right to set off the recognized amounts and there is an extent that it is probable that they will be recovered against
intention to settle on a net basis or to realize the asset and the reversal of deferred tax liabilities or other future taxable
settle the liability simultaneously. profits; and
2.5 Cash • Any deferred tax balances are reversed if and when all
conditions for retaining associated tax allowances have
Cash is represented by cash in hand and deposits with been met.
financial institutions repayable without penalty on notice of
not more than 24 hours.

• Deferred tax balances are not recognized in respect of Particulars For the year ended March 31,
permanent differences. Deferred tax is determined using 2020 2019
tax rates and laws that have been enacted or substantively Effects of
enacted by the Balance Sheet date. Losses carried forward 18,789 21,679
Expenses not deductible
2.9 Finance costs
for tax purposes – 1,425
Finance costs are charged to the profit and loss account over Total tax charge for the
the term of the debt using the effective interest method so financial year – –
that the amount charged is at a constant rate on the carrying
amount. Issue costs are initially recognized as a reduction in
the proceeds of the associated capital instrument.
Factors that may affect future tax charges
A reduction to the UK corporation tax rate to 17%, effective
3. Operating loss from April 1, 2020, was substantively enacted as part of the
Finance (No. 2) Act 2016 on September 6, 2016. Deferred
The operating loss is stated after charging:
In £ taxes at the Balance Sheet date have been measured using
the enacted tax rates based on when the timing difference is
Particulars For the year ended March 31, expected to reverse and reflected in these financial statements.
2020 2019
Fees payable to the In November 2019, the Prime Minister announced that he
company’s auditor intended to cancel the future reduction in corporation tax
for the audit of the rate from 19% to 17%. On March 11, 2020, the Chancellor
company’s annual financial of the Exchequer announced that legislation would be passed
statements 2,175 2,400 to retain the current 19% rate in April 2020. Both of these
Fees payable to the announcements do not constitute substantive enactment and
company’s auditor for therefore deferred taxes at the Balance Sheet date continue to
taxation compliance be measured at the enacted tax rate of 17%.
services 3,550 4,000
7. Fixed asset investments
In £
4. Employees Particulars Investments in subsidiary
The Company has no employees other than the directors, companies
who did not receive any remuneration (2019 £NIL). Cost
At April 1, 2019 and March
5. Interest payable and similar expenses 31, 2020 2
In £ Net book value
Particulars For the year ended March 31, At March 31, 2019 and
2020 2019 March 31, 2020 2
Loans from group
undertakings 35,499 47,976 Subsidiary undertakings
Foreign exchange losses 57,564 57,789 The following were subsidiary undertakings of the company:
93,063 105,765
Name Country of Principal Class of Holding
incorporation activity shares
6. Taxation Brilliant
In £ Basics England and IT
Particulars For the year ended March 31, Limited Wales consultancy Ordinary 100%
2020 2019 Brilliant
Total current tax – – Basics IT
MENA UAE consultancy Ordinary 100%
Factors affecting tax charge for the year The registered office of Brilliant Basics Limited is The Bower,
The tax assessed for the year is the same as (2019 higher than) 10th/11th Floor, 207 211 Old Street, London, EC1V 9NR.
the standard rate of corporation tax in the UK of 19% (2019
The registered office of Brilliant Basics MENA is Unit 853,
19%). The differences are explained below:
In £
DMCC Business Centre, Level 1, Jewelry & Gemplex Centre,
Dubai, United Arab Emirates.
2020 2019
Loss multiplied by
standard rate of
corporation tax in the UK
of 19% (2019 19%) (18,789) (23,104)

8. Debtors 12. Reserves
In £
Share premium account
2020 2019 The share premium reserve includes any premiums received
Amounts owed by group on issue of share capital. Any transaction costs associated
undertakings 895,362 1,992,144 with the issuing of shares are deducted from share premium.
Other debtors 1,748 3 Profit and loss account
897,110 1,992,147
The profit and loss account includes all current and prior
Amounts owed by group undertakings are interest free, period retained profits and losses.
unsecured and are repayable on demand.
9. Cash and cash equivalents The Company has taken advantage of the exemption
In £ contained in FRS 102 section 33 “Related Party Disclosures”
Particulars As at March 31, from disclosing transactions with entities which are a wholly-
2020 2019 owned part of the group.
Cash at bank and in hand 421,928 955,455
14. Ultimate parent undertaking and
10. Creditors: Amounts falling due within controlling party
one year The parent undertaking of the smallest group of undertakings
In £ for which group financial statements are drawn up and of
Particulars As at March 31, which the Company is a member is Infosys Limited, whose
registered office is Electronics City, Hosur Road, Bengaluru,
2020 2019
560 100, Karnataka, India. Copies of these group financial
Trade creditors – 9,300
statements are available to the public from www.infosys.com.
Amounts owed to group
undertakings 46,900 1,574,876 The ultimate parent undertaking is Infosys Limited, a
Other creditors 10,601 – company incorporated in India.
Accruals and deferred In the opinion of the directors there is no
income 3,000 6,000 ultimate controlling party.
60,501 1,590,176
Amounts owed to group undertakings attracted an annual

interest rate of between 2.5% and 3.5%, and were repaid on
August 28, 2019 and March 25, 2020.
11. Share capital

In £
2020 2019
Shares classified as equity
Allotted, called up and fully
paid
1,346 (2019: 1,346)
Ordinary shares of £0.005
each 7 7
There is a single class of ordinary shares. There are no

restrictions on the distribution of dividends and the
repayment of capital.

Detailed Profit and Loss Account
In £
2020 2019
Administrative expenses (5,826) (15,837)
Operating loss (5,826) (15,837)
Interest payable and similar expenses (93,063) (105,765)
In £
2020 2019
Administrative expenses
Legal and professional 3,550 13,300
Auditor’s remuneration 2,175 2,400
Bank charges 101 137
5,826 15,837
In £
2020 2019
Interest payable and similar expenses
Group interest payable 35,499 47,976
Foreign exchange losses 57,564 57,789
93,063 105,765

Infosys Americas Inc.
To the Members of lnfosys Americas lnc
Opinion
We have audited the Ind AS financial statements of lnfosys Americas lnc (‘the company’), which comprises the Balance Sheet
as at 31st March 2020, the Statement of Profit and Loss (including other comprehensive income), the Statement of Cash Flow
with the accounting principles generally accepted in India including the Ind AS , of the financial position of the Company as
at 31st March 2020 and its financial performance including other comprehensive income and its Cash Flows and the Changes
Basis for opinion
712 | Infosys Americas Inc. Infosys Subsidiary Financials 2019-20

For Shenoy & Kamath

Partner
UDIN : 20202841AAACTV3823
Place: Bengaluru.
Date: May 14, 2020
Infosys Subsidiary Financials 2019-20 Infosys Americas Inc. | 713

Balance Sheet
in US$
2020 2019
ASSETS
Current assets
Financial assets
Income tax assets (net) 2.5 216 –
Equity
Other equity (22,041) (19,968)
Total equity 77,959 80,032
LIABILITIES
Current liabilities
Income tax liabilities (net) 2.5 – –
for Shenoy & Kamath for and on behalf of the Board of Directors of Infosys Americas Inc
M. Rathnakar Kamath Mohit Joshi

Partner Director
Bengaluru
May 14, 2020

in US$, except equity share and per equity share data
2020 2019
Revenue from operations – –
Other income 2.7 1,089 –
Total income 1,089 –
Expenses
Consultancy and professional charges – 2,514
Other expenses 2.6 3,162 339
Loss before tax (2,072) (2,853)
Tax expense:
Current tax 2.5 – –
Loss for the year (2,072) (2,853)
Total comprehensive income/(loss) for the year (2,072) (2,853)
Equity shares of par value USD 10 each
Basic (USD) (0.21) (0.29)
Diluted (USD) (0.21) (0.29)
equity share
Basic 10,000 10,000
Diluted 10,000 10,000

Partner Director
Bengaluru
May 14, 2020

in US$
capital Reserves and attributable to
surplus equity holders
Retained of the Company
earnings
Balance as of March 31, 2018 100,000 (17,115) 82,885
Loss for the year – (2,072) (2,072)

Partner Director
Bengaluru
May 14, 2020

in US$
2020 2019
Interest from bank (1,089) –
Changes in assets and liabilities – –
Cash used in operations (3,161) (2,853)
Income taxes paid (216) –
Cash used in investing activities
Interest from bank 1,089 –
Net cash used / generated in investing activities 1,089 –
Net cash used in financing activities – –
Net decrease in cash and cash equivalents (2,288) (2,853)

Partner Director
Bengaluru
May 14, 2020

Company overview price. Transaction costs that are directly attributable to the
Infosys Americas Inc (Infosys Americas) is a wholly-owned acquisition or issue of financial assets and financial liabilities,
subsidiary of Infosys Limited. that are not at fair value through profit or loss, are added to
1 Significant accounting policies and sale of financial assets are accounted for at trade date.
1.1 Accounting year 1.6.2 Subsequent measurement

The accounting year of the Company is from April 1 to March 31. Non-derivative financial instruments
cost convention on the accrual basis. The Ind AS are
prescribed under Section 133 of the Act read with Rule 3 of
and relevant amendment rules issued thereafter.
(ii) Financial assets at fair value through other
or a revision to an existing accounting standard requires a A financial asset is subsequently measured at fair value
change in the accounting policy hitherto in use. through other comprehensive income if it is held within a
1.3 Presentation currency contractual cash flows and selling financial assets and the
The Company’s presentation currency is USD. contractual terms of the financial asset give rise on specified
1.4 Use of estimates interest on the principal amount outstanding.
The preparation of the financial statements in conformity (iii) Financial assets at fair value through profit or loss
at the date of the financial statements and reported amounts (iv) Financial liabilities
of income and expenses during the year. Financial liabilities are subsequently carried at amortized cost
Accounting estimates could change from period to period. using the effective interest method, except for contingent
Actual results could differ from those estimates. Appropriate consideration recognized in a business combination which
changes in estimates are made as the Management becomes is subsequently measured at fair value through profit and loss.
aware of changes in circumstances surrounding the estimates. For trade and other payables maturing within one year from
Changes in estimates are reflected in the financial statements the Balance Sheet date, the carrying amounts approximate fair
in the period in which changes are made and, if material, their value due to the short maturity of these instruments.
effects are disclosed in the notes to the financial statements. 1.7 Fair value of financial instruments
1.5 Provisions In determining the fair value of its financial instruments, the
A provision is recognized if, as a result of a past event, the Company uses a variety of methods and assumptions that
Company has a present legal or constructive obligation that are based on market conditions and risks existing at each
is reasonably estimable, and it is probable that an outflow of reporting date. The methods used to determine fair value
economic benefits will be required to settle the obligation. include discounted cash flow analysis, available quoted
Provisions are determined by discounting the expected market prices and dealer quotes. All methods of assessing
future cash flows at a pre-tax rate that reflects current fair value result in general approximation of value, and such
market assessments of the time value of money and the risks value may never actually be realized.
specific to the liability. 1.8 Impairment
1.6 Financial instruments Financial assets
1.6.1 Initial recognition The Company recognizes loss allowances using the expected
The Company recognizes financial assets and financial credit loss (ECL) model for the financial assets which are
liabilities when it becomes a party to the contractual not fair valued through profit or loss. Loss allowance for
provisions of the instrument. All financial assets and liabilities trade receivables with no significant financing component is
are recognized at fair value on initial recognition, except for measured at an amount equal to lifetime ECL. For all other
trade receivables which are initially measured at transaction financial assets, expected credit losses are measured at an

significant increase in credit risk from initial recognition in that includes the enactment or the substantive enactment
which case those are measured at lifetime ECL. The amount date. A deferred income tax asset is recognized to the extent
of expected credit losses (or reversal) that is required to adjust that it is probable that future taxable profit will be available
the loss allowance at the reporting date to the amount that against which the deductible temporary differences and tax
is required to be recognized is recognized as an impairment losses can be utilized. The Company offsets current tax assets
gain or loss in profit or loss. and current tax liabilities, where it has a legally enforceable
1.9 Foreign currency either to settle on a net basis, or to realize the asset and settle
Functional currency the liability simultaneously.
The functional currency of the Company is the US Dollars. In assessing the realizability of deferred income tax assets,
These financial statements are presented in the US Dollars. the Management considers whether some portion or all of the
deferred income tax assets will not be realized. The ultimate
Transactions and translations realization of deferred income tax assets is dependent upon
Foreign-currency denominated monetary assets and liabilities the generation of future taxable income during the periods
are translated into the relevant functional currency at in which the temporary differences become deductible. The
exchange rates in effect at the Balance Sheet date. The gains Management considers the scheduled reversals of deferred
or losses resulting from such translations are included in net income tax liabilities, projected future taxable income and
profit in the Statement of Profit and Loss. Non-monetary tax planning strategies in making this assessment. Based on
assets and non-monetary liabilities denominated in a foreign the level of historical taxable income and projections for
currency and measured at fair value are translated at the future taxable income over the periods in which the deferred
exchange rate prevalent at the date when the fair value income tax assets are deductible, the Management believes
was determined. Non-monetary assets and non-monetary that the Company will realize the benefits of those deductible
liabilities denominated in a foreign currency and measured differences. The amount of the deferred income tax assets
at historical cost are translated at the exchange rate prevalent considered realizable, however, could be reduced in the near
at the date of the transaction. term if estimates of future taxable income during the carry
Transaction gains or losses realized upon settlement of foreign forward period are reduced.
currency transactions are included in determining net profit for 1.11 Cash Flow Statement
the year in which the transaction is settled. Revenue, expense
and cash-flow items denominated in foreign currencies are Cash flows are reported using the indirect method, whereby
translated into the relevant functional currencies using the profit for the year is adjusted for the effects of transactions of
exchange rate in effect on the date of the transaction. a non-cash nature, any deferrals or accruals of past or future
operating cash receipts or payments and item of income or
1.10 Income taxes expenses associated with investing or financing cash flows.
Income tax expense comprises current and deferred income The cash flows from operating, investing and financing
tax. Income tax expense is recognized in net profit in the activities of the Company are segregated.
statement of profit and loss except to the extent that it 1.12 Earnings per share
it is recognized in other comprehensive income. Current Basic earnings per share is computed by dividing the net
income tax for current and prior periods is recognized at profit after tax by the weighted average number of equity
the amount expected to be paid to or recovered from the tax shares outstanding during the year.
authorities, using the tax rates and tax laws that have been 1.13 Other income
Other income is comprised primarily of interest income,
recognized using the effective interest method.
and liabilities and their carrying amounts in the financial 2.1 Financial assets
date and are reduced to the extent that it is no longer probable in US$
Deferred income tax assets and liabilities are measured using 2020 2019
tax rates and tax laws that have been enacted or substantively Balances with banks
enacted by the reporting date and are expected to apply In current accounts 80,193 82,482
to taxable income in the years in which those temporary 80,193 82,482
of changes in tax rates on deferred income tax assets and

2.2 Financial instruments The details of shareholder holding more than 5% shares as at
March 31, 2020 and March 31, 2019 are as follows:
Financial instruments by category in no., except as stated otherwise
The carrying value and fair value of financial instruments by Name As at March 31,
categories were as follows: of the 2020 2019
in US$
shareholder Number % held Number % held
Particulars As at March 31, of shares of shares
2020 2019 Infosys
Assets: Limited 10,000 100 10,000 100
(Refer to Note 2.1) 80,193 82,482 2.5 Income taxes
Total 80,193 82,482
Income tax expense in the statement of profit and loss comprises:
Liabilities: in US$
(Refer to Note 2.3) 2,450 2,450 Particulars Year ended March 31,
Total 2,450 2,450 2020 2019
Current taxes – –
All the above financial instruments are carried at amortized Income tax expense – –
cost and the carrying value approximates the fair value.
Financial risk management computed by applying the statutory income tax rate to the
Liquidity risk income before income taxes is summarized below:
in US$
The Company’s principal sources of liquidity are cash and cash
equivalents. The Company has no outstanding borrowings. Particulars Year ended March 31,
2020 2019
The Company had a working capital of US$ 77,743 and
Profit before income taxes (2,072) (2,853)
US$ 80,032 as of March 31, 2020 and March 31, 2019
Enacted tax rates in US 40.00% 40.00%
respectively, which includes cash and cash equivalents of US$
80,193 and US$ 82,482 as of March 31, 2020 and March
expense (829) (1,141)
31, 2019 respectively.
2.3 Other financial liabilities deferred tax assets on loss 829 1,141
in US$ Others – –
Particulars As at March 31, Income tax expense – –
2020 2019
The following table provides the details of income
Current
tax assets and income tax liabilities as of March 31,
Others
2020 and March 31, 2019:
Accrued expenses (1) 2,450 2,450 in US$
Total financial liabilities 2,450 2,450
(1)
All financial liabilities are
carried at amortized cost 2020 2019
Income tax assets 216 –
Current income tax liabilities – –
2.4 Equity Net income tax assets/
Equity share capital (liability) at the end – –
in US$, except as otherwise stated
The gross movement in the current income tax asset/
2020 2019 in US$
Authorized
Equity shares Particulars Year ended March 31,
10,000 (10,000) equity 2020 2019
shares of USD 10 par value 100,000 100,000 Net current income tax asset/
Issued, subscribed and paid- (liability) at the beginning – –
up Income tax paid 216 –
Equity shares 100,000 100,000 Current income tax expense – –
10,000 (10,000) equity Net current income tax asset/
shares of USD 10 par value (liability) at the end 216 –
100,000 100,000

2.6 Expenses
in US$
Particulars Year ended March 31
2020 2019
Other expenses
Rates and taxes 300 300
Professional charges 2,320 –
Bank charges 542 39
3,162 339
2.7 Other income

in US$
2020 2019
Other income
Interest from bank 1,089 –
1,089 –

Name of Holding Company Country Holding as at March 31
2020 2019

Name of felow subsidiaries Country

Name of felow subsidiaries Country
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)

(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
(20)
(21)
(22)
(23)
(24)
(25)
(26)
Under Liquidation
(27)
(28)
(29)
(30)
(31)
(32)

Infosys Luxembourg S.a.r.l.
To the Members of Infosys Luxembourg S.à.r.l.

Opinion
We have audited the Ind AS financial statements of Infosys Luxembourg S.à.r.l. (“the Company”), which comprises the Balance
Sheet as at March 31, 2020, the Statement of Profit and Loss (including other comprehensive income), the Statement of Cash
Flow and the Statement of Changes in Equity for the year then ended, and notes to the financial statements including a summary
of significant accounting policies and other explanatory information (hereinafter referred to as “Ind AS financial statements”).
at March 31, 2020 and its financial performance including other comprehensive income and its cash flows and the changes in
equity for the year ended on that date.
Basis for opinion
Responsibilities of the Management’s and those charged with Governance for the financial Statements:
The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013(“the
Act”) with respect to the preparation of these Ind AS financial statements that give a true and fair view of the financial position,
financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance
with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed
under Section 133 of the Act, read with relevant rule issued thereunder.
The Board of Directors are also responsible for overseeing the Company’s financial reporting process.
is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material
As required by Section 143(3) of the Act, we report that:
ii) in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from
726 | Infosys Luxembourg S.a.r.l. Infosys Subsidiary Financials 2019-20

for Shenoy & Kamath

Firm registration number. 006673S
M Rathnakar Kamath
Partner
Membership number. 202841.
UDIN : 20202841AAACTD4089
Place: Bengaluru
Date: May 14, 2020
Infosys Subsidiary Financials 2019-20 Infosys Luxembourg S.a.r.l. | 727

Balance Sheet
in EUR
2020 2019
Assets
Non-current assets
Right-of-use asset 2.1 93,520 –
Total non-current assets 93,520 –
Current assets
Financial assets
Other current assets 2.3 28,440 –
Total assets 573,967 500,000
Equity and Liabilities
Equity
Other equity 892 120,500
Total equity 370,892 490,500
Liabilities
Current liabilities
Trade payables 2.5 4,210 –

for Shenoy & Kamath for and on behalf of the Board of Directors of Infosys Luxembourg S.à.r.l
M. Rathnakar Kamath Puneet Shukla Azalia Elmirou

Bengaluru
May 14, 2020

in EUR, except equity share and per equity share data
2020 2019
Revenue from operations – –
Total income – –
Expenses
Depreciation and amortization expense 2.1 23,428 –
Finance costs 670 –
Other expenses 2.9 95,510 9,500
Loss before tax (119,608) (9,500)
Tax expense
Current tax – –
Total comprehensive income / (loss) for the period (119,608) (9,500)
Equity shares of par value EUR 100 each
Basic (EUR) (32.33) (2.57)
Diluted (EUR) (32.33) (2.57)
equity share
Basic 3,700 3,700
Diluted 3,700 3,700


Bengaluru
May 14, 2020

in EUR
capital Reserves and Share attributable to
surplus application equity holders
money pending of the Company
allotment
Changes in equity for the period August 6, 2018
to March 31, 2019
Proceeds from issuance of shares 370,000 – – 370,000
Proceeds from share application money – 130,000 130,000
Loss for the period (9,500) (9,500)
Balance as of March 31, 2019 370,000 (9,500) 130,000 490,500
Changes in equity for the year ended March 31,
2020 – – –
Loss for the period – (119,608) – (119,608)
Balance as of March 31, 2020 370,000 (129,108) 130,000 370,892


Bengaluru
May 14, 2020

in EUR
2020 2019
Loss for the period (119,608) (9,500)
Depreciation 23,428 –
Finance cost 670 –
Other assets (28,440) –
Cash used in operations (26,213) –
Net cash used in investing activities – –
Issue of equity shares – 500,000
Lease payouts (21,780) –
Net cash from / (used in) financing activities (21,780) 500,000
Net decrease in cash and cash equivalents (82,675) 496,398
Cash and cash equivalents at the beginning of the period 496,398 –
Cash and cash equivalents at the end of the period 413,723 496,398


Bengaluru
May 14, 2020

Company overview acquisition or issue of financial assets and financial liabilities,
Infosys Luxembourg s.a.r.l is a wholly-owned
subsidiary of Infosys Limited.
1 Significant accounting policies 1.6.2 Subsequent measurement
1.1 Accounting year Non-derivative financial instruments
The accounting year of the Company is from April 1 to March 31. (i)Financial assets carried at amortized cost
1.2 Basis of preparation of financial statements it is held within a business model whose objective is to hold
These financial statements are prepared in accordance with the asset in order to collect contractual cash flows and the
Indian Accounting Standards (Ind AS) under the historical contractual terms of the financial asset give rise on specified
cost convention on the accrual basis. The Ind AS are dates to cash flows that are solely payments of principal and
prescribed under Section 133 of the Act read with Rule 3 of interest on the principal amount outstanding.
the Companies (Indian Accounting Standards) Rules, 2015 (ii)Financial assets at fair value through other
and relevant amendment rules issued thereafter. comprehensive income
Accounting policies have been consistently applied except A financial asset is subsequently measured at fair value
where a newly issued accounting standard is initially adopted through other comprehensive income if it is held within a
or a revision to an existing accounting standard requires a business model whose objective is achieved by both collecting
change in the accounting policy hitherto in use contractual cash flows and selling financial assets and the
1.3 Presentation currency contractual terms of the financial asset give rise on specified
The Company’s presentation currency is EUR. interest on the principal amount outstanding.
1.4 Use of estimates (iii) Financial assets at fair value through profit or loss
The preparation of the financial statements in conformity A financial asset which is not classified in any of the above
with Ind AS requires the Management to make estimates and categories are subsequently fair valued through profit or loss.
assumptions that affect the reported balances of assets and (iv) Financial liabilities
Financial liabilities are subsequently carried at amortized cost
consideration recognized in a business combination which
Accounting estimates could change from period to period. is subsequently measured at fair value through profit and loss.
Actual results could differ from those estimates. Appropriate For trade and other payables maturing within one year from
changes in estimates are made as the Management becomes the Balance Sheet date, the carrying amounts approximate fair
aware of changes in circumstances surrounding the estimates. value due to the short maturity of these instruments.
in the period in which changes are made and, if material, their 1.7 Fair value of financial instruments
effects are disclosed in the notes to the financial statements. In determining the fair value of its financial instruments, the
1.5 Provisions
A provision is recognized if, as a result of a past event, the reporting date. The methods used to determine fair value
Company has a present legal or constructive obligation that include discounted cash flow analysis, available quoted
is reasonably estimable, and it is probable that an outflow of market prices and dealer quotes. All methods of assessing
economic benefits will be required to settle the obligation. fair value result in general approximation of value, and such
Provisions are determined by discounting the expected value may never actually be realized.
market assessments of the time value of money and the risks 1.8 Impairment
Financial assets
1.6 Financial instruments The Company recognizes loss allowances using the expected
1.6.1 Initial recognition
The Company recognizes financial assets and financial trade receivables with no significant financing component is
liabilities when it becomes a party to the contractual measured at an amount equal to lifetime ECL. For all other
provisions of the instrument. All financial assets and liabilities financial assets, expected credit losses are measured at an
are recognized at fair value on initial recognition, except for amount equal to the 12-month ECL, unless there has been a
trade receivables which are initially measured at transaction significant increase in credit risk from initial recognition in

which case those are measured at lifetime-ECL. The amount right to set off the recognized amounts and where it intends
of expected credit losses (or reversal) that is required to adjust either to settle on a net basis, or to realize the asset and settle
the loss allowance at the reporting date to the amount that the liability simultaneously.
is required to be recognized is recognized as an impairment In assessing the realizability of deferred income tax assets,
gain or loss in profit or loss. the Management considers whether some portion or all of the
1.9 Foreign currency deferred income tax assets will not be realized. The ultimate
Functional currency the generation of future taxable income during the periods
The functional currency of the Company is the EURO. These in which the temporary differences become deductible. The
financial statements are presented in EURO. Management considers the scheduled reversals of deferred
Transactions and translations income tax liabilities, projected future taxable income and
Foreign-currency denominated monetary assets and liabilities tax planning strategies in making this assessment. Based on
are translated into the relevant functional currency at the level of historical taxable income and projections for
exchange rates in effect at the Balance Sheet date. The gains future taxable income over the periods in which the deferred
or losses resulting from such translations are included in net income tax assets are deductible, the Management believes
profit in the Statement of Profit and Loss. Non-monetary that the Company will realize the benefits of those deductible
assets and non-monetary liabilities denominated in a foreign differences. The amount of the deferred income tax assets
currency and measured at fair value are translated at the considered realizable, however, could be reduced in the near
exchange rate prevalent at the date when the fair value term if estimates of future taxable income during the carry
was determined. Non-monetary assets and non-monetary forward period are reduced.
liabilities denominated in a foreign currency and measured 1.11 Cash Flow Statement
Cash flows are reported using the indirect method, whereby
Transaction gains or losses realized upon settlement of foreign of a non-cash nature, any deferrals or accruals of past or
currency transactions are included in determining net profit future operating cash receipts or payments and item of
for the period in which the transaction is settled. Revenue, income or expenses associated with investing or financing
expense and cash-flow items denominated in foreign currencies cash flows. The cash flows from operating, investing and
are translated into the relevant functional currencies using the financing activities of the Company are segregated.
1.12 Earnings per share
1.10 Income taxes
Income tax expense comprises current and deferred income profit after tax by the weighted average number of equity
tax. Income tax expense is recognized in net profit in the shares outstanding during the period.
Statement of Profit and Loss except to the extent that it
relates to items recognized directly in equity, in which case 1.13 Leases
it is recognized in other comprehensive income. Current
The Company as a lessee
the amount expected to be paid to or recovered from the tax The Company’s lease asset classes consist of leases for
authorities, using the tax rates and tax laws that have been buildings. The Company assesses whether a contract contains
enacted or substantively enacted by the Balance Sheet date. a lease, at inception of a contract. A contract is, or contains,
Deferred income tax assets and liabilities are recognized for all a lease if the contract conveys the right to control the use
temporary differences arising between the tax bases of assets of an identified asset for a period of time in exchange for
and liabilities and their carrying amounts in the financial consideration. To assess whether a contract conveys the right
statements. Deferred tax assets are reviewed at each reporting to control the use of an identified asset, the Company assesses
date and are reduced to the extent that it is no longer probable whether: (1) the contact involves the use of an identified asset
that the related tax benefit will be realized. (2) the Company has substantially all of the economic benefits
from use of the asset through the period of the lease and (3)
enacted by the reporting date and are expected to apply At the date of commencement of the lease, the Company
to taxable income in the years in which those temporary recognizes a right-of-use asset (“ROU assets”) and a
differences are expected to be recovered or settled. The effect corresponding lease liability for all lease arrangements in
of changes in tax rates on deferred income tax assets and which it is a lessee, except for leases with a term of twelve
liabilities is recognized as income or expense in the period months or less (short-term leases) and low value leases.
that includes the enactment or the substantive enactment For these short-term and low value leases, the Company
date. A deferred income tax asset is recognized to the extent recognizes the lease payments as an operating expense on a
that it is probable that future taxable profit will be available straight-line basis over the term of the lease.
against which the deductible temporary differences and tax Certain lease arrangements include the options to extend or
losses can be utilized. The Company offsets current tax assets terminate the lease before the end of the lease term. ROU

assets and lease liabilities includes these options when it is 2.2 Cash and cash equivalents
reasonably certain that they will be exercised. In EUR
The ROU assets are initially recognized at cost, which Particulars As at March 31,
comprises the initial amount of the lease liability adjusted for 2020 2019
any lease payments made at or prior to the commencement Balances with banks
date of the lease plus any initial direct costs less any lease In current accounts 413,723 496,398
incentives. They are subsequently measured at cost less 413,723 496,398
accumulated depreciation and impairment losses.
Right-of-use assets are depreciated from the commencement 2.3 Other assets
date on a straight-line basis over the shorter of the lease term In EUR
and useful life of the underlying asset. Particulars As at March 31,
The lease liability is initially measured at amortized cost using 2020 2019
the effective interest rate method at the present value of the Current
future lease payments. The lease payments are discounted Advances other than capital
using the interest rate implicit in the lease or, if not readily advance –
determinable, incremental borrowing rates in the countries Payment to vendors for
of domicile of the leases. Lease liabilities are remeasured supply of goods/services 6,979
with a corresponding adjustment to the related right-of-use Others –
asset if the Company changes its assessment if whether it will Prepaid expenses 22,541
exercise an extension or a termination option. Reimbursable VAT (1,080) –
28,440 –
2.1 Leases
The carrying value of right-of-use assets for the year ended 2.4 Equity
March 31, 2020 is as follows:
In EUR
in EUR, except as otherwise stated
March 31,
2020 2019
2020
Authorized
Balance at the beginning –
Equity shares
Additions 116,948
5,000 (5,000) equity shares
Deletions –
of EUR 100 par value 500,000 500,000
Depreciation (23,428)
Issued, subscribed and paid-
up
Equity shares 370,000 370,000
The break-up of current and non-current lease liability as of 3,700 (3,700) equity shares
March 31, 2020 is as follows: of EUR 100 par value
In EUR 370,000 370,000
Particulars Amount The details of shareholder holding more than 5% shares as at
Non-current lease liability 72,078 March 31, 2020 and March 31, 2019 are as follows:
Current lease liability 23,760 in no., except as stated otherwise
Total 95,838 Name of the Number of As at March 31,
The movement in lease liability during the year ended March shareholder shares 2020 2019
31, 2020 is as follows: Infosys Limited 3,700 100 100
in EUR
Particulars Year ended 2.5 Trade payables
in EUR
March 31,
2020 Particulars As at March 31,
Balance at the beginning – 2020 2019
Additions 116,948 Trade payables 4,210 –
Deletions – 4,210 –
Interest accrued during the period 670
Lease payments (21,780)

2.6 Other financial liabilities 2.8 Income taxes
In EUR
The details of income tax assets and income tax liabilities as
Particulars As at March 31, of March 31, 2020, March 31, 2019 are as follows:
2020 2019 in EUR
Current As at March 31,
Others 2020 2019
Other payables (1) 103,027 9,500 Income tax assets 38,284 3,602
Total financial liabilities 103,027 9,500 Current income tax liabilities – –
Financial liability carried at Net current income tax assets
amortized cost 103,027 – / (liability) at the end 38,284 3,602
(1)
parties 17,820 The gross movement in the current income tax asset /
2.7 Financial instruments In EUR
Financial instruments by category Year ended March 31,

2020 2019
The carrying value and fair value of financial instruments by
categories were as follows:
In EUR
/ (liability) at the beginning 3,602 –
Particulars As at March 31, Current income tax expense – –
2020 2019 Net current income tax asset
Assets: / (liability) at the end 38,284 3,602
(Refer to Note 2.2) 413,723 496,398
2.9 Other expenses
Total 413,723 496,398 In EUR
Liabilities:
Other financial liabilities Particulars Year ended March 31,
(Refer to Note 2.7) 103,027 9,500 2020 2019
Total 103,027 9,500 Other expenses
Rates and taxes 8,137 –
All the above financial instruments are carried at amortized Audit fees 15,000 9,500
cost and the carrying value approximates the fair value. Professional and consultancy
charges 62,707 –
Financial risk management Postage and courier charges 24 –
Financial risk factors Bank charges 9,643 –
The Company’s activities expose it to a variety of financial Total other expenses 95,510 9,500
Liquidity risk
The Company’s principal sources of liquidity are cash and cash
equivalents. The Company has no outstanding borrowings.
As of March 31, 2020 and March 31, 2019, the Company
had cash and cash equivalents of EUR 413,723 and EUR
496,398, respectively.

Name of the Holding Company Country Holding as at March 31,
2020 2019

HIPUS (19) Japan
Outbox systems Inc. dba Simplus (US) (26) US
Simplus North America Inc. (27) Canada
Simplus ANZ Pty Ltd. (27) Australia
Simplus Australia Pty Ltd (29) Australia
Sqware Peg Digital Pty Ltd (29) Australia
Simplus Philippines, Inc. (27) Philippines
Simplus Europe, Ltd. (27) UK
Simplus UK, Ltd. (28) UK
Simplus Ireland, Ltd. (28) Ireland
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
Incorporated effective November 27, 2018, wholly-owned subsidiary of Infosys Public Services Inc
(19)
(20)
(21)
(22)
(23)
(24)
Effective October 1, 2019, merged into Infosys Consulting Ltda, a majority-owned and controlled subsidiary of Infosys Limited.
(25)
Under liquidation
(26)
(27)
(28)
(29)
(30)
(31)

Infosys Nova Holdings LLC
To the Members of Infosys Nova Holdings LLC

Opinion
We have audited the Ind AS financial statements of Infosys Nova Holdings LLC (‘the company’), which comprises the
including a summary of significant accounting policies and other explanatory information (herein after referred to as ‘ Ind AS
Basis for opinion
in accordance with the requirements and the code of Ethics.
740 | Infosys Nova Holdings LLC Infosys Subsidiary Financials 2019-20

For Shenoy & Kamath

Partner
UDIN : 20202841AAABSJ3864
Place: Bengaluru.
Infosys Subsidiary Financials 2019-20 Infosys Nova Holdings LLC | 741

Balance Sheet
In US$
2019 2018
ASSETS
Non-current assets
Investments in associate 2.1 – –
Total non-current assets – –
Total assets – –
Equity
Other equity (15,000,000) (15,000,000)
Total equity – –
Total equity and liabilities – –

for Shenoy & Kamath

Chartered Accountants for and on behalf of the Board of Directors of Infosys Nova
Firm’s Registration number: 006673S Holdings LLC
M. Rathnakar Kamath
Partner Inderpreet Sawhney
Membership number : 202841 Authorized Signatory
Bengaluru

In US$
Particulars Note no. Year ended December 31
2019 2018
Other income, net – –
Expenses – –
Total expenses – –
Profit/(loss) before tax – –
Tax expense – –
Profit/(loss) for the year – –
Total comprehensive income/(loss) for the year – –

for Shenoy & Kamath

M. Rathnakar Kamath
Bengaluru

Statement of changes in Equity
In US$
capital Reserves & attributable to
Surplus equity holders
Retained of the Company
earnings
Balance as of January 1, 2018 15,000,000 (15,000,000) -
Changes in equity for the year ended December 31, 2018
Profit for the year – – –
Balance as of December 31, 2019 15,000,000 (15,000,000) -
Changes in equity for the year ended December 31, 2019 - - -
Balance as of December 31, 2019 15,000,000 (15,000,000) -

for Shenoy & Kamath

M. Rathnakar Kamath
Bengaluru

In US$
Particulars Year ended December 31
2019 2018
Profit/(loss) for the year – –
Net cash generated by operating activities – –
Net cash used in financing activities – –
Net decrease in cash and cash equivalents – –
Cash and cash equivalents at the beginning of the year – –
Cash and cash equivalents at the end of the year – –
Supplementary information: $0.00 $0.00
Restricted cash balance – –

for Shenoy & Kamath

M. Rathnakar Kamath
Bengaluru

Company overview or losses resulting from such translations are included in net
Infosys Nova Holdings LLC (Infosys Nova or the Company) is profit in the Statement of Profit and Loss. Non-monetary
a wholly–owned subsidiary of Infosys Limited. The purpose assets and non-monetary liabilities denominated in a foreign
of the Company is to engage in any lawful act or activity currency and measured at fair value are translated at the
for which corporation may be organized under the Delaware exchange rate prevalent at the date when the fair value
General Corporation Law, as the same exists or as may was determined. Non-monetary assets and non-monetary
hereafter be amended from time to time. liabilities denominated in a foreign currency and measured
1 Significant accounting policies at the date of the transaction.
Transaction gains or losses realized upon settlement of
1.1 Accounting year foreign currency transactions are included in determining
The accounting year of the Company is from net profit for the period in which the transaction is settled.
January 1 to December 31. Revenue, expense, and cash-flow items denominated in
foreign currencies are translated into the relevant functional
1.2 Basis of preparation of financial statements currencies using the exchange rate in effect on the
These financial statements are prepared in accordance with date of the transaction.
cost convention on the accrual basis. The Ind AS are 1.6 Cash Flow Statement
prescribed under Section 133 of the Act read with Rule 3 of Cash flows are reported using the indirect method, whereby
the Companies (Indian Accounting Standards) Rules, 2015 profit for the period is adjusted for the effects of transactions
and Companies (Indian Accounting Standards) Amendment of a non-cash nature, any deferrals or accruals of past or
Rules, 2016. The Ind AS are prescribed under Section future operating cash receipts or payments and item of
133 of the Act read with Rule 3 of the Companies (Indian income or expenses associated with investing or financing
Accounting Standards) Rules, 2015 and relevant amendment cash flows. The cash flows from operating, investing and
rules issued thereafter. financing activities of the Company are segregated.
1.7 Investments
or a revision to an existing accounting standard requires a Associates are entities over which the Company has significant
change in the accounting policy hitherto in use. influence but not control. Investments in associates are
accounted for using the equity method of accounting. The
1.3 Reporting currency investment is initially recognized at cost, and the carrying
The Company’s reporting currency is US$. amount is increased or decreased to recognize the investor’s
share of the profit or loss of the investee after the acquisition
1.4 Use of estimates date. The Company’s investment in associates includes
The preparation of the financial statements in conformity goodwill identified on acquisition.
assumptions that affect the reported balance of assets and
2.1 Investments
In US$
at the date of the financial statements and reported amounts Particulars As at December 31,
of income and expenses during the period. 2019 2018
NON-CURRENT
INVESTMENTS
UNQUOTED
Long-term investments -
at cost
Investments in
Associates
1.5 Foreign currency DWA Nova LLC (1) – –
Total non-current
Functional currency investments – –
The functional currency of the Company is the US$. These
During the quarter ended June 30, 2017, the Company has written
(1)
financial statements are presented in US$. down the entire carrying value of the investment in its associate DWA
Transactions and translations Nova LLC amounting to $15,000,000.

2.2 Equity
In US$
2019 2018
Authorized share capital 15,000,000 15,000,000
Issued, Subscribed and Paid-Up 15,000,000 15,000,000
The details of shareholder holding more than 5% shares as at December 31, 2019 and December 31, 2018 are set out below:
Name of the shareholder As at December 31
2019 2018
Infosys Limited 100% 100%

Name of holding company Country Holding as at December31
2019 2018

Infosys Tecnologia DO Brasil LTDA. (Infosys Brasil) (25) Brazil
Infosys Poland, Spz.o.o (4) Poland
Infosys Consulting (Shanghai) Co., Ltd. (formerly Lodestone Management Consultants Co.,Ltd) (5) China
Infosys Consulting Sp.z.o.o (5) Poland
Lodestone Management Consultants Portugal ,Unipessoal, Lda. (5) Portugal

PanayaLtd. (7) Israel
HIPUS (20) Japan
Stater Deutschland Verwaltungs – GmbH (23) Germany
Stater Deutschland GmbH & Co.KG (23) Germany
(1)
Wholly–owned subsidiary of Infosys Limited
(2)
(3)
(4)
Wholly–owned subsidiary of Infosys BPM Limited
(5)
Wholly–owned subsidiary of Infosys Consulting Holding AG (formerly Lodestone Holding AG)
(6)
(7)
(8)
Wholly–owned subsidiary of Brilliant Basics Holding Limited.
(9)
Wholly–owned subsidiary of Infosys Consulting Pte. Ltd
(10)
(11)
(12)
Wholly–owned subsidiary of WongDoody
(13)
(14)
(15)
Wholly–owned subsidiary of Fluido Oy
(16)
(17)
(18)
(19)
(20)
(21)
(22)
(23)
(24)
(25)
(26)
Under Liquidation

Report of the Statutory Auditor
To the General Meeting of Infosys Consulting Holding AG, Kloten
Report of the statutory auditor on the financial statements

As statutory auditor, we have audited the accompanying financial statements of Infosys Consulting Holding AG, which comprise
the Balance Sheet as at December 31, 2019, and the income statement and notes for the year then ended.
Board of Directors’ responsibility

The Board of Directors is responsible for the preparation of these financial statements in accordance with the requirements of
Swiss law and the Company’s articles of incorporation. This responsibility includes designing, implementing and maintaining
an internal control system relevant to the preparation of financial statements that are free from material misstatement, whether
due to fraud or error. The Board of Directors is further responsible for selecting and applying appropriate accounting policies
and making accounting estimates that are reasonable in the circumstances.
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with Swiss law and Swiss Auditing Standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance whether the financial statements are free from material misstatement.
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 the internal
control system relevant to the entity’s preparation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control system. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness
of accounting estimates made, as well as evaluating the overall presentation of the financial statements. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements for the year ended December 31, 2019 comply with Swiss law and the Company’s
articles of incorporation.
Report on other legal requirements

We confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act (AOA) and independence
(article 728 Code of Obligations (CO)) and that there are no circumstances incompatible with our independence.
In accordance with article 728a para. 1 item 3 CO and Swiss Auditing Standard 890, we confirm that an internal control system
exists, which has been designed for the preparation of financial statements according to the instructions of the Board of Directors.
We recommend that the financial statements submitted to you be approved.
Deloitte AG
Marco HoogendijkBeni Furrer Beni Furrer

Licensed Audit Expert Licensed Audit Expert
Auditor in Charge
Zurich
March 31, 2020 MHO/BFU/vpf
Enclosures
- Financial statements (Balance Sheet, income statement and notes)
750 | Infosys Consulting Holding AG Infosys Subsidiary Financials 2019-20

Balance Sheet
Amounts in CHF
Notes December 31,
Assets 2019 2018
Cash and cash equivalents 3,127,095.47 3,361,602.61
Other short-term receivables from third parties 514,911.93 17,959.81
Other short-term receivables from subsidiaries 4,869.99 3,431,651.23
Loans to subsidiaries 3,409,324.87 15,797,150.00
Loans to affiliates 11,557,864.71 11,631,331.57
Investments 2.1 14,540,433.39 18,813,785.65
Total assets 33,154,500.36 53,053,480.87
Trade accounts payable to third parties 514.83 3,406.07
Other short-term liabilities to third parties 77.85 758.93
Other short-term liabilities to entities in which the entity holds a
participation 2.2 6,003,244.33 2,710.19
Accrued expenses and deferred income 134,368.52 112,542.03
Total short-term liabilities 6,138,205.53 119,417.22
Loans from subsidiaries 0.00 4,802,120.70
Loans from shareholder 0.00 15,529,109.59
Total long-term liabilities 0.00 20,331,230.29
Share capital 2.3 25,696,000.00 25,696,000.00
Statutory retained earnings 1,521,200.00 1,449,200.00
Voluntary retained earnings 5,385,633.36 4,021,842.03
Net result for the year (5,586,538.53) 1,435,791.33
Total equity 27,016,294.83 32,602,833.36
Infosys Subsidiary Financials 2019-20 Infosys Consulting Holding AG | 751

Income Statement
Amounts in CHF
Particulars Notes December 31,
2019 2018
Dividends 9,011,561.65 7,332,122.39
Gross profit 9,011,561.65 7,332,122.39
Office and administration expenses (28,977.92) (56,011.11)
Consulting expenses (174,470.39) (349,959.28)
Operating expenses (203,448.31) (405,970.39)
Earnings before interest and tax (EBIT) 8,808,113.34 6,926,152.00
Financial expenses (1,984,771.60) (1,350,828.50)
Financial income 3,230,949.66 1,084,265.23
Net financial result 1,246,178.06 (266,563.27)
Extraordinary expenses 2.4 (16,198,329.16) (5,218,864.78)
Extraordinary income 2.5 568,838.23 2.67
Net extraordinary result (15,629,490.93) (5,218,862.11)
Earnings before tax (EBT) (5,575,199.53) 1,440,726.62
Tax expenses (11,339.00) (4,935.29)
Net result for the year (5,586,538.53) 1,435,791.33

1. Summary of significant accounting policies

1.1 Basis of preparation
The financial statements of Infosys Consulting Holding AG (“the Company”) have been prepared in accordance with the
provisions of the Swiss Law on Accounting and Financial Reporting (32nd title of the Swiss Code of Obligations). Where not
prescribed by law, the significant accounting and valuation principles applied are described below. It is furthermore noted
that to ensure the long-term prosperity of the Company, these financial statements may be influenced by the creation and
release of hidden reserves.
The Company’s ultimate parent, Infosys Limited incorporated in India, prepares consolidated financial statements in accordance
with International Financial Reporting Standards (IFRS), which include the financial statements of the Company. In accordance
with the Swiss Code of Obligations, the Company is therefore exempt from preparing a management report, a cash flow
statement and certain additional disclosures in the notes to the financial statements.
1.2 Foreign currency
The Company’s functional currency is the Swiss Franc (CHF) as this is assessed to be the principal currency of the economic
environment in which it operates.
Transactions in foreign currency are translated into the functional currency at the exchange rate prevailing at the transaction date.
Monetary assets and liabilities in foreign currency outstanding at the Balance Sheet date are converted at the Balance Sheet date
exchange rate, whereby unrealized losses are recorded in the income statement and unrealized profits are deferred. Non-monetary
assets and liabilities in foreign currency are translated at the historical foreign exchange rate at the date of the transaction.
1.3 Investments
Investments are initially recorded at acquisition cost. Investments are annually assessed for impairment and are adjusted to
their recoverable value, if required, on an individual or grouped basis as appropriate.
2. Information on Balance Sheet and income statement items
2.1 Investments
Particulars Currency 2019 2018
Company: Infosys Consulting GmbH
Location: Garching b. München, Germany
Share capital: EUR 2,086,000.00 3,586,000.00
Directly held percentage of ownership and voting rights: 100.00% 100.00%
Company: Lodestone Management Consultants Portugal, Unipessoal LDA
Location: Lisbon, Portugal
Share capital: EUR 1,450,000.00 1,450,000.00
Company: Infosys Consulting AG
Location: Kloten, Switzerland
Share capital: CHF 120,000.00 120,000.00
Company: Infosys Consulting Sp. z o.o.
Location: Wroclaw, Poland
Share capital: PLN 1,000,000.00 1,000,000.00
Company: Infosys Management Consulting Pty. Ltd.
Location: Pyrmont, Australia
Share capital: AUD 3,500,300.00 3,500,300.00
Directly held % of ownership and voting rights: 100.00% 100.00%
Company: Infy Consulting Company Ltd.
Location: London, UK
Share capital: GBP 50,000.00 50,000.00

Particulars Currency 2019 2018
Company: Infosys Consulting (Belgium) SA
Location: Brüssels, Belgium
Share capital: EUR 489,326.00 489,326.00
Company: Infosys Consulting s.r.o.
Location: Prague, Czech Republic
Share capital: CZK 200,000.00 200,000.00
Company: S.C. Infosys Consulting S.R.L.
Location: Bucharest, Romania
Share capital: RON 0.00 10,718,300.00
Company: Infy Consulting B.V.
Location: ‘s-Gravenhage, Netherlands
Company: Infosys Consulting SAS
Location: Paris, France
Company: Lodestone Management Consultants China Co., Ltd.
Location: Shanghai, China
Share capital: USD 6,930,000.00 6,930,000.00
Company: Infosys Consulting S.R.L.
Location: Buenos Aires, Argentina
Share capital: ARS 18,060,000.00 8,860,000.00
Indirectly held percentage of ownership and voting rights: 3.05% 6.21%
Business purpose of the companies: Management Consulting

2.2 Other short-term liabilities to entities in which the entity holds a participation
On August 5, 2019 the extraordinary general meeting of Infosys Consulting AG resolved to distribute a dividend of CHF
6,000,000. This decision was made without the auditor’s confirmation. As a result the dividend distribution was reversed
with a credit to other short-term liabilities to entities in which the entity holds a participation and a debit to dividend income.
2.3 Share capital
As at December 31, 2019, the share capital consists 23,050 registered shares of CHF 1,000 / par value and
26,460 preferred shares of CHF 100 / par value.
2.4 Extraordinary expenses
The extraordinary expenses for 2019 contain valuation adjustments on investments as well the loss related to the sales of S.C.
Infosys Consulting S.R.L.
2.5 Extraordinary income
The extraordinary income contains the amount from ICICI Lombard General Insurance Company Ltd. towards settlement of
legal case in favor of Infosys Consulting US (Infosys Consulting Holding AG).
2.6 Leasing liabilities
Off-balance leasing liabilities

2.7 Guarantees
Rental Guarantee on behalf of Infosys Consulting AG CHF 503,200.00 503,200.00
Payment Guarantee on behalf of Infosys Consulting AG CHF 50,000.00 50,000.00
Payment Guarantee on behalf of Infosys Consulting GmbH EUR 48,616.29 0.00
2.8 Full-time equivalents

The Company does not have any employees (2018: no employees).
2.9 Subsequent events
On February 20, 2020 the Company sold its 100% interest in Infosys Consulting Sp. Zo.o. with a carrying amount of
PLN 1,000,000.- (CHF 345’391.43) as at December 31, 2019 to Infosys Poland Sp. Zo.o. for a total cash consideration
of PLN 61’800’000.00.
Subsequent to year end and up to the date of signing this report there was a global outbreak of the COVID-19 virus and
associated slow-down in global economy. It is not possible to reliably estimate the length or severity of these developments,
and hence their financial impact. However, this could have an adverse impact on some of our customers and may affect our
results in the future periods.

Infosys Arabia Limited
To the Members of Infosys Arabia Limited

Opinion
We have audited the Ind AS financial statements of Infosys Arabia Limited (‘the company’), which comprises the Balance Sheet
as at 31st December 2019, the Statement of Profit and Loss (including other comprehensive income), the Statement of Cash Flow
Basis for opinion
758 I Infosys Arabia Limited Infosys Subsidiary Financials 2019-20

i) i) we have sought and obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purpose of our audit;
ii) ii) in our opinion proper books of account as required by law have been kept by the Company so far as it appears from
iii) iii) the Balance Sheet, the Statement of Profit and Loss and the Statement of Cash Flow and Statement of Changes in
iv) iv) in our opinion, the aforesaid Ind AS financial statements comply with the Accounting Standards specified under
For Shenoy & Kamath

Partner
UDIN : 20202841AAABSK6425
Place: Bengaluru.
Infosys Subsidiary Financials 2019-20 Infosys Arabia Limited I 759

Balance Sheet
in SAR
2019 2018
ASSETS
Current assets
Financial assets
Total Assets 1,678,751 1,678,751
EQUITY AND
LIABILITIE
Equity
Other equity – –
Total equity 1,678,751 1,678,751

As per our report of even date attached for and on behalf of the Board of Directors of Infosys Arabia Ltd.
for Shenoy & Kamath
M. Rathnakar Kamath Balakrishna Doddaballapur

Partner Authorized Signatory
Bengaluru
March 16, 2020

in SAR
2019 2018
Other income, net – –
Expenses – –
Total expenses – –
Profit / (loss) before tax – –
Tax expense – –
Profit / (loss) for the year – –
Total comprehensive income / (loss) for the year – –

for Shenoy & Kamath

Bengaluru
March 16, 2020

In SAR
capital attributable to
Reserves & equity holders
Surplus of the Company
Retained
earnings
Balance as of January 1, 2018 – – –
Equity share capital 1,678,751 – 1,678,751
Balance as of December 31, 2018 1,678,751 – 1,678,751
Balance as of January 1, 2019 1,678,751 – 1,678,751
Equity share capital – – –
Balance as of December 31, 2019 1,678,751 – 1,678,751

for Shenoy & Kamath

Bengaluru
March 16, 2020

Statements of cash flows
In SAR
2019 2018
Profit / (loss) for the year – –
Adjustments to reconcile net profit to net cash provided by operating activities: – –
Net cash generated by operating activities – –
Investment in associate – –
Increase in Equity share capital – 1,678,751
Net cash from financing activities – 1,678,751
Net increase in cash and cash equivalents – 1,678,751
Cash and cash equivalents at the beginning of the year 1,678,751 –

for Shenoy & Kamath

Bengaluru
March 16, 2020

Company overview 1.6 Cash Flow Statement

Infosys Arabia Limited is a subsidiary of Infosys Limited. Cash flows are reported using the indirect method, whereby
The purpose of the Company is to engage in any lawful profit for the period is adjusted for the effects of transactions
act or activity for which corporation may be organized of a non-cash nature, any deferrals or accruals of past or
under the Law of Kingdom of Saudi Arabia, as the same future operating cash receipts or payments and item of
exists or as may hereafter be amended from time to time, income or expenses associated with investing or financing
incorporated on August 12, 2016. cash flows. The cash flows from operating, investing and
1 Significant accounting policies
1.1 Accounting year In SAR
The accounting year of the Company is from January 1, 2019 Particulars As at 31 December,
to December 31 , 2019. 2019 2018
The comparative accounting year of the Company is from Balances with banks
December 4, 2017 to December 31 ,2018. In current and deposit
accounts 1,678,751 1,678,751
1.2 Basis of preparation of financial statements 1,678,751 1,678,751
Indian Accounting Standards (Ind-AS) under the historical The deposits maintained by the Company with banks and
cost convention on the accrual basis. The Ind-AS are financial institution comprise of time deposits, which can be
prescribed under Section 133 of the Act read with Rule 3 of withdrawn by the Company at any point without prior notice
the Companies (Indian Accounting Standards) Rules, 2015 or penalty on the principal.
and Companies (Indian Accounting Standards) Amendment The details of balances as on Balance Sheet dates with
Rules, 2016. The Ind-AS are prescribed under Section banks are as follows:
133 of the Act read with Rule 3 of the Companies (Indian In SAR
Accounting Standards) Rules, 2015 and relevant amendment Particulars As at 31 December,
rules issued thereafter. 2019 2018
Accounting policies have been consistently applied except In current accounts
where a newly issued accounting standard is initially adopted The Saudi British Bank-
or a revision to an existing accounting standard requires a SABB 1,678,751 1,678,751
change in the accounting policy hitherto in use. 1,678,751 1,678,751
Total cash and cash equivalents 1,678,751 1,678,751
1.3 Reporting currency
The Company’s reporting currency is Saudi Riyal. 2.2 EQUITY
1.4 Use of estimates Equity share capital
in SAR
with Ind AS requires the Management to make estimates and Particulars As at December 31,
assumptions that affect the reported balances of assets and 2019 2018
liabilities, and disclosures relating to contingent liabilities as Authorized share capital
at the date of the financial statements and reported amounts (SAR 16,787.51 par value,
of income and expenses during the period. 100 equity shares) 1,678,751 1,678,751
Accounting estimates could change from period to period. Issued, Subscribed and
Actual results could differ from those estimates. Appropriate Paid-Up (SAR 16,787.51 par
changes in estimates are made as the Management becomes value, 100 equity shares) 1,678,751 1,678,751
The details of shareholder holding more than 5% shares as at
December 31, 2019 and December 31, 2018 are set out below :
effects are disclosed in the notes to the financial statements. Name of the shareholder As at December 31,
2019 2018
1.5 Foreign currency Infosys Limited 70% 70%
Saudi Prerogative Company 30% 30%
Functional currency
The functional currency of the Company is the Saudi Riyal.
These financial statements are presented in Saudi Riyal.

The carrying value and fair value of financial instruments by categories as of December 31, 2019 were as follows:
In SAR
Particulars Amortized Financial assets / liabilities Financial assets / liabilities Total Total fair
cost at fair value through profit at fair value through OCI carrying value
or loss value
upon initial
recognition
Assets:
Cash and cash 1,678,751 – – – – 1,678,751 1,678,751
equivalents
(Refer to Note 2.1)
Total 1,678,751 – – – – 1,678,751 1,678,751

Name of holding company Country Holding as at December 31,
2019 2018


Panaya Japan Co. Ltd. (26) (7) Japan
Infosys Consulting Pte. Limited (Infosys Singapore) (1) Singapore
Infosys South Africa (Pty.) Ltd. (9) (17) South Africa
WongDoody, Inc. (12) US
HIPUS (20) Japan
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Wholly-owned subsidiary of Infosys Consulting Pte. Ltd.
(10)
(11)
(12)
(13)
(14)
On October 11, 2018, Infosys Consulting Pte. Ltd., acquired 100% of the voting interests in Fluido Oy and its subsidiaries
(15)
(16)
On November 16, 2018, Infosys Consulting Pte. Ltd., acquired 60% of the voting interest in Infosys Compaz Pte. Ltd.
(17)
(18)
(19)
Incorporated effective November 27, 2018, wholly-owned subsidiary Infosys Public Services Inc.

(20)
On April 1, 2019, Infosys Consulting Pte. Ltd., acquired 81% of the voting interests in HIPUS Co., Ltd., Japan
(21)
On May 23, 2019, Infosys Consulting Pte. Ltd., acquired 75% of the voting interests in Stater N.V.
(22)
(23)
(24)
(25)
Effective October 1, 2019, merged into Infosys Consulting Ltda., a majority-owned and controlled subsidiary of Infosys Limited
(26)
Under liquidation

Infosys South Africa Pty. Ltd.
To the Members of Infosys South Africa (Pty) Ltd

Opinion
We have audited the Ind AS financial statements of Infosys South Africa (Pty) Ltd (‘the company’), which comprises the
including a summary of significant accounting policies and other explanatory information (herein after referred to as ‘Ind AS
Basis for opinion
770 I Infosys South Africa (Pty) Ltd Infosys Subsidiary Financials 2019-20
For SHENOY & KAMATH

Firm Registration Number: 006673S
(M RATHNAKAR KAMATH)
Partner
Membership Number: 202841
UDIN : 20202841AAABSN1746
Place: Bengaluru.
Infosys Subsidiary Financials 2019-20 Infosys South Africa (Pty) Ltd I 771
Balance Sheet
In ZAR
Particulars Note no. As at December
31, 2019
ASSETS
Current assets
Financial assets
Cash and cash equivalents 2.1 376
Total current assets 376
Total assets 376
Equity
Equity share capital 2.2 7,100
Other equity (21,724)
Total equity (14,624)
LIABILITIES
Current liabilities
Other financial liabilities 2.3 15,000
Total current liabilities 15,000
Total equity and liabilities 376

for Shenoy & Kamath South Africa (Pty) Ltd
M. Rathnakar Kamath Arul S. Sambandam

Partner Director
Bengaluru
March 16, 2020
In ZAR
2019 (1)
Other income, net 2.4 30
Total income 30
Expenses
Consultancy and professional charges 2.5 15,000
Other expenses 2.5 6,754
Total expenses 21,754
Profit / (loss) before tax (21,724)
Tax expense –
Profit / (loss) for the year (21,724)
Items that will not be reclassified subsequently to profit or loss –
Items that will be reclassified subsequently to profit or loss –
Total other comprehensive income, net of tax –
Total comprehensive income / (loss) for the year (21,724)
(1)
For the period December 19, 2018 to December 31, 2019

Partner Director
Bengaluru
March 16, 2020
In ZAR
Particulars Equity share Retained Total equity
capital earnings attributable to
equity holders
of the Company
Changes in equity for the year ended December 31, 2019 – – –
Increase in equity share capital on account of fresh issue 7,100 – 7,100
Profit / (loss) for the year – (21,724) (21,724)
Balance as at December 31, 2019 7,100 (21,724) (14,624)


Partner Director
Bengaluru
March 16, 2020
In ZAR
December 31, 2019
Profit / (loss) for the year (21,724)
Change in asset and liabilities
Other financial liabilities 15,000
Net cash used in operating activities (6,724)
Proceed from issue of share capital 7,100
Net cash from financing activities 7,100
Net decrease in cash and cash equivalents 376
Cash and cash equivalents at the beginning of the year –
Cash and cash equivalents at the end of the year 376


Partner Director
Bengaluru
March 16, 2020
Company overview assets and non-monetary liabilities denominated in a foreign
Infosys South Africa (Pty) Ltd is a wholly-owned subsidiary currency and measured at fair value are translated at the
of Infosys Consulting PTE Limited. The purpose of the exchange rate prevalent at the date when the fair value
Company is to expand locally, as the same exists or as may was determined. Non-monetary assets and non-monetary
hereafter be amended from time to time. liabilities denominated in a foreign currency and measured
1 Significant accounting policies at the date of the transaction.
Transaction gains or losses realized upon settlement of
1.1 Accounting year foreign currency transactions are included in determining
The accounting year of the Company is from net profit for the period in which the transaction is settled.
January to December. Revenue, expense, and cash-flow items denominated in
foreign currencies are translated into the relevant functional
1.2 Basis of preparation of financial statements currencies using the exchange rate in effect on the
These financial statements are prepared in accordance with date of the transaction.
cost convention on the accrual basis. The Ind AS are 1.6 Statement of Cash Flow
prescribed under Section 133 of the Act read with Rule 3 of Cash flows are reported using the indirect method, whereby
the Companies (Indian Accounting Standards) Rules, 2015 profit for the period is adjusted for the effects of transactions
and Companies (Indian Accounting Standards) Amendment of a non-cash nature, any deferrals or accruals of past or
Rules, 2016. The Ind AS are prescribed under Section future operating cash receipts or payments and item of
133 of the Act read with Rule 3 of the Companies (Indian income or expenses associated with investing or financing
Accounting Standards) Rules, 2015 and relevant amendment cash flows. The cash flows from operating, investing and
rules issued thereafter. financing activities of the Company are segregated.
1.7 Investments
or a revision to an existing accounting standard requires a Associates are entities over which the Company has significant
change in the accounting policy hitherto in use. influence but not control. Investments in associates are
accounted for using the equity method of accounting. The
1.3 Reporting currency investment is initially recognized at cost, and the carrying
The Company’s reporting currency is ZAR. amount is increased or decreased to recognize the investor’s
share of the profit or loss of the investee after the acquisition
1.4 Use of estimates date. The Company’s investment in associates includes
The preparation of the financial statements in conformity goodwill identified on acquisition.
In ZAR
at the date of the financial statements and reported amounts Particulars As at December
of income and expenses during the period. 31, 2019
Balances with banks
In current and deposit accounts 376
Cash on hand –
Others
Deposits with financial institution –
376
effects are disclosed in the notes to the financial statements. The deposits maintained by the Company with banks and
1.5 Foreign currency financial institution comprise of time deposits, which can be
withdrawn by the Company at any point without prior notice
Functional currency or penalty on the principal.
The functional currency of the Company is the ZAR. These
financial statements are presented in ZAR.
profit in the Statement of Profit and Loss. Non-monetary
2.2 Equity 2.4 Other income
In ZAR
In ZAR Particulars As at December
31, 2019 (1)
Particulars As at December
Interest income on deposits with bank 30
31, 2019
Total other income 30
Authorized share capital (ZAR 10 par
value, 1,000 equity shares) 10,000 (1)
Issued, subscribed and paid-up (ZAR 10
par value, 710 equity shares) 7,100 2.5 Expenses
In ZAR
The details of shareholder holding more than 5% shares as at Particulars As at December
December 31, 2019 are as follows: 31, 2019 (1)
Name of the shareholder As at December Consultancy and professional charges
31, 2019 Registration and filling fees 15,000
Infosys Consulting Pte Limited 100% Total consultancy and professional charges 15,000
Other expenses
Bank charges 6,754
2.3 Other financials liabilities
In ZAR Total other expenses 6,754
Particulars As at December (1)
31, 2019
Current
Accrued expenses 15,000
Total financial liabilities 15,000

Name of holding company Country Holding as at
December 31,
2019
Infosys Consulting Pte Limited (Infosys Singapore) Singapore 100%
Name of Ultimate holding company Country Holding as at
December 31,
2019
Infosys Limited India 100%

Infosys Tecnologia DO Brasil LTDA. (Infosys Brasil) (25) Brazil
Infosys Nova Ltd. (Infosys Nova) US
Infosys Luxembourg S.à.r.l (1) (13) Luxembourg
Infosys Poland, Sp z o.o (4) Poland
Infosys Consulting Sp. Z o.o (5) Poland
HIPUS (20) Japan
(1)
(2)
(3)
(4)
Wholly-owned subsidiary of Infosys BPM Limted
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
(20)
On April 1, 2019, Infosys Consulting Pte. Ltd. acquired 81% of the voting interests in HIPUS Co., Ltd, Japan
(21)
On May 23, 2019, Infosys Consulting Pte. Ltd. acquired 75% of the voting interests in Stater N.V.
(22)
(23)
(24)
(25)
(26)
Under Liquidation
Brilliant Basics (MENA) DMCC
To the shareholder of M/s. Brilliant Basics (MENA) DMCC, United Arab Emirates.
Report on the Financial Statements

Opinion
We have audited the accompanying annual financial statements of M/s. BRILLIANT BASICS (MENA) DMCC, Dubai, United Arab
Emirates (“the Company”) which comprise of the financial position as at 31st December, 2019, the statement of comprehensive
income, statement of changes in equity and the statement of cash flows, for the year then ended, and a summary of significant
accounting policies and other explanatory notes.
In our opinion, the annual financial statements present fairly, in all material respects, the financial position of M/s. BRILLIANT
BASICS (MENA) DMCC, Dubai, United Arab Emirates, as at 31st December, 2019, and its financial performance and its cash
flows for the year then ended in accordance with International Financial Reporting Standards (IFRS).
Basis for opinion
We conducted our audit in accordance with International Standard on Auditing (ISAs). Our responsibilities under those
standards are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We
are independent of the (Company) in accordance with the requirements of Code of Ethics for Professional Accountants, issued
by International Ethics Standards Board for Accountants (IESBA) together with ethical requirements that are relevant to our
audit of the financial statements and we have fulfilled our other ethical responsibilities in accordance with these requirements.
Management’s responsibility for the financial statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
International Financial Reporting Standards, in compliance with the provisions of the applicable law and for such internal
control as management determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the (Company’s) ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern of accounting unless
management either intend to liquidate the (Company) or to cease operations, or has no realistic alternative but to do so.
Auditors’ Responsibilities for the audit of the financial statements
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with (ISAs) will always detect a
As part of an audit in accordance with (ISAs), we exercise professional judgment and maintain professional skepticism
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the (Company’s) internal control.
disclosure made by management.
the (Company’s) ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’
report. However, future events or conditions may cause the (Company) to cease to continue as a going concern.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in the internal control that we identify during our audit.
782 | Brilliant Basics (MENA) DMCC Infosys Subsidiary Financials 2019-20

Report on other legal and regulatory requirement
As required by the provisions of the Implementing Regulations of Law No. (4) of 2001 and order dated 1st May, 2002 in respect
of Establishing Dubai Multi Commodities Centre Authority and its amendments has been satisfied, we further confirm that:
• We are not aware of any contraventions during the year of the above mentioned law or the (Company’s) Articles of Association,
which may have material effect on the financial position of the (Company) or the result of its operations for the year.
Axis Auditing & Accounting DMCC

Auditors & Business Consultants
Walid Aqil Mohamed AlRafi

Reg. No. 1104, Dubai, U.A.E

File No.: AAA/16046/19
Infosys Subsidiary Financials 2019-20 Brilliant Basics (MENA) DMCC | 783

In AED
2019 2018
Assets
Non-current assets
Property and equipment 4 - 2,178
Total non-current assets - 2,178
Current assets
Trade and other receivables 5 7,906 347,687
Cash and cash equivalents 6 213,179 1,974,230
Total current assets 221,085 2,321,917
Total assets 221,085 2,324,095
Equity
Share capital 2 50,000 50,000
Retained earnings 281,474 424,733
Shareholder’s current account (110,389) (110,389)
Total equity 221,085 364,344
Liabilities
Current liabilities
Trade and other payables 7 - 1,959,751
Total current liabilities - 1,959,751
Total equity and liabilities 221,085 2,324,095
These financial statements have been approved and signed by the undersigned on 18th March, 2020.
Anand Kumar Verma

Manager
The report of the Auditors is set on 782 to 783.

Statement of Comprehensive Income
In AED
Particulars Note For the year ended December 31,
2019 2018
Revenue 53,181 2,200,220
Cost of revenue 8 (25,225) (1,380,237)
Administration expenses 9 (123,626) (480,584)
Depreciation 4 (2,178) (2,625)
Operating loss for the year (97,848) 336,774
Exchange loss (43,951) 120,864
Finance charges (1,460) (10,541)
Loss for the year (143,259) 447,097
Other comprehensive income - -
Total comprehensive loss for the year (143,259) 447,097
Anand Kumar Verma

Manager

In AED
Particulars Share capital Retained Shareholder’s Total equity
earnings current account
As at January 1, 2018 50,000 (22,364) (110,389) (82,753)
Total comprehensive income for the year - 447,097 - 447,097
Balance at December 31, 2018 50,000 424,733 (110,389) 364,344
Total comprehensive loss for the year - (143,259) - (143,259)
Balance at December 31, 2019 50,000 281,474 (110,389) 221,085
Anand Kumar Verma

Manager

In AED
2019 2018
Loss for the year (143,259) 447,097
Adjustment for:
Finance charge 1,460 10,541
(139,621) 460,263
Changes in working capital:
Trade and other receivables 339,781 394,875
Trade and other payables (1,959,751) 1,587,677
Cash used in operations (1,759,591) 2,442,815
Net cash used in operating activities (1,759,591) 2,442,815
Loan repaid - (509,569)
Finance charges (1,460) (10,541)
Net cash used in financing activities (1,460) (520,110)
Net cash movement for the year (1,761,051) 1,922,705
Cash and cash equivalents at beginning of the year 1,974,230 51,525
Cash and cash equivalents at end of the year 213,179 1,974,230
Anand Kumar Verma

Manager

1 Legal status and activities

Brilliant Basics (MENA) DMCC was registered in Dubai Multi Commodities Centre, Dubai, on November 6, 2014 under
Registration Number DMCC20821 and under Service License Number DMCC-087203, as a free zone company with limited
liability pursuant to Law no. (4) of 2001 and order dated May 1, 2002 in respect of Establishing Dubai Multi Commodities
Centre Authority. The registered address (of the Company) is Unit No: 863, DMCC Business Centre, Level No 1, Jewelry &
Gemplex 3, Dubai, United Arab Emirates.
The Company is primarily engaged in the business of information technology consultants, internet consultancy, computer
consultancies and internet content provider and web design.
The Company is managed by Anand Kumar Verma, a British national.
2 Shareholding
The shareholding of the Company is as follows:
Name No. of shares Value per share Total value %
M/s Brilliant Basics Holding Ltd. 50 1,000 50,000 100
50 50,000 100
The authorized and paid-up share capital (of the Company) is AED 50,000 divided into 50 shares of each AED 1,000only.
3 Significant accounting policies Full month’s depreciation is charged in the month of addition
while no depreciation is charged in the month of disposal of
3.1 Statement of compliance property and equipment. Repairs and renewals are charged
These financial statements have been prepared in accordance to statement of comprehensive income as and when the
with the International Financial Reporting Standards (IFRSs). expenditure is incurred.
3.2 Accounting convention 4 Property and equipment
These financial statements have been prepared under the In AED
historical cost convention. The fair / net realizable value Cost Office Total
concept of measurement of assets and liabilities has also been equipment
applied wherever applicable under (IFRSs). As at January 1, 2019 13,100 13,100
3.3 Foreign currency transactions As at December 31, 2019 13,100 13,100
Foreign currency transactions are recorded in U.A.E.
As at January 1, 2019 10,922 10,922
Dirhams at the approximate rate of exchange ruling at the
Charge for the year 2,178 2,178
time of the transaction. Assets and liabilities expressed in
As at December 31, 2019 13,100 13,100
foreign currencies at the statement of financial position date
Net book value
are translated into U.A.E. Dirhams at the year-end rate of
As at December 31, 2019 - -
exchange. All foreign currency gains or losses are booked in the
As at December 31, 2018 2,178 2,178
statement of comprehensive income as and when they arise.
3.4 Revenue recognition 5 Trade and other receivables
Revenue on rendering of services is recognized as per the terms In AED
of the contracts with the customers and comprises the invoiced Particulars Note As at December 31,
value of services (net of discounts) rendered during the year. 2019 2018
3.5 End of service benefits Trade receivables 5.1 - 317,198
Prepayments 6,667 29,274
Amount payable to employees under the U.A.E labor law Deposit (rent) - 1,215
applicable to employee’s accumulated year of service at the VAT recoverable 1,239 -
year-end date are accounted for on payment basis. 7,906 347,687
3.6 Property and equipment depreciation
5.1 Previous year figure included receivable from related
Property and equipment are stated at historical cost less party (M/s. Infosys Limited) of AED 54,516.
accumulated depreciation. Depreciation is computed on
straight line basis using the following rate:
Particular Percentage
Office equipment 20

6 Cash and cash equivalents 10 Related party transactions
In AED
Related parties include the ultimate parent company, the
Particulars As at December 31, shareholders, key management personnel, associates,
2019 2018 joint ventures and any businesses which are controlled
Cash at bank 213,179 1,974,230 directly or indirectly by the Company or over which they
213,179 1,974,230 exercise significant management influence. All related party
transactions entered into during the year were in ordinary
course of the business and are on arm’s length basis. For
7 Trade and other payables
the year ended 31st December, 2019 the Company has not
In AED
recorded any impairment of receivables relating to amounts
Particulars Note As at December 31, owed by related parties. Pricing policies and terms of these
2019 2018 transactions are approved by the Company’s management.
Trade payables 7.1 - 1,758,767
Accrued expense - 200,984 11 Fair value of financial instruments
- 1,959,751
The (Company’s) financial instruments are accounted for
7.1 Previous year figure Included payable to related party under the historical cost convention. Fair value represents
(M/s. Brilliant Basic Ltd) of AED 470,246 and (M/s Brilliant the amount at which an asset could be exchanged or a liability
Basic Holding Ltd.) of AED 1,274,964. settled between knowledgeable, willing parties in an arm’s
length transaction, therefore, differences can arise between
8 Cost of revenue values under the historical cost method and fair value
In AED estimates. The fair value of the financial assets and liabilities
approximate their carrying amounts as reflected in these
December 31,
2019 2018
12 Interest rate risk
Direct cost 25,225 1,380,237
25,225 1,380,237 Significant financial instruments, other assets and other
liabilities (of the Company) as at 31st December, 2019
are not interest-based.
9 Administration expenses
In AED 13 Exchange rate risk
Particulars For the year ended Apart from a minor balance in GBP and Euros, the main
December 31, underlying currencies of the financial instruments, other
2019 2018 assets, other liabilities and transactions including revenue
Legal, visa and professional and expenses are in U.A.E Dirhams or USD, the Company is
fees 27,826 22,015 not exposed to a significant exchange rate risk.
Salary and other allowances 65,061 407,126
Rent 16,000 37,688 14 Credit risk
Other expenses 2,230 -
The balances with banks are assessed to have low credit risk by
Impairment of trade
default since the banks are among the major banks operating
receivables 12,509 -
in the UAE and are highly regulated by the Central Bank.
Stationery - 1,922
Travelling expenses - 5,442
15 Liquidity risk
Communication and utilities - 1,308
Insurance - 5,083 Management maintains adequate reserve, bank balance
123,626 480,584 and support from shareholder by continuously monitoring
forecast and actual cash flows and matching the maturity
profiles of financial assets and liabilities. The Company
ensures that it has sufficient cash on demand to meet expected
operational expenses.

16 Contingencies and commitments
Except for ongoing business commitments, which are in the normal course of business as at 31st December, 2019, the
(Company) had following contingencies and commitments.
17 Comparative figures
Previous year’s figures have been reclassified / regrouped wherever necessary to conform to the presentation adopted in these
financial statements. Figures (of the Company) have been rounded off to the nearest AED 1.
These financial statements have been approved and signed by the undersigned on 18th March, 2020
Anand Kumar Verma

Manager
The report of the Auditors is set on 782 to 783

HIPUS Co., Ltd
To the Members of HIPUS Co., Ltd

Opinion
We have audited the Ind AS financial statements of HIPUS Co., Ltd (‘the company’), which comprises the Balance Sheet as
at 31st March 2020, the Statement of Profit and Loss (including other comprehensive income), the Statement of Cash Flow
at 31st March 2020 and its financial performance including other comprehensive income and its Cash Flows and the Changes
Basis for opinion
792 | HIPUS Co., Ltd Infosys Subsidiary Financials 2019-20

for Shenoy & Kamath

M Rathnakar Kamath
Partner
UDIN : 20202841AAADAL1803
Place: Bengaluru
Date: 14th May, 2020
Infosys Subsidiary Financials 2019-20 HIPUS Co., Ltd | 793

Balance Sheet
In JPY million
Note no. As at March 31, As at April 1,
2020 2019 2018
Assets
Non-current assets
(a) Property, plant and equipment 3 21 6 4
(b) Goodwill 3A – – –
(c) Right-of-use asset 3B 202 – –
(d) Other intangible assets 3A 98 37 25
(e) Deferred tax assets 9 159 158 146
(f) Financial assets
(i) Others 5 90 91 92
(g) Other non-current assets 6 – – –
Total non-current assets 570 293 267
Current assets
(a) Financial assets
(i) Trade receivables 7 14,749 22,403 20,023
(ii) Cash and cash equivalents 8 1,951 2,869 28
(iii) Others 5 3,240 – 6,675
(b) Other current assets 6 510 48 483
Total current assets 20,449 25,320 27,209
Total assets 21,019 25,613 27,476
Equity
(a) Equity share capital 4 500 500 500
(b) Other equity 379 152 1,083
Total equity 879 652 1,583
Liabilities
(a) Provisions 10 214 196 173
(b) Other financial liabilities
(i) Lease liability 11 101 – –
Total non-current liabilities 315 196 173
Current liabilities
(a) Financial liabilities
(i) Trade payables 12 19,180 23,869 25,146
(ii) Other financial liabilities 11 493 389 392
(b) Other current liabilities 13 152 508 181
Total current liabilities 19,825 24,765 25,720
Total equity and liabilities 21,019 25,613 27,476
The accompanying notes are an integral part of these financial statements.

As per our reports of even date attached

for Shenoy & Kamath for and on behalf of the Board of Directors
HIPUS Co., Ltd
M. Rathnakar Kamath Anantha Radhakrishnan Rajeev Ranjan

Bengaluru
14th May, 2020

In JPY million
Particulars Note no. For the year ended March 31,
2020 2019
I Revenue from operations 14 3,543 3,281
Other income 15 11 9
Total income (I) 3,554 3,290
II Expenses
Employee benefits expense 16 1,668 1,758
Depreciation and amortization expense 17 132 12
Cost of technical subcontractors 1,085 917
Travel expenses 32 28
Other expenses 18 280 363
Total expenses (II) 3,197 3,079
III Profit before tax (I-II) 358 211
IV Tax expense
(i) Current tax 22 127 88
(ii) Deferred tax 22 (0) (12)
Total tax expense (IV) 127 75
V Profit for the year (III-IV) 230 136
VI Other comprehensive income / (loss)
Other comprehensive expense for the year – –
VII Total comprehensive income for the year (V+VI) 230 136
Earnings per share (EPS)
Basic and diluted (JPY) 19 230,478 136,054
Weighted average no. of shares 1,000 1,000

HIPUS Co., Ltd

Bengaluru
14th May, 2020

Equity share capital and retained earnings
In JPY million
Particulars Equity Reserve and surplus Total equity attributable
Legal capital Retained to the equity holders of
reserve earnings the Company
Balance as at April 1, 2018 500 1 1,083 1,583
Changes in equity
Dividend (including tax on dividend) – – (1,067) (1,067)
Profit / (Loss) for the year 136 136
Total comprehensive income – – 136 136
Balance at the end of March 31, 2019 500 1 151 652
Changes in equity
Dividend (including tax on dividend) – – 6 6
Impact of implementing IFRS 16 (Lease
Accounting) – – (10) (10)
Profit / (Loss) for the year 230 230
Total comprehensive income – – 230 230
Balance as at March 31, 2020 500 1 379 879


HIPUS Co., Ltd

Bengaluru
14th May, 2020

Statement of Cash Flow
In JPY million
Note no. For the year ended March 31,
2020 2019
Profit before tax for the year 358 211
Depreciation and amortization expense 132 12
Interest income (1) (3)
Other adjustments (139) (210)
Trade receivables 7,655 (2,381)
Other financial asset and other assets (466) 7,098
Trade payables (4,689) (1,277)
Other financial liabilities, other liabilities and provisions 193 409
Cash from operations 3,044 3,860
Income taxes paid (net of refunds) (126) (64)
Net cash from operating activities (A) 2,918 3,796
Expenditure on property plant and equipment, Intangibles (410) (26)
Interest income 1 3
Net cash used in investing activities (B) (409) (23)
Loan (given) / received (3,235) 0
Dividend including tax on dividend (paid) / refund (192) (933)
Others – –
Net cash used in financing activities (C) (3,426) (933)
Net increase / (decrease) in cash and cash equivalents (A+B+C) (918) 2,840
Cash and cash equivalents at the beginning of the year 2,869 28
Cash and cash equivalents at the end of the year 8 1,951 2,869


HIPUS Co., Ltd

Bengaluru
14th May, 2020

Company Overview
HIPUS Co., Ltd is a majority-owned subsidiary of Infosys 1.5 Revenue recognition

Consulting Pte Ltd. The Company renders procurement Revenue is recognized to the extent that it is probable that the
outsourcing services to customers, thereby enabling clients economic benefits will flow to the Company and the revenue
to enhance business performance. can be reliably measured. Revenue is measured as the value of
the consideration received or receivable, excluding discounts,
1 Significant accounting policies value-added tax and other sales taxes.
1.1 Accounting year Arrangements with customers for services are either on a
The accounting year for the Company is from fixed-price, fixed-timeframe or on a transactional basis.
April 1 to March 31. Revenue on time-and-material contracts recognized as the
related services are performed and revenue from the end
1.2 Basis of preparation of financial statements of the last invoicing to the reporting date is recognized
These standalone financial statements of the Company have as unbilled revenue.
been prepared in accordance with the Indian Accounting Revenue from fixed-price, fixed-timeframe contracts, where
Standards (“Ind AS”) notified under the Companies (Indian the performance obligations are satisfied over time and where
Accounting Standards) Rules, 2015 (as amended from time there is no uncertainty as to measurement or collectability
to time) and Companies (Indian Accounting Standards) of consideration, is recognized as per the percentage-
Amendment Rules, 2016, as applicable. of-completion method.
These financial statements are the Company’s first Ind AS The Company presents revenues net of indirect taxes in its
financial statement. The Company has adopted all the Ind AS Statement of Profit and loss.
standards and adoption was carried out in accordance with Ind
AS 101, First-time adoption of Indian Accounting Standards. 1.6 Provisions
The transition was carried out from Indian Accounting A provision is recognized if, as a result of a past event, the
Principles generally accepted in India as prescribed under Company has a present legal or constructive obligation that
Section 133 of the Act, read with Rule 7 of the Companies is reasonably estimable, and it is probable that an outflow of
(Accounts) Rules, 2014 (IGAAP), which was the previous economic benefits will be required to settle the obligation.
GAAP. Accounting policies have been consistently applied Provisions are determined by discounting the expected
except where a newly-issued accounting standard is initially future cash flows at a pre-tax rate that reflects current
adopted or a revision to an existing accounting standard market assessments of the time value of money and the risks
requires a change in the accounting policy hitherto in use. specific to the liability.
1.3 Presentation currency 1.7 Property, plant, and equipment
The Company’s presentation currency is Japanese Yen (JPY) Property, plant, and equipment are stated at cost, less
1.4 Use of estimates
The preparation of the financial statements in conformity property, plant and equipment are ready for use, as intended
with Ind AS requires the Management to make estimates by the Management. The Company depreciates property,
and assumptions that affect the accounting policies and plant and equipment over their estimated useful lives using
reported balances of assets and liabilities, and disclosures the straight-line method. The estimated useful lives of
relating to contingent liabilities as at the date of the financial assets are as follows :
statements and reported amounts of income and expenses
Asset Life of asset
during the period. Accounting estimates could change from
Furniture and fixture 5 years
period to period. Actual results could differ from those
estimates. Appropriate changes in estimates are made as the Building 8 - 12 years
Management becomes aware of changes in circumstances Depreciation methods, useful lives and residual values are
surrounding the estimates. Changes in estimates are reflected reviewed periodically, including at each financial year end.
in the financial statements in the period in which changes are
made and, if material, their effects are disclosed in the notes 1.8 Intangible assets
to the financial statements. Research costs are expensed as incurred. Software product
Examples of such estimates include computation of development costs are expensed as incurred unless technical
percentage-of-completion which requires the Company to and commercial feasibility of the project is demonstrated,
estimate the efforts or costs expended to date as a proportion future economic benefits are probable, the Company has an
of the total efforts to be expended, impairment losses on intention and ability to complete and use or sell the software,
financial assets, income taxes, post-sales customer support, and the costs can be measured reliably. The costs which can
and the useful lives of property, plant, and equipment be capitalized include the cost of material, direct labor,
and intangible assets. overhead costs that are directly attributable to preparing the
asset for its intended use.

1.9 Leased assets Transition
The Company as a lessee Effective April 1, 2019, the Company adopted Ind AS 116,
Leases and applied the standard to all lease contracts existing
The Company’s lease asset classes primarily consist of leases on April 1, 2019 using the modified retrospective method and
for land and buildings. The Company assesses whether a has taken the cumulative adjustment to retained earnings, on
contract contains a lease, at inception of a contract. A contract the date of initial application. Consequently, the Company
is, or contains, a lease if the contract conveys the right to recorded the lease liability at the present value of the lease
control the use of an identified asset for a period of time payments discounted at the incremental borrowing rate and
in exchange for consideration. To assess whether a contract the right-of-use asset at its carrying amount as if the standard
conveys the right to control the use of an identified asset, the had been applied since the commencement date of the lease,
Company assesses whether: (i) the contract involves the use but discounted at the Company’s incremental borrowing rate
of an identified asset (ii) the Company has substantially all at the date of initial application. Comparatives as at and for
of the economic benefits from use of the asset through the the year ended March 31, 2019 have not been retrospectively
period of the lease and (iii) the Company has the right to adjusted and therefore will continue to be reported under the
direct the use of the asset. accounting policies included as part of our Annual Report for
At the date of commencement of the lease, the Company year ended March 31, 2019.
recognizes a right-of-use asset (“ROU”) and a corresponding On transition, the adoption of the new standard resulted
lease liability for all lease arrangements in which it is a in recognition of ROU asset of JPY 319 million and a
lessee, except for leases with a term of twelve months or less lease liability of JPY 328 million. The cumulative effect of
(short-term leases) and low value leases. For these short- applying the standard, amounting to JPY 10 million was
term and low value leases, the Company recognizes the lease debited to retained earnings, net of taxes. The effect of this
payments as an operating expense on a straight-line basis over adoption is insignificant on the profit before tax, profit for
the term of the lease. the period and earnings per share. Ind AS 116 will result
Certain lease arrangements include the options to extend or in an increase in cash inflows from operating activities and
terminate the lease before the end of the lease term. ROU an increase in cash outflows from financing activities on
assets and lease liabilities includes these options when it is account of lease payments.
reasonably certain that they will be exercised. The following is the summary of practical expedients elected
The ROU assets are initially recognized at cost, which on initial application:
comprises the initial amount of the lease liability adjusted for 1. Applied a single discount rate to a portfolio of leases
any lease payments made at or prior to the commencement of similar assets in similar economic environment
date of the lease plus any initial direct costs less any lease with a similar end date
incentives. They are subsequently measured at cost less
accumulated depreciation and impairment losses. 2. Applied the exemption not to recognize ROU assets and
liabilities for leases with less than 12 months of lease
ROU assets are depreciated from the commencement date term on the date of initial application
on a straight-line basis over the shorter of the lease term
and useful life of the underlying asset. ROU assets are 3. Excluded the initial direct costs from the measurement
evaluated for recoverability whenever events or changes in of the ROU asset at the date of initial application.
circumstances indicate that their carrying amounts may not 4. Applied the practical expedient to grandfather the
be recoverable. For the purpose of impairment testing, the assessment of which transactions are leases. Accordingly,
recoverable amount (i.e. the higher of the fair value less cost Ind AS 116 is applied only to contracts that were
to sell and the value-in-use) is determined on an individual previously identified as leases under Ind AS 17.
asset basis unless the asset does not generate cash flows that The weighted average incremental borrowing rate applied to
are largely independent of those from other assets. In such lease liabilities as at April 1, 2019 is 0.1%
cases, the recoverable amount is determined for the Cash
Generating Unit (CGU) to which the asset belongs. 1.10 Financial instruments
The lease liability is initially measured at amortized cost at 1.10.1 Initial recognition
the present value of the future lease payments. The lease The Company recognizes financial assets and financial
payments are discounted using the interest rate implicit in liabilities when it becomes a party to the contractual
the lease or, if not readily determinable, using the incremental provisions of the instrument. All financial assets and liabilities
borrowing rates in the country of domicile of these leases. are recognized at fair value on initial recognition, except for
Lease liabilities are remeasured with a corresponding trade receivables which are initially measured at transaction
adjustment to the related ROU asset if the Company changes price. Transaction costs that are directly attributable to the
its assessment if whether it will exercise an extension or a acquisition or issue of financial assets and financial liabilities,
termination option. which are not at fair value through profit or loss, are added
Lease liability and ROU asset have been separately presented to the fair value on initial recognition. Regular way purchase
in the Balance Sheet and lease payments have been classified and sale of financial assets are accounted for at trade date.
as financing cash flows.

1.10.2 Subsequent measurement their carrying amounts may not be recoverable. For the
Non-derivative financial instruments 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
A financial asset is subsequently measured at amortized cost if does not generate cash flows that are largely independent of
it is held within a business model whose objective is to hold those from other assets. In such cases, the recoverable amount
the asset in order to collect contractual cash flows and the is determined for the CGU to which the asset belongs. If such
contractual terms of the financial asset give rise on specified assets are considered to be impaired, the impairment to be
dates to cash flows that are solely payments of principal and recognized in the Statement of Profit and Loss is measured by
interest on the principal amount outstanding. the amount by which the carrying value of the assets exceeds
(ii) Financial assets at fair value through other the estimated recoverable amount of the asset.
comprehensive income An impairment loss is reversed in the Statement of Profit
A financial asset is subsequently measured at fair value and Loss if there has been a change in the estimates used to
through other comprehensive income if it is held within a determine the recoverable amount. The carrying amount of the
business model whose objective is achieved by both collecting asset is increased to its revised recoverable amount, provided
contractual cash flows and selling financial assets. The that this amount does not exceed the carrying amount that
contractual terms of the financial asset give rise on specified would have been determined (net of any accumulated
dates to cash flows that are solely payments of principal and amortization or depreciation) had no impairment loss been
interest on the principal amount outstanding. recognized for the asset in previous years.
(iii) Financial assets at fair value through profit or loss 1.13 Employee benefits
A financial asset, which is not classified in any of the above Provision for retirement benefits
categories, is subsequently fair-valued through profit or loss.
Provided for payment of retirement benefits to employees, in
(iv) Financial liabilities the amount deemed accrued at the fiscal year-end, based on
Financial liabilities are subsequently carried at amortized the projected retirement benefit obligation at the fiscal year-
cost using the effective interest method. For trade and other end (equals the benefits payable for voluntary retirements at
payables maturing within one year from the Balance Sheet the current year based on simplified method).
date, the carrying amounts approximate fair value due to the Provision for director bonus and employee bonus
Recognized based on the estimated payment amount for
1.11 Fair value of financial instruments bonus to directors and employees”
In determining the fair value of its financial instruments, the 1.14 Income taxes
are based on market conditions and risks existing at each Income tax is computed based on the consolidated tax system.
reporting date. The methods used to determine fair value Income tax expense comprises current and deferred income
include discounted cash flow analysis, available quoted tax. Income tax expense is recognized in net profit in the
market prices and dealer quotes. All methods of assessing Statement of Profit and Loss except to the extent that it
fair value result in general approximation of value, and such relates to items recognized directly in equity, in which case
value may never actually be realized. it is recognized in other comprehensive income. Current
1.12 Impairment the amount expected to be paid to or recovered from the tax
a. Financial assets authorities, using the tax rates and tax laws that have been
The Company recognizes loss allowances using the expected enacted or substantively enacted by the Balance Sheet date.
credit loss (ECL) model for the financial assets which are Deferred income tax assets and liabilities are recognized for all
not fair-valued through profit or loss. Loss allowance for temporary differences arising between the tax bases of assets
trade receivables with no significant financing component is and liabilities and their carrying amounts in the financial
measured at an amount equal to lifetime ECL. For all other statements. Deferred tax assets are reviewed at each reporting
financial assets, expected credit losses are measured at an date and are reduced to the extent that it is no longer probable
amount equal to the 12-month ECL, unless there has been a that the related tax benefit will be realized.
significant increase in credit risk from initial recognition in Deferred income tax assets and liabilities are measured using
which case those are measured at lifetime ECL. The amount tax rates and tax laws that have been enacted or substantively
of expected credit losses (or reversal) that is required to adjust enacted by the Balance Sheet date and are expected to apply
the loss allowance at the reporting date to the amount that to taxable income in the years in which those temporary
is required to be recognized is recognized as an impairment differences are expected to be recovered or settled. The effect
gain or loss in profit or loss. of changes in tax rates on deferred income tax assets and
b. Non-financial assets liabilities is recognized as income or expense in the period
(i) Property, plant, and equipment
Property, plant, and equipment are evaluated for recoverability that it is probable that future taxable profit will be available
whenever events or changes in circumstances indicate that against which the deductible temporary differences and tax

losses can be utilized. The Company offsets current tax assets AS 101, First-time adoption of Indian accounting Standard,
and current tax liabilities, where it has a legally enforceable with April 1, 2018 as the transition date.
right to set off the recognized amounts and where it intends The transition to Ind AS has resulted in changes in the
either to settle on a net basis, or to realize the asset and settle presentation of the financial statements and disclosures in the
the liability simultaneously. notes thereto. The accounting policies set out in Note 1 have
been applied in preparing the standalone financial statements
for the year ended March 31, 2020 and the comparative
Cash flows are reported using the indirect method, whereby information. Transition from previous GAAP to Ind AS has
profit for the period is adjusted for the effects of transactions not affected the Company’s Balance Sheet and Statement
of a non-cash nature, any deferrals or accruals of past or of Profit and Loss. Accordingly, a reconciliation statement
future operating cash receipts or payments and item of in accordance with Ind AS 101 has not been presented.
income or expenses associated with investing or financing There were no significant reconciliations for the Cash Flow
cash flows. The cash flows from operating, investing and Statement under previous GAAP and Ind AS.
2.2 Effects on adoption of Ind AS 115
1.16 Earning per share
The Company has elected to adopt Ind AS 115 using the
Basic earnings per share is computed by dividing the net modified retrospective method. An entity that elects the
profit after tax by the weighted average number of equity modified retrospective method would apply Ind AS 115
shares outstanding during the period. retrospectively to only current period by recognizing the
cumulative effect of initially applying Ind AS 115 as an
2 Notes to the standalone financial adjustment to the opening balance of retained earnings at the
statements for the year ended March 31, date of application (April 1, 2018 in case of the Company).
2020 Under the modified retrospective method, the comparative
information in the standalone financial statements would not
2.1 First-time adoption of Ind AS be restated and would be presented based on the requirements
These standalone financial statements of HIPUS Co., Ltd of the previous standard.
for the year ended March 31, 2020, have been prepared in The impact of adoption of the standard on the
accordance with Ind AS. For the purposes of transition to Ind standalone financial statements is insignificant and hence
AS, the Company has followed the guidance prescribed in Ind not adjustments made.
3 Property, plant and equipment

In JPY million
Particulars Buildings Furniture and Construction in Total
fixtures progress
Gross block
Balance as at April 1, 2018 21 0 – 21
Additions 3 – – 3
Balance as at March 31, 2019 24 0 – 24
Additions – 5 12 18
Balance as at March 31, 2020 24 5 12 41
Balance as at April 1, 2018 17 – – 17
Depreciation expense for the year 1 – – 1
Balance as at March 31, 2019 18 – – 18
Depreciation expense for the year 2 – – 3
Disposals – – – –
Balance as at March 31, 2020 20 1 – 20
Net block as at April 1, 2018 4 – – 4
Net block as at March 31, 2019 6 – – 6
Net block as at March 31, 2020 4 5 12 21
3A Goodwill and other intangible assets

In JPY million
Particulars Other intangible assets
Software Construction in
progress
Balance as at April 1, 2018 153 –
Additions 19 4
Balance as at March 31, 2019 172 4

Particulars Other intangible assets
Software Construction in
progress
Additions 75 –
Disposals – 1
Balance as at March 31, 2020 247 3
Accumulated Amortization and impairment losses
Balance as at April 1, 2018 128 –
Amortization expense for the year 11 –
Balance as at March 31, 2019 138 –
Amortization expense for the year 14
Balance as at March 31, 2020 152 –
Net block as at April 1, 2018 25 –
Net block as at March 31, 2019 34 4
Net block as at March 31, 2020 95 3
3B Leases
The changes in the carrying value of right-of-use assets for the year ended March 31, 2020 are as follows:
in JPY million
Particulars Category of ROU asset Total
Land Buildings Computers
Balance as at April 1, 2019 – 319 – 319
Reclassified on account of adoption of Ind AS 116 – – –
Additions –
Deletion – – – –
Depreciation (116) (116)
Balance as at March 31, 2020 – 202 – 202
The aggregate depreciation expense on ROU assets is included under depreciation and amortization expense in the
statement of Profit and Loss.
The break-up of current and non-current lease liabilities as In JPY million

at March 31, 2020 is as follows: Particulars As at
In JPY million March 31, 2020
Particulars As at Less than one year 112
March 31, 2020 One to five years 101
Current lease liabilities 111 More than five years
Non-current lease liabilities 101 Total 212
Total 212
The Company does not face a significant liquidity risk with
The movement in lease liabilities during the year ended regard to its lease liabilities as the current assets are sufficient
March 31, 2020 is as follows: to meet the obligations related to lease liabilities as and
In JPY million when they fall due.
March 31, 2020 4. Equity share capital and retained
Balance at the beginning 328 earnings
Additions In JPY million
Finance cost accrued during the period (0) Particulars For the year ended March 31,
Deletions 2020 2019
Payment of lease liabilities (116) Authorized Equity shares,
Translation difference JPY 500,000 par value
Balance at the end 212 1,000 common stock 500 500
The details regarding the contractual maturities of lease Issued, subscribed and
liabilities as at March 31, 2020 on an undiscounted paid-up capital
basis is as follows: Equity shares,
JPY 500,000 par value
1,000 common stock 500 500

The details of shareholder holding more than 5% shares as at March 31, 2020 and 31 March 2019 is as follows:
Name of shareholder As at March 31,
2020 2019
Number of Holding % Number of Holding %
shares shares
Infosys Limited 810 81% – –
Hitachi Limited 150 15% 1,000 100%
The number of shares outstanding and the amount of share capital as at March 31, 2020 and 31 March 2019 is as follows:
Number of shares at the beginning As at March 31,
and end of the period 2020 2019
Number of shares Amount (JPY) Number of shares Amount (JPY)
Number of shares 1,000 500,000,000 1,000 500,000,000
5 Other financial assets

in JPY million
Particulars As at March 31, As at April 1,
2020 2019 2018
Non-current Current Non-current Current Non-current Current
Considered good
(a) Other financial assets 90 – 91 – 92 6,675
(b) Loan – 3,240 – – – –
90 3,240 91 – 92 6,675
6 Other assets
in JPY million
Particulars As at March 31, As at April1,
2020 2019 2018
Considered good
(a) Prepaid expenses – 23 – 11 – 13
(b) Balances with statutory /
government authorities – 214 – 2 – 326
(d) Others – 272 – 35 – 144
– 510 – 48 – 483
7 Trade receivables
in JPY million
2020 2019 2018
Trade receivables (unsecured)
considered good 14,749 22,403 20,023
Less: Allowance for doubtful debts – – –
14,749 22,403 20,023
8 Cash and cash equivalents

in JPY million
2020 2019 2018
(a) Cash on hand – – –
(b) Balances with bank
- In current accounts 1,951 2,869 28
1,951 2,869 28

9 Recognized deferred tax (net)
in JPY million
Particulars As at March 31, As at April1,
2020 2019 2018
Deferred tax liability
Excess of depreciation on fixed assets under income-tax law over
depreciation provided in accounts – – –
Deferred tax assets
Provision for employee benefits 155 154 142
Property, plant and equipment 4 4 4
Deferred tax assets (net) (1) 159 158 146
Net deferred tax assets have been recognized only to the extent that the Company has sufficient taxable temporary differences or there is convincing
(1)
evidence that sufficient taxable profit will be available against which such deferred tax assets can be realized.
10 Provisions
In JPY million
2020 2019 2018
Asset retirement obligation 11 – 11 – 11 –
Provision for retirement benefits 203 – 185 – 162 –
214 – 196 – 173 –
11 Other financial liabilities

In JPY million
2020 2019 2018
Accrued expenses – 122 – 137 – 143
Deposits received – 13 – 18 – 19
Employee benefits payable – 246 – 233 – 230
Lease liability 101 111 – – – –
101 493 – 389 – 392
12 Trade payables
In JPY million
2020 2019 2018
Trade payables 19,180 23,869 25,146
19,180 23,869 25,146
13 Other liabilities
In JPY million
2020 2019 2018
Provision for dividend distribution tax – 200 –
Income taxes payable 39 38 26
Others 114 270 155
152 508 181
14 Revenue from operations

In JPY million
2020 2019
Revenue from services 3,543 3,281
3,543 3,281

Trade receivables Particulars For the year ended
The Company classifies the right to consideration in exchange March 31,
for deliverables as either a receivable. Revenue recognition 2020 2019
for fixed-price development contracts is based on percentage Directors remuneration 21 52
of completion method. Invoicing to the clients is based on 1,668 1,758
milestones as defined in the contract. This would result in the
timing of revenue recognition being different from the timing
17 Depreciation and amortization expense
of billing the customers.
In JPY million
Performance obligations and remaining performance Particulars For the year ended
obligations March 31,
The remaining performance obligation disclosure provides the 2020 2019
aggregate amount of the transaction price yet to be recognized Depreciation of property,
as at the end of the reporting period and an explanation as plant and equipment (1) 118 1
to when the Group expects to recognize these amounts in Amortization of intangible
revenue. Applying the practical expedient as given in Ind AS assets 14 11
115, the Group has not disclosed the remaining performance 132 12
obligation related disclosures for contracts where the (1)
including ROU amortization
revenue recognized corresponds directly with the value to
the customer of the entity’s performance completed to date,
18 Other expenses
typically those contracts where invoicing is on time and In JPY million
material basis. Remaining performance obligation estimates
are subject to change and are affected by several factors,
March 31,
including terminations, changes in the scope of contracts,
2020 2019
periodic revalidations, adjustment for revenue that has not
materialized and adjustments for currency.
Office expenses 191 113
The aggregate value of performance obligations that are Rental 39 191
completely or partially unsatisfied as at March 31, 2020, other Recruitment 16 10
than those meeting the exclusion criteria mentioned above, Consumables 4 3
is ` NIL. Out of this, the Group expects to recognize revenue Auditor’s remuneration
of around 100% within the next one year and the remaining Statutory audit fees 6 6
thereafter. The contracts can generally be terminated by the Miscellaneous expenses 2 6
customers and typically includes an enforceable termination Rates and taxes 14 26
penalty payable by them. 280 363
The impact on account of applying the erstwhile Ind AS
18, Revenue standard instead of Ind AS 115, Revenue from
Contract with Customers on the financials results of the 19 Earnings per share
Group for the year ended December 31, 2019 is insignificant. Basic and diluted earnings per share
The calculations of earnings attributable to equity
15 Other income shareholders and weighted average number of equity
In JPY million shares outstanding for purposes of basic earnings per share
Particulars For the year ended calculations are as follows:
March 31, Particulars For the year ended
2020 2019 March 31,
Interest income 6 3 2020 2019
Miscellaneous income (net) 5 6 a. Profit after tax (JPY
11 9 million) 230 136
b. Weighted average number
16 Employee benefits expense of equity shares for the
In JPY million purposes of basic earnings
Particulars For the year ended per share 1,000 1,000
March 31, Basic and diluted earning per
2020 2019 equity share (a/b) JPY 230,478 136,054
Salaries and wages 1,316 1,363
Staff welfare expenses 260 272
Pension costs 70 70

A comparison by class of the carrying amount and fair value of the Company’s financial instruments other than those with
carrying amount that are reasonable approximations of fair values is as follows:
As at March 31, 2020:
In JPY million
Particulars Note Amortized Financial assets / liabilities Total Fair value
no. cost Fair value Fair value carrying Level 1 Level 2 Level 3 Total
through through other value
profit and comprehensive
loss income
Assets
Financial assets
Other financial
assets 5 3,330 – – 3,330 – – – –
Trade receivables 7 14,749 – – 14,749 – – – –
Cash and cash
equivalents 8 1,951 – – 1,951 – – – –
Others – – – – – – – –
Total financial
assets 20,030 – – 20,030 – – – –
Liabilities
Financial
liabilities
Trade payables 12 19,180 – – 19,180 – – – –
Other financial
liabilities 11 593 – – 593 – – – –
Total financial
liabilities 19,773 – – 19,773 – – – –
As at March 31, 2019

In JPY million
Particulars Note Amortized Financial assets / liabilities Total Fair value Total
no. cost Fair value Fair value carrying Level 1 Level 2 Level 3
through through other value
profit and comprehensive
loss income
ASSETS
Financial assets
Other financial
assets 5 91 – – 91 – – – –
Trade
receivables 7 22,403 – – 22,403 – – – –
Cash and cash
equivalents 8 2,869 – – 2,869 – – – –
Others – – – – – – – –
Total financial
assets 25,363 – – 25,363 – – – –
Liabilities
Financial
liabilities
Trade payables 12 23,869 – – 23,869 – – – –
Other financial
liabilities 11 389 – – 389 – – – –
Total financial
liabilities 24,258 – – 24,258 – – – –

As at April 1, 2018
In JPY million
Particulars Note Amortized Financial assets/liabilities Fair value
no. cost Fair value Fair value Total Level 1 Level 2 Level 3 Total
through through other carrying
profit and comprehensive value
loss income
Assets
Financial assets
Other financial
assets 5 6,767 – – 6,767 – – – –
Trade receivables 7 20,023 – – 20,023 – – – –
Cash and cash
equivalents 8 28 – – 28 – – – –
Others – – – – – – – –
Total financial
assets 26,818 – – 26,818 – – – –
Liabilities
Financial
liabilities
Trade payables 12 25,146 – – 25,146 – – – –
Other financial
liabilities 11 392 – – 392 – – – –
Total financial
liabilities 25,539 – – 25,539 – – – –
Notes :The carrying value of all the items in the table above have been classified as amortized cost. Amortized cost is deemed to be the carrying value.
Fair value hierarchy and other receivables, cash and cash equivalents and other
The following table provides the fair value measurement bank balances that derive directly from its operations.
hierarchy of the Company’s assets and liabilities. The Company’s activities expose it to market risk, credit risk
All assets and liabilities for which fair value is measured and liquidity risk.
or disclosed in the financial statements are categorized (a) Risk management framework
within the fair value hierarchy, described as follows, based The Company’s risk management is carried out by the
on the lowest level input that is significant to the fair value Management under the policies approved by the Board of
measurement as a whole: Directors that help in identification, measurement, mitigation
Level 1 — Quoted (unadjusted) market prices in active and reporting all risks associated with the activities of the
markets for identical assets or liabilities Company. These risks are identified on a continuous basis
Level 2 — Valuation techniques for which the lowest level and assessed for the impact on the financial performance. The
input that is significant to the fair value measurement is Board of Directors reviews and agrees policies for managing
directly or indirectly observable each of these risks, which are summarized below.
Level 3 — Valuation techniques for which the lowest level input (b) Market risk
that is significant to the fair value measurement is unobservable Market risk is the risk that the fair value of future cash flows
For assets and liabilities that are recognized in the financial of a financial instrument will fluctuate because of changes
statements on a recurring basis, the Company determines in market prices. Market risk comprises three types of risk:
whether transfers have occurred between levels in the interest rate risk, currency risk and other price risk, such as
hierarchy by re-assessing categorization (based on the lowest equity price risk and commodity risk. Financial instruments
level input that is significant to the fair value measurement affected by market risk include loans and borrowings, trade
as a whole) at the end of each reporting period. receivables, trade payables, deposits and investments.
(i) Foreign currency risk
21 Financial risk management The Company operates primarily in Japan and does not have
The Company’s principal financial liabilities comprise loans any foreign currency risk
and borrowings, Trade and other payables and financial (ii) Interest rate risk
guarantee contracts. The main purpose of these financial
Interest rate risk is the risk that the fair value or future
liabilities is to finance the Company’s operations and to
cash flows of a financial instrument will fluctuate because
provide guarantees to support its operations. The Company’s
of changes in market interest rates. The Company does not
principal financial assets include investments, loans, trade
have any debt and hence does not carry any interest rate risk.

(c) Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations. The Company is exposed to the credit risk from its trade receivables, unbilled revenue, investments,
cash and cash equivalents, bank deposits and loans. The maximum exposure to credit risk is equal to the carrying value of the
financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets.
(i) Trade receivables
Customer credit risk is managed by each business unit subject to the Company’s established policy, procedures and control
relating to customer credit risk management. Credit quality of a customer is assessed based on a credit evaluation before entering
into an arrangement. Outstanding customer receivables are regularly monitored.
An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number
of minor receivables are grouped into homogenous group and assessed for impairment collectively. The calculation is based on
actual incurred historical data. The maximum exposure to credit risk at the reporting date is the carrying value of each class of
financial assets. The Company does not hold collateral as security. The Company considers the credit risk with respect to trade
receivables as low, since majority of the customers are parties with good repute and are regular in discharging their obligation
within the credit period provided by the Company. The Company has used a practical expedient by computing the expected
credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit
loss experience and adjusted for forward looking information
Expected credit loss for the years ended March 31, 2020, 2019 and 2018 is nil.
(ii) Financial instrument and cash deposit
The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that
have a good credit rating. The Company does not expect any losses from nonperformance by these counter-parties and does
not have any significant concentration of exposures to specific industry sectors.
(d) Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company
manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when
due. Also, the Company has unutilized credit limits with banks. The Company’s corporate treasury department is responsible
for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen
by senior management.
The details regarding the contractual maturities of significant financial liabilities as at March 31, 2020 are as follows:
In JPY million
Less than 1 year 1 to 5 years More than 5 Total
years
March 31, 2020
Trade payables 19,180 – – 19,180
Other financial liabilities 593 – – 593
19,773 – – 19,773
The details regarding the contractual maturities of significant financial liabilities as at March 31, 2019 are as follows:
In JPY million
years
March 31, 2019
24,258 – – 24,258
The details regarding the contractual maturities of significant financial liabilities as at April 1, 2018 are as follows:
In JPY million
years
April 1, 2018
25,539 – – 25,539

Capital management
For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and all other
equity reserves attributable to the equity holders. The primary objective of the Company’s capital management is to maximize
the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing
ratio, which is net debt divided by total capital plus net debt.
22 Income taxes
Income tax expense in the Statement of Profit and loss comprises:
In JPY million
2020 2019
Current taxes 127 88
Deferred taxes (0) (12)
The details of income tax assets and income tax liabilities as of March 31, 2020 and March 31, 2019 are as follows:
In JPY million
2020 2019
Income tax assets
Current income tax liabilities 39 38
Net current income tax assets/ (liability) at the end 39 38
The gross movement in the current income tax asset/ (liability) for the year ended March 31, 2020 and 31 March 2019 is as follows:
In JPY million
2020 2019
Net current income tax assets / (liability) at the beginning 38 26
Income tax paid (126) (64)
Current income tax expense 127 75
Net current income tax assets / (liability) at the end 39 38
The tax effects of significant temporary differences that resulted in deferred income tax assets and liabilities are as follows:
In JPY million
2020 2019
Property plant and equipment 4 4
Accrued compensation to employees 155 154
Trade receivables
Total deferred income tax assets (net) 159 158
Deferred tax assets and deferred tax liabilities have been offset wherever the Company has 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 gross movement in the deferred income tax account for the year ended March 31, 2020 and March 31, 2019 is as follows:
In JPY million
2020 2019
Net deferred income tax asset at the beginning 158 146
Credits / (charge) relating to temporary differences 0 12
Net deferred income tax asset at the end 159 158

23 Related party transactions
Name of holding company Relationship with Country % of Holding
related party For the year ended March 31,
2020 2019
Infosys Consulting Pte Limited Parent entity Singapore
(Infosys Singapore) 81% –
Hitachi Limited (former parent Shareholder Japan
entity) (parent entity) 15% 100%
Infosys Austria GmbH(1) (formerly Lodestone Management Consultants GmbH) (1) Austria

Infosys Compaz Pte Ltd (formerly Trusted Source Pte. Ltd)(15) Singapore
Outbox Systems Inc. dba Simplus (US)(26) US
(1)
(2)
(3)
(4)
(5)
Wholly-owned Subsidiary of Infosys Consulting Holding AG (formerly Lodestone Holding AG)
(6)
Majority-owned and controlled Subsidiary of Infosys Consulting Holding AG (formerly Lodestone Holding AG)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
On November 16, 2018, Infosys Consulting Pte Ltd, acquired 60% of the voting interest in Infosys Compaz Pte Ltd
(16)
(17)
(18)
(19)
(20)
(21)
(22)
(23)
(24)
(25)
Under liquidation
(26)
(27)
(28)
(29)
Wholly-owned subsidiary of Simplus ANZ Pty Ltd..

(30)
(31)

The details of amounts due to or from related parties as at March 31, 2020 and March 31, 2019 are as follows:
In JPY million
2020 2019
Trade payables
Payable to Infosys BPM Limited 7 –
Payable to Portland Group Pty Ltd 10 –
Payable to Infosys Limited 22 –
Intercompany Sub-contractors
Services taken from Infosys BPM Limited 7 –
Services taken from Portland Group Pty Ltd 10 –
Services taken from Infosys Limited 6 –
Intangible asset
Services taken from Infosys Limited 16 –
Loan
Loan given to Infosys Consulting Pte Limited (Infosys Singapore) 3,235 –
Interest accrued on Loan given to Infosys Consulting Pte Limited (Infosys
Singapore) 5 –
Interest Income
Interest accrued on Loan given to Infosys Consulting Pte Limited (Infosys
Singapore) 5 –
24 Segment reporting
The Company is engaged in developing and marketing solutions in a single geography. Its operations are therefore considered
to constitute a single segment. Based on the ‘management approach’ as defined in Ind AS 108, Segment reporting, the Chief
Operating Decision Maker (CODM) evaluates performance of the Company as a whole. Its operations are, therefore, considered
to constitute a single segment in the context of Ind AS 108, Segment reporting.

Infosys Consulting SAS
2019 Annual Financial Statements
Financial year from 01/01/2019 to 31/12/2019
SAS INFOSYS CONSULTING
77 Esplanade Gal. de Gaulle

92800 PUTEAUX
Siret : 52414413600032
sofradec
Société d'Expertise Comptable
inscrite au tableau de l'Orde de Paris - Ile de France
153 boulevard Haussmann
75008 Paris
SAS INFOSYS CONSULTING Annual Financial Statements
Report on the performed engagement
Report of the Chartered Accountant
According to our engagement, we perfomed the presentation of the financial statements of the company SAS INFOSYS CONSULTING
relating to financial year from 01/01/2019 to 31/12/2019.
The financial statements, composed of the balance sheet, profit and loss stament and notes, are attached to this report and characterised
by following financial line items:
Amount
euros
Total Balance Sheet 1 636 567
Turnover 2 887 009
Net result (profit) 277 288
We performed our engagement according to the Professional Standard applicable to the engagement of presenting financial statements as
outlined by the Ordre des experts-comptables (national Board of French Chartered Accountants).
We have not performed any audit of the presented financial statements.
Done in PARIS
on 17/02/2020
Nicolas HELFRE
Expert-comptable
sofradec Page
Balance sheet and Income statement
Balance sheet assets
Gross Depreciation Net Net

Amortisation 31/12/2019 31/12/2018
Uncalled subscribed capital

CAPITAL ASSETS
Intangible assets
Preliminary expenses
Research and development costs
Concessions, patents, licenses, software, rights & similar
Goodwill
Other intangible assets
Advances and down-payments on intangible assets
Land
Buildings
Industrial facilities, plant and equipment
Other property, plant and equipment 45 809 33 808 12 002 808
Property, plant and equipment under construction
Advances and down- payments
Non- current financial assets
Equity interests (equity method)
Other equity interests
Loans to subsidiaries and affiliates
Other long- term investments
Loans
Other non- current financial assets
TOTAL CAPITAL ASSETS 45 809 33 808 12 002 808
CIRCULATING ASSETS
Inventories and work-in-progress
Raw materials and other supplies
Work in process inventory (goods and services)
Intermediate and finished products
Merchandise
Advances and down- payments paid on orders
Receivables
Trade and related receivables 532 600 1 394 531 206 191 065
Other receivables 27 377 27 377 55 112
Called, subscribed capital, not paid up
Miscellaneous
Short- term investments
Cash 1 065 669 1 065 669 1 011 692
Prepaid expenses (3) 311 311 4 517
TOTAL CIRCULATING ASSETS 1 625 957 1 394 1 624 563 1 262 386
Loan issue costs
Bond redemption premiums
Translation adjustment (assets) 2 2 1
TOTAL 1 671 769 35 202 1 636 567 1 263 194
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Balance sheet liabilities
31/12/2019 31/12/2018
OWNERS' EQUITY
Share capital 80 000 80 000
Additional paid-in capital, merger premium, share premiums
Revaluation surplus
Legal reserve 8 000 8 000
Statutory or contractual reserves
Regulated reserves
Other reserves
Retained earnings 572 773 513 372
PROFIT/ (LOSS) FOR THE PERIOD 277 288 59 402
Investment grants
Regulated provisions
TOTAL EQUITY 938 061 660 773
OTHER EQUITY
Income from issues of equitty interests
Conditional advances
TOTAL OTHER EQUITY
PROVISIONS
Provisions for risks 1 041 47 164
Provisions for charges
TOTAL CONTINGENT LIABILITIES 1 041 47 164
LIABILITIES (1)
Convertible bonds
Other bonds
Bank borrowings and other liabilities to banks
Other borrowings and finanancial liabilities 14 400 37 042
Advances and down- payments received on orders in process
Trade and related payables 137 618 89 051
Tax and social security payables 545 447 416 399
Debts on capital assets and related payables
Other payables 12 764
Prepaid income
TOTAL LIABILITIES 697 464 555 257
Translation adjustment (liabilities)
TOTAL 1 636 567 1 263 194
sofradec Page
Income statement - I
France Exports 31/12/2019 31/12/2018
Operating income
Sales of goods
Products sold (goods)
Products sold (services) 104 118 2 782 892 2 887 009 2 462 304
Net revenue 104 118 2 782 892 2 887 009 2 462 304
Production in inventory
Capitalised production
Operating grants
Reversals of provisions (and amortisation) and transfers of charges 47 164 2 492
Other income 647 7 337
Total operating income 2 934 820 2 472 133
Operating expenses
Purchase of goods
Changes in inventory
Purchase of raw materials and other supplies
Changes in inventory
Other purchases and external charges 561 074 514 713
Taxes and similar charges -26 573 -10 372
Wages and salaries 1 453 972 1 278 327
Social charges 625 109 533 237
Depreciation expense and allowance for impairement:
- On non- current assets: depreciation expense 2 104 11 175
- On non- current assets: allowance for impairment
- On circulating assets: allowance for impairement 1 394
- Contingent liabilities: provisions 1 041 47 164
Other charges 39 411 38 221
Total operating expenses 2 657 532 2 412 465
OPERATING PROFIT/ (LOSS) (I-II) 277 288 59 669
Share of profit/ (loss) on joint operations
Profit allocated or loss transferred (III)
Loss sustained or profit transfered
Investment income
From equity interests
From other non- current securities and receivables
Other interest and similar income
Reversals of provisions and allowances for impairment and transfers of charges
Positive foreign exchange differences
Net gain on disposals of securities
Total investment income (V)
Financial expense
Amortisation expense, allowance for impairement and provisions
Interest and similar expenses (4)
Negative foreign exchange differences
Net loss on disposals of securities
Total financial expenses (VI)
FINANCIAL PROFIT/(LOSS) (V-VI)
PRE- TAX EARNINGS (I-II+III-IV+V-VI) 277 288 59 669
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Income statement - II
31/12/2019 31/12/2018
Extraordinary income
From management transactions
From capital transactions
Reversals of provisions and allowance for impairment and transfers of charges
Total extraordinary income (VII)
Extraordinary expenses
On management transactions 267
On capital transactions
Amortisation expense, allowance for impairment and provisions
Total extraordinary expenses (VIII) 267
EXTRAORDINARY PROFIT/(LOSS) (VII-VIII) -267
Employee profit- sharing (IX)

Income tax (X)
Total income (I+III+V+VII) 2 934 820 2 472 133

Total expenses (II+IV+VI+VIII+IX+X) 2 657 532 2 412 732
PROFIT OR (LOSS) 277 288 59 402
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Notes
Notes - Contents
Applicable Not applicable Not material
- Accounting policies and methods x

- Remarkable events x
- Capital assets x
- Breakdown of capital assets x
- Preliminary expenses x
- Research and development costs x
- Goodwill x
- Capitalised interests x
- Construction work in progress x
- Component approach on fixed assets x
- Estimated equity interests in the portfolio x
- List of subsidiaries x
- Breakdown of depreciation x
- Capital assets impairment tests x
- Information on inventory x
- Schedule of receivables by due date x
- Accruals (income) (summarised)
- Information on the receivable arising from carryback
of tax losses x
- Impairment of capital assets x
- Allowance for inventory x
- Allowance for doubtful accounts x
- Impairment of securities x
- Interest on circulating asset items x
- Capital structure x
- Profitable shares x
- Exchangeable convertible bonds x
- Statement of appropriation of prior year's earnings x
- Statement of changes in shareholder's equity x
- Regulated provisions x
- Provisions for contingent liabilities x
- Schedule of liabilities by due date x
- Debts guaranteed by security interests x
- Accruals (summarised)
- Liabilities with no reliable valuation x
- Loan repayment premiums x
- Translation adjustments on receivables and liabilities x
- Reservation of ownership x
- Liabilities and receivables represented by commercial paper x
- Valuation differences on fungible items x
- Treasury shares x
- Regulation of companies' difficulties x
- Prepaid expenses (summarised)
- Deferred income x
- Breakdown of net revenue x
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Notes - Contents
Applicable Not applicable Not material
- Long- term contracts x

- Incidental purchasing costs x
- Fees paid to the statutory auditors x
- Items attributable to another financial year x
- Joint operations x
- Financial profit/ (loss) x
- Transfers of operating and financial expenses x
- Related-parties disclosures x
- Extraordinary items attributable to another financial year x
- Extraordinary items x
- Transfers of extraordinary expenses x
- Income tax base x
- Impact of extraordinary tax assessments x
- Breakdown of income tax expense x
- Impact of amendments approved between the closing date
and the balance sheet date x
- Increase and decrease in future tax liability - tax x
- Tax Group : Identity of the Tax Group head company x
- Subsequent events x
- Information on transactions on the derivatives
markets x
- Workforce x
- Individual training rights x
- Advances and loans granted to corporate officers x
- Total compensation and compensation by executive category x
- Identity of the parent company preparing the consolidated financial x
- Financial commitments given x
- Other offbalance- sheet transactions x
- Financial commitments received x
- Leases x
- Post- employment benefit commitments x
- Competitiveness and employment tax credit (CICE) x
- Environmental aspects x
- Summary table of the last five financial years x
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Accounting rules and methods
Company name: SAS INFOSYS CONSULTING
Notes to the balance sheet before allocation of earnings of the financial year ended on 31/12/2019, for a total of 1 636 567 €
and notes to the income statement for the financial year presented in list form, showing a profit of 277 288 €.
The financial year runs for 12 months, from 01/01/2019 to 31/12/2019.
The notes or tables presented below form an integral part of the annual financial statements.
These annual financial statements were approved on 17/02/2020 by the company's directors.
General accounting rules
The annual financial statements of financial year ended on 31/12/2019 have been prepared in accordance with the chart of accounts
approved by Ministerial order, pursuant to articles L.123-12 to L.123-28 and R.123-172 to R.123-208 of the French Commercial Code.
Accounting conventions have been applied in compliance with the prudence principle, in accordance with the basic assumptions of:
- going concern,
- consistency of accounting methods from one period to another,
- independent financial years,
and in accordance with the general rules for establishig and presenting annual financial statements.
Assets and liabilities in the financial statements are principally accounted for using the historical costs method.
Only material information is given. Unless otherwise specifically mentioned, all amounts are expressed in euros.
Property, plant, equipments and intangible assets
Property, plant, equipments and intangible assets are measured at their acquisition costs for assets acquired, at production cost for assets
produced by the company, and at market value for assets acquired free of cost or as exchange.
The cost of an asset comprises the purchase price, including nonrefundable excise duties and taxes, less discounts, rebates and
reductions, and all directly attributable costs incurred to establish and commission the asset, according to its planned usage. Transfer
taxes, fees, commission and legal fees related to the acquisition are not included in this acquisition cost. All costs not included in the
acquisition cost of the asset and not directly associated to the costs arising to establish and commission the asset in accordance with its
planned usage are recognised as an expense.
Depreciation
Depreciation is calculated according to the linear method over the planned useful life of the asset.
* Office equipment : 3 years

* Computer equipment : 3 years
* Furniture : 10 years
For simplification purposes, assets that could not be split into components upon their recognition as an asset are depreciated over their
estimated useful life.
At closing date, the company reviewed indications of impairment by considering internal and external information available for this review.
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Accounting rules and methods
Receivables
Receivables are recognised at nominal value. A provision for impairment is booked when the inventory value is lower than the nominal
value.
Provisions
A provision is recognised for all company's current obligations resulting from a past event vis-a-vis third parties, that can be estimated with
sufficient reliability, and covering identified risks.
Transactions in foreign currency
Assets denominated in foreign currency and treated as fixed assets are translated at historical exchange rates, or if any hedging took place
before the acquisition of the asset, at hedged exchange rates. The costs incurred by the setting up of the hedging are added to the
acquisition costs.
Current liabilities, receivables and cash denominated in foreign currency are recognised in the balance sheet at their converted value at
year-end exchange rates. The difference arising from the revaluation of liabilities and receivables at the latter rate will be recognised in the
balance sheet as translation adjustment.
Non-compensated exchange rate losses will be covered by a risk accrual, in its completeness to follow accounting standards.
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Significant events
Other significant events
The company received a refind of withholding taxes shown in the P/L position taxes and similar charges for- 51 936.32 €. Due to the tax
losses from previous years, the company did not book any corporate tax and the tax losses carried forward on 12/31/2019 amount to 2
897 282 €.
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Notes to the balance sheet
Fixed assets
Fixed assets schedule
At period Increase Decrease At period

start end
- Preliminary and development costs

- Goodwill
- Other intangible assets
Intangible assets
- Land
- Buildings on freehold land
- Buildings on non- freehold land
- General facilities and
building improvements
- Technical facilities, industrial plant
and tooling
- General facilities, improvements and
miscellaneous fixtures and fittings
- Transport equipment
- Office and computer equipment 32 511 13 298 45 809
- Recoverable packaging and miscellaneous
- Property, plant and equipment under construction
- Advances and down- payments
Property, plant and equipment 32 511 13 298 45 809
- Interests accounted for using the

equity method
- Other equity interests
- Other long- term investments
- Loans and other non- current financial assets
Non- current financial assets
CAPITAL ASSETS 32 511 13 298 45 809
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Fixed assets depreciation
At period Increase Decrease At period

start end
- Preliminary and development costs

- Goodwill
- Other intangible assets
Intangible assets
- Land
- Buildings on freehold land
- Buildings on non- freehold land
- General facilities and building
improvements
- Technical facilities, industrial plant and
tooling
- General facilities, improvements and
miscellaneous fixtures and fittings
- Transport equipment
- Office and computer equipment 31 704 2 104 33 808
- Recoverable packaging and miscellaneous
Property, plant and equipment 31 704 2 104 33 808
CAPITAL ASSETS 31 704 2 104 33 808
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Current assets
Schedule of receivables
On the closing date, receivables totalled 560 288 €. The detailed breakdown by due date is as follows:
Gross Due Due

value <1 yr. >1 yr.
Receivables related to capital assets

Loans
Others
Receivables related to circulating assets:

Trade and accounts receivable 532 600 532 600
Other receivables 27 377 27 377
Prepaid expenses 311 311
Total 560 288 560 288
Loans granted during the period

Loans repaid during the period
Accrued income
Accrued income is included in the following asset positions:
Amount

Other non- current financial assets
Trade accounts receivable 124 941
Other receivables 11 370
Cash
Total 136 311
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Owner's equity
Capital structure
Share capital amounts to 80 000,00 € divided into 8 000 shares at 10,00 € each.
List of share capital owners
% of Number of unit
ownership or shares
I. LEGAL ENTITIES
DIV INFOSYS CONSULTING HOLDING AG CH-8058 ZÜRICH 100 8 000
II. INDIVIDUALS
Provisions
Statement of provisions
Provisions Additions Reversals Reversals Provisions

at period of the used during unused at period
start period the period of the period end
Disputes
Guarantees given to customers 1 041 1 041
Losses on forward markets
Fines and penalties
Foreign exchange losses
Pensions and similar obligations
For taxes
Capital asset renewals
Major maintenance and overhauls
Taxes and benefits on paid
leave due
Other provisions for 47 164 47 164
contingent liabilities
Total 47 164 1 041 47 164 1 041
Breakdown of provisions and

reversals for the period:
Operations 1 041 47 164
Financial
Exceptional
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Debts
Statement of liabilities
On the closing date, liabilities totalled 697 464 €. The breakdown by due date is as follows:
Gross Due Due Due

value < 1 yr. > 1 yr. > 5 yr.
Convertible bonds (*)

Other bonds (*)
Bank borrowings (*) and other
liabilities to banks, of which:
- up to 1 yr. at the outset
- 1 yr. or more at the outset
Other borrowings and financial liabilities (*) (**)
Trade and related
payables 137 618 137 618
Tax and social security related payables 545 447 545 447
Debts on capital assets and related
payables
Other payables 14 400 14 400
Deferred income
Total 697 464 697 464
(*) Loans taken out during the period

(*) Loans repaid during the period, of which:
Accrued expenses
Accrued expenses are included in the following liability positions:
Amount
Convertible bonds
Other bonds
Bank borrowings and other liabilities to banks
Other borrowings and financial liabilities
Trade and related payables 114 531
Tax and social security payables 415 752
Debts on capital assets and related payables
Other payables
Total 530 283
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Prepaid expenses, deferred income
Prepaid expenses
Amount
Operating expenses 311

Financial expenses
Exceptional expenses
Total 311
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Other Information
Total employees
Average workforce : 11 employees.
On payroll Temporary
personnel personnel
Executives 11
Lower management and technicians
Office workers
Workers
Total 11
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Stater N.V. (Stater)
CONTENTS
Page
FINANCIAL REPORT
1 Management report 4
2 Operations of the company 10
ANNUAL ACCOUNTS
1 Consolidated balance sheet as at December 31, 2019 12

2 Consolidated profit & loss account for the year 2019 13
3 Consolidated cash flow statement 2019 14
4 Consolidated statement of comprehensive income 16
5 Notes to the consolidated financial statements 17
6 Notes to the consolidated balance sheet as at December 31, 2019 30
7 Notes to the consolidated profit & loss account for the year 2019 44
8 Notes to the consolidated cash flow statement 2019 49
9 Other disclosure 50
10 Companyonly balance sheet as at December 31, 2019 52
11 Companyonly profit and loss account 2019 53
12 Notes to the companyonly financial statements 54
13 Notes to the company balance sheet as at December 31, 2019 55
14 Notes to the company profit and loss account 2019 67
15 Other disclosure 68
OTHER INFORMATION
1 Provisions of the Articles of Association relating to profit appropriation 70

2 Appropriation of the result for the 2018 financial year 70
3 Independent auditor's report 71
Deloitte Accountants B.V.

For identification purposes only.
Related to auditor's report
dated 15 April 2020
FINANCIAL REPORT

dated 15 April 2020
1 MANAGEMENT REPORT
In 2019 75% of the shares in Stater N.V. were sold to Infosys Consulting Pte. Ltd. Stater N.V. is shareholder of
Stater Duitsland B.V., Stater Participations B.V., Stater XXL B.V, Stater Nederland B.V. and Hypocasso B.V.
The integration with our new shareholder was started after the sale was completed in November 2019.
Stater's new shareholder structure (75% Infosys Consulting Pte. Ltd and 25% ABN AMRO N.V.) gives us many
opportunities to implement our strategy and achieve our ambitions. Our strategy is to grow in the Dutch and
European mortgage markets by offering more services to our existing clients and by serving new clients. We
seek to continue to amaze our clients with highquality services in all areas of the mortgage process and to
offer these services at competitive rates. Be it mortgage services or mortgagesupporting services, we are
pleased to unburden our clients. Our challenge is to be even better, even faster and even cheaper. We do this
by thinking and acting in consumers' interests and by organizing our processes as efficiently as we can.
Stater Belgium N.V./S.A. achieved 35% growth in turnover in 2019 following a successful implementation
project for a major new client in 2018. In the coming years we expect further growth of our services in
Belgium. Another focus market for Stater is Germany. Our assessments states the German financial market
is about to change substantially. The traditional German Banks face cost challenges, market behavior is
changing and the chances of new type of originators entering the market are present. Stater is well
positioned to be successful in Germany and preparations for a restart in this interesting market are in full
swing. Promising talks are being held about this with prospective clients.
Digitisation in the financial sector is an indispensable development. Consumers and our clients expect more
digital processes. In addition, there is the development with regard to data. Faster and wider access to data
is important to be and remain successful. Legislative and regulatory developments also play an important
role in this respect.
In recent years substantial investments have been made to deliver on our strategy, one of the most
important programmes being the digitisation programme. We will continue to work on this in the future. In
2019 the programme led to a number of deliverables, resulting in additional turnover and cost savings. Using
current applications, the programme implements software to support the digitisation process.
1.1 Organisational structure

There have been a number of changes in Stater's management in the recent period. In the course of 2019
the Director of Change decided to continue his career outside Stater. Due to an organisational change, it was
not necessary to fill this vacancy. In 2020 our COO decided that his future lies outside Stater. In addition, we
held talks with Stater's CFRO and CIO and agreed that the mutual ambitions did not coincide. CEO Erwin
Dreuning, together with the Supervisory Board and CCO Thera Gerritsen, is using the first period of 2020 to
assess whether the top structure is still in line with Stater's ambitions and to appoint new colleagues for the
various positions. When they have finished, the management team will be complete again.
As a result of the new shareholder situation, the composition of the Supervisory Board and the number of
members have changed. After the share transfer, the Supervisory Board consists of 5 members. Besides an
independent chair, 3 members of the Supervisory Board are employed by Infosys Consulting Pte. Ltd and 1
by ABN AMRO NV.

4
dated 15 April 2020
In 2019 an organisational change was implemented as a pilot project in the Netherlands. The underlying idea
was to gear internal governance better to developments, internally and externally. It was especially based on
the development towards a clearer division of tasks between demand and supply. Stater's organisation in the
Netherlands has the following business units during this pilot project:
• Operations: Mid and Back office mortgage process services, including IT Operations.
• Sales & Marketing: Relations Management, Sales, Data Services, Innovation & Digitisation.
• Change: Provider of IT development and changes for all BUs within Stater, including Management and
administrative support for Stater's project portfolio.
• Finance & Risk: Legal, Accounting & Finance, SMIS & Reporting, Risk Management and Central Services
(HR, Purchasing and Facility Management).
As a department, Corporate Audit Stater has two reporting lines. One to the CEO and the other to the
Supervisory Board.
Similar to Hypocasso B.V., the operations of Stater Germany and Stater Belgium constitute separate units
responsible for results. The former managing director of Stater Belgium retired in 2019. His successor,
Thomas Bardram, started on February 1, 2019.
1.2 Financial developments 2019
Stater achieved a profit for the financial year 2019 of €15.1 million after tax (2018: €10.7 million.). Net profit
amounted to 9.1% of turnover (2018: 6.6%). The improvement in the result is partly the consequence of a
sharp drop in costs. Worth noting here is the decrease in the hiring of external staff. This is in part the result
of achieving the aforementioned savings related to digitisation.
Stater again showed an increase with a net turnover of €166 million (2018: € 163 million which included a
oneoff € 2,4 million).
Stater's liquidity position is excellent. In 2020 a large part of the excess liquidity of €30 million was lent to
Infosys. These funds are withdrawable within 14 days. In addition, solvency is still very good. Group equity is
47% (2018: 61%) of the balance sheet total, which makes Stater very solvent. The decrease is due to the
introduction of IFRS 16 in 2019. Excluding this impact, solvency at the end of 2019 would be 55%.
1.3 Investments
Stater annually invests a substantial amount in the development and renewal of its mortgage systems and
auxiliary applications. In addition to the aforementioned investments in digitisation, this also concerns
investments in the internal organisation. In 2019 a start was made with the Fit for the Future programme for
internal staff (see under Staff and remuneration policy). In addition, we have invested in our premises at
Podium in Amersfoort to further improve the working environment and we invest annually in education and
training of staff.

5
dated 15 April 2020
1.4 Risks
The risk appetite of Stater is linked (probability * impact) with the residual risk. Stater accepts a moderate
risk profile and as a result of this only residual operational risks in the category low are accepted. We are
convinced that the quality and continuity of our services are extremely important. In our regular held
strategic risk assessment, strategic risks are defined. Most prominent are "information security", "Market
risk" "Change process" and "Human Resource". On a regular base, these items are discussed in the Risk
Committee and plans to mitigate are in place. From a more operational point of view, in addition to our staff,
our IT processes and systems are crucial to ensure our quality, which is why we are constantly optimising
our systems, processes and internal control. Our focus on (internal) control is reflected in annual ISAE3402
statements, for example.
Stater takes information security extremely seriously. We take a critical look at our own processes and are in
constant dialogue with our clients about their needs in this respect. The wishes of the clients are increasing,
as are the requirements in the field of laws and regulations. As proof that we want to continue to lead the
way in this area, Stater was one of the first financial organisations in the Netherlands to obtain the ISO/ICE
27001 certificate.
Stater also has a Business Continuity Management certificate issued by BSI. BSI is the market leader in the
field of auditing, certification and standardisation for companies. Every year Stater practises the fallback of
its services, showing that it is in control of its critical business processes, even in the event of calamities. The
Crisis Management Team (CMT) also holds annual exercises. Management, together with Senior Managers,
form the CMT or deputy CMT.
Stater applies the Three Lines of Defence model in the design and implementation of risk management. This
means that all Stater staff have an important role in controlling risks.
The first line (the departments actually dealing with the work and risks) is primarily responsible for all risks
within their department. This line is responsible for the implementation of and compliance with policy. The
second line (the Risk Management department) is responsible for risk policy. This department's duties
include establishing the internal control framework, advising the first line and monitoring the effectiveness
of risk management by the first line.
The third line (Corporate Audit) provides an independent opinion on the design and operation of the internal
control framework. To assess this, they carry out a large number of Audits each year. The Corporate Audit
department also has a coordinating role in relation to the external auditor.
1.5 Financial Instruments

The group's primary financial instruments are used to finance the group's operational activities or ensue
directly from these activities. The Group's policy is not to trade in financial instruments. Partly because of
this and in view of the size, the interest rate, market and credit risks are marginal.
Stater's bad debt risk is historically very low. Costs of unpaid invoices have only a very limited impact on the
result.

6
dated 15 April 2020
1.6 Staff and remuneration policy
The average number of employed FTEs increased from 901 in 2018 to 927 in 2019. The increase is the result
of an increase in Belgium and a decrease in the Netherlands. The average number of external staff fell to 365
FTEs in 2019 (2018: 449 FTEs). Of course, we will continue to focus on the proper internal/external staff ratio.
It is crucial for Stater's business model to match our staff complement to the work on offer.
Nevertheless, Stater's policy is to work with internal staff as much as possible. In 2019 the Fit for the Future
programme was launched. This programme pays closer attention to the sustainable employability of all our
employees on account of developments, such as changes in laws and regulations, consumer behaviour and
technological developments, which increase an employer's responsibility for its staff. Our Fit for the Future
programme is designed to face up to that extra responsibility. Discussions are held with each Stater
employee about developments that affect their job, ambitions and competencies.
Stater has laid down terms of employment arrangements in the collective agreement (CA). This CA applies to
all staff in the Netherlands, with the exception of management, whose employment contracts stipulate a
number of arrangements that take precedence over the CA. In 2019 the CA scales were increased by 2%. The
variable remuneration has not been changed in the CA and amounts to a maximum of 15%. In Belgium
salaries have been increased by 2.16% and a 13th month's salary is paid annually. In addition, it is possible to
award a bonus to a number of employees during the annual appraisal round. For the entire Belgian company,
the bonus amount is capped at €70,000 and an additional oneoff profit bonus of €100,000 was included in
2019.
To safeguard continuity of the company, the shareholders gave, under certain conditions, retentions to a
limited number of staff. These retentions were agreed by the Dutch Authority of Financial Markets
(Autoriteit Financiële Markten, AFM). Stater is subject to the Act on the Remuneration Policy of Financial
Undertakings ("Wet beloningsbeleid financiële onderneming). Accordingly, and in addition to the general
matters relating to variable remuneration which apply to all employees, the company take into account the
following key elements:
• The variable remuneration granted per annum in respect to the company's staff shall not on average
exceed 20% of such persons fixed remuneration
• Under certain events no termination payments can be make; and
• Guaranteed variable remuneration is banned
There are no employees who earn more than € 1 million total annual compensation.
1.7 Codes of conduct

As an organisation, we have laid down a number of general principles for our conduct. Based on these
principles, Stater has developed a general code of conduct for its employees.
There are codes of conduct for different themes:
• Mutual contact
• Dealing with business infromation resources
• Dealing with your work environment Dealing
• with conflicts of interest and dillemas
Everyone at Stater is expected to know and comply with the guidelines of the Code of Conduct, regardless of
rank, position or circumstances.

7
dated 15 April 2020
1.8 Social aspects of entrepreneurship (CSR)
Stater is aware of and pays attention to its social responsibility. All business decisions seek a balance
between a better business return, Stater's footprint and the wellbeing of staff and society. These are
activities that go a step further than what is required by law; out of social involvement and a forward
looking vision. Unfortunately, Matchpoint has ceased its operations as of 1 January 2020. A number of
employees of Matchpoint continue with some of Matchpoint's activities and Stater has already agreed to
cooperate.
1.9 Outlook 2020
Last year we again saw a stabilization in the number of mortgage loans (Mid Office activities) and a further
increase in the average price of housing. We are seeing developments in all areas of mortgages. Both new
products and growing competition are important developments, which has consequences for Stater and the
entire chain. With its strategy, shareholder and internal organization, Stater is excellently positioned to
remain successful in the mortgage market.
Last year's management report announced that a major client was leaving Stater in 2019 as a result of a
takeover of one major insurer by another major insurer. This conversion has now been postponed to 2020 at
the request of this client. This loss of turnover will be compensated in the future by further growth in both
new clients and new services for existing clients.
In 2020 we will continue to tailor our services to the wishes and needs of our clients and continue to invest
in order to remain at the forefront of developments in the mortgage market, in terms of digitisation as well
as further efficiency improvements. These Research and Developments investments are organized in two
departments. Regarding the client's needs and developments the department Innovation and Digitization is
responsible. This department is part of the BU Sales and Marketing and the manager reports to the CCO.
Regarding internal improvements and developments the BU Operations is responsible. To realize the
appropriate developments and remain successfully, Stater has an substantial budget (Capex and Opex)each
year. For 2020 our Capex budget is Euro 16.7 million. This is in line with expectations and also in financing
the company and staff we don't foresee any major changes from our agreed Multi Year Forecast.

8
dated 15 April 2020
The beginning of 2020 saw a major outbreak of the coronavirus (COVID19). From March onwards, the
consequences in the Netherlands have become so serious that the Dutch government has promulgated an
extensive package of measures, which also have a substantial impact on Stater. Although the overall impact
is uncertain, Stater keeps monitoring these uncertainties very closesly. The Stater Crisis Management Team
(CMT) was convened immediately after the measures were announced in order to take appropriate action
and anticipate developments. The CMT meets regulary to ensure the health and safety of the Stater staff on
the one hand and to guarantee the services to its clients on the other hand. Stater's CEO is chair of the CMT,
the CCO is vicechair. In addition, Senior Managers from all of Stater's BUs participate in the CMT. Some of
the measures announced by the CMT are: Extensive facilitation of working from home, working in "shifts"
and maximum use of conference calls and video conferencing. In order to guarantee administrative
continuity, the CEO and CCO have agreed to keep simultaneous presence on the Stater premises to a
minimum. The CMT is of the opinion that, at the time of compiling this report, the situation at Stater is under
control.
Naturally, the coronavirus has a major impact on economic developments worldwide and will have an
impact on Stater's turnover and profit development. On the one hand this will be limited because our
regular work in the back office brings stability, but the turnover from mid office and change projects of
clients will come under pressure depending on the duration of the coronavirus pandemic. On the other
hand, thanks to its flexible shell, Stater is able to gear its workforce to the work on offer. In addition, in the
event of an economic downturn, Hypocasso's turnover likely will increase. Because of the measures taken,
the prudent way of entrepreneurship through the years and the business model of Stater, Stater's
continuity is not at risk. Nevertheless, these unpredictable times have a huge impact on people and
organizations. There is uncertainty in the world around us, and we have to wait whether additional
measures will need to be taken. We will closely monitor the situation and evaluate different scenarios on
solvency, liquidity and operations.
Amersfoort, April 15, 2020
E.R. Dreuning CEO T. Gerritsen CCO

9
dated 15 April 2020
2 OPERATIONS OF THE COMPANY
Stater is the largest mortgage services provider in the Netherlands. Stater supports nearly 35 percent of all
mortgages in the Netherlands with a unique mortgage system. Whether it concerns mortgage services or
supporting services, Stater is pleased to take ownership of its customers' worries.
Stater has years of experience providing support throughout the entire mortgaging process. Stater can
provide support at every step of the process. Stater works together with banks, insurance companies,
investors and brokers. Fitch has awarded our mortgage services the highest rating in Europe.
Mission
Stater wants to surprise its customers with highquality services for all aspects of the mortgage process.
Exceptional customer focus at competitive rates.
Vision
Within just a few years, Stater wants to set the standard for mortgage services.
The challenge is to be even better, even faster and even cheaper. Stater does this by thinking and acting in
consumers' best interests and by organising the process as efficiently as possible.
Core values
Stater's aim is to achieve success by contributing towards its customers' success. This is also the basis of the
core values that provide direction and show what Stater stands for. Stater wants its customers and
employees to experience Stater as customerdriven, resultdriven, enterprising, costconscious, and
collaborative.
History
Stater was established on January 1, 1997 as a subsidiary of Bouwfonds, and it took Stater only 15 years to
develop into a market leader. Stater has been operating as an independent company within ABN AMRO
Group since 1 January 2001. In May 2019 ABN AMRO Bank N.V. sold 75% of her participating interest to
Infosys Consulting Pte Ltd. Alongside its head office in Amersfoort, Stater has its branches in Brussels and
Berlin.

10
dated 15 April 2020
CONSOLIDATED ANNUAL ACCOUNTS 2019

dated 15 April 2020
1 CONSOLIDATED BALANCE SHEET AS AT DECEMBER 31, 2019
(before appropriation of results)
2019 2018
x €1,000 x €1,000 x €1,000 x €1,000
ASSETS
Fixed assets
Intangible fixed assets (1) 10,638 7,112
Tangible fixed assets (2) 27,321 5,990
Financial fixed assets (3) 1,624 1,131
39,583 14,233
Current assets
Receivables, prepayments and

accrued income (4)
Trade receivables 7,584 12,546

Receivables from other related parties 4,174 6,144
Taxes and social securities 548 332
Other receivables 957 1,331
28,977 38,563
Cash and cash equivalents (5) 67,354 54,593
135,914 107,390
2019 2018
x €1,000 x €1,000 x €1,000 x €1,000
LIABILITIES
Group capital (6)
Group equity share of the legal person 61,222 63,132

Thirdparty share in group equity 2,402 2,296
63,624 65,428
Provisions (7) 5,632 4,431
Non-current liabilities (8) 22,689 5,893
Current liabilities (9)

Payables to other related parties 5,117 4,032
Taxes and social securities 12,366 4,634
Pension premiums 737 700
43,968 31,639
135,914 107,390

12
dated 15 April 2020
2 CONSOLIDATED PROFIT & LOSS ACCOUNT FOR THE YEAR 2019
2019 2018
x €1,000 x €1,000 x €1,000 x €1,000
Net turnover (10) 165,594 162,923

Cost of subcontracted work and
other external charges (11) 33,105 41,692
Wages and salaries (12) 62,724 62,465
Social security charges (13) 18,088 16,916
Amortisation and depreciation (14) 8,120 4,815
Other operating expenses (15) 22,968 22,337
Expenses 145,005 148,225
Operating result 20,589 14,698

Financial income and expenses (16) 275 13
Result before tax 20,314 14,711
Taxes (17) 5,117 3,913
Result after tax 15,197 10,798
Minority interest (18) 106 86
Result of the legal entity 15,091 10,712

The previous year's figures, net turnover and other expenses are restated with € 7R,0e5la3t,e0d
00to(naouid
mitpoarc'st orenproerstult) 13
dated 15 April 2020
3 CONSOLIDATED CASH FLOW STATEMENT 2019
The cash flow statement has been prepared using the indirect method.
2019 2018
x €1,000 x €1,000 x €1,000 x €1,000
Cash flow from operating activities
Result before tax 20,314 14,711
Adjustments for:
Amortisation and depreciation 8,095 4,815
Movement of provisions 1,201 1,201
Movement of working capital:
Movement of non current liabilities 1,575 4,369
Movement of accounts receivable 9,586 8,782
Movement of shortterm liabilities 10,973 261
Cash flow from business activities 48,594 16,575
Corporate income tax 3,761 2,853
Cash flow from operating activities 44,833 13,722
Cash flow from investing activities

Investments in intangible fixed assets 6,152 3,467
Investments in tangible fixed assets 6,303 2,494
Cash flow from investing activities 12,454 5,961
Cash flow from financing activities

Other receivables (additional funding) 868 513
Other receivables (repayments) 374 395
Dividend paid 17,000 7,250
Payment of lease liabilities 2,124
Cash flow from financing activities 19,618 7,368
12,760 393

14
dated 15 April 2020
Cash and cash
equivalents
x €1,000
Compilation cash
Compilation cash at January 1, 2018 54,201
Movement 2018 393
Compilation cash December 31, 2018 54,594
Compilation cash at January 1, 2019 54,594

Movement 2019 12,760
Compilation cash December 31, 2019 67,354

15
dated 15 April 2020
4 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
2019 2018
x €1,000 x €1,000
Share group result after tax 15,091 10,712
Total result of the legal entity 15,091 10,712

16
dated 15 April 2020
5 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
GENERAL
The company has prepared the financial statements in accordance with the provisions of Part 9 of Book 2 of
the Dutch Civil Code. Furthermore the company has voluntarily adopted IFRS 16 as this is an option under
Dutch GAAP. The financial statements were prepared on April 15, 2020. The financial year ran from January
1, 2019 through to December 31, 2019.
All amounts are in thousands and are stated in Euro's.
Activities
The activities of Stater N.V. (CoC file 32073618), with registered offices in Amersfoort, and its group holdings
mainly consist of mortgage servicing and change projects for clients.
The consolidated annual accounts of Stater N.V. include the financial data of Stater N.V. and the following
group companies:
• Stater Nederland B.V. in Amersfoort: 100% participation (2018: 100%)
• Stater Duitsland B.V. in Amersfoort: 100% participation (2018: 100%)
• Stater Deutschland VerwaltungsGmbH in Berlin: 100% participation of Stater Duitsland B.V. (2018:
100%)
• Stater Deutschland GmbH & Co KG in Berlin: 100% participation of Stater Duitsland B.V. (2018: 100%)
• Stater Belgium N.V./S.A. in Brussels: 72% participation of Stater Participations B.V. (2018: 72%)
• Stater Participations B.V. in Amersfoort: 100% participation (2018: 100%)
• HypoCasso B.V. in Amersfoort: 100% participation (2018: 100%)
• Stater XXL B.V. in Amersfoort: 100% participation (2018: 100%)
Stater NV had accepted liability in accordance with Section 2:403 of the Dutch Civil Code for the following
group companies:
• Stater Nederland B.V. in Amersfoort: 100% participation (2018:100%)
• Stater XXL B.V. in Amersfoort: 100% participation (2018:100%)
• HypoCasso BV in Amersfoort: 100% participation (2018:100%)
Consolidation principles
Financial information relating to group companies and other legal entities controlled by Stater N.V. or where
central management is conducted has been consolidated in the annual accounts of Stater N.V. The
consolidated financial statements have been prepared in accordance with the accounting principles of Stater
N.V.
The financial information relating to Stater N.V. is presented in the consolidated financial statements.
Accordingly, in accordance with article 2:402 of the Dutch Civil Code, the companyonly financial statements
only contain an abridged profit and loss account.

17
dated 15 April 2020
Financial information relating to the group companies and the other legal entities and companies included in
the consolidation is fully included in the consolidated financial statements, eliminating the intercompany
relationships and transactions. Thirdparty shares in equity and results of group companies are separately
disclosed in the consolidated financial statements.
Financial statements of the subsidiaries are included in the consolidated financial statements from the date
that control commences (the acquisition date) until the date that control ceases. At acquisition date the
assets, provisions and liabilities are measured at fair values. Goodwill paid is capitalised, to which
amortisation is charged based on the estimated useful life. The results of participating interests sold during
the year are recognised until the moment of disposal.
GENERAL ACCOUNTING PRINCIPLES FOR THE PREPARATION OF THE CONSOLIDATED ANNUAL

ACCOUNTS
Valuation of assets and liabilities and determination of the result take place under the historical
cost convention. Unless presented otherwise at the relevant principle for the specific balance
sheet item, assets and liabilities are presented at nominal value.
Income and expenses are accounted for on an accrual basis. Profit is only included when realized on the
balance sheet date. Losses originating before the end of the financial year are taken into account if they
have become known before preparation of the financial statements.
Revenues from services are recognised in proportion to the services rendered. The cost price of these
services is allocated to the same period.
Comparison with previous year

The valuation principles and method of determining the result are the same as those used in the previous
year, with the exception of the changes in accounting policies as set out in the relevant sections.
For a better understanding the VAT refund of the Dutch entities is netted with the VAT expenses. The
previous year figures are restated.
Assumption of going concern

The assumption of continuity was applied during the preparation of the financial statements.

18
dated 15 April 2020
Change in accounting policies
IFRS 16, leases
As at January 1, 2019, Stater adopted IFRS 16 Leases. Stater transitioned to ifrs 16 in accordance with
the modified retrospectieve approach, and therefore the comparitive figures have not been restated,
as permitted by the transitional provisions of the standard.
Stater does not act as lessor and has not entered into a sales and leaseback transaction
Lessee acounting
For Lessee accounting IFRS 16 removes the destinction between ‘operating’ and ‘finance lease’ and
the leases are recognised on the balance sheet as right of use (ROU) asset and lease liability.As a
lessee Stater enters into various lease contracts, mainly for office builidngs and cars which Stater
leases for its own use. When accounting for the contracts as a lessee, Stater separares nonlease
components from lease components. Upon initial recognition, the lease liability is measured by
discounting all future leasepayment at the incremental borrowing rate. This rate reflects the rate of
interest Stater would have to pay to borrow over a similar term, and with similar secury, the funds
necessary to abtain an asset of a value similar to that of the ROU asset in a similar economic
environment. The weighted avearge incremental borrowing rate recognized in the Financial
Statements as per January 1, 2019 is 1,16%. Upon transition, the remaing lease term is used in
applying the incremental borrowing rate. The ROU asset is initially measured at cost, which reflects
the initial lease liability, adjusted for received incentives. The initial lease liability is equal to the sum
of the fixed lease payments, discounted by the incremental borrowing rate.
The ROU asset is depreciated over the period of the lease, using the straightline method. The lease
liabilty is increased to reflect the amount of interest on the lease liability and decreased for the lease
payments made.
Adjustments to the lease liability may result from remeasurement and/or modification.
Remeasurements occurs when there is a change in the lease term or discount rate, or when Stater
changes its assessment regarding purchases, extension or termination options. Remeasurement
result in adjustment of the ROU asset. When the ROU asset has been depreciated to zero, it is
recorded in the income statement.
A lease modification is a change in the scope of the lease, or the consideration of a part of a lease
that was not part in the original terms and conditions of the lease. A lease modifications result in
either a separate additional lease or a change in the accounting for the existing lease. In the case of a
lease modification not resulting in an additional lease, the lease liability is remeasured by adjusting
the carrying amount of the ROU asset, and to reflect the partial or full termination of the lease,
recognising any gain or loss in profit and loss.

19
dated 15 April 2020
Expenses related to shortterm leases with a term of less than 12 month and leases of lowvalue are
recognized in the profit and loss account, as permitted by the standard. ROU assets are included in
tangible fixed assets, while the lease liabilities are included in noncurrent liabilities. Depreciation is
presented in the line item for amortisation and depreciation and interest expenses is included in the
line financial income and expenses.
Stater did not choose the apply this Standard to a portfolio of leases and did not combine two or
more contracts with the same counterparty.
Impact of transition to IFRS
As permitted by the standard, Stater uses the following practical expedients upon transition:
• Calculation of the ROU assets at the data of initial application at an amount equal to the
lease liability, adjusted for incentives
• Excluding leases ending within 12 months at initial application
• Use of hindsight in determing the lease term if contractual option to extend or terminate the
lease exists
Upon transition to IFRS 16, rightofuse assets of € 20.5 million and lease liabilities of € 24.5 million
were recognized as at January 1, 2019. There is no impact on equity as Stater chose to apply the
practical expedient that allows it to measure the ROU asset at an amount equal to the lease liability,
adjusted for incentives. The difference between the ROU and lease liabilities is due to the
reclassification of the lease incentive benefits in reduction to the right of use assets.
The following reconciliation to the opening balance for the lease liabiities as at 1 January 1, 2019 is
based upon the off balance liabilities as at December 31, 2018.
*€ 1,000
Off balance liabilities December 31, 2018 38,558

Non-Operational/Financial leases -6,733
Operational/Financial Lease 31,825
Short team leases and leases of low-value assets -245
Gross lease liabilities at January 1, 2019 31,580
Effect of discounting the above amounts -3,965
Effect of extension options -3,099
Lease liability recognised at January 1, 2019 24,516
Incentives -4,019
Right or Use asset recognised at January 1, 2019 20,497

20
dated 15 April 2020
Estimates
The preparation of financial statements in conformity with the relevant rules requires the use of certain
critical accounting estimates. It also requires management to exercise its judgement in the process of
applying the group's accounting policies. If necessary for the purposes of providing the view required under
Section 362(1), Book 2, of the Dutch Civil Code, the nature of these estimates and judgments, including the
related assumptions, is disclosed in the notes to the financial statement items in question.
Leasing
Operational leasing
The company may have lease contracts whereby a large part of the risks and rewards associated with
ownership are not for the benefit of nor incurred by the company. The lease contracts with lifetime < 12
months are recognised as operational leasing. Lease payments are recorded on a straightline basis, taking
into account reimbursements received from the lessor, in the profit and loss account for the duration of the
contract.
Because of adoption of IFRS 16 as from January 1, 2019 leasecontracts > 12 months are recognized as right
of use assets and as lease liabilities.
Translation of foreign currency

Receivables, liabilities and obligations denominated in foreign currency are translated at the exchange rates
prevailing as at balance sheet date.
Transactions in foreign currency during the financial year are recognised in the financial statements at the
exchange rates prevailing at transaction date. The exchange differences resulting from the translation as at
balance sheet dat are recorded in the profit and loss account.

21
dated 15 April 2020
PRINCIPLES OF VALUATION OF ASSETS AND LIABILITIES
General
The financial statements have been prepared on the basis of historical cost unless otherwise stated, assets
and liabilities are valued at nominal value. Gains are attributed to the period in which they are realised
Losses are recognised in the year in which they are foreseeable.
Intangible fixed assets

Intangible fixed assets are presented at cost less accumulated amortisation and, if applicable, less
impairments in value. Amortisation is charged as a fixed percentage of cost, as specified in more detail in the
notes to the balance sheet. The useful life and the amortisation method are reassessed at the end of each
financial year.
An intangible fixed asset is recognised on the balance sheet if:

− the future economic benefits contained in the asset are likely to accrue to the company; and
− the cost of the asset can be established reliably.
Expenses relating to an intangible fixed asset that does not meet the conditions for capitalisation are
recognised directly in the profit and loss account.
A statutory reserve is created for the part of the cost of internally developed software that has not yet been
amortised.
Tangible fixed assets

Tangible fixed assets are presented at acquisition price less cumulative depreciation and, if applicable, less
impairments in value. Depreciation is based on the estimated useful life and calculated as a fixed percentage
of cost, taking into account any residual value. Depreciation is provided from the date an asset comes into
use.
Financial fixed assets

Participating interests where significant influence is exercised over the business and financial policy are
valued according to the equity method on the basis of the net asset value. Participating interests without
such influence, are valued at the acquisition price, taking into account a provision for value decreases.
Participating interests with negative net capital value are valued at zero. If the company fully or partly
guarantees the liabilities of the participation concerned, or is effectively obliged to enable the participation
to pay its (share of) liabilities, a provision is formed. Provisions for doubtful debts which are already
deducted from receivables from the participation are taken into account when determining the amount for
the provision.
Upon initial recognition the receivables on and loans to participations and other receivables are valued at
fair value and then valued at amortised cost, which equals the face value, after deduction of any provisions.

22
dated 15 April 2020
On each balance sheet date, the company assesses whether there are any indications that a fixed asset may
be subject to impairment. If there are such indications, the realisable value of the asset is determined. If it is
not possible to determine the realisable value of the individual asset, the realisable value of the cash
generating unit to which the asset belongs is determined.
An impairment occurs when the carrying amount of an asset is higher than the realisable value; the
realisable value is the higher of the realisable value and the value in use. An impairment loss is directly
recognised in the profit and loss account while the carrying amount of the asset concerned is concurrently
reduced.
If it is established that an impairment that was recognised in the past no longer exists or has reduced, the
increased carrying amount of the asset concerned is set no higher than the carrying amount that would have
been determined if no impairment value adjustment for the asset concerned had been reported.
Receivables and deferred assets

Upon initial recognition the receivables on and loans to participations and other receivables are valued at
fair value and then valued at amortised cost, which equals the face value, after deduction of any provisions.
The fair value and amortised cost equal the face value. Any provisions for the risk of doubtful debts are
deducted. These provisions are determined based on individual assessment of the receivables.

The cash is valued at face value. If cash equivalents are not freely disposable, then this has been taken into
account in the valuation.
Third-party share in group equity

The share of third parties in the group equity concerns the minority interest of third parties in the
shareholders’ equity of consolidated companies. In the profit and loss account the share of third parties in
the result of consolidated companies is deducted from the group result.
Provisions
A provision is recognised when the company has a present obligation as a result of a past event, when it is
probable that an outflow of resources embodying economic benefits will be required to settle the
obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are valued at
nominal value.
Termination schemes
This concerns obligations on account of termination of employees’ employment contracts prior to the
normal pension date. Termination benefits are recognized if it demonstrably concerns an obligation to
terminate employment contracts with employees. Remunerations are recorded at nominal value. The
liability is recorded as such and disclosed under the provisions.

23
dated 15 April 2020
Bonus schemes
A liability is recorded for bonus plans based on relevant performance plans. The obligation is recorded as
such under the shortterm debt.

This tax provision concerns the temporary differences between the valuation in the annual accounts and the
tax valuation of assets and liabilities. The provision is calculated based on the applicable tax rates.
Other provisions
Claim provision
The provision for claims is recorded on behalf of the estimated costs expected to arise from the claims
received.
Restructuring Stater Deutschland GmbH &Co KG

A restructuring provision is created if a detailed restructuring plan has been formalised by the balance sheet
date, and employees who will be affected by the restructuring have the justified expectation, by the date of
preparation of the financial statements, that the plan will indeed be implemented. A justified expectation
exists if work on the restructuring has started or if the outlines of the restructuring have been
communicated to those who will be affected by it.
The restructuring provision will include the costs to be incurred as a result of the restructuring and which
instead of that are not related to the company's ongoing operations.

24
dated 15 April 2020
Other long-term employee benefits
Other longterm employee benefits are those benefits that are part of the remuneration package, such as
longterm remunerations for anniversaries, temporary leave, etc. The rights to these benefits are built
through time. The obligation recorded is the best estimate of the amounts required to settle the related
obligations as at balance sheet date.
Provision for part of early retirement

Stater's collective labour agreement stipulates that employees aged 58 and over can, on certain conditions,
opt to reduce their working week to an average of 32 hours (80%), while preserving 90% of their pay.
Pension accrual and pension premium payment remain unchanged. The provision is calculated based on a
chance of employees staying with the company and an annual pay increase. The provision is calculated at
present value, while also factoring in survival probability (Prognosetafel [Life Table] AG 2018) and the
probability of employees using this scheme.
Provision for longservice awards

The collective labour agreement for Stater includes bonuses paid on the occasions of several service
anniversaries and termination of employment on account of full incapacity or reaching state pension age.
The provision is calculated based on a chance of employees staying with the company and an annual pay
increase. The provision is calculated at present value, while also factoring in survival probability
(Prognosetafel [Life Table] AG 2018).
Long-term liabilities
On initial recognition longterm debts are recognised at fair value. Transaction costs which can be directly
attributed to the acquisition of the longterm debts are included in the initial recognition. After initial
recognition longterm debts are recognised at the amortised cost price, being the amount received taking
into account premiums or discounts and minus transaction costs.
The difference between stated book value and the mature redemption value is accounted for as interest
cost in the profit and loss account on the basis of the effective interest rate during the estimated term of the
longterm debts.
Upon initial recognition, financial liabilities are recognised at fair value, less directly attributable transaction
costs.
After initial recognition, financial liabilities are measured at amortised cost as per the effective interest
method. Profit or loss is recognised in the profit and loss account as soon as the liabilities are no longer
recognised on the balance sheet, as well as through the amortisation process.

25
dated 15 April 2020
Derecognition of financial assets and liabilities
A financial instrument is derecognised following a transaction whereby all or practically all rights to
economic benefits and all or practically all risks with regard to the position have been transferred to a third
party.
Current liabilities
On initial recognition current liabilities are recognised at fair value. After initial recognition current liabilities
are recognised at the amortised cost price.
When there are no premiums, discounts or transaction costs, the amortised cost is equal to the nominal
value.

26
dated 15 April 2020
PRINCIPLES FOR THE DETERMINATION OF THE RESULT
General
The result is defined as the difference between the revenue from goods delivered and services performed
on one hand and, on the other hand, the costs and expenses for that year, valued at historical costs.
Net turnover
The net turnover consists of revenue from the sale of goods during the reporting period after deducting
discounts, rebates and value added taxes.
The income for services is included proportionaly to the level in which the services were performed based
on the costs for the service up to the balance sheet date in relation to the estimated costs for all services to
be provided. The costs for these services are accounted for in the same period.
Employee expenses
Staff remuneration is included as an expense in the profit and loss account for the period during which the
work is carried out and, insofar as not yet paid out, included in the balance sheet as a liability. When
amounts already paid out exceed the remuneration owed, the excess is included as accrued income insofar
as it will concern repayment by staff or a setoff against future payments by the company.
For remuneration involving accrual of entitlements, sabbatical leave, and variable remuneration, the
anticipated expenses are factored in during the employment. An anticipated allowance as a result of variable
remuneration is recognised if the obligation to pay that allowance arose on or before the balance sheet date
and the liabilities can be estimated reliably.
Contributions received as part of lifecourse savings schemes are taken into consideration in the period for
which these contributions are payable. Additions to and the release of liabilities are debited and credited to
the profit and loss account.
If remuneration is paid that does not include accrual of entitlements (such as continued payment during
sickness absence or a period of incapacity), the anticipated expenses are recognised in the period for which
the remuneration is payable. A provision is created to cover obligations that exist on the balance sheet date
to continue to pay remuneration to employees who, on the balance sheet date, are expected to
permanently be fully or partially unable to perform work due to sickness or incapacity.
The liability recognised is the best estimate of the amounts needed to settle such payment obligations on
the balance sheet date. The best estimate is based on contractual agreements with employees (collective
labour agreement and individual employment contract). Additions to and the release of liabilities are
debited and credited to the profit and loss account.
Amortisation and depreciation

The depreciation of the intangible fixed assets is calculated using fixed percentages of the purchase price or
the costs of internally developed software.

27
dated 15 April 2020
The depreciation on tangible fixed assets is calculated by using a fixed rate on the acquisition cost based on
the expected life cycle. Gains and losses from the occasional sale of property, plant or equipment are
included in depreciation.
Dutch pension plans

The basic principle is that the pension expense to be recognised for the reporting period is equal to the
pension contributions payable to the pension fund for that period. Insofar as the payable contributions have
not yet been paid on the balance sheet date, a liability is recognised. When the contributions paid as at the
balance sheet date exceed the contributions due, an accrued asset item will be included insofar as it will
concern repayment by the fund or a setoff against future contributions due.
Financial income and expenses

Financial income and expenses comprise interest income and expenses for loans (issued and received)
during the current reporting period.
This also includes interest expenses for rent and lease liabilities, which are recognised on the balance sheet
as required by IFRS 16.
Share in result of paricipaing interests

Where significant influence is exercised over participations, the group's share in the participations' results is
included in the consolidated profit and loss account. This result is determined on the basis of the accounting
principles applied by Stater N.V.

28
dated 15 April 2020
Taxes
Taxes comprise taxes owed for the reporting period and deductible income tax and deferred tax. Taxes are
recognised in the profit and loss account, except insofar as they relate to items that are recognised in equity
directly, in which case the tax is recognised in the equity.
Tax owed and deductible for the financial year is tax expected to be payable for taxable profit in the financial
year, calculated on the basis of tax rates as at the reporting date or with regard to which a substantive
decision has been made on the reporting date, and possible correction of taxes owed for previous years. If
the carrying amounts of assets and liabilities for the financial reporting deviate from their fiscal carrying
amounts, it concerns temporary differences.
A deferred tax liabilities provision is created for taxable temporary differences.

For deductible temporary differences, available loss carried forward and as yet unused fiscal netting
possibilities, a deferred tax asset is recognised, but only insofar as it is likely that fiscal profits will be
available in the future for setoff or compensation. Deferred tax assets are revised at every reporting date
and decreased insofar as it is no longer likely that the tax advantage in relation to this will be realised.
A deferred tax liability is recognised for taxable temporary differences relating to group companies, foreign
nonindependent units, participating interests and joint ventures, unless the company is able to determine
the termination date of the temporary difference and it is likely that the temporary difference will not end in
the foreseeable future. A deferred tax asset is recognised for deductible temporary differences relating to
group companies, foreign nonindependent units, participating interests and joint ventures, albeit only to the
extent that it is likely that the temporary difference will end in the foreseeable future and there will be
taxable profit available to compensate the temporary difference.
The valuation of deferred tax liabilities and deferred tax assets is based on the fiscal consequences of the
way in which the company, as at the balance sheet date, intends to realise or settle its assets, provisions,
debts and accrued liabilities. Deferred tax assets and liabilities are measured at nominal value.
The allocation of corporate income tax to the partnerships included in the fiscal entity is realised as if the
participating interests are independently taxable.
PRINCIPLES FOR PREPARATION OF THE CONSOLIDATED CASH FLOW STATEMENT

The cash flow statement has been prepared using the indirect method.

29
dated 15 April 2020
NOTES TO THE CONSOLIDATED BALANCE SHEET AS AT DECEMBER 31, 2019
ASSETS
1. Intangible fixed assets
Internally
develope Purchased
d software Total
x €1,000 x €1,000 x €1,000
Carrying amount as of January 1, 2019
Purchase price 73,446 20,469 93,914
Cumulative amortization and impairment 71,025 15,778 86,802
2,421 4,691 7,112
Movement
Investments 4,415 1,737 6,152
Disposals 0 261 261
Depreciation disposal 0 261 261
Amortization 1,127 1,501 2,627
Reclassification correction 757 757 0
4,045 521 3,525
Carrying amount as of December 31, 2019

Purchase price 77,861 21,945 99,806
6,467 4,171 10,638
The reclassification correction concerns a misstatement correction of the previous year and is not
considered material. Therefore it have been corrected in the current year figures.
Amortisation rates
%
Internally developed software 14
Purchased software 2033.33
The internally developed software concerns the core systems used by Stater for the mortage services.
Included in the internally developed software are assets amounting to € 69,882,000 that have been fully
written down but are still in use. The purchased software includes assets amounting to € 12,369,000 that
have been fully written down but are still in use.
There are no investment commitments in respect of intangible fixed assets (2018: € 176,000).
30
dated 15 April 2020
2. Tangible fixed assets
Leasehold
improve Right of use
ments Hardware Equipment assets Total
x €1,000 x €1,000 x €1,000 x €1,000 x €1,000
Carrying amount as of January
1, 2019
0 0 0 20,497 20,497
Purchase price 4,045 15,702 6,019 0 25,766
Cumulative depreciation and
impairment 3,771 10,783 5,222 0 19,775
274 4,919 798 20,497 26,487
Movement
Investments 595 3,617 407 1,683 6,303
Depreciation disposal 0 2,127 799 0 2,926
impairment 0 2,127 799 0 2,926
Depreciation 54 1,961 300 3,154 5,468
541 1,657 106 1,470 834
Carrying amount as of
December 31, 2019
0 0 0 20,497 20,497
Purchase price 4,640 17,192 5,627 1,683 29,142
impairment 3,825 10,616 4,723 3,154 22,318
December 31, 2019 815 6,575 904 19,026 27,321

31
dated 15 April 2020
The right of use assets include Stater's leased premises in Amersfoort and Brussels amounting to € 18,046,
000, as well as the lease cars amounting to € 980,000.
With effect from April 1, 2018, for the building in Amersfoort lease has been renewed for 10 years with an
option to renew for 2 consecutive periods of 5 years, i.e. until March 31, 2038 at the latest. These renewal
options have not been included in the IFRS 16 calculation. The lease for the premises in Brussels was entered
into on December 1, 2016 and ends by operation of law on November 30, 2025. Taking into account a notice
period of 6 months, notice can be given upon the expiry of the first sixyear period and this has been included
in the IFRS 16 calculation.
There are no variable lease payments present in the lease contracts.

The cash outflow amounts to € 2,124,000.
Depreciation rates
%
Leasehold improvements 10
Hardware 2033.33
Equipmen 20
t 1025
The investment commitments in respect of tangible fixed assets are € 771,000 (2018: € 29,000).

32
dated 15 April 2020
3. Financial fixed assets
12/31/2019 12/31/2018
x €1,000 x €1,000
Other receivables
Financial fixed assets relate to a loan granted to the leasing company. The interest rate is 1.8%. The loan was
granted for the purchase of lease cars for Stater N.V. Repayments on the loan are equal to the depreciation
of the lease cars. By way of security, a pledge has been granted on all passenger cars and light commercial
vehicles made available to Stater N.V. by the leasing company for the benefit of employees of Stater N.V.
2019 2018
x €1,000 x €1,000
Other receivables
Carrying amount as of January 1 1,130 1,012
Loans granted 868 513
Repayments 374 395
Carrying amount as of December 31 1,624 1,130
CURRENT ASSETS
4. Receivables, prepayments and accrued income
12/31/2019 12/31/2018
x €1,000 x €1,000
Trade receivables
Debtors 7,648 12,596
Doubtful debtor provision 64 50
7,584 12,546

33
dated 15 April 2020
2019 2018
x €1,000 x €1,000
Doubtful debtor provision
Carrying amount as of January 1 50 22
Allocation 46 32
Withdrawal 32 4
Carrying amount as of December 31 64 50
12/31/2019 12/31/2018
x €1,000 x €1,000
Taxes and social securities
Corporate income tax 72 252
VAT 476 80
548 332
Other receivables
Volume discount suppliers 517 1,178
Grants 440 153
957 1,331
Prepayments and accrued income

Turnover to be invoiced 11,286 13,898
Interest 7 4
Prepaid costs 4,421 4,309
15,714 18,211
5. Cash and cash equivalents

Bank 67,354 54,594
An amount of € 350,000 (2018: € 350,000) is not freely disposable.

34
dated 15 April 2020
6. Group capital
Group equity share of the legal person
Please refer to the notes to the company balance sheet on page 60 of this report for an explanation of the
equity.
2019 2018
x €1,000 x €1,000
Thirdparty share in group equity
Minority interest 106 86
12/31/2019 12/31/2018
x €1,000 x €1,000
7. Provisions
Termination schemes 221 321
Deferred tax liability 506 0
Other provisions 4,905 4,110
5,632 4,431
The provisions have a predominantly longterm character.
Termination schemes
2019 2018
x €1,000 x €1,000
Provision early retirement Stater Belgium N.V./S.A.
Withdrawal 100 164
Carrying amount as of December 31 221 321

This provision concerns the temporary differences between the valuation in the annual accounts and the tax
valuation of assets and liabilities. The provision is calculated based on the applicable tax rate.

35
dated 15 April 2020
2019 2018
x €1,000 x €1,000

Allocation 507 0
Withdrawa 0 38
l
507 0
The increase of the deferred tax liability is a result of the investments in internally developed software. For
tax purposes these investments are operating expenses.
12/31/2019 12/31/2018
x €1,000 x €1,000
Other provisions
Claim provision 1,612 1,446
Restructuring Stater Deutschland GmbH &Co KG 0 138
Other longterm employee benefits 3,293 2,526
4,905 4,110
Restructuring
Stater
Deutschland
Claim GmbH &Co
provision KG Total
x €1,000 x €1,000 x €1,000
Carrying amount as of January 1, 2019 1,446 138 1,584

Allocation 451 0 451
Withdrawa 125 103 228
l Reversal 160 35 195
Carrying amount as of December 31, 2019 1,612 0 1,612

36
dated 15 April 2020
Other long
term
employe
e benefits
x €1,000
Carrying amount as of January 1, 2019 2,526

Allocation 1,115
Withdrawa 348
l
3,293
12/31/2019 12/31/2018
x €1,000 x €1,000
8. Noncurrent liabilities
Advanced payment received on orders 1,761 4,404
Lease liabilities 20,928 0
Accruals and deferred income 0 1,489
22,689 5,893
The lease liabilities are a result of the first time adoption of IFRS 16.
Advanced payment received on orders

Amounts received for acquired staff are recognised here. These amounts are attributed to the first 5 years of
these employees' employment.

37
dated 15 April 2020
Lease liabilities
The lease liabilities include the present value of lease payments not paid at December 31, 2019. The
incremental borrowing rate is used as discount rate. The current portion of the lease debts is
presented as current liabilities.
Debt longer than 5 years: € 8,658,000.
The table below provides details regarding the contractual maturities of lease liabilities as of
December 31, 2019 on an undiscounted basis:
(x € 1,000)
Particulars Amount
Less than one year 3,774
One to five years 13,286
More than five years 9,326
Total 26,386
Accruals and deferred income

From April 1, 2018, investment contributions received from the lessor that are credited to the profit during
the lease term are included here. As a result of implementation of IFRS 16 as of January 1, 2019, this item
has been factored into the calculation of net present values.
9. Current liabilities
12/31/2019 12/31/2018
x €1,000 x €1,000
Corporate income tax 2,794 0
VAT 5,920 1,363
12,366 4,634
Until May 23, 2019, Stater N.V. was included in the fiscal entity for corporate income tax purposes with ABN
AMRO Bank N.V. The corporate income tax payable up to and including that period is recognised as a liability
to related parties.

38
dated 15 April 2020
12/31/2019 12/31/2018
x €1,000 x €1,000
Holiday bonus 1,497 1,125
Holiday accruals 2,128 2,537
Investment obligations 0 88
Variable pay 2,854 2,919
Prepaid amount 3,332 2,273
Accruals other costs 5,844 4,478
Accruals external staff 3,114 3,348
21,525 16,768

39
dated 15 April 2020
CONTINGENT LIABILITIES
Contingent liabilities
Tax entity
The company constitutes a tax entity for corporate income tax and VAT with Stater N.V. and other group
companies; consequently the company is severally liable for the resulting debts.
Claims
Various claims have been filed against the company and/or group companies, which are disputed by the
company and/or group companies. Although the outcome of these disputes cannot be predicted with
certainty, it is assumed, partly on the basis of legal advice obtained, that these will not have a significant
adverse effect on the consolidated financial position.
Longterm financial obligations
Company cars
12/31/2019 12/31/2018
x €1,000 x €1,000
Less than one year 164 859

One to five years 226 902
More than five years 0 4
390 1,765
Servers
12/31/2019 12/31/2018
x €1,000 x €1,000

Transport 70 70

40
dated 15 April 2020
12/31/2019 12/31/2018
x €1,000 x €1,000
Transport 70 70

357 364
Rental commitments buildings
12/31/2019 12/31/2018
x €1,000 x €1,000
Less than one year 0 1,815

One to five years 0 15,170
More than five years 0 13,045
0 30,031
Other longterm financial obligations
12/31/2019 12/31/2018
x €1,000 x €1,000
Less than one year 2,244 1,807

One to five years 4,594 4,551
6,838 6,358

41
dated 15 April 2020
Tax claim
Since 1998, there has been a difference of opinion between Stater and the Dutch tax authorities about
Stater's liability for VAT in respect of mortgage payment transactions and ancillary services. As no agreement
could be reached, it was decided, in consultation with the Dutch tax authorities, to submit the dispute to the
competent court. The parties have litigated up to the Dutch Supreme Court. On October 11, 2013, the
Supreme Court ruled in its judgment on appeal that the services of Stater are liable for VAT. No further legal
remedies are available against this judgment.
In Belgium, legal proceedings are still pending in relation to the VAT issue. In 2015, the court of first instance
ruled that the services of Stater are liable for VAT. Stater appealed this judgment in Belgium. In the Belgian
proceedings, Stater aims to have the preliminary questions submitted before the European Court of Justice.
It may be the case that through the preliminary questions, the VAT exemption for payment transactions will
be deemed to apply to the services provided by Stater Belgium. However, it remains to be seen whether
such a judgment would also have consequences for Stater in the Netherlands. We expect these proceedings
will take years to complete.
In connection with the proceedings in Belgium and the potential resulting judgment of the European Court
of Justice, Stater has concluded a tax ruling with the tax authorities in order to safeguard the rights of
Stater's customers as much as possible.
Financial instruments
General
Details provided in this note are intended to facilitate estimation of the scope of risks involved in financial
instruments, both financial instruments recognised on the balance sheet and offbalance sheet financial
instruments.
The group's financial instruments are used to finance the group's operational activities or ensue directly
from these activities.
Generally, the risks involved in financial instruments are credit risk, currency risk, liquidity risk, cash flow risk,
and price risk consisting of interest and market risk. The group's risk mitigation policy is as follows:
Foreign currency risk
Transactions in foreign currencies are very limited in size and occur incidentally as part of procurement
activities. Payments in foreign currencies are converted to the functional currency at the exchange rate on
the date of payment.

42
dated 15 April 2020
Interest rate risk
The group does not have any longterm loans and is therefore not exposed to interest risk.
Market risk
Stater does not engage in financial instrument trading. The management estimates market risk to be very
limited for Stater.
Credit risk
The group predominantly does business with highnetworth customers and has defined credit rating
procedures. The group has furthermore articulated guidelines to limit the credit risk it is exposed to with
each party. Aside from that, the group continuously monitors its receivables and has a strict reminder
procedure in place. The above measures have reduced the credit risk for the group to a minimum. The
number of writeoffs is very low. Management estimates the credit risk on these parties to be low.
Liquidity risk and cash flow risk
The group has a healthy cash position and is able to finance current investments from operating cash flow.
Fair value
A separate calculation with the fair values has not been included, because most of the assets and liabilities
are current, and for the ones that are non current the fair value does not differ substantially.

43
dated 15 April 2020
7 NOTES TO THE CONSOLIDATED PROFIT & LOSS ACCOUNT FOR THE YEAR 2019
10. Net turnover

2019 2018
x €1,000 x €1,000
Business segments
Mortgage processing 128,200 121,115

Project 22,642 29,095
s Other 14,752 12,713
165,594 162,923
For a better understanding the VAT refund of the Dutch entities is netted with the VAT expenses. The
previous year figures of other are adjusted with € 7,053,000.
Geographical segments
Netherlands 140,829 143,654
Belgium 24,351 17,957
Germany 414 1,312
165,594 162,923
Extraordinary forms of economic activity where it is uncertain as to whether they can be attributed to net
sales are not recognised under net sales.
11. Cost of subcontracted work and other external charges

Total cost of subcontracted work 33,105 41,692
Employee expenses
12. Wages and salaries
Salaries and wages 57,416 56,252
Other 5,308 6,213
62,724 62,465
A decline in other costs ismainly (€ 587,000) a result of the first time adoption of IFRS 16.
13. Social security charges

Social securities 10,416 9,731
Pension costs 7,672 7,185
18,088 16,916

44
dated 15 April 2020
Emoluments of directors and supervisory directors
The emoluments (including pension obligations) which were charged in 2019 amount to € 1,387,000 (2018:
€1,516,000) for (former) directors and € 13,000 (2018: €30,000) for supervisory directors.
Staff
At the company during 2019, on average FTE 927 employees were employed (2018: 901).
2019 2018
The breakdown is as folows:

Netherlands 748 761
Abroad 179 140
927 901
2019 2018
x €1,000 x €1,000
14. Amortisation and depreciation
Intangible fixed assets 2,627 2,632
Tangible fixed assets 5,468 2,183
Book result 25 0
8,120 4,815
Depreciation of tangible fixed assets has mainly (€ 3,154,000) increased due to the first time adoption of
IFRS 16.
15. Other operating expenses

Housing 2,333 5,011
Office expenses 4,983 4,241
IT costs 8,163 5,797
VAT (nonrefundable portion) 142 256
Marketing & Communication 242 160
Third party costs 5,887 5,249
Other operating costs 1,218 1,623
22,968 22,337

45
dated 15 April 2020
Housing costs have mainly decreased due to first time adoption of IFRS 16.
For a better understanding the VAT refund of the Dutch entities is netted with the VAT expenses.
The previous year figures of VAT (nonrefundable portion) are adjusted with € 7,053,000.
Fees audit firm:
2019
Auditors Other network Total network
x € 1,000 x € 1,000 x € 1,000
Audit of the financial statements 99 22 121

Other audit engagements 240 90 330
Tax advisory services
Other nonaudit services
4 4
2018
Auditors Other network Total network
x € 1,000 x € 1,000 x € 1,000
Audit of the financial statements 93 15 108

Other audit engagements 275 93 368
Tax advisory services
Other nonaudit services
2019 2018
x €1,000 x €1,000
16. Financial income and expenses
Interest and similar income 24 8,206
Interest and similar expenses 300 8,192
276 14
Interest expenses 2019 are related to IFRS 16.
17. Taxes
Corporate income tax 4,017 3,757
Transport 4,017 3,757

46
dated 15 April 2020
2019 2018
x €1,000 x €1,000
Transport 4,017 3,757
Corporate income tax prior periods 152 13

Movement of deferred tax assets 561 127
Movement of deferred tax liabilities 0 38
Corporate income taxes in foreign jurisdictions 387 308
5,117 3,913
Reconciliation of the effective tax rate and the applicable tax rate for the consolidated financial statements
is as follows:
2019 2018
% %
Applicable rate 25.00 25.00

Deferred tax 1.72 0.13
Tax on nondeductible amounts 0.98 1.19
Prior years 0.75 0.09
Rate differences 0.18 0.19
Effective tax rate 25.19 26.60
2019 2018
x €1,000 x €1,000
18. Minority interest
Minority interests Stater Belgium N.V./S.A. 106 86

47
dated 15 April 2020
Transactions with related parties
The group has entered into the following transactions with related parties:
2019 2019 2018 2018

Receivables Payables Receivables Payables
x € 1,000 x € 1,000 x € 1,000 x € 1,000
Related parties
Infosys Limited 0 3,660 0 0

Infosys BPM Limited 0 202 0 0
Brilliant Basics Limited 0 27 0 0
ABN AMRO Hypotheken Groep B.V. 4,174 0 6,144 0
ABN AMRO Bank N.V. 0 1,228 0 4,032
4,174 5,117 6,144 4,032
2019 2019 2018 2018

Revenues Costs Revenues Costs
x € 1,000 x€ x € 1,000 x€
Related parties
Infosys Limited 0 4,059 0 0

Infosys BPM Limited 0 248 0 0
Brilliant Basics Limited 0 27 0 0
ABN AMRO Hypotheken Groep B.V. 83,607 0 92,003 0
ABN AMRO Bank N.V. 0 548 8,188 10,409
83,607 4,882 100,191 10,409
Sale and purchase transactions between related parties are conducted at normal market prices.
The transactions with the Infosys companies relate to the supply of personnel for IT and Operations.
The deliveries to ABN AMRO Hypotheken Groep B.V. relate to the care and support of the entire mortgage
process.
Infosys Limited heads the group of several Infosys companies, including Brilliant Basics Limited. Since May
23, 2019 Infosys Consulting Pte Ltd has held 75% of the shares Stater N.V. (2018: 0%).
ABN AMRO Bank N.V. holds a 25% stake since May 23, 2019 in Stater N.V. (2018: 100%).

48
dated 15 April 2020
8 NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT 2019
Notes to the cash flow statement
The cash flow statement is drawn up using the indirect method. Cash and cash equivalents recognised in the
cash flow statement consist of liquid assets. Interest income and expenses, dividend received, and income
tax are recognised in the cash flow from operating activities. Dividend paid is recognised under cash flow
from financing activities.
Composition of cash and cash equivalents

2019 2018
x €1,000 x €1,000
Compilation cash at January 1 54,594 54,201
Movement of cash and cash equivalents 12,760 393
Cash and cash equivalents December 31 67,354 54,594

49
dated 15 April 2020
9 OTHER DISCLOSURE
Post balance sheet events

Granted loan
In connection with excess cash and cash equivalents, Stater N.V. has granted a loan of €30 million to Infosys
Consulting Pte Ltd. The interest rate on this loan is based on 12month EURIBOR +0.83 per annum with a
minimum of 0.25%. The loan has a term of 5 years, but can be called in by Stater N.V. in whole or in part
subject to a period of 15 days.
Coronavirus (COVID19)
extensive package of measures, which also have a substantial impact on Stater. The Stater Crisis Management
Team (CMT) was convened immediately after the measures were announced in order to take appropriate
action and anticipate developments. The CMT meets regulary to ensure the health and safety of the Stater
staff on the one hand and to guarantee the services to its clients on the other hand.
Appropriation of the result for the 2018 financial year

The annual accounts for 2018 were adopted by the General Meeting held on July 29, 2019. The General
Meeting has determined the appropriation of the result as it was proposed.

50
dated 15 April 2020
COMPANYONLY ANNUAL ACCOUNTS

dated 15 April 2020
10 COMPANYONLY BALANCE SHEET AS AT DECEMBER 31, 2019
(before appropriation of results)
2019 2018
x €1,000 x €1,000 x €1,000 x €1,000
ASSETS
Fixed assets
Intangible fixed assets (19) 4,944 1,120
Tangible fixed assets (20) 18,479 804
Financial fixed assets (21) 32,244 20,947
55,667 22,871
Current assets
Receivables, prepayments and

accrued income (22)
Trade receivables 31 21
Receivables from group companies 38,332 40,217
Taxes and social securities 477 173
41,697 43,855
Cash and cash equivalents (23) 11,706 22,959
TOTAL OF ASSETS 109,070 89,685

As at January 1, 2019, Stater adopted IFRS 16 Leases. Comparative figures have noRt ebleaetendreto
staatueddi.tor's report
dated 15 April 2020
2019 2018
x €1,000 x €1,000 x €1,000 x €1,000
Equity (24)
Issued share capital 4,850 4,850

Share premium reserve 8,287 8,287
Legal reserves 6,467 2,514
Other reserves 26,527 36,768
Result for the year 15,091 10,712
61,222 63,131
Provisions (25) 4,988 4,535
Noncurrent liabilities (26) 19,715 4,325
Current liabilities (27)

Loans from participations in group
companies 2,503 2,540
Payables to other related parties 1,228 2,255
Taxes and social securities 5,547 3,700
Pension premiums 737 700
23,145 17,694
TOTAL OF EQUITY AND LIABILITIES 109,070 89,685

52
dated 15 April 2020
11 COMPANYONLY PROFIT AND LOSS ACCOUNT 2019
2019 2018
x €1,000 x €1,000
Share in result of paricipaing interests after taxes 14,974 2,396
Other income and expenses after taxation 117 8,316
Result after tax 15,091 10,712

53
dated 15 April 2020
12 NOTES TO THE COMPANYONLY FINANCIAL STATEMENTS
The financial statements have been prepared in accordance with Part 9 Book 2 of the Dutch Civil Code.
For the general principles for the preparation of the annual account, the principles for valuation of assets
and liabilities and determination of the result, as well as for the notes to the specific assets and liabilities and
the results, reference is made to the notes to the consolidated financial statements, if there is no further
explanation provided.
Financial fixed assets

Participating interests in group companies where extensive influence is exerted on business and financial
policies are valued based on the net capital value that is, however, not lower than zero. This net capital
value is calculated based on the principles of Stater N.V.
Participating interests with a negative net capital value are valued at zero. When the company guarantees
(wholly or partially) debts of the participating interest concerned, a provision is created primarily at the
expense of claims against this participating interest and for the remainder under the provisions of the
remaining part in the losses of the participating interest or the expected payments by the company on
behalf of these participating interests.

54
dated 15 April 2020
13 NOTES TO THE COMPANY BALANCE SHEET AS AT DECEMBER 31, 2019
ASSETS
19. Intangible fixed assets
Internally
develope Purchased
d software Total
x €1,000 x €1,000 x €1,000
Carrying amount as of January 1, 2019
Purchase price 58,822 2,834 61,656
0 1,120 1,120
Movement
Investments 3,078 979 4,058
Amortization 137 97 234
Reclassification correction 757 757 0
3,698 125 3,824
Carrying amount as of December 31, 2019

Purchase price 61,901 3,814 65,715
3,699 1,245 4,944
The reclassification correction concerns a misstatement correction of the previous year and is not
considered material. Therefore it have been corrected in the current year figures.
Amortisation rates
%
Internally developed software 14
Purchased software 2033.33
The internally developed software concerns the core systems used by Stater for the mortage services.
Included in the internally developed software are assets amounting to € 58,315,000 that have been fully
written down but are still in use. The purchased software includes assets amounting to € 1,588,000 that
have been fully written down but are still in use.

55
dated 15 April 2020
20. Tangible fixed assets
Leasehold
improve Right of use
ments Hardware Equipment assets Total
x €1,000 x €1,000 x €1,000 x €1,000 x €1,000
Carrying amount as of January
1, 2019
0 0 0 17,559 17,559
Purchase price 4,045 444 4,602 0 9,091
impairment 3,771 444 4,072 0 8,287
274 0 531 17,559 18,364
Movement
Investments 595 149 392 1,602 2,740
Depreciation disposal 0 0 640 0 640
impairment 0 0 640 0 640
Depreciation 54 5 218 2,348 2,625
541 144 174 745 115
December 31, 2019
0 0 0 17,559 17,559
Purchase price 4,640 593 4,355 1,602 11,191
impairment 3,825 449 3,650 2,348 10,272
December 31, 2019 815 144 705 16,813 18,478
The right of use assets include Stater's leased premises in Amersfoort and Brussels amounting to € 16,182,
000, as well as the lease cars amounting to € 631,000.
With effect from April 1, 2018, for the building in Amersfoort lease has been renewed for 10 years with an
option to renew for 2 consecutive periods of 5 years, i.e. until March 31, 2038 at the latest. These renewal
options have not been included in the IFRS 16 calculation.
There are no variable lease payments present in the lease contracts.

The cash outflow amounts to € 1,127,000.

56
dated 15 April 2020
Depreciation rates
%
Leasehold improvements 10
Hardware 2033.33
Equipmen 20
t 1025
12/31/2019 12/31/2018
x €1,000 x €1,000
21. Financial fixed assets
Participations in group companies 30,620 19,817
32,244 20,947
Other receivables
Financial fixed assets relate to a loan granted to the leasing company. The interest rate is 1.8%. The loan was
granted for the purchase of lease cars for Stater N.V. Repayments on the loan are equal to the depreciation
of the lease cars. By way of security, a pledge has been granted on all passenger cars and light commercial
vehicles made available to Stater N.V. by the leasing company for the benefit of employees of Stater N.V.
2019 2018
x €1,000 x €1,000
Other receivables
Loans granted 868 513
Repayments 374 395

57
dated 15 April 2020
Receivables
from
Participating Participating
Interests Interests
x € 1,000 x € 1,000
Balance as at January 1, 2019
Acquisition value 2,955 114,044
Cumulative depreciation and impairments 14,853 73,827
Provision for participating interests 2,009 0
19,817 40,217
Movements
Investments/repayments 0 1,572
Profit share 14,974 0
Impairments charged to the profit and loss 314 314
Movement in provision for participating interests 820 0
Dividend 3,664 0
Total movements 10,804 1,886
Balance as at December 31, 2019

Acquisition value 2,955 112,472
Cumulative depreciation and impairments 26,477 74,140
Provision for participating interests 1,188 0
30,620 38,332
22. Receivables, prepayments and accrued income
Receivables from group companies

There has been no interest calculated because the amounts are settled every month.
12/31/2019 12/31/2018
x €1,000 x €1,000
Corporate income tax 0 173
VAT 477 0
477 173

58
dated 15 April 2020
12/31/2019 12/31/2018
x €1,000 x €1,000
Other receivables
Volume discount suppliers 1,014 1,178
Grants 392 0
1,406 1,178
Prepayments and accrued income

Turnover to be invoiced 0 1,484
Interest 7 4
Prepaid costs 1,445 777
1,452 2,265
23. Cash and cash equivalents

ABN AMRO Bank N.V. 11,706 22,959
This amount is freely disposable.

59
dated 15 April 2020
24. Equity
Share
Issued share premiu Other Result for the
capital m Legal reserves reserves year Total
x €1,000 x €1,000 x €1,000 x €1,000 x €1,000 x €1,000
Carrying
amount as
of January 1,
2019 4,850 8,287 2,514 36,768 10,712 63,131
Allocation to
legal reserve 0 0 3,953 0 0 3,953
Unappropriated
profit of
current year 0 0 0 0 15,091 15,091
Appropriation
of the prior
year profit 0 0 0 10,712 10,712 0
Dividend paid 0 0 0 17,000 0 17,000
Other
receivables
(repayments) 0 0 0 3,953 0 3,953
Carrying
amount as of
December
31, 4,850 8,287 6,467 26,527 15,091 61,222
Issued share capital

The statutory share capital amounts to 10,000,000 shares of € 1 each.
The shareholders of the company are as follows:
• 75% Infosys Consulting Pte. Ltd
• 25% ABN AMRO Bank N.V.

60
dated 15 April 2020
Legal reserves
2019 2018
x €1,000 x €1,000
Reserve for capitalized development costs
Allocation 1,278 941
Withdrawal 0 513
Reserve related to retained profits from participating interests

Allocation 2,675 15
Carrying amount as of December 31 2,768 93
Other reserves
Allocation of previous financial year nett result 10,712 13,163
Dividend paid 17,000 7,250
Other receivables (repayments) 3,953 443
Proposed appropriation of profit
The annual accounts for 2018 were adopted by the General Meeting held on July 29, 2019. The General
It is proposed to the General Meeting that the result after taxes for 2019 be appropriated as follows. An
amount of €8,700,000 of the profit for 2019 will be distributed as dividend and the remaining amount will be
added to the other reserves.
Result for the year

Appropriation of the prior year profit 10,712 13,163
Unappropriated profit of current year 15,091 10,712

61
dated 15 April 2020
25. Provisions

This provision concerns the temporary differences between the valuation in the annual accounts and the tax
valuation of assets and liabilities. The provision is calculated based on the applicable tax rate.
2019 2018
x €1,000 x €1,000

Allocation 507 0
Withdrawa 0 38
l
507 0
The increase of the deferred tax liability is a result of the investments in internally developed software. For
tax purposes these investments are operating expenses.
12/31/2019 12/31/2018
x €1,000 x €1,000
Other provisions
Other longterm employee benefits 3,293 2,526
Provision subsidiaries 1,188 2,009
4,481 4,535
2019 2018
x €1,000 x €1,000
Other long-term employee benefits
Allocation 1,115 1,437
Withdrawal 349 87
Cancelled consolidations 0 76

62
dated 15 April 2020
2019 2018
x €1,000 x €1,000
Provision subsidiaries
Withdrawal 821 2,663
The provision subsidiaries comprises the provision for participating interests that is based on the negative
net asset value of these participating interests. If Stater has the firm intention to enable the participating
interest (for its share) to pay its debts, a provision will be formed for that part. For the movements in the
provision, reference is also made to the statement of movements under financial fixed assets.
12/31/2019 12/31/2018
x €1,000 x €1,000
26. Noncurrent liabilities
Advanced payment received on orders 404 2,836
Accruals and deferred income 0 1,489
19,715 4,325
Advanced payment received on orders

Amounts received for acquired staff are recognised here. These amounts are attributed to the first 5 years of
these employees' employment.

63
dated 15 April 2020
Lease liabilities
The lease liabilities include the present value of lease payments not paid at December 31. The
incremental borrowing rate is used as discount rate. The current portion of the lease debts is
presented as current liabilities.
Debt longer than 5 years: € 8,658,000.
The table below provides details regarding the contractual maturities of lease liabilities as of
December 31, 2019 on an undiscounted basis:
(x € 1,000)
Particulars Amount
Less than one year 3,024
One to five years 11,378
More than five years 9,326
Total 23,728

From April 1, 2018, investment contributions received from the lessor that are credited to the profit during
the lease term are included here. As a result of implementation of IFRS 16 as of January 1, 2019, this item
has been factored into the calculation of net present values.
27. Current liabilities
12/31/2019 12/31/2018
x €1,000 x €1,000
Loans from participations in group companies
Stater Deutschland GmbH & Co K.G. 2,503 2,540
There has been no interest calculated on this loan.

Corporate income tax 1,918 0
VAT 0 445
5,547 3,700

64
dated 15 April 2020
Until May 23, 2019, Stater N.V. was included in the fiscal entity for corporate income tax purposes with ABN
AMRO Bank N.V. The corporate income tax payable up to and including that period is recognised as a liability
to related parties.
12/31/2019 12/31/2018
x €1,000 x €1,000
Holiday accruals 2,108 2,517
Variable pay 2,633 2,606
Prepaid amount 874 740
Accruals other costs 1,784 1,229
Accruals external staff 1,245 197
11,400 7,289
CONTINGENT ASSETS AND LIABILITIES
Longterm financial obligations
Company cars
12/31/2019 12/31/2018
x €1,000 x €1,000

116 264

65
dated 15 April 2020
Rental commitment buildings
12/31/2019 12/31/2018
x €1,000 x €1,000

One to five years 0 11,169
More than five years 0 11,994
0 24,007
Other longterm financial obligations
12/31/2019 12/31/2018
x €1,000 x €1,000
Less than one year 2,052 1,608

One to five years 4,371 4,135
6,423 5,743

66
dated 15 April 2020
14 NOTES TO THE COMPANY PROFIT AND LOSS ACCOUNT 2019
28. Share in result of paricipaing interests

2019 2018
x €1,000 x €1,000
Share in result of participating interests 14,974 2,396
Participating interests
• Stater Deutschland VerwaltungsGmbH in Berlin: 100% participation of Stater Duitsland B.V. (2018:
100%)
• Stater Deutschland GmbH & Co KG in Berlin: 100% participation of Stater Duitsland B.V. (2018: 100%)

67
dated 15 April 2020
15 OTHER DISCLOSURE
Post balance sheet events

Granted loan
In connection with excess cash and cash equivalents, Stater N.V. has granted a loan of €30 million to Infosys
Consulting Pte Ltd. The interest rate on this loan is based on 12month EURIBOR +0.83 per annum with a
minimum of 0.25%. The loan has a term of 5 years, but can be called in by Stater N.V. in whole or in part
subject to a period of 15 days.
Coronavirus (COVID19)
extensive package of measures, which also have a substantial impact on Stater. The Stater Crisis Management
Team (CMT) was convened immediately after the measures were announced in order to take appropriate
action and anticipate developments. The CMT meets regulary to ensure the health and safety of the Stater
staff on the one hand and to guarantee the services to its clients on the other hand.

68
dated 15 April 2020
Amersfoort, 15 April 2020
Management Board:
E.R. Dreuning T. Gerritsen

Chief Executive Officer Chief Commercial Officer
Supervisory Board:
H.M.T. Broeders M. Dekker
K. Jain M. Joshi
D.R. Padaki

69
dated 15 April 2020
OTHER INFORMATION
1 Provisions of the Articles of Association relating to profit appropriation

The general meeting is authorized appropriate the profits as appearing from the
adopted annual accounts, or a part thereof, and to resolve to make distributions.
The general meeting is also authorised to resolve to make an interim distribution,
including dishibutions from the reserves (article 24 of the Articles of Association)).
The company may only make distributions to its shareholders (i) to the extent that the
company's equity exceeds the sum of the paidup and calledup part of the share
capital of the company and any reserves which the company is obliged to maintain
pursuant to the law, and (ii) after the management board granted its approval.
The management board may only approve a resolution of the general meeting to make
a distribution if the requirement under (i) is met according to
interim accounts which are prepared with due observance of the relevant regulations
and if it is not aware nor should reasonably foresee that after such distribution the
company will become unable to continue to settle its payable debts.
Notwithstanding the provisions, distributions out of the share

premium reserve A or share premium reserve B respectively shall be made pro rata to
the number of shares class A or the number of shares class B held by the respective
shareholders.
2 Appropriation of the result for the 2018 financial year

The annual account for 2018 was adopted by the General Meeting held on July 29, 2019. The General

70
dated 15 April 2020
3 INDEPENDENT AUDITOR'S REPORT

71
dated 15 April 2020
Gustav Mahlerlaan 2970
1081 LA Amsterdam
P.O.Box 58110
1040 HC
Amsterdam
Tel: +31 (0)88 288 2888

Fax: +31 (0)88 288 9737
www.deloitte.nl
Independent auditor's report
To the shareholders of Stater N.V.
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2019 INCLUDED IN THE ANNUAL ACCOUNTS
Our opinion
We have audited the accompanying financial statements for the year ended 31 December 2019 of Stater N.V.,
based in Amersfoort.
In our opinion the accompanying financial statements give a true and fair view of the financial position of
Stater N.V. as at 31 December 2019, and of its result for the year ended 31 December 2019 in accordance
with Part 9 of Book 2 of the Dutch Civil Code.
The financial statements comprise:
1. The consolidated and company balance sheet as at 31 December 2019.
2. The consolidated and company profit and loss account for the period ended 31 December 2019.
3. The notes comprising a summary of the accounting policies and other explanatory information.
Basis for our opinion
We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our
responsibilities under those standards are further described in the "Our responsibilities for the audit of the
financial statements" section of our report.
We are independent of in accordance with the Wet toezicht accountantsorganisaties (Wta, Audit firms
supervision act), the Verordening inzake de onafhankelijkheid van accountants bij assurance-opdrachten (ViO
Code of Ethics for Professional Accountants, a regulation with respect to independence) and other relevant
independence regulations in The Netherlands. Furthermore we have complied with the
Verordening gedrags- en beroepsregels accountants (VGBA, Dutch Code of Ethics).
We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Emphasis of the impact of the coronavirus
The coronavirus also impacts Stater N.V. Management disclosed the current impact and her plans to deal with
these events or circumstances in page 50 of the financial statements. Management indicates that it is
currently not possible for them to properly estimate the impact of the coronavirus on the financial
performance and health of Stater N.V. Our opinion is not modified in respect of this matter.
Deloitte Accountants B.V. is registered with the Trade Register of the Chamber of Commerce and Industry in Rotterdam number
24362853. Deloitte Accountants B.V. is a Netherlands affiliate of Deloitte NSE LLP, a member firm of Deloitte Touche Tohmatsu Limited.
2004825D28/AA/1
REPORT ON THE OTHER INFORMATION INCLUDED IN THE ANNUAL ACCOUNTS
In addition to the financial statements and our auditor's report thereon, the annual accounts contain other
information that consists of:
• Management Board's Report.
• Other Information as required by Part 9 of Book 2 of the Dutch Civil Code.
Based on the following procedures performed, we conclude that the other information:
• Is consistent with the financial statements and does not contain material misstatements.
• Contains the information as required by Part 9 of Book 2 of the Dutch Civil Code.
We have read the other information. Based on our knowledge and understanding obtained through our audit
of the financial statements or otherwise, we have considered whether the other information contains material
misstatements.
By performing these procedures, we comply with the requirements of Part 9 of Book 2 of the Dutch Civil Code
and the Dutch Standard 720. The scope of the procedures performed is substantially less than the scope of
those performed in our audit of the financial statements.
Management is responsible for the preparation of the other information, including the Management Board's
Report in accordance with Part 9 of Book 2 of the Dutch Civil Code, and the other information as required by
Part 9 of Book 2 of the Dutch Civil Code.
DESCRIPTION OF RESPONSIBILITIES REGARDING THE FINANCIAL STATEMENTS
Responsibilities of management and the Supervisory Board for the financial statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance
with Part 9 of Book 2 of the Dutch Civil Code. Furthermore, management is responsible for such internal
control as management determines is necessary to enable the preparation of the financial statements that are
As part of the preparation of the financial statements, management is responsible for assessing the
company's ability to continue as a going concern. Based on the financial reporting frameworks mentioned,
management should prepare the financial statements using the going concern basis of accounting unless
management either intends to liquidate the company or to cease operations, or has no realistic alternative but
to do so.
Management should disclose events and circumstances that may cast significant doubt on the company's
ability to continue as a going concern in the financial statements.
The Supervisory Board is responsible for overseeing the company's financial reporting process.
Our responsibilities for the audit of the financial statements
Our objective is to plan and perform the audit assignment in a manner that allows us to obtain sufficient and
appropriate audit evidence for our opinion.
2004825D28/AA/2
Our audit has been performed with a high, but not absolute, level of assurance, which means we may not
detect all material errors and fraud during our audit.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements. The materiality affects the nature, timing and extent of our audit procedures and the
evaluation of the effect of identified misstatements on our opinion.
We have exercised professional judgement and have maintained professional scepticism throughout the audit,
in accordance with Dutch Standards on Auditing, ethical requirements and independence requirements. Our
audit included e.g.:
• Identifying and assessing the risks of material misstatement of the financial statements, whether due to
fraud or error, designing and performing audit procedures responsive to those risks, and obtaining audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtaining an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the company's internal control.
• Evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Concluding on the appropriateness of management's use of the going concern basis of accounting, and
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the company's ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to
the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report.
However, future events or conditions may cause the company to cease to continue as a going concern.
• Evaluating the overall presentation, structure and content of the financial statements, including the
disclosures.
• Evaluating whether the financial statements represent the underlying transactions and events in a manner
that achieves fair presentation.
Because we are ultimately responsible for the opinion, we are also responsible for directing, supervising and
performing the group audit. In this respect we have determined the nature and extent of the audit procedures
to be carried out for group entities. Decisive were the size and/or the risk profile of the group entities or
operations. On this basis we selected group entities for which an audit or review had to be carried out on the
complete set of financial information or specific items.
2004825D28/AA/3
We communicate with the Supervisory Board Regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant findings in internal control that we
identified during our audit.
Amsterdam, 15 April 2020
Signed on the original: A den Hertog
2004825D28/AA/4
Infosys Compaz Pte. Ltd.
Registration Number: 199504205K
Directors’ Statement
We are pleased to submit this annual report to the members of the Company together with the audited financial statements
for the financial year ended March 31, 2020.
In our opinion:
(a) the financial statements set out on pages 924 to 947 are drawn up so as to give a true and fair view of the financial position
of the Company as at March 31, 2020 and the financial performance, changes in equity and cash flows of the Company
for the year ended on that date in accordance with the provisions of the Singapore Companies Act, Chapter 50, Singapore
Financial Reporting Standards (International) and International Financial Reporting Standards; and
(b) at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as
and when they fall due.
The Board of Directors has, on the date of this statement, authorized these financial statements for issue.
Directors
The directors in office at the date of this statement are as follows:
Jonathon Revill Christopher Allaway
Andrew Stewart Groth
Salil Satish Parekh
Shveta Arora
Eugene Chehchun Huang
Lim Ming Pey
Directors’ interests
According to the register kept by the Company for the purposes of Section 164 of the Companies Act, Chapter 50 (the Act),
particulars of interests of directors who held office at the end of the financial year (including those held by their spouses and
infant children) in shares, debentures, warrants and share options in the Company and in related corporations are as follows:
Name of director and corporation in which interests are held Holdings at beginning of Holdings at end of the year
the year
Andrew Stewart Groth
Infosys Limited
Stock Incentive Rewards Program Share Plan
ADR Option 34,800 34,800
ADR RSU 41,350 44,775
Salil Satish Parekh
Infosys Limited
Employee Stock Options (ESOP) 65,770 203,278
Lim Ming Pey
Astrea IV Pte. Ltd.
Class A-1 4.35% Secured Fixed Rate Bonds SGD 70,000 SGD 70,000
Mapletree Treasury Services Limited and
Mapletree Treasury Services (HKSAR) Limited
bonds
interests held 250,000 250,000
Except as disclosed in this statement, no director who held office at the end of the financial year had interests in shares,
debentures, warrants or share options of the Company, or of related corporations, either at the beginning of the financial year
or at the end of the financial year.
Neither at the end of, nor at any time during the financial year, was the Company a party to any arrangement whose objects
are, or one of whose objects is, to enable the directors of the Company to acquire benefits by means of the acquisition of shares
in or debentures of the Company or any other body corporate.
920 | Infosys Compaz Pte. Ltd. Infosys Subsidiary Financials 2019-20

Share options
During the financial year, there were:
(i) no options granted by the Company to any person to take up unissued shares in the Company; and
(ii) no shares issued by virtue of any exercise of option to take up unissued shares of the Company.
As at the end of the financial year, there were no unissued shares of the Company under options.
Auditors
The auditors, KPMG LLP, have indicated their willingness to accept re-appointment.
On behalf of the Board of Directors
Jonathan Revill Christopher Allaway

Chairman
Shveta Arora
Chief Executive Officer and Director
Date : June 12, 2020
Infosys Subsidiary Financials 2019-20 Infosys Compaz Pte. Ltd. | 921

Members of the Company Infosys Compaz Pte. Ltd.
Report on the audit of the financial statements

Opinion
We have audited the financial statements of Infosys Compaz Pte. Ltd. (“the Company”), which comprise the Statement of
Financial Position as at March 31, 2020, and the Statements of Profit or Loss and other comprehensive income, Changes in
Equity and Cash Flows for the year then ended, and notes to the financial statements, including a summary of significant
accounting policies, as set out on pages 924 to 947.
In our opinion, the accompanying financial statements are properly drawn up in accordance with the provisions of the
Companies Act, Chapter 50 (“the Act”), Singapore Financial Reporting Standards (International) (“SFRS(I)s”) and International
Financial Reporting Standards (“IFRSs”) so as to give a true and fair view of the financial position of the Company as at
March 31, 2020 and of the financial performance, changes in equity and cash flows of the Company for the year ended on that date.
Basis for opinion
We conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”). Our responsibilities under those
standards are further described in the ‘Auditors’ responsibilities for the audit of the financial statements’ section of our report. We
are independent of the Company in accordance with the Accounting and Corporate Regulatory Authority Code of Professional
Conduct and Ethics for Public Accountants and Accounting Entities (“ACRA Code”) together with the ethical requirements
that are relevant to our audit of the financial statements in Singapore, and we have fulfilled our other ethical responsibilities
in accordance with these requirements and the ACRA Code. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Other information
The Management is responsible for the other information contained in the annual report. Other information is defined as all
information in the annual report other than the financial statements and our auditors’ report thereon.
We have obtained all other information prior to the date of this auditors’ report.
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in
the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is
a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of management and directors for the financial statements
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the
provisions of the Act, SFRS(I)s and IFRSs, and for devising and maintaining a system of internal accounting controls sufficient
to provide a reasonable assurance that assets are safeguarded against loss from unauthorized use or disposition; and transactions
are properly authorized and that they are recorded as necessary to permit the preparation of true and fair financial statements
and to maintain accountability of assets.
The directors’ responsibilities include overseeing the Company’s financial reporting process.
Auditors’ responsibilities for the audit of the financial statements
is a high level of assurance but is not a guarantee that an audit conducted in accordance with SSAs will always detect a material

As part of an audit in accordance with SSAs, we exercise professional judgment and maintain professional skepticism
of internal controls.
• Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal controls.
disclosures made by the Management.
• Conclude on the appropriateness of the Management’s use of the going concern basis of accounting and, based on the audit
attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report.
audit findings, including any significant deficiencies in internal controls that we identify during our audit.
Report on other legal and regulatory requirements

In our opinion, the accounting and other records required by the Act to be kept by the Company have been properly kept in
accordance with the provisions of the Act.
KPMG LLP
Public Accountants and Chartered Accountants
Singapore
Date : June 12, 2020

In SG $
2020 2019
Assets
Property, plant and equipment 4 4,485,639 5,443,627
Deferred tax assets 8 1,385,480 532,225
Non-current assets 5,871,119 5,975,852
Contract assets 14 9,958,352 4,376,092
Cash and cash equivalents 6 11,603,062 10,529,970
Current assets 58,363,329 32,471,391
Total assets 64,234,448 38,447,243
Equity
Share capital 7 2,600,000 2,600,000
Reserves 28,363,268 18,517,527
Total equity 30,963,268 21,117,527
Liabilities
Employee benefits 10 1,241,516 1,813,097
Provision for reinstatement cost 11 299,351 203,734
Lease liabilities 12 1,554,677 –
Non-current liabilities 3,095,544 2,016,831
Employee benefits 10 2,687,229 2,052,795
Contract liabilities 14 2,684,119 708,161
Current tax payable 3,033,638 1,018,147
Current liabilities 30,175,636 15,312,885
The accompanying notes form an integral part of these financial statements.

Statement of Profit or Loss and other Comprehensive Income
In SG $
2020 2019
Revenue 14 87,798,552 68,582,518
Cost of sales (68,826,757) (57,742,673)
Gross profit 18,971,795 10,839,845
Other income 395 713,869
Loss from sale of subsidiary – (13,124,643)
Results from operating activities 10,686,397 (10,412,164)
Finance income 15 89,809 37,798
Finance costs 15 (73,582) –
Net finance (loss)/income 16,227 37,798
Profit/(Loss) before income tax 16 10,702,624 (10,374,366)
Income tax expense 17 (687,284) (868,216)
Profit/(Loss) for the year 10,015,340 (11,242,582)
Items that are or may be reclassified subsequently to profit or loss:
Net change in fair value of debt investments at FVOCI – (78,340)
Disposal of debt investments at FVOCI – (795,454)
Other comprehensive income for the year, net of income tax – (873,794)
Total comprehensive income for the year 10,015,340 (12,116,376)

In SG $
Share capital Fair value Merger Accumulated Total equity
reserve reserve profits
At April 1, 2018 600,000 873,794 2,459,313 47,505,581 51,438,688
Adjustment on initial application of SFRS(I) 9 (net
of tax) – – – – –
Adjusted balance at April 1, 2018 600,000 873,794 2,459,313 47,505,581 51,438,688
Loss for the year – – – (11,242,582) (11,242,582)
Realisation of merger reserve – – (2,459,313) 2,459,313 –
Disposal of debt investments at FVOCI
reclassified to profit or loss – (795,454) – – (795,454)
Net change in fair value of debt investments at
FVOCI – (78,340) – – (78,340)
Total other comprehensive income – (873,794) (2,459,313) 2,459,313 (873,794)
Total comprehensive income for the year – (873,794) (2,459,313) (8,783,269) (12,116,376)
Transactions with owner of the Company,
recorded directly in equity
Contributions by and distributions to owner of
the Company
Final tax-exempt dividend paid of US $1.00 per
share in respect of year 2019 – – – (15,204,785) (15,204,785)
Dividend declared – – – (5,000,000) (5,000,000)
Issue of ordinary shares 2,000,000 – – – 2,000,000
Total transactions with owner 2,000,000 – – (20,204,785) (18,204,785)
At March 31, 2019 2,600,000 – – 18,517,527 21,117,527
At April 1, 2019 2,600,000 – – 18,517,527 21,117,527
Adjustment on initial application of SFRS(I) 16
(net of tax) – – – (169,599) (169,599)
Adjusted balance at April 1, 2019 2,600,000 – – 18,347,928 20,947,928
Profit for the year – – – 10,015,340 10,015,340
At March 31, 2020 2,600,000 – – 28,363,268 30,963,268

In SG $
2020 2019
Profit/(Loss) before income tax 10,702,624 (10,374,366)
Adjustments for:
Transfer of business services to related corporation – (17,857)
Depreciation of plant and equipment 4 5,232,595 4,862,745
Loss on sale of subsidiary – 13,142,500
Plant and equipment written-off – 1,113,660
Fair value gain on debt investments at FVOCI at disposal – (795,454)
Impairment loss allowance on doubtful debts 13 328,775 –
Finance income 15 (89,809) (37,798)
Finance costs 15 73,582 –
16,247,767 7,893,430
Changes in working capital:
Trade and other receivables (19,565,361) 8,196,260
Contract assets (5,582,260) (2,709,009)
Trade and other payables 9,508,139 (2,389,948)
Contract liabilities 1,975,958 (910,454)
Provision for reinstatement cost (203,734) 153,656
Employee benefits 62,853 (215,859)
Cash generated from operating activities 2,443,362 10,018,076
Income tax refund/(paid) 474,952 (1,947,637)
Purchase of property, plant and equipment (1,149,624) (1,044,177)
Loan to subsidiary – (1,997,500)
Interest income received 89,809 62,669
Proceeds from disposal of equity instruments at FVOCI – 6,795,454
Transfer of business services, net of cash transferred – (499)
Net cash (used in)/from investing activities (1,059,815) 3,815,947
Payments of lease liabilities 12 (717,393) –
Interest paid 12 (68,014) –
Dividends paid – (15,204,785)
Proceeds from issue of share capital – 2,000,000
Net cash used in financing activities (785,407) (13,204,785)
Net increase/(decrease) in cash and cash equivalents 1,073,092 (1,318,399)
Cash and cash equivalents at 1 April 10,529,970 11,848,369
Cash and cash equivalents at 31 March 6 11,603,062 10,529,970

These notes form an integral part of the financial statements. Information on areas involving a higher degree of judgment
The financial statements were authorized for issue by the or areas where estimates are significant, to the financial
Board of Directors on June 12, 2020. statements is set out in Note 21.
2.5 Changes in accounting policies
1 Domicile and activities
New standards and amendments
Infosys Compaz Pte. Ltd. (“the Company”) is a company
incorporated in the Republic of Singapore. The address of The Company has applied the following SFRS(I)s,
the Company’s registered office is 401 Commonwealth Drive amendments to and interpretations of SFRS(I) for the first
#05-01 Haw Par Techno Centre, Singapore 149598. time for the annual period beginning on April 1, 2019:
The principal activities of the Company are those relating to • SFRS(I) 16, Leases
the provision of computer consultancy services. • SFRS(I) INT 23, Uncertainty over Income Tax Treatments
The immediate holding company during the financial year Other than SFRS(I) 16, the application of these amendments
is Infosys Consulting Pte Ltd., a company incorporated in to standards and interpretations does not have a material
the Republic of Singapore. The ultimate holding company is effect on the financial statements.
Infosys Limited, a company incorporated in India.
SFRS(I) 16, Leases
2 Basis of preparation The Company applied SFRS(I) 16 using the modified
retrospective approach, under which the cumulative effect of
2.1 Statement of compliance initial application is recognized in retained earnings at April
The financial statements have been prepared in accordance 1, 2019. Accordingly, the comparative information presented
with Singapore Financial Reporting Standards (International) for the period ended March 31, 2019 is not restated – i.e.
(SFRS(I)) and International Financial Reporting Standards it is presented, as previously reported, under SFRS(I) 1-17
(“IFRSs”). SFRS(I)s are issued by the Accounting Standards and related interpretations. The details of the changes in
Council, which comprise standards interpretations accounting policies are disclosed below. Additionally, the
that are equivalent to IFRSs issued by the International disclosure requirements in SFRS(I) 16 have not generally
Accounting Standards Board. been applied to comparative information.
All references to SFRS(I)s and IFRSs are subsequently Definition of a lease
referred to as SFRS(I)s in these financial statements unless
Previously, the Company determined at contract inception
otherwise specified.
whether an arrangement was or contained a lease under
This is the first set of the Company’s annual financial SFRS(I) INT 4, Determining whether an Arrangement
statements in which SFRS(I) 16 Leases has been applied. contains a Lease. The Company now assesses whether a
The related changes to significant accounting policies are contract is or contains a lease based on the definition of a
described in Note 2.5. lease, as explained in SFRS(I) 16.
2.2 Basis of measurement On transition to SFRS(I) 16, the Company elected to apply
the practical expedient to grandfather the assessment of
The financial statements have been prepared on the historical
which transactions are leases. The Company applied SFRS(I)
cost basis except as otherwise described in the notes below.
16 only to contracts that were previously identified as leases.
2.3 Functional and presentation currency Contracts that were not identified as leases under SFRS(I)
These financial statements are presented in Singapore dollars, 1-17 and SFRS(I) INT 4 were not reassessed for whether there
which is the Company’s functional currency. is a lease under SFRS(I) 16. Therefore, the definition of a lease
under SFRS(I) 16 was applied only to contracts entered into
2.4 Use of estimates and judgments or changed on or after April 1, 2019.
The preparation of the financial statements in conformity As a lessee
with SFRS(I)s and IFRSs requires the Management to
As a lessee, the Company leases many assets including
make judgments, estimates and assumptions that affect the
property and office equipment. The Company previously
application of accounting policies and the reported amounts
classified leases as operating leases based on its assessment
of assets, liabilities, income and expenses. Actual results may
of whether the lease transferred significantly all of the risks
differ from these estimates.
and rewards incidental to ownership of the underlying asset
Estimates and underlying assumptions are reviewed on to the Company. Under SFRS(I) 16, the Company recognizes
an ongoing basis. Revisions to accounting estimates are right-of-use (ROU) assets and lease liabilities for most of these
recognized in the period in which the estimates are revised leases – i.e. these leases are on the Balance Sheet.
and in any future periods affected.

Leases classified as operating leases under SFRS(I) 3 Significant accounting policies
1-17 The accounting policies set out below have been applied
Previously, the Company classified all leases as operating consistently to all periods presented in these financial
leases under SFRS(I) 1-17. On transition, for these leases, lease statements except as explained in Note 2.5, which addresses
liabilities were measured at the present value of the remaining changes in accounting policies.
lease payments, discounted at the respective lessee entities
incremental borrowing rates applicable to the leases as at April 3.1 Financial instruments
1, 2019. ROU assets are measured at their carrying amount (i) Recognition and initial measurement
as if SFRS(I) 16 had been applied since the commencement
Non-derivative financial assets and financial liabilities
date, discounted using the Company’s incremental borrowing
rate at the date of initial application: the Company applied Trade receivables and debt investments issued are initially
this approach to its largest property lease. recognized when they are originated. All other financial
assets and financial liabilities are initially recognized
The Company has tested its ROU assets for impairment on
when the Company becomes a party to the contractual
the date of transition and has concluded that there is no
indication that the ROU assets are impaired.
A financial asset (unless it is a trade receivable without a
The Company used a number of practical expedients when
significant financing component) or financial liability is
applying SFRS(I) 16 to leases previously classified as operating
initially measured at fair value plus, for an item not at FVTPL,
leases under SFRS(I) 1-17. In particular, the Company:
transaction costs that are directly attributable to its acquisition
• excluded initial direct costs from the measurement of the or issue. A trade receivable without a significant financing
ROU asset at the date of initial application; and component is initially measured at the transaction price.
• used hindsight when determining the lease term.
(ii) Classification and subsequent measurement
Impact on financial statements Non-derivative financial assets
Impact on transition* On initial recognition, a financial asset is classified as
On transition to SFRS(I) 16, the Company recognized measured at: amortized cost; FVOCI – debt investment.
additional ROU assets and additional lease liabilities, Financial assets are not reclassified subsequent to their initial
recognizing the difference in retained earnings. The impact recognition unless the Company changes its business model
on transition is summarized as follows. for managing financial assets, in which case all affected
In SG $
financial assets are reclassified on the first day of the first
Particulars As at April reporting period following the change in the business model.
1, 2019
ROU assets – property, plant and Financial assets at amortized cost
equipment 3,107,209 A financial asset is measured at amortized cost if it meets both
Lease liabilities (2,983,025) of the following conditions and is not designated as at FVTPL:
Provision for reinstatement (293,783) • it is held within a business model whose objective is to
Retained earnings 169,599 hold assets to collect contractual cash flows; and
* For the impact of SFRS(I) 16 on profit or loss for the period, • its contractual terms give rise on specified dates to cash
see Note 18. For the details of accounting policies under flows that are solely payments of principal and interest on
SFRS(I) 16 and SFRS(I) 1-17, see Note 3.6. the principal amount outstanding.
When measuring lease liabilities for leases that were classified Debt investments at FVOCI
as operating leases, the Company discounted lease payments A debt investment is measured at FVOCI if it meets both of
using its incremental borrowing rate at April 1, 2019. The the following conditions and is not designated as at FVTPL:
weighted-average rate applied is 2.14%.
In SG $
• it is held within a business model whose objective is
achieved by both collecting contractual cash flows and
Particulars As at April 1, selling financial assets; and
2019
• its contractual terms give rise on specified dates to cash
Operating lease commitments at March
flows that are solely payments of principal and interest on
31, 2019 as disclosed under SFRS(I)
the principal amount outstanding.
1-17 in the Company’s financial
statements 1,046,210 Financial assets: Business model assessment
Discounted using the incremental The Company makes an assessment of the objective of
borrowing rate at April 1, 2019 803,844 the business model in which a financial asset is held at a
Extension options reasonably certain to portfolio level because this best reflects the way the business
be exercised 2,179,181 is managed and information is provided to the Management.
Lease liabilities recognized at April 1, The information considered includes:
2019 2,983,025
• the stated policies and objectives for the portfolio and
the operation of those policies in practice. These include

whether the Management’s strategy focuses on earning with this criterion if the fair value of the prepayment feature
contractual interest income, maintaining a particular is insignificant at initial recognition.
interest rate profile, matching the duration of the Non-derivative financial assets: Subsequent measurement
financial assets to the duration of any related liabilities and gains and losses
or expected cash outflows or realizing cash flows through
Financial assets at amortized cost
the sale of the assets;
These assets are subsequently measured at amortized cost
• how the performance of the portfolio is evaluated and
using the effective interest method. The amortized cost is
reported to the Company’s management;
reduced by impairment losses. Interest income, foreign
• the risks that affect the performance of the business model exchange gains and losses and impairment are recognized
(and the financial assets held within that business model) in profit or loss. Any gain or loss on derecognition is
and how those risks are managed; recognized in profit or loss.
• how managers of the business are compensated – e.g. Debt investments at FVOCI
whether compensation is based on the fair value of the
These assets are subsequently measured at fair value. Interest
assets managed or the contractual cash flows collected; and
income calculated using the effective interest method, foreign
• the frequency, volume and timing of sales of financial exchange gains and losses and impairment are recognized in
assets in prior periods, the reasons for such sales and profit and loss. Other net gains and losses are recognized in
expectations about future sales activity. OCI. On derecognition, gains and losses accumulated in OCI
Transfers of financial assets to third parties in transactions are reclassified to profit or loss.
that do not qualify for derecognition are not considered sales Non-derivative financial liabilities: Classification, subsequent
for this purpose, consistent with the Company’s continuing measurement and gains and losses
recognition of the assets.
Financial liabilities are classified as measured at amortized
Non-derivative financial assets: Assessment whether cost or FVTPL. A financial liability is classified as at FVTPL if
contractual cash flows are solely payments of it is classified as held-for-trading or it is designated as such on
principal and interest initial recognition. Financial liabilities at FVTPL are measured
For the purposes of this assessment, ‘principal’ is defined at fair value and net gains and losses, including any interest
as the fair value of the financial asset on initial recognition. expense, are recognized in profit or loss. Directly attributable
‘Interest’ is defined as consideration for the time value of transaction costs are recognized in profit or loss as incurred.
money and for the credit risk associated with the principal Other financial liabilities are initially measured at fair
amount outstanding during a particular period of time and value less directly attributable transaction costs. They are
for other basic lending risks and costs (e.g. liquidity risk and subsequently measured at amortized cost using the effective
administrative costs), as well as a profit margin. interest method. Interest expense and foreign exchange gains
In assessing whether the contractual cash flows are solely and losses are recognized in profit or loss. These financial
payments of principal and interest, the Company considers liabilities comprised trade and other payables.
the contractual terms of the instrument. This includes
(iii) Derecognition
assessing whether the financial asset contains a contractual
term that could change the timing or amount of contractual Financial assets
cash flows such that it would not meet this condition. In The Company derecognizes a financial asset when the
making this assessment, the Company considers: contractual rights to the cash flows from the financial asset
• contingent events that would change the amount or expire, or it transfers the rights to receive the contractual
timing of cash flows; cash flows in a transaction in which substantially all of the
risks and rewards of ownership of the financial asset are
• terms that may adjust the contractual coupon rate,
transferred or in which the Company neither transfers nor
including variable rate features;
retains substantially all of the risks and rewards of ownership
• prepayment and extension features; and and it does not retain control of the financial asset.
• terms that limit the Company’s claim to cash flows from The Company enters into transactions whereby it transfers
specified assets (e.g. non-recourse features). assets recognized in its statement of financial position but
A prepayment feature is consistent with the solely payments retains either all or substantially all the risks and rewards of
of principal and interest criterion if the prepayment amount the transferred assets. In these cases, the transferred assets
substantially represents unpaid amounts of principal and are not derecognized.
interest on the principal amount outstanding, which may Financial liabilities
include reasonable additional compensation for early
The Company derecognizes a financial liability when its
termination of the contract. Additionally, for a financial
contractual obligations are discharged or cancelled or expire.
asset acquired at a significant discount or premium to its
The Company also derecognizes a financial liability when its
contractual par amount, a feature that permits or requires
terms are modified and the cash flows of the modified liability
prepayment at an amount that substantially represents the
are substantially different, in which case a new financial
contractual par amount plus accrued (but unpaid) contractual
liability based on the modified terms is recognized at fair value.
interest (which may also include reasonable additional
compensation for early termination) is treated as consistent

On derecognition of a financial liability, the difference between Depreciation
the carrying amount extinguished and the consideration Depreciation is based on the cost of an asset less its
paid (including any non-cash assets transferred or liabilities residual value. Significant components of individual assets
assumed) is recognized in profit or loss. are assessed and if a component has a useful life that is
(iv) Offsetting different from the remainder of that asset, that component is
depreciated separately.
Financial assets and financial liabilities are offset and the
net amount presented in the statement of financial position Depreciation is recognized in the profit or loss on a straight-
when, and only when, the Company currently has a legally line basis to write down the cost of plant and equipment
enforceable right to set off the amounts and it intends either to its estimated residual value over the estimated useful
to settle them on a net basis or to realize the asset and settle lives (or lease term, if shorter) of each part of an item of
the liability simultaneously. plant and equipment.
Depreciation is recognized from the date that the plant and
(v) Cash and cash equivalents
equipment are installed and ready for use, or in respect of
Cash and cash equivalents comprise cash balances and short- internally constructed assets, from the date that the asset is
term deposits with maturities of three months or less from the completed and ready for use. No depreciation is provided
date of acquisition that are subject to an insignificant risk of on construction work-in-progress until the related plant and
changes in their fair value and are used by the Company in equipment is ready for use.
the Management of its short-term commitments.
Change in estimates
(vi) Share capital
During the year, the Company revised its useful life policy so
Ordinary shares as to align their policy with their immediate controlling party,
Ordinary shares are classified as equity. Incremental costs Infosys Consulting Pte Ltd. The estimated useful lives for the
directly attributable to the issue of ordinary shares are current and comparative years are as follows:
recognized as a deduction from equity, net of any tax effects. Particulars Before April After April
1, 2019 1, 2019
3.2 Plant and equipment
Leasehold improvements 5 years 5 years
Recognition and measurement Plant and machinery 5 years 5 years
Plant and equipment are stated at cost less accumulated Computers and software 2 to 5 years 3 to 5 years
depreciation and accumulated impairment losses. Office furniture and
equipment 5 years 5 years
Cost includes expenditure that is directly attributable to the
acquisition of the asset. The cost of self-constructed assets For impact of change in estimate in useful life
includes the costs of materials and direct labor, any other policy, refer to Note 4.
costs directly attributable to bringing the asset to a working
condition for their intended use, estimated costs of dismantling 3.3 Impairment
and removing the items and restoring the site on which they
(i) Non-derivative financial assets and contract assets
are located when the Company has an obligation to remove
the asset or restore the site, and capitalized borrowing costs. The Company recognizes loss allowances for ECLs on:
Purchased software that is integral to the functionality of the • financial assets measured at amortized costs; and
related equipment is capitalized as part of that equipment. • contract assets (as defined in SFRS(I) 15).
When parts of an item of plant and equipment have different Loss allowances of the Company are measured on either of
useful lives, they are accounted for as separate items (major the following bases:
components) of plant and equipment.
• 12-month ECLs: these are ECLs that result from default
The gain or loss on disposal of an item of plant and events that are possible within the 12 months after the
equipment (calculated as the difference between the net reporting date (or for a shorter period if the expected life
proceeds from disposal and the carrying amount of the item) of the instrument is less than 12 months); or
is recognized in profit or loss.
• Lifetime ECLs: these are ECLs that result from all possible
Subsequent costs default events over the expected life of a financial
The cost of replacing a component of an item of plant and instrument or contract asset.
equipment is recognized in the carrying amount of the item Simplified approach
if it is probable that the future economic benefits embodied
The Company applies the simplified approach to provide
within the component will flow to the Company, and its
for ECLs for all trade receivables and contract assets. The
cost can be measured reliably. The carrying amount of the
simplified approach requires the loss allowance to be
replaced component is derecognized. The costs of the day-
measured at an amount equal to lifetime ECLs.
to-day servicing of plant and equipment are recognized in
profit or loss as incurred.

General approach • the restructuring of a loan or advance by the Company on
The Company applies the general approach to provide for terms that the Company would not consider otherwise;
ECLs on all other financial instruments. Under the general • it is probable that the borrower will enter bankruptcy or
approach, the loss allowance is measured at an amount equal other financial reorganization; or
to 12-month ECLs at initial recognition. • the disappearance of an active market for a security
At each reporting date, the Company assesses whether the because of financial difficulties.
credit risk of a financial instrument has increased significantly
since initial recognition. When credit risk has increased Presentation of allowance for ECLs in the statement
significantly since initial recognition, loss allowance is of financial position
measured at an amount equal to lifetime ECLs. Loss allowances for financial assets measured at amortized
When determining whether the credit risk of a financial asset cost and contract assets are deducted from the gross carrying
has increased significantly since initial recognition and when amount of these assets.
estimating ECLs, the Company considers reasonable and Write-off
supportable information that is relevant and available without
The gross carrying amount of a financial asset is written
undue cost or effort. This includes both quantitative and
off (either partially or in full) to the extent that there is no
qualitative information and analysis, based on the Company’s
realistic prospect of recovery. This is generally the case when
historical experience and informed credit assessment and
the Company determines that the debtor does not have assets
includes forward-looking information.
or sources of income that could generate sufficient cash flows
If credit risk has not increased significantly since initial to repay the amounts subject to the write-off. However,
recognition or if the credit quality of the financial instruments financial assets that are written off could still be subject to
improves such that there is no longer a significant increase in enforcement activities in order to comply with the Company’s
credit risk since initial recognition, loss allowance is measured procedures for recovery of amounts due.
at an amount equal to 12-month ECLs.
(ii) Non-financial assets
The Company considers a financial asset to be in default when
The carrying amounts of the Company’s non-financial assets,
• the borrower is unlikely to pay its credit obligations to
are reviewed at each Balance Sheet date to determine whether
the Company in full, without recourse by the Company to
there is any indication of impairment. If any such indication
actions such as realizing security (if any is held); or
exists, then the asset’s recoverable amount is estimated. An
• the financial asset is more than reasonable impairment loss is recognized if the carrying amount of an
number of days past due. asset or its related cash-generating unit (CGU) exceeds its
The Company considers a contract asset to be in default when estimated recoverable amount.
the customer is unlikely to pay its contractual obligations to The recoverable amount of an asset or CGU is the greater of
the Company in full, without recourse by the Company to its value in use and its fair value less costs to sell. In assessing
actions such as realizing security (if any is held). value in use, the estimated future cash flows are discounted to
The maximum period considered when estimating ECLs is their present value using a pre-tax discount rate that reflects
the maximum contractual period over which the Company current market assessments of the time value of money and
is exposed to credit risk. the risks specific to the asset or CGU. For the purpose of
impairment testing, assets that cannot be tested individually
Measurement of ECLs
are grouped together into the smallest group of assets that
ECLs are probability-weighted estimates of credit losses. generates cash inflows from continuing use that are largely
Credit losses are measured at the present value of all cash independent of the cash inflows of other assets or CGUs.
shortfalls (i.e. the difference between the cash flows due to
Impairment losses are recognized in profit or loss. Impairment
the entity in accordance with the contract and the cash flows
losses recognized in respect of CGUs are allocated first to
that the Company expects to receive). ECLs are discounted
reduce the carrying amount of any goodwill allocated to
at the effective interest rate of the financial asset.
the CGU (group of CGUs), and then to reduce the carrying
Credit-impaired financial assets amounts of the other assets in the CGU (group of CGUs)
At each reporting date, the Company assesses whether on a pro rata basis.
financial assets carried at amortized cost and debt investments Impairment losses recognized in prior periods are assessed at
at FVOCI are credit-impaired. A financial asset is ‘credit- each Balance Sheet date for any indications that the loss has
impaired’ when one or more events that have a detrimental decreased or no longer exists. An impairment loss is reversed
impact on the estimated future cash flows of the financial if there has been a change in the estimates used to determine
asset have occurred. the recoverable amount. An impairment loss is reversed only
Evidence that a financial asset is credit-impaired includes the to the extent that the asset’s carrying amount does not exceed
following observable data: the carrying amount that would have been determined,
net of depreciation or amortization, if no impairment loss
• significant financial difficulty of the borrower or issuer; had been recognized.
• a breach of contract such as a default or is more than a
reasonable number of days past due

3.4 Employee benefits or the cost of the ROU asset reflects that the Company will
exercise a purchase option. In that case, the ROU asset will
Defined contribution plans be depreciated over the useful life of the underlying asset,
A defined contribution plan is a post-employment benefit plan which is determined on the same basis as those of property
under which an entity pays fixed contributions into a separate and equipment. In addition, the ROU asset is periodically
entity and will have no legal or constructive obligation to reduced by impairment losses, if any, and adjusted for certain
pay further amounts. Obligations for contributions to defined remeasurements of the lease liability.
contribution plans are recognized as an employee benefit The lease liability is initially measured at the present value of
expense in profit or loss in the periods during which related the lease payments that are not paid at the commencement
services are rendered by employees. date, discounted using the interest rate implicit in the lease
Short-term employee benefits or, if that rate cannot be readily determined, the Company’s
incremental borrowing rate. Generally, the Company uses its
Short-term employee benefit obligations are measured on an
incremental borrowing rate as the discount rate.
undiscounted basis and are expensed as the related service is
provided. A liability is recognized for the amount expected to The Company determines its incremental borrowing rate
be paid under short-term cash bonus or profit-sharing plans by obtaining interest rates from various external financing
if the Company has a present legal or constructive obligation sources and makes certain adjustments to reflect the terms
to pay this amount as a result of past service provided by the of the lease and type of the asset leased.
employee, and the obligation can be estimated reliably. Lease payments included in the measurement of the lease
liability comprise the following:
3.5 Provisions
• fixed payments, including in-substance fixed payments;
Company has a present legal or constructive obligation • variable lease payments that depend on an index or
that can be estimated reliably, and it is probable that an a rate, initially measured using the index or rate as at
outflow of economic benefits will be required to settle the commencement date;
the obligation, and a reliable estimate can be made of the • amounts expected to be payable under a residual
amount of the obligation. value guarantee; and
• the exercise price under a purchase option that the
3.6 Leases Company is reasonably certain to exercise, lease payments
The Company has applied SFRS(I) 16 using the modified in an optional renewal period if the Company is reasonably
retrospective approach and therefore the comparative certain to exercise an extension option, and penalties
information has not been restated and continues to be for early termination of a lease unless the Company is
reported under SFRS(I) 1-17 and SFRS(I) INT 4. The details reasonably certain not to terminate early.
of accounting policies under SFRS(I) 1-17 and SFRS(I) INT
The lease liability is measured at amortized cost using the
4 are disclosed separately.
effective interest method. It is remeasured when there is a
Policy applicable from April 1, 2019 change in future lease payments arising from a change in an
At inception of a contract, the Company assesses whether a index or rate, if there is a change in the Company’s estimate
contract is, or contains, a lease. A contract is, or contains, of the amount expected to be payable under a residual value
a lease if the contract conveys the right to control the use guarantee, if the Company changes its assessment of whether
of an identified asset for a period of time in exchange for it will exercise a purchase, extension or termination option or
consideration. To assess whether a contract conveys the right if there is a revised in-substance fixed lease payment.
to control the use of an identified asset, the Company uses When the lease liability is remeasured in this way, a
the definition of a lease in SFRS(I) 16. corresponding adjustment is made to the carrying amount of
This policy is applied to contracts entered into on or the ROU asset, or is recorded in profit or loss if the carrying
after April 1, 2019. amount of the ROU asset has been reduced to zero.
(i) As a lessee Leases – Policy applicable before April 1, 2019

The Company recognizes a ROU asset and a lease liability For contracts entered into before April 1, 2019, the Company
at the lease commencement date. The ROU asset is initially determined whether the arrangement was or contained a lease
measured at cost, which comprises the initial amount of the based on the assessment of whether:
lease liability adjusted for any lease payments made at or • fulfilment of the arrangement was dependent on the use
before the commencement date, plus any initial direct costs of a specific asset or assets; and
incurred and an estimate of costs to dismantle and remove • the arrangement had conveyed a right to use the asset. An
the underlying asset or to restore the underlying asset or the arrangement conveyed the right to use the asset if one of
site on which it is located, less any lease incentives received. the following was met:
The ROU asset is subsequently depreciated using the straight- – the purchaser had the ability or right to operate the
line method from the commencement date to the end of asset while obtaining or controlling more than an
the lease term, unless the lease transfers ownership of the insignificant amount of the output;
underlying asset to the Company by the end of the lease term

– the purchaser had the ability or right to control physical The transaction price may be fixed or variable and is adjusted
access to the asset while obtaining or controlling more for time value of money if the contract includes a significant
than an insignificant amount of the output; or financing component. Consideration payable to a customer
– facts and circumstances indicated that it was remote is deducted from the transaction price if the Company does
that other parties would take more than an insignificant not receive a separate identifiable benefit from the customer.
amount of the output, and the price per unit was neither When consideration is variable, the estimated amount
fixed per unit of output nor equal to the current market is included in the transaction price to the extent that it is
price per unit of output. highly probable that a significant reversal of the cumulative
revenue will not occur when the uncertainty associated with
(ii) As a lessee
the variable consideration is resolved.
In the comparative period, as a lessee the Company classified
Revenue may be recognized at a point in time or over
leases that transferred substantially all of the risks and
time following the timing of satisfaction of the PO. If a PO
rewards of ownership as finance leases. When this was the
is satisfied over time, revenue is recognized based on the
case, the leased assets were measured initially at an amount
percentage of completion reflecting the progress towards
equal to the lower of their fair value and the present value of
complete satisfaction of that PO.
the minimum lease payments. Minimum lease payments were
the payments over the lease term that the lessee was required 3.9 Finance income and costs
to make, excluding any contingent rent. Subsequent to initial The Company’s finance income and finance costs include:
recognition, the assets were accounted for in accordance with
the accounting policy applicable to that asset. • interest income; and
Assets held under other leases were classified as operating • interest expense.
leases and were not recognized in the Company’s Statement Interest income or expense is recognized using the
of Financial Position. Payments made under operating leases effective interest method.
were recognized in profit or loss on a straight-line basis The ‘effective interest rate’ is the rate that exactly discounts
over the term of the lease. Lease incentives received were estimated future cash payments or receipts through the
recognized as an integral part of the total lease expense, over expected life of the financial instrument to:
the term of the lease. • the gross carrying amount of the financial asset; or
3.7 Government grants • the amortized cost of the financial liability.
The Company recognises a government grants related to wage In calculating interest income and expense, the effective
support to employers in profit or loss as deduction against interest rate is applied to the gross carrying amount of the asset
salary cost when the grant becomes receivable. The Company (when the asset is not credit-impaired) or to the amortized
also recognised grant as deferred income at fair value if there cost of the liability. However, for financial assets that have
is reasonable assurance that they will be received and the become credit-impaired subsequent to initial recognition,
Company will comply with the conditions associated with the interest income is calculated by applying the effective interest
grant; they are then recognised in profit or loss as deduction rate to the amortized cost of the financial asset. If the asset
against salary costs on a systematic basis over the months. is no longer credit-impaired, then the calculation of interest
income reverts to the gross basis.
3.8 Revenue
Revenue from professional services and information 3.10 Tax
technology services in the ordinary course of business are Tax expense comprises current and deferred tax. Tax expense
recognized when the Company satisfies a performance is recognized in the profit or loss except to the extent that
obligation (PO) by transferring control of a promised it relates to items recognized directly in equity or in other
good or service to the customer. The amount of revenue comprehensive income.
recognized is the amount of the transaction price allocated The Company has determined that interest and penalties
to the satisfied PO. related to income taxes, including uncertain tax treatments,
The transaction price is allocated to each PO in the contract do not meet the definition of income taxes, and therefore
on the basis of the relative standalone selling prices of the accounted for them under SFRS(I) 1-37 Provisions,
promised goods and services. The individual standalone Contingent Liabilities and Contingent Assets.
selling price of a good and service that has not been previously Current tax is the expected tax payable on the taxable income
been sold on a stand-alone basis, or has a highly variable for the year, using tax rates enacted or substantively enacted
selling price, is determined based on the residual portion at the Balance Sheet date, and any adjustment to tax payable
of the transaction price after allocating the transaction price in respect of previous years. The amount of current tax
to goods and/or services with observable standalone selling payable is the best estimate of the tax amount expected to be
prices. A discount or variable consideration is allocated to paid that reflects uncertainty related to income losses, if any.
one or more, but not all, of the performance obligations if it
Current tax assets and liabilities are offset only if
relates specifically to those performance obligations.
certain criteria are met.
Transaction price is the amount of consideration in the
Deferred tax is recognized in respect of temporary differences
contract to which the Company expects to be entitled in
between the carrying amounts of assets and liabilities for
exchange for transferring the promised goods and services.

financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for temporary
differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects
neither accounting nor taxable profit or loss.
The measurement of deferred taxes reflects the tax consequences that would follow the manner in which the Company expects,
at the reporting date, to recover or settle the carrying amount of its assets and liabilities. Deferred tax is measured at the tax
rates that are expected to be applied to temporary differences when they reverse, based on tax rates and tax laws that have been
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets and
they relate to income taxes levied by the same tax authority on the same taxable entity.
A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that
it is probable that future taxable profits will be available against which temporary differences can be utilized. Deferred tax
assets are reviewed at each Balance Sheet date and are reduced to the extent that it is no longer probable that the related tax
benefit will be realized.
3.11 New standards and interpretations not yet adopted
A number of new standards are effective for annual periods beginning after April 1, 2019 and earlier application is permitted;
however, the Company has not early adopted the new or amended standards in preparing these financial statements.
The following amended standards and interpretations are not expected to have a significant impact on the Company’s
financial statements:
• Amendments to References to Conceptual Framework in SFRS(I) Standards
• Amendments to SFRS(I) 3 Definition of a Business
• Amendments to SFRS(I) 1-1 and SFRS(I) 1-8 Definition of Material
• SFRS(I) 17 Insurance Contracts
4 Property, plant and equipment
In SG $
Particulars Building Plant and Leasehold Computers Office Asset under Total
machinery improvements and software furniture construction
and
equipment
Cost
At March 31, 2018 and – 1,662,418 28,104,842 205,112 985,189 30,957,561
April 1, 2018
Reclassifications – – 1,935 325,099 – (327,034) –
Additions – – 106,187 715,870 – 222,120 1,044,177
Disposal to related
corporation – – – (1,245,306) (601) – (1,245,907)
Write-off – – – (3,029,040) – (843,109) (3,872,149)
At March 31, 2019 – – 1,770,540 24,871,465 204,511 37,166 26,883,682
At April 1, 2019 – – 1,770,540 24,871,465 204,511 37,166 26,883,682
Recognition of ROU
assets on initial
application of SFRS (I) 16 3,112,310 – – – 59,310 – 3,171,620
Adjusted balance April 1,
2019 3,112,310 – 1,770,540 24,871,465 263,821 37,166 30,055,302
Reclassifications – – 186,454 505,529 – (691,983) –
Additions – 29,800 – 465,007 17,774 654,817 1,167,398
Write-off – – – (36,976) – – (36,976)
At March 31, 2020 3,112,310 29,800 1,956,994 25,805,025 281,595 – 31,185,724

In SG $
Particulars Building Plant and Leasehold Computers Office Asset under Total
machinery improvements and software furniture construction
and
equipment
Accumulated
depreciation
At March 31, 2018
and – – 790,695 19,090,394 138,948 – 20,020,037
April 1, 2018
Depreciation for
the year – – 455,518 4,363,899 43,328 – 4,862,745
Disposal to related
corporation – – (683,637) (601) – (684,238)
Write-off – – – (2,758,489) – – (2,758,489)
At March 31, 2019 – – 1,246,213 20,012,167 181,675 – 21,440,055
At April 1, 2019 – – 1,246,213 20,012,167 181,675 – 21,440,055
Recognition of
ROU asset on
initial application
of SFRS(I) 16 62,246 – – – 2,165 – 64,411
Adjusted balance
April 1, 2019 62,246 – 1,246,213 20,012,167 183,840 – 21,504,466
Depreciation for
the year 746,954 179 331,425 4,111,304 42,733 – 5,232,595
Write-off – – – (36,976) – – (36,976)
At March 31, 2020 809,200 179 1,577,638 24,086,495 226,573 – 26,700,085
Carrying amounts
At 1 April 2018 – – 871,723 9,014,448 66,164 985,189 10,937,524
At March 31, 2019 – – 524,327 4,859,298 22,836 37,166 5,443,627
At March 31, 2020 2,303,110 29,621 379,356 1,718,530 55,022 – 4,485,639
As at March 31, 2020, property, plant and equipment includes ROU assets of S$2,303,110 and S$45,171 related to leased
building and office equipment and furniture respectively.
Changes in estimate
During the year the company revised its useful life policy so as to align their policy with their immediate controlling party –
Infosys Consulting Pte Ltd. As a result, the expected useful lives of computer and software has changed from 2 to 5 years to 3
to 5 years. The effect of these changes on depreciation in current period on asset currently held is as follows :
In SG $
2020 2021 2022
Increase/(decrease) in depreciation expense and correspondingly
(decrease)/increase in profit before tax 873,579 (488,581) (384,998)
Depreciation methods, useful lives and residual values are reviewed and adjusted, as appropriate, at each Balance Sheet date.
5 Trade and other receivables
In SG $
2020 2019
Current assets
Trade receivables
Ultimate holding company 190,953 –
Immediate holding company 32,345 –
Related corporations 27,833,572 11,082,760
Third parties 1,797,251 1,620,606
14 29,854,121 12,703,366
Deposits 247,392 250,272
Grant receivables 951,678 –

2020 2019
Other receivables 5,984 –
31,059,175 12,953,638
Prepayments 5,742,740 4,611,691
36,801,915 17,565,329
The Company’s exposure to credit and currency risks, and impairment losses for trade and other receivables are disclosed in Note 13.
Information about government grant is included in note no. 9.
6 Cash and cash equivalents
In SG $
2020 2019
Cash at banks 6,567,205 10,529,970
Fixed deposits 5,035,857 –
11,603,062 10,529,970
The weighted average effective interest rate relating to cash and cash equivalents at the Balance Sheet date for the Company
are 1.00% - 1.57% (2019: 0%) per annum.
Included in the Company’s cash and cash equivalents are amounts of SG$11,603,062 (2019: SG$10,383,361) placed with
financial institutions who are also related corporations.
7 Share capital
In SG $
2020 2019
No. of shares No. of shares
Ordinary shares
At 1 April and 31 March 1,000,000 1,000,000
The holder of ordinary shares is entitled to receive dividends as declared from time to time and is entitled to one vote per share
at meetings of the Company. All shares rank equally with regards to the Company’s residual assets.
All issued shares are fully paid.
8 Deferred tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following:
In SG $
Particulars Assets Liabilities
2020 2019 2020 2019
Plant and equipment (20,823) – – 638,934
Employee benefits (1,257,877) (1,136,525) – –
Trade receivable (55,892) – – –
Others (50,888) (34,634) – –
Deferred tax (assets) / liabilities (1,385,480) (1,171,159) – 638,934
Set off of tax – 638,934 – (638,934)
Net deferred tax (assets) / liabilities (1,385,480) (532,225) – –
Movement in deferred tax balances during the year:

In SG $
Particulars At Recognized in At Recognized in At
April 1, 2018 profit or loss March 31, 2019 profit or loss March 31, 2020
(note 17) (note 17)
Plant and equipment 1,683,287 (1,044,353) 638,934 (659,757) (20,823)
Employee benefits (163,516) (973,009) (1,136,525) (121,352) (1,257,877)
Trade receivable – – – (55,892) (55,892)
Others – (34,634) (34,634) (16,254) (50,888)
1,519,771 (2,051,996) (532,225) (853,255) (1,385,480)

In SG $
2020 2019
Trade payables
- ultimate holding company 5,100,357 966,057
- immediate holding company 2,134,299 1,196,220
- related corporations 321,846 –
- third parties 3,191,662 2,161,682
Other payables 1,563,140 777,037
Accruals 7,714,468 6,258,335
Deferred grant income 951,678 –
Non-trade payables:
- Ultimate holding company 64,471 174,451
21,041,921 11,533,782
Grant income under Job Support Scheme is deferred and will be recognized in profit or loss as deduction against salary costs
on a systematic basis, over the 9 months period until December 2020 in which the grant is intended to compensate.
Non-trade amounts due to ultimate holding company are unsecured, interest-free and repayable on demand.
The Company’s exposure to liquidity risk related to trade and other payables is disclosed in Note 13.
10 Employee benefits
In SG $
2020 2019
Current
Short-term accumulating compensated absences 1,052,022 647,255
Training plan 591,547 888,540
Bonus plan 1,043,660 517,000
2,687,229 2,052,795
Non-current
Training plan 591,547 888,540
Bonus plan 649,969 924,557
1,241,516 1,813,097
11 Provision for reinstatement cost

The movement for provision for dismantlement, reinstate or redecorate is as follows:
In SG $
2020 2019
Non-current
Beginning of financial year 203,734 50,078
Provision reversed during the year (203,734) –
Provision made during the year – 153,656
Adjustment for initial application of SFRS(I) 16 293,783 –
Unwind of discount 5,568 –
End of financial year 299,351 203,734
This provision relates to cost of dismantling and removing assets and restoring the premises to its original condition as stipluated
in the operating lease agreement. The company expects to incur the liability upon termination of the lease. The provision is
measured at the best estimate of the expenditure required and timing of outflow, to settle the present obligation at the end of
each reporting period

12 Lease liabilities
In SG $
2020 2019
Current 728,729 –
Non-current 1,554,677 –
2,283,406 –
Information about the Company’s exposure to interest rate, foreign currency and liquidity risk is included in Note 13.
Terms and debt repayment schedule
Particulars Currency Nominal interest Year of Face value Carrying
rate maturity amount
Lease liabilities SGD 1.58% - 2.63% 2020 - 2023 2,373,531 2,283,406
Reconciliation of movements of liabilities to cash flows arising from financing activities

In SG $
Particulars Total lease
liabilities
Balance as at 1 April 2019 –
Adjustment for initial application of SFRS(I) 16 2,983,025
Adjusted balance at 1 April 2019 2,983,025
Changes from financing cash flows
Payment of lease liabilities (717,392)
Interest paid (68,014)
Total changes from financing cash flows (785,407)
Other changes
New leases 17,773
Interest expenses 68,014
Total other changes 85,788
Balance as at 31 March 2020 2,283,406
Overview
The Company has exposure to the following risks from its use of financial instruments:
• credit risk
• liquidity risk
• market risk
This Note presents information about the Company’s exposure to each of the above risks, the Company’s objectives, policies
and processes for measuring and managing risk, and the Company’s management of capital.
Risk management framework
The Board of Directors oversees the Management in monitoring compliance with the Company’s risk management policies
and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.
Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet
its contractual obligations and arises principally from the Company’s loans and receivables. The Company does not hold any
collateral in respect of their financial assets.
Exposure to credit risk
The carrying amounts of cash and cash equivalents held by the Company represent its maximum credit exposure on these
assets. Cash and fixed deposits are placed with banks and financial institutions which are regulated. At the Balance Sheet
date, 100% (2019: 100%) of the Company’s cash and cash equivalents are placed with financial institutions with credit-
rating of A-1 and above.
The Company limits its exposure to credit risk by mainly investing in debt securities and low risk funds managed by Singapore
financial institutions.

Other than the above, there were no other concentrations of credit risk. The maximum exposure to credit risk is represented
by the carrying amount of each financial asset in the statement of financial position.
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the
reporting date was as follows:
Expected credit loss assessment for trade receivables and contract assets
The Company uses a provision matrix to measure the lifetime credit loss allowance for trade receivables and contract assets. In
measuring the expected credit losses, trade receivable and contract assets are grouped based on shared credit risk characteristics
such as customer types and days past due.
In calculating the expected credit loss rates, the Company considers loss rates for each category of customers, based on actual
credit loss experience for the last three years. The resultant impact arising from expected credit loss was not material.
The following table provides information about the exposure to credit risk for trade receivables and contract assets as at 31 March
In SG $
Particulars Lifetime ECL – Lifetime ECL –
not impaired credit impaired
2020
Current (not past due) 32,445,771 –
1 – 30 days past due 3,444,353 –
31 – 60 days past due 2,463,295 –
More than 60 days past due 1,459,054 328,775
Gross carrying amount 39,812,473 328,775
Loss allowance – (328,775)
Carrying amount 39,812,473 –
In SG $
Particulars Lifetime ECL – Lifetime ECL –
not impaired credit impaired
2019
Current (not past due) 15,803,369 –
1 – 30 days past due 268,063 –
31 – 60 days past due 191,878 –
More than 60 days past due 816,148 –
Gross carrying amount 17,079,458 –
Loss allowance – –
Carrying amount 17,079,458 –
Movements in allowance for impairment in respect of trade and other receivables

The movement in the allowance for impairment in respect of trade receivables and contract assets during the year was as follows:
2020 2019
Balance as at 1 April – 90
Impairment loss recognised 328,775 –
Reversal of impairment losses previously recognised – (90)
Balance as at 31 March 328,775 –
The Company believes that the unimpaired amounts that are past due by more than 60 days are still collectible in full, based on
historic payment behavior and analysis of customer credit risk, including underlying customers’ credit ratings, when available.
Impairment loss on these other financial assets have been measured on the 12-month expected loss basis and reflects the short
term maturities of the exposures. The Company consider that remaining receivables have low credit risk based on the external
credit ratings of the counterparties.
The Company held cash and cash equivalents of $11,603,062 at 31 March 2020 (2019: S$10,529,970) Impairment on
cash and cash equivalents has been measured on the 12-month expected loss basis and reflects the short maturities of the
exposures. The Company considers that its cash and cash equivalents have low credit risk based on the external credit ratings
of the counterparties.

Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset.
The Company monitors its liquidity risk and maintains a level of cash and cash equivalents deemed adequate by management
to finance the Company’s operations and to mitigate the effects of fluctuations in cash flows.
Exposure to liquidity risk
The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the
impact of netting agreements:
In SG $
Particulars Carrying Contractual Within 1 year More than 1
amount cashflow year
March 31, 2020
Trade and other payables (excluding deferred
grant income) 20,090,243 (20,090,243) (20,090,243) –
Lease liabilities 2,283,406 (2,373,531) (778,049) (1,595,482)
22,373,649 (22,463,774) (20,868,292) (1,595,482)
March 31, 2019
Trade and other payables 11,533,782 (11,533,782) (11,533,782) –
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates will affect the Company’s income or the
value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk
exposures within acceptable parameters, while optimizing the return.
Currency risk
As at Balance Sheet date, the Company is not exposed to significant currency risks.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flow of the Company’s financial instruments will fluctuate because
of changes in market interest rates. As at Balance Sheet date, the Company is not exposed to significant interest rate risk.
Capital management
The capital management of the Company is determined and managed by the immediate holding company as part of the
operations of the Company. The Company’s capital comprises its share capital and accumulated profits.
There were no changes in the Company’s approach to capital management during the year.
Accounting classifications and fair values
The carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy
are as follows. It does not include fair value information for financial assets and financial liabilities not measured at fair value
if the carrying amount is a reasonable approximation of fair value.
In SG $
Particulars Note Financial assets Other financial Total carrying
at amortized liabilities amounts
cost
2020
Financial assets not measured at fair value
Trade and other receivables (excluding grant
receivables and prepayments) 5 30,107,497 – 30,107,497
Cash and cash equivalents 6 11,603,062 – 11,603,062
41,710,559 – 41,710,559
Financial liabilities not measured at fair value
Trade and other payables (excluding deferred
grant income) 9 – 20,090,243 20,090,243

Particulars Note Financial assets Other financial Total carrying
at amortized liabilities amounts
cost
2019
Financial assets not measured at fair value
Trade and other receivables (excluding
prepayments) 5 12,953,638 – 12,953,638
Cash and cash equivalents 6 10,529,970 – 10,529,970
23,483,608 – 23,483,608
Financial liabilities not measured at fair value
Trade and other payables 9 – 11,533,782 11,533,782
The notional amounts of financial assets and liabilities with a maturity of less than one year (including trade and other
receivables, cash and cash equivalents, and trade and other payables) are assumed to approximate theirs fair values because
of the short period of maturity.
14 Revenue
In SG $
Particulars For the year,
2020 2019
Professional services fee income 34,997,425 15,519,153
Electronic polling services – 1,624,199
Smart messaging services fee income 11,882,180 11,235,476
Utility computing services fee income 32,179,528 23,073,289
IT security services fee income 8,739,419 9,654,984
Corporate secretariat income – 3,842,855
Finance services income – 2,560,158
HR services income – 1,072,404
87,798,552 68,582,518
The following tables provide information about the nature and timing of the satisfaction of performance obligations in contracts
with customers, including significant payment terms, and the related revenue recognition policies:
Revenue stream
Nature of goods or services The Company generates revenue from providing IT consultancy services (which
includes professional service, Electronic polling services, Smart messaging services,
Utility computing services and IT security services). Finance, HR and Company
secretary services have been disposed in prior year.
When revenue is recognized Revenue is recognized when these services are delivered to the customer and all
criteria for acceptance have been satisfied.
These contracts qualify for over time revenue recognition and the Company generally
has enforceable rights to payment for performance completed till date. The stage
of completion is assessed by reference to the contract costs incurred till date in
proportion to the total estimated contract costs of each contract.
Significant payment terms Payment is due when services are rendered to the customers or when milestones
are met or progress billing to the customer are based on a payment schedule in the
contract that is dependent on the achievement of specified milestones. If the value of
the services rendered exceeds the payments received from the customer, a contract
asset is recognized.
Obligations for returns and refunds, if any Revenue is recognized to the extent that it is highly probable that a significant reversal
in the amount of cumulative revenue recognized will not occur. Therefore, the amount
of revenue recognized is adjusted based on availability of supporting documents.
The Company reviews its estimate of revenue at each reporting date and updates
the amounts of the assets and liabilities accordingly.

Disaggregation of revenue from contracts with customers
In the following table, revenue from contracts with customers is disaggregated by primary geographical markets, major products and service lines and timing of revenue recognition.
The table also includes a reconciliation of the disaggregated revenue with the Company’s reportable segments.
In SG $
Particulars IT consultancy Corporate secretariat Finance services HR services Total
2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
Primary geographical
markets
Singapore 87,798,552 61,107,101 – 3,842,855 – 2,560,158 – 1,072,404 87,798,552 68,582,518
Major products/service line

Sale of services 87,798,552 61,107,101 – 3,842,855 – 2,560,158 – 1,072,404 87,798,552 68,582,518
Timing of revenue
recognition
Products and services
transferred over time 87,798,552 61,107,101 – 3,842,855 – 2,560,158 – 1,072,404 87,798,552 68,582,518
Contract balances
The information about receivables, contract assets and contract liabilities from contracts with customers is as follows:
In SG $
2020 2019
Trade receivables 5 29,854,121 12,703,366
Contract assets 9,958,352 4,376,092
Contract liabilities (2,684,119) (708,161)
37,128,354 16,371,297
Infosys Compaz Pte. Ltd. | 943

The contract assets primarily relate to the Company’s rights to consideration for work completed but not billed at the reporting
date on services rendered and project completion. The contract assets are transferred to trade receivables when the rights
become unconditional. This usually occurs when the Company invoices the customer.
The contract liabilities primarily relate to advance consideration received from customers for projects over a period of time;
Significant changes in the contract assets and the contract liabilities balances during the year are as follows:
In SG $
Particulars Contract assets Contract liabilities
2020 2019 2020 2019
Revenue recognized that was included in the
contract liability balance at the beginning of the
year – – 708,161 1,618,615
Increase due to cash received, excluding amounts
recognized as revenue during the year – – (2,684,119) (708,161)
Contract assets reclassified to trade receivable 4,376,092 – – –
Changes in measurement of progress 9,958,352 2,709,009 – –
Actual agreements and service orders are used to estimate the total contract costs to complete. In making these estimates,
management has relied on the expertise of project managers as well as timesheets to determine the progress of the projects.
The estimated total contract costs are reviewed every reporting period and adjusted where necessary, with the corresponding
adjustment to profit margin being recognized prospectively from the date of change.
Transaction price allocated to the remaining performance obligations
The following table includes revenue expected to be recognised in the future related to performance obligations that are
unsatisfied (or partially satisfied) at the reporting date.
2020 2021 2022 2023 Total
IT consultancy services 19,786,142 5,712,474 7,763,518 33,262,133
2019 2020 Total
IT consultancy services 7,784,948 7,784,948
Variable consideration that is constrained and therefore not included in the transaction price is excluded from the
amount presented above.
The Company applies the practical expedient in paragraph 121 of SFRS(I) 15 and does not disclose information about its
remaining performance obligations if:
• the performance obligation is part of a contract that has an original expected duration of one year or less; or
• the Company has a right to invoice a customer in an amount that corresponds directly with its performance to date, then
it recognises revenue in that amount.
15 Finance income and costs

In SG $
2020 2019*
Interest income under the effective interest method on:
Debt investments – FVOCI – 29,926
Fixed deposit 89,809 7,855
Cash and cash equivalents – 17
Finance income 89,809 37,798
Lease liability interest expense (68,014) –
Unwind of discount for provision for reinstatement cost (5,568) –
Finance costs (73,582) –
Net finance income 16,227 37,798

16 Profit/(Loss) before income tax
The following items have been included in arriving at profit before income tax:
In SG $
2020 2019
Depreciation of plant and equipment 5,232,595 4,862,745
Plant and equipment written off – 1,113,660
Directors’ fees – 60,000
Staff costs 32,581,295 33,737,801
Contributions to defined contribution plans, included in staff costs 1,842,386 2,209,514
Provision made for unconsumed leave 549,653 237,319
Operating lease expense – 956,362
17 Income tax expense

In SG $
Particulars Note For the year,
2020 2019
Current tax expense
Current year 2,700,619 938,548
(Over)/under provision in prior years (1,160,080) 1,981,664
1,540,539 2,920,212
Deferred tax expense
Origination and reversal of temporary differences 8 (853,255) (2,051,996)
Reconciliation of effective tax rate
Profit/(loss) before income tax 10,702,624 (10,374,366)
Income tax using Singapore tax rate of 17% (2019: 17%) 1,819,446 (1,763,642)
Tax incentives (134,813) (188,769)
Non-deductible expenses 180,156 936,723
Income not subject to tax (17,425) (97,760)
(Over)/under provision in prior years (1,160,080) 1,981,664
687,284 868,216
18 Leases
Leases as lessee (SFRS(I) 16)
The Company leases office and office equipment. The leases typically run for a period of three years, with an option to renew
the lease after that date.
The office and office equipment were entered into many years ago as combined leases of land and buildings. Previously, these
leases were classified as operating leases under SFRS(I) 1-17.
Information about leases for which the Company is a lessee is presented below.
In SG $
Particulars Building Office furniture Total
and equipment
2020 2020 2020
Balance at 1 April 3,050,064 57,145 3,107,209
Depreciation charge for the year (746,954) (29,748) (776,702)
Additions to ROU assets – 17,774 17,774
Balance at 31 March 2,303,110 45,171 2,348,281
Amounts recognized in profit or loss:

In SG $
March 31, 2020
2020 – Leases under SFRS(I) 16
Interest on lease liabilities 68,014
2019 – Operating leases under SFRS(I) 1-17
Lease expense 1,046,210

Amounts recognized in statement of cash flows:
In SG $
March 31, 2020
Total cash outflow for leases 785,406
19 Commitments
License and Maintenance contracts
The Company has entered into contracts for the license and maintenance of certain software and equipment. The non-
cancellable expenses are payable as follows:
In SG $
2020 2019
Within one year 6,770,863 1,610,117
Between one and five years 1,392,592 449,168
8,163,455 2,059,285
20 Related parties
Key management personnel compensation
Key management personnel of the Company are those persons having the authority and responsibility for planning,
directing and controlling the activities of the entity. The directors and executive officers are considered as key management
personnel of the Company.
Key management personnel compensation comprised:
In SG $
2020 2019
Short-term employee benefits 2,939,877 2,249,347
Contributions to defined contribution plans 125,991 67,211
3,065,868 2,316,558
No directors’ fees was proposed in respect of the financial year ended March 31, 2020 (2019: S$60,000)
Other related party transactions
For the purpose of these financial statements, parties are considered to be related to the Company if the Company has the
ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and
operating decisions, or vice versa, where the Company and the party are subject to common control or common significant
influence. Related parties may be individuals or other entities. Other than as disclosed elsewhere in the financial statements,
the transactions with related parties during the year based on terms agreed between the parties are as follows:
In SG $
2020 2019
Ultimate holding company
e-services – 48,470
IT security services fee income 6,341,459 2,726,425
Finance services income – 132,083
HR services income – 61,165
Reimbursement of expenses 2,315,871 1,811,613
Manpower cost recovery (16,965,266) –
Immediate holding company
Professional services fee income – 6,345
Utility computing services fee income – 43,770
Corporate secretariat income – 1,167
Finance services income – 98,000

2020 2019
Reimbursement of expenses 30,229 1,703,798
Related corporations
e-services – 1,575,729
IT security services fee income 964,133 6,928,559
Finance services income – 2,330,074
Information technology services and internet services expense (4,831,375) (5,688,301)
21 Critical accounting estimates, assumptions and judgments

Estimates, assumptions and judgments are continually evaluated and are based on historical experience and other factors,
including expectations of future events that are believed to be reasonable under the circumstances.
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment
within the next financial year and critical judgments in applying accounting policies that have the most significant effect on
the amounts recognized in the financial statements are discussed below:
The Company maintain impairment loss at a level considered adequate to provide for potential uncollectible receivables. The
level of this allowance is evaluated by the Company on the basis of factors that affect the collectability of the accounts. These
factors include, but not limited to, the length of the Company’s relationship with the debtors, their payment behavior and known
market factors. The Company reviews the age and status of receivables and identifies accounts which require allowance to be
made on a continuous basis. The amount and timing of recorded expenses for any period would differ if the Company made
different judgment or utilized different estimates. An increase in the Company’s impairment loss would increase the Company’s
recorded other expenses and decrease current assets.
Estimation of useful lives of plant and equipment
The Company reviews the useful lives of plant and equipment at each Balance Sheet date in accordance with the accounting
policy in Note 3.2. The estimation of the useful lives involves significant judgment.
Estimation of uncertainties relating to the global health pandemic from COVID-19:
The company has considered the possible effects that may result from the pandemic relating to COVID-19 on the carrying
amounts of receivables and contract asset. In developing the assumptions relating to the possible future uncertainties in the global
economic conditions because of this pandemic, the company, as at the date of approval of these financial statements has used
internal and external sources of information and related information and economic forecasts. The Company expects to recover
the carrying amount of these assets and will continue to closely monitor any material changes to future economic conditions.

Infosys Consulting Pte. Ltd
(Registration No. 200009030D)
Infosys Subsidiary Financials 2019-20 Infosys Consulting Pte. Ltd I 949

Directors’ statement and Financial statements
Year ended December 31, 2019
Directors’ statement
The directors present their statement together with the audited financial statements of the Company for the financial year
ended December 31, 2019.
In the opinion of the directors, the financial statements of the Company as set out on pages 6 to 43 are drawn up so as to
give a true and fair view of the financial position of the Company as at December 31, 2019, and the financial performance,
changes in equity and cash flows of the Company for the financial year then ended and at the date of this statement, with the
continuing financial support from Infosys Limited, its holding company, and a letter of undertaking from Infosys Limited not
to recall or demand repayment of the amount owing by the Company to the holding company unless it has the ability to repay
such obligation, there are reasonable grounds to believe that the Company will be able to pay its debts when they fall due.
1 Directors
The directors of the Company in office at the date of this statement are:
Shveta Arora
Srinivasan Badrinath(Appointed on October 18, 2019)
2 Arrangements to enable directors to acquire benefits by means of the acquisition of shares and
debentures
Neither at the end of the financial year nor at any time during the financial year did there subsist any arrangement whose
object is to enable the directors of the Company to acquire benefits by means of the acquisition of shares or debentures in the
Company or any other body corporate.
3 Directors’ interests in shares and debentures
The directors of the Company holding office at the end of the financial year had no interests in the share capital and debentures
of the Company and related corporations as recorded in the register of directors’ shareholdings kept by the Company under
Section 164 of the Singapore Companies Act.
Directors’ statement
4 Share options
(a) Options to take up unissued shares
During the financial year, no option to take up unissued shares of the Company was granted.
(b) Options exercised
During the financial year, there were no shares of the Company issued by virtue of the exercise of an option to take up unissued shares.
(c) Unissued shares under option
At the end of the financial year, there were no unissued shares of the Company under option.
5 Auditors
The auditors, Deloitte & Touche LLP, have expressed their willingness to accept re-appointment.
Shveta Arora
Srinivasan Badrinath
August 11, 2020
950 I Infosys Consulting Pte. Ltd Infosys Subsidiary Financials 2019-20

Opinion
We have audited the accompanying financial statements of Infosys Consulting Pte Ltd (the “Company”),
which comprise the statement of financial position as at December 31, 2019, and the statement of profit or loss and other
comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies, as set out on pages 6 to 43.
In our opinion, the accompanying financial statements are properly drawn up in accordance with the provisions of the
Companies Act, Chapter 50 (the “Act”) and Financial Reporting Standards in Singapore (“FRSs”) so as to give a true and fair
view of the financial position of the Company as at December 31, 2019, and the financial performance, changes in equity and
cash flows of the Company for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”). Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the Company in accordance with the Accounting and Corporate Regulatory Authority (“ACRA”) Code
of Professional Conduct and Ethics for Public Accountants and Accounting Entities (“ACRA Code”) together with the ethical
requirements that are relevant to our audit of the financial statements in Singapore, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the ACRA Code. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion.
Management is responsible for the other information. The other information comprises the Directors’ Statement set out on
pages 1 to 2, but does not include the financial statements and our auditor’s report thereon.
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in
the audit or otherwise appears to be materially misstated.
Responsibilities of Management and Directors for the Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the
provisions of the Act and FRSs, and for devising and maintaining a system of internal accounting controls sufficient to provide
a reasonable assurance that assets are safeguarded against loss from unauthorized use or disposition; and transactions are
properly authorized and that they are recorded as necessary to permit the preparation of true and fair financial statements and
to maintain accountability of assets.
The directors’ responsibilities include overseeing the Company’s financial reporting process.
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SSAs will
always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.

As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional scepticism
(a) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
(b) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in
(c) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
(d) Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the Company’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the date of our auditor’s report.
(e) Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether
audit findings, including any significant deficiencies in internal control that we identify during our audit.
In our opinion, the accounting and other records required by the Act to be kept by the Company have been properly kept in
accordance with the provisions of the Act.
Public Accountants and

Singapore
August 11, 2020

Statement of financial position
in SG $
2019 2018
ASSETS
Current assets
Cash and cash equivalents 7 11,448,147 736,154
Non-current assets
Other receivables 8 124,702 197,433
Right-of-use assets 10 1,170,638 –
Subsidiaries 11 376,706,073 97,948,138
Total assets 393,400,623 103,515,539
LIABILITIES AND EQUITY
Current liabilities
Derivative financial instruments 12A 476,076 –
Loan from holding company and related company 13 114,485,031 79,518,465
Withholding tax payable 128,435 205,825
Contingent consideration 14 5,981,926 1,430,624
Non-current liability
Contingent consideration 14 10,059,225 14,358,897
10,862,158 14,358,897
Capital and reserve
Share capital 15 10,990,000 10,990,000
Redeemable preference share 15 249,200,000 –
Accumulated losses (635,077) (11,110,621)
Net capital surplus/(deficiency) 259,554,923 (120,621)
Total liabilities and equity 393,400,623 103,515,539

Statement of Profit or Loss and other comprehensive income
in SG $
2019 2018
Revenue 16 11,778,022 15,688,814
Other income 17 19,814,014 287,990
31,592,036 15,976,804
Total income
Travel expenses (537,110) (1,095,844)
Other operating expense (619,889) (1,857,893)
Finance costs 18 (9,826,795) (1,105,703)
Profit before income tax 10,411,427 53,086
Income tax benefit (expense) 19 64,117 (153,809)
Profit (Loss) for the year, representing total comprehensive income
(loss) for the year 20 10,475,544 (100,723)

in SG $
Particulars Share capital Redeemable Accumulated Total
preference share losses
Balance as at January 1, 2018 10,990,000 – (11,009,898) (19,898)
Total comprehensive loss for the year
Loss for the year, representing
total comprehensive loss for the year – – (100,723) (100,723)
Balance as at December 31, 2018 10,990,000 – (11,110,621) (120,621)
Profit for the year, representing
total comprehensive income for the year – – 10,475,544 10,475,544
Transactions with owners, recognized directly in
equity
Issuance of preference share – 249,200,000 – 249,200,000
Balance as at December 31, 2019 10,990,000 249,200,000 (635,077) 259,554,923

Statement of cash flows
in SG $
2019 2018
Profit before income tax 10,411,427 53,086
Adjustments for:
Depreciation of property, plant and equipment 25,810 129,304
Depreciation of right of use assets 348,027 –
Loss on disposal of plant and equipment – 5,835
Dividend income (19,475,859) –
Fair value loss on derivative financial instrument 476,076 –
Other miscellaneous expenses 26,727 –
Unrealized foreign exchange gain (352,924) (4,408)
Interest expense 9,826,795 1,105,703
Interest income (1,208) –
Operating cash flows before movements in working capital 1,284,871 1,289,520
Trade and other receivables 1,399,623 (711,704)
Trade and other payables (1,023,394) 87,645
Cash generated from operations 1,661,100 665,461
Income tax paid – (153,809)
Net cash from operating activities 1,661,100 511,652
Purchase of property, plant and equipment (9,160) -
Investment in subsidiaries (285,855,639) (77,016,745)
Loan to related company (672,856) -
Dividend received from subsidiaries 19,475,859 -
Interest paid on exit liability – (129,009)
Loan from related company 326,749,676 79,500,000
Repayments of borrowings (45,500,000) (2,361,343)
Repayment of lease liabilities (359,370) -
Interest paid (4,777,617) (32,685)
Net increase in cash and cash equivalents 10,711,993 471,870
Cash and cash equivalents at beginning of year 736,154 264,284
Cash and cash equivalents at end of year (Note 7) 11,448,147 736,154

Notes to financial statements
1 General Adoption of new and revised standards - On January 1, 2019,

The Company (Registration No. 200009030D) is incorporated the Company has adopted all the new and revised FRSs and
in Singapore with its principal place of business and registered Interpretations of FRS (“INT FRS”) that are relevant to its
office at Level 43, Unit 1, Suntec Tower 2, 9 Temasek operations. The adoption of these new/revised FRSs and INT
Boulevard, Singapore 038989. The financial statements are FRSs does not result in changes to the Company’s accounting
expressed in Singapore dollars. policies and has no material effect on the amounts reported
for the current or prior years except as disclosed below.
The principal activities of the Company are to carry on the
development of e-commerce applications and IT consulting FRS 116 Leases
as well as that of investment holding. FRS 116 introduces new or amended requirements with
The financial statements of the Company for the year ended respect to lease accounting. It introduces significant changes
December 31, 2019 were authorized for issue by the Board to lessee accounting by removing the distinction between
of Directors on August 11, 2020. operating and finance lease and requiring the recognition of
a right-of-use asset and a lease liability at commencement
2 Summary of significant accounting policies for all leases, except for short-term leases and leases of low
Basis of accounting - The financial statements have been value assets when such recognition exemptions are adopted.
prepared in accordance with the historical cost basis, except as In contrast to lessee accounting, the requirements for lessor
disclosed in the accounting policies below, and are drawn up accounting have remained largely unchanged. The impact
in accordance with the provisions of the Singapore Companies of the adoption of FRS 116 on the Company’s financial
Act and Financial Reporting Standards in Singapore (“FRSs”). statements is described below.
Historical cost is generally based on the fair value of the The date of initial application of FRS 116 for the
consideration given in exchange for goods and services. Company is January 1, 2019.
Fair value is the price that would be received to sell an asset The Company has applied FRS 116 using the cumulative
or paid to transfer a liability in an orderly transaction between catch-up approach which:
market participants at the measurement date, regardless of • requires the Company to recognize the cumulative effect
whether that price is directly observable or estimated using of initially applying FRS 116 as an adjustment to the
another valuation technique. In estimating the fair value opening balance of retained earnings at the date of initial
of an asset or a liability, the Company takes into account application; and
the characteristics of the asset or liability which market • does not permit restatement of comparatives, which
participants would take into account when pricing the asset or continue to be presented under FRS 17 and INT FRS 104.
liability at the measurement date. Fair value for measurement
and/or disclosure purposes in the financial statements is (a) Impact of the new definition of a lease
determined on such a basis, except for share-based payment The Company has made use of the practical expedient
transactions that are within the scope of FRS 102 Share- available on transition to FRS 116 not to reassess whether
based Payment, leasing transactions that are within the a contract is or contains a lease. Accordingly, the definition
scope of FRS 17 Leases, and measurements that have some of a lease in accordance with FRS 17 and INT FRS 104 will
similarities to fair value but are not fair value, such as net continue to be applied to those leases entered or changed
realizable value in FRS 2 Inventories or value in use in FRS before January 1, 2019.
36 Impairment of Assets. The change in definition of a lease mainly relates to the
In addition, for financial reporting purposes, fair value concept of control. FRS 116 determines whether a contract
measurements are categorized into Level 1, 2 or 3 based on the contains a lease on the basis of whether the customer has the
degree to which the inputs to the fair value measurements are right to control the use of an identified asset for a period of
observable and the significance of the inputs to the fair value time in exchange for consideration. This is in contrast to the
measurement in its entirety, which are described as follows: focus on ‘risks and rewards’ in FRS 17 and INT FRS 104.
• Level 1 inputs are quoted prices (unadjusted) in active The Company applies the definition of a lease and related
markets for identical assets or liabilities that the entity can guidance set out in FRS 116 to all lease contracts entered into
access at the measurement date; or modified on or after January 1, 2019 (whether it is a lessor
• Level 2 inputs are inputs, other than quoted prices or a lessee in the lease contract). The new definition in FRS
included within Level 1, that are observable for the asset 116 does not significantly change the scope of contracts that
or liability, either directly or indirectly; and meet the definition of a lease for the Company.
• Level 3 inputs are unobservable inputs for the asset or (b) Impact on lessee accounting
liability.
Former operating leases
FRS 116 changes how the Company accounts for leases
previously classified as operating leases under FRS 17, which
were off-balance-sheet.

Applying FRS 116, for all leases, the Company: in SG $
(i) Recognizes right-of-use assets and lease liabilities Particulars 2019

in the statements of financial position, initially Operating lease commitments at
measured at the present value of the remaining December 31, 2018 818,565
lease payments, with the right-of-use asset adjusted Less : Short term leases (34,485)
by the amount of any prepaid or accrued lease Less : Operating lease commitments for
payments in accordance with which lease
FRS 116.C8(b)(ii); has not commenced yet as at January
1, 2019 (784,080)
(ii) Recognizes depreciation of right-of-use assets Lease liabilities recognized as at January
and interest on lease liabilities in the statement of 1, 2019 –
profit or loss; and
(iii) Separates the total amount of cash paid into a principal The Company has assessed that there is no significant tax
portion (presented within financing activities) and impact arising from the application of
interest (presented within operating activities) in the
statement of cash flows. FRS 116.
Lease incentives (e.g. free rent period) are recognized as part of The Company has not recognized any right-of-use assets at
the measurement of the right-of-use assets and lease liabilities the date of initial application as the Company only has a
whereas under FRS 17 they resulted in the recognition of a single lease for which the lease term ends within 12 months
lease incentive liability, amortized as a reduction of rental of the date of initial application.
expense on a straight-line basis. New and amendments to FRSs in issue but not yet effective.
Under FRS 116, right-of-use assets are tested for impairment As at the date of authorization of these financial statements,
in accordance with FRS 36 Impairment of Assets. the following new/revised FRSs, and amendments to FRSs
For short-term leases (lease term of 12 months or less) that are relevant to the Company were issued but not effective:
and leases of low-value assets (which includes tablets and • Amendments to FRS 1 Presentation of Financial Statements
personal computers, small items of office furniture and and FRS 8 Accounting policies, Changes in Accounting
telephones), the Company has opted to recognize a lease Estimates and Errors: Definition of Material1
expense on a straight-line basis as permitted by FRS 116. • Amendments to References to the Conceptual Framework
This expense is presented within other operating expenses in FRS Standards1
in the statement of profit or loss. • Applies to annual periods beginning on or after January
1, 2020.
The Company has used the following practical expedients
when applying the cumulative catch-up approach to leases Management anticipates that the adoption of the above FRSs
previously classified as operating leases applying FRS 17. and amendments to FRS in future periods will not have a
• The Company has elected not to recognize right-of-use material impact on the financial statements of the Company
assets and lease liabilities to leases for which the lease term in the period of their initial adoption.
ends within 12 months of the date of initial application. Basis of consolidation - A subsidiary is an entity controlled
• The Company has excluded initial direct costs from the by the Company. Control is achieved when the Company:
measurement of the right-of-use asset at the date of initial • has power over its investee;
application. • is exposed, or has rights, to variable returns from its
• The Company has used hindsight when determining the involvement with the investee; and
lease term when the contract contains options to extend • has the ability to use its power to affect its returns
or terminate the lease. Consolidated financial statements of the Company and its
The right-of-use asset and the lease liability are accounted for subsidiaries have not been prepared as the Company is a
applying FRS 116 from January 1, 2019. wholly-owned subsidiary of another company. Consolidated
financial statements are prepared by the Company’s ultimate
(c) Financial impact of initial application of FRS 116 holding company, Infosys Limited, a company incorporated
The entity has only one lease as on January 1, 2019 which in India, whose registered address is Electronics City, Hosur
has been considered as short term lease as this lease has Road, Bengaluru 560 100 and is publicly available.
remaining lease term of less than 12 months. This expense In the Company’s financial statements, investment in
has been presented within other operating expenses in the subsidiaries is carried at cost less any impairment in net
statement of profit or loss. There was no impact on retained recoverable value that has been recognized in profit or loss.
earnings as on January 1, 2019.
Financial instruments - Financial assets and financial
The following table shows the operating lease commitments liabilities are recognized on the statement of financial position
disclosed applying FRS 17 at December 31, 2018, discounted when the Company becomes a party to the contractual
using the incremental borrowing rate at the date of initial provisions of the instruments.
application and the lease liabilities recognized in the statement
of financial position at the date of initial application. Financial assets
All financial assets are recognized and de-recognized on a
trade date where the purchase or sale of an investment is under

a contract whose terms require delivery of the investment conditions and an assessment of both the current as well
within the timeframe established by the market concerned. as the forecast direction of conditions at the reporting date,
All recognized financial assets are subsequently measured in including time value of money where appropriate.
their entirety at either amortized cost or fair value, depending For all other financial instruments, the Company recognizes
on the classification of the financial assets. lifetime ECL when there has been a significant increase in
credit risk since initial recognition. If, on the other hand,
Classification of financial assets
the credit risk on the financial instrument has not increased
Debt instruments mainly comprise cash and bank balances significantly since initial recognition, the Company measures
and trade and other receivables that meet the following the loss allowance for that financial instrument at an
conditions and are subsequently measured at amortized cost: amount equal to 12-month ECL. The assessment of whether
• the financial asset is held within a business model whose lifetime ECL should be recognized is based on significant
objective is to hold financial assets in order to collect increases in the likelihood or risk of a default occurring
contractual cash flows; and since initial recognition instead of on evidence of a financial
• the contractual terms of the financial asset give rise on asset being credit-impaired at the reporting date or an
specified dates to cash flows that are solely payments of actual default occurring.
principal and interest on the principal amount outstanding.
Significant increase in credit risk
Amortized cost and effective interest method
In assessing whether the credit risk on a financial instrument
The effective interest method is a method of calculating the has increased significantly since initial recognition, the
amortized cost of a debt instrument and of allocating interest Company compares the risk of a default occurring on the
income over the relevant period. financial instrument as at the reporting date with the risk of a
For financial instruments other than purchased or originated default occurring on the financial instrument as at the date of
credit-impaired financial assets, the effective interest rate is initial recognition. In making this assessment, the Company
the rate that exactly discounts estimated future cash receipts considers both quantitative and qualitative information
(including all fees and points paid or received that form an that is reasonable and supportable, including historical
integral part of the effective interest rate, transaction costs experience and forward-looking information that is available
and other premiums or discounts) excluding expected credit without undue cost or effort. Forward-looking information
losses, through the expected life of the debt instrument, or, considered includes the future prospects of the industries
where appropriate, a shorter period, to the gross carrying in which the Company’s debtors operate, obtained from
amount of the debt instrument on initial recognition. For economic expert reports, financial analysts, governmental
purchased or originated credit-impaired financial assets, bodies, relevant think-tanks and other similar organizations,
a credit-adjusted effective interest rate is calculated by as well as consideration of various external sources of actual
discounting the estimated future cash flows, including and forecast economic information.
expected credit losses, to the amortized cost of the debt In particular, the following information is taken into account
instrument on initial recognition. when assessing whether credit risk has increased significantly
The amortized cost of a financial asset is the amount at which since initial recognition:
the financial asset is measured at initial recognition minus the • an actual or expected significant deterioration in the
principal repayments, plus the cumulative amortization using financial instrument’s external (if available) or internal
the effective interest method of any difference between that credit rating;
initial amount and the maturity amount, adjusted for any loss • significant deterioration in external market indicators
allowance. On the other hand, the gross carrying amount of a of credit risk for a particular financial instrument, e.g. a
financial asset is the amortized cost of a financial asset before significant increase in the credit spread, the credit default
adjusting for any loss allowance. swap prices for the debtor, or the length of time or the
Interest is recognized using the effective interest method extent to which the fair value of a financial asset has been
for debt instruments measured subsequently at amortized less than its amortized cost;
cost, except for short-term balances when the effect of • existing or forecast adverse changes in business, financial
discounting is immaterial. or economic conditions that are expected to cause a
significant decrease in the debtor’s ability to meet its debt
Impairment of financial assets obligations;
The Company recognizes a loss allowance for expected credit • an actual or expected significant deterioration in the
losses (“ECL”) on trade and other receivables. The amount operating results of the debtor;
of expected credit losses is updated at each reporting date to • significant increases in credit risk on other financial
reflect changes in credit risk since initial recognition of the instruments of the same debtor;
respective financial instrument. • an actual or expected significant adverse change in the
The Company always recognizes lifetime ECL for trade regulatory, economic, or technological environment of the
receivables. The expected credit losses on these financial debtor that results in a significant decrease in the debtor’s
assets are estimated using a provision matrix based on the ability to meet its debt obligations.
Company’s historical credit loss experience, adjusted for Irrespective of the outcome of the above assessment, the
factors that are specific to the debtors, general economic Company presumes that the credit risk on a financial asset

has increased significantly since initial recognition when Write-off policy
contractual payments are more than 30 days past due, unless The Company writes off a financial asset when there is
the Company has reasonable and supportable information information indicating that the counterparty is in severe
that demonstrates otherwise. financial difficulty and there is no realistic prospect of
Despite the aforegoing, the Company assumes that the credit recovery, e.g. when the counterparty has been placed under
risk on a financial instrument has not increased significantly liquidation or has entered into bankruptcy proceedings, or
since initial recognition if the financial instrument is in the case of trade receivables, when the amounts are over
determined to have low credit risk at the reporting date. A two years past due, whichever occurs sooner. Financial assets
financial instrument is determined to have low credit risk if written off may still be subject to enforcement activities under
i) the financial instrument has a low risk of default, ii) the the Company’s recovery procedures, taking into account
borrower has a strong capacity to meet its contractual cash legal advice where appropriate. Any recoveries made are
flow obligations in the near term and iii) adverse changes in recognized in profit or loss.
economic and business conditions in the longer term may, Measurement and recognition of expected credit
but will not necessarily, reduce the ability of the borrower losses
to fulfil its contractual cash flow obligations. The Company
considers a financial asset to have low credit risk when it has The measurement of expected credit losses is a function of the
an internal or external credit rating of “investment grade” as probability of default, loss given default (i.e. the magnitude
per globally understood definition. of the loss if there is a default) and the exposure at default.
The assessment of the probability of default and loss given
The Company regularly monitors the effectiveness of the default is based on historical data adjusted by forward-
criteria used to identify whether there has been a significant looking information as described above. As for the exposure
increase in credit risk and revises them as appropriate to at default, for financial assets, this is represented by the assets’
ensure that the criteria are capable of identifying significant gross carrying amount at the reporting date; together with
increase in credit risk before the amount becomes past due. any additional amounts expected to be drawn down in the
Definition of default future by default date determined based on historical trend,
The Company considers the following as constituting an the Company’s understanding of the specific future
event of default for internal credit risk management purposes financing needs of the debtors, and other relevant
as historical experience indicates that receivables that meet forward-looking information.
either of the following criteria are generally not recoverable. If the Company has measured the loss allowance for a
• when there is a breach of financial covenants by the financial instrument at an amount equal to lifetime ECL in
counterparty; or the previous reporting period, but determines at the current
• information developed internally or obtained from reporting date that the conditions for lifetime ECL are no
external sources indicates that the debtor is unlikely to longer met, the Company measures the loss allowance at an
pay its creditors, including the Company, in full (without amount equal to 12-month ECL at the current reporting date.
taking into account any collaterals held by the Company). Where lifetime ECL is measured on a collective basis to cater
Irrespective of the above analysis, the Company considers for cases where evidence of significant increases in credit risk
that default has occurred when a financial asset is more than at the individual instrument level may not yet be available,
90 days past due unless the Company has reasonable and the financial instruments are grouped on the following basis:
supportable information to demonstrate that a more lagging • Nature of financial instruments (i.e. the Company’s trade
default criterion is more appropriate. and other receivables);
• Past-due status;
Credit-impaired financial assets
• Nature, size and industry of debtors;
A financial asset is credit-impaired when one or more events • Nature of collaterals for finance lease receivables; and
that have a detrimental impact on the estimated future cash • External credit ratings where available.
flows of that financial asset have occurred. Evidence that a
The grouping is regularly reviewed by management to ensure
financial asset is credit-impaired includes observable data
the constituents of each group continue to share similar credit
about the following events:
risk characteristics.
a) Significant financial difficulty of the borrower; If the Company has measured the loss allowance for a financial
b) A breach of contract, such as a default or past due event; instrument at an amount equal to lifetime ECL in the previous
c) the lender(s) of the borrower, for economic or reporting period, but determines at the current reporting date
contractual reasons relating to the borrower’s financial that the conditions for lifetime ECL are no longer met, the
difficulty, having granted to the borrower a concession(s) Company measures the loss allowance at an amount equal to
that the lender(s) would not otherwise consider; 12m ECL at the current reporting date.
d) It is becoming probable that the borrower will enter
bankruptcy or other financial reorganization; or Derecognition of financial assets
e) The disappearance of an active market for that financial The Company derecognizes a financial asset only when the
asset because of financial difficulties. contractual rights to the cash flows from the asset expire, or
when it transfers the financial asset and substantially all the
risks and rewards of ownership of the asset to another party.

If the Company neither transfers nor retains substantially all Derivatives are initially recognized at fair value at the date
the risks and rewards of ownership and continues to control a derivative contract is entered into and are subsequently
the transferred asset, the Company recognizes its retained measured to their fair value at the end of each reporting
interest in the asset and an associated liability for amounts period. The resulting gain or loss is recognized in profit
it may have to pay. If the Company retains substantially all and loss immediately unless the derivative is designated
the risks and rewards of ownership of a transferred financial and effective as a hedging instrument, in which event the
asset, the Company continues to recognize the financial timing of recognition in profit or loss depends on the nature
asset and also recognizes a collateralized borrowing for of the hedge relationship.
the proceeds received. A derivative is presented as a non-current asset or non-
On derecognition of a financial asset measured at amortized current liability if the remaining maturity of the instrument
cost, the difference between the asset’s carrying amount is more than 12 months and it is not expected to be realized
and the sum of the consideration received and receivable is or settled within 12 months. Other derivatives are presented
recognized in profit or loss. as current assets or current liabilities.
Financial liabilities and equity instruments Offsetting arrangements - Financial assets and financial
liabilities are offset and the net amount presented in the
Classification as debt or equity
statement of financial position when the Company has a
Financial liabilities and equity instruments issued by the legally enforceable right to set off the recognized amounts;
Company are classified according to the substance of the and intends either to settle on a net basis, or to realize the asset
contractual arrangements entered into and the definitions of and settle the liability simultaneously. A right to set-off must
a financial liability and an equity instrument. be available today rather than being contingent on a future
Equity instruments event and must be exercisable by any of the counterparties,
An equity instrument is any contract that evidences a residual both in the normal course of business and in the event of
interest in the assets of the Company after deducting all of default, insolvency or bankruptcy.
its liabilities. Equity instruments are recorded at the proceeds Leases (Before January 1, 2019) - Leases are classified
received, net of direct issue costs. as finance leases whenever the terms of the lease transfer
Preference shares substantially all the risks and rewards of ownership to the
lessee. All other leases are classified as operating leases.
Preference shares are classified as equity if they are non-
redeemable or are redeemable only at the option of the The Company as lessee
Company and dividend payments are discretionary. Assets held under finance leases are recognized as assets of the
Dividends thereon are recognized as distributions within Company at their fair value at the inception of the lease or, if
equity and are recognized as a liability in the period in lower, at the present value of the minimum lease payments.
which they are declared. The corresponding liability to the lessor is included in the
Financial liabilities statement of financial position as a finance lease obligation.
Trade and other payables are initially measured at fair value, Lease payments are apportioned between finance charges
net of transaction costs, and are subsequently measured at and reduction of the lease obligation so as to achieve a
amortized cost, using the effective interest method, with constant rate of interest on the remaining balance of the
interest expense recognized on an effective yield basis. liability. Finance charges are charged directly to profit or
loss, unless they are directly attributable to qualifying assets,
Contingent consideration of an acquirer in a business
in which case they are capitalized in accordance with the
combination is stated at fair value with any gains or losses
Company’s general policy on borrowing costs (see below).
arising on changes in fair value recognized in profit or loss
Contingent rentals are recognized as expenses in the periods
to the extent that they are not part of a designated hedging
in which they are incurred.
relationship. The net gain or loss recognized in profit or loss
incorporates any interest paid on the financial liabilities. Rentals payable under operating leases are charged to profit
or loss on a straight-line basis over the term of the relevant
Derecognition of financial liabilities
lease unless another systematic basis is more representative
The Company derecognizes financial liabilities when, and of the time pattern in which economic benefits from the
only when, the Company’s obligations are discharged, leased asset are consumed. Contingent rentals arising under
cancelled or they expire. operating leases are recognized as an expense in the period
Derivative financial instruments in which they are incurred.
The Company enters into derivative financial instruments In the event that lease incentives are received to enter into
(primarily foreign currency forward contracts) to hedge its operating leases, such incentives are recognized as a liability.
risks associated with foreign currency fluctuations relating The aggregate benefit of incentives is recognized as a reduction
to certain firm commitments and forecasted transactions. of rental expense on a straight-line basis, except where another
Further details of derivative financial instruments are systematic basis is more representative of the time pattern in
disclosed in Note 12A to the financial statements. which economic benefits from the leased asset are consumed.
The Company does not use derivative financial instruments
for speculative purposes.

Leases (from January 1, 2019) included in the related right-of-use asset, unless those costs
The Company as lessee are incurred to produce inventories.
The Company assesses whether a contract is or contains a Right-of-use assets are depreciated over the shorter period of
lease, at inception of the contract. lease term and useful life of the underlying asset. If a lease
transfers ownership of the underlying asset or the cost of
The Company recognizes a right-of-use asset and a
the right-of-use asset reflects that the Company expects to
corresponding lease liability with respect to all lease
exercise a purchase option, the related right-of-use asset is
arrangements in which it is the lessee, except for short-term
depreciated over the useful life of the underlying asset. The
leases (defined as leases with a lease term of 12 months or
depreciation starts at the commencement date of the lease.
less) and leases of low value assets. For these leases, the
Company recognizes the lease payments as an operating The right-of-use assets are presented as a separate line in the
expense on a straight-line basis over the term of the lease statement of financial position.
unless another systematic basis is more representative of the The Company applies FRS 36 to determine whether a right-
time pattern in which economic benefits from the leased of-use asset is impaired and accounts for any identified
assets are consumed. impairment loss as described in Note 3.
The lease liability is initially measured at the present value of Variable rents that do not depend on an index or rate are
the lease payments that are not paid at the commencement not included in the measurement of the lease liability and
date, discounted by using the rate implicit in the lease. If this the right-of-use asset. The related payments are recognized
rate cannot be readily determined, the Company uses the as an expense in the period in which the event or condition
incremental borrowing rate specific to the lessee. that triggers those payments occurs and are included in the
Lease payments included in the measurement of the lease line ‘Other operating costs in the statement of profit or loss.
liability comprises of fixed lease payments (including in- As a practical expedient, FRS 116 permits a lessee not to
substance fixed payments), less any lease incentives. separate non-lease components, and instead account for
The lease liability is presented as a separate line in the any lease and associated non-lease components as a single
statement of financial position. arrangement. The Company has not used this practical
expedient. For a contracts that contain a lease component
The lease liability is subsequently measured by increasing the
and one or more additional lease or non-lease components,
carrying amount to reflect interest on the lease liability (using
the Company allocates the consideration in the contract to
the effective interest method) and by reducing the carrying
each lease component on the basis of the relative stand-alone
amount to reflect the lease payments made.
price of the lease component and the aggregate stand-alone
The Company remeasures the lease liability (and price of the non-lease components.
makes a corresponding adjustment to the related right-
Investment in subsidiaries - A subsidiary is an
of-use asset) whenever:
enterprise in which the Company has control. Control is
• the lease term has changed or there is a significant event
achieved when the Company:
or change in circumstances resulting in a change in the
• Has power over the investee;
assessment of exercise of a purchase option, in which case
• Is exposed, or has rights, to variable returns from its
the lease liability is remeasured by discounting the revised
involvement with the investee; and
lease payments using a revised discount rate;
• Has the ability to use its power to affect its returns.
• the lease payments change due to changes in an index or
rate or a change in expected payment under a guaranteed The Company reassesses whether or not it controls an investee
residual value, in which cases the lease liability is if facts and circumstances indicate that there are changes to
remeasured by discounting the revised lease payments one or more of the three elements of control listed above.
using the initial discount rate (unless the lease payments When the Company has less than a majority of the voting
change is due to a change in a floating interest rate, in rights of an investee, it has power over the investee when the
which case a revised discount rate is used); or voting rights are sufficient to give it the practical ability to
• a lease contract is modified and the lease modification is direct the relevant activities of the investee unilaterally. The
not accounted for as a separate lease, in which case the Company considers all relevant facts and circumstances in
lease liability is remeasured by discounting the revised assessing whether or not the Company’s voting rights in an
lease payments using a revised discount rate. investee are sufficient to give it power, including:
The right-of-use assets comprise the initial measurement of • The size of the Company’s holding of voting rights relative
the corresponding lease liability, lease payments made at or to the size and dispersion of holdings of the other vote
before the commencement day and any initial direct costs. holders;
They are subsequently measured at cost less accumulated • Potential voting rights held by the Company, other vote
depreciation and impairment losses. holders or other parties;
• Rights arising from other contractual arrangements; and
Whenever the Company incurs an obligation for costs to
• Any additional facts and circumstances that indicate that
dismantle and remove a leased asset, restore the site on which
the Company has, or does not have, the current ability
it is located or restore the underlying asset to the condition
to direct the relevant activities at the time that decisions
required by the terms and conditions of the lease, a provision
need to be made, including voting patterns at previous
is recognized and measured under FRS 37. The costs are
shareholders’ meetings.

Investment in subsidiaries is stated at cost less any immediately in profit or loss, unless the relevant asset is
impairment in net recoverable value that has been carried at a revalued amount, in which case the reversal of
recognized in profit or loss. the impairment loss is treated as a revaluation increase.
Plant and equipment - Plant and equipment are Provisions - Provisions are recognized when the Company
stated at cost less accumulated depreciation and any has a present obligation (legal or constructive) as a result of
accumulated impairment losses. a past event, it is probable that the Company will be required
Depreciation is charged so as to write off the cost or valuation to settle the obligation, and a reliable estimate can be made
of assets, over their estimated useful lives, using the straight- of the amount of the obligation.
line method, on the following bases: The amount recognized as a provision is the best estimate
Computers 3 years of the consideration required to settle the present obligation
Furniture and fittings 3 years at the end of the reporting period, taking into account the
Office equipment 5 years risks and uncertainties surrounding the obligation. Where a
provision is measured using the cash flows estimated to settle
The estimated useful lives, residual values and depreciation the present obligation, its carrying amount is the present
method are reviewed at the end of each reporting period, value of those cash flows.
with the effect of any changes in estimate accounted for on When some or all of the economic benefits required to settle
a prospective basis. a provision are expected to be recovered from a third party,
Fully depreciated assets still in use are retained in the the receivable is recognized as an asset if it is virtually certain
financial statements. that reimbursement will be received and the amount of the
The gain or loss arising on disposal or retirement of an item of receivable can be measured reliably.
property, plant and equipment is determined as the difference Contingent consideration - The consideration for the
between the sales proceeds and the carrying amounts of the acquisition of subsidiaries includes any asset or liability
asset and is recognized in profit or loss. resulting from a contingent consideration arrangement,
Impairment of assets - At the end of each reporting period, measured at its acquisition-date fair value. Subsequent
the Company reviews the carrying amounts of its assets to changes in such fair values are adjusted against the cost
determine whether there is any indication that those assets of acquisition where they qualify as measurement period
have suffered an impairment loss. If any such indication adjustments. The subsequent accounting for changes in
exists, the recoverable amount of the asset is estimated in the fair value of the contingent consideration that do not
order to determine the extent of the impairment loss (if any). qualify as measurement period adjustments depends on
Where it is not possible to estimate the recoverable amount how the contingent consideration is classified. Contingent
of an individual asset, the Company estimates the recoverable consideration that is classified as equity is not remeasured
amount of the cash-generating unit to which the asset belongs. at subsequent reporting dates and its subsequent settlement
Where a reasonable and consistent basis of allocation can be is accounted for within equity. Contingent consideration
identified, corporate assets are also allocated to individual that is classified as an asset or a liability is remeasured at
cash-generating units, or otherwise they are allocated to the subsequent reporting dates at fair value, with changes in fair
smallest group of cash-generating units for which a reasonable value recognized in profit or loss.
and consistent allocation basis can be identified. Revenue recognition - The Company derives revenues from
Recoverable amount is the higher of fair value less costs to business IT services comprising of software development
sell and value in use. In assessing value in use, the estimated and related services and consulting (“together called as
future cash flows are discounted to their present value software related services”).
using a pre-tax discount rate that reflects current market Revenue is derived from fixed-price, fixed-timeframe
assessments of the time value of money and the risks specific contracts, where the performance obligations are satisfied over
to the asset for which the estimates of future cash flows time and where there is no uncertainty as to measurement
have not been adjusted. or collectability of consideration, is recognized as per the
If the recoverable amount of an asset (or cash-generating percentage-of-completion method. Revenue from time-and-
unit) is estimated to be less than its carrying amount, the material contracts are recognized as the related services are
carrying amount of the asset (cash-generating unit) is reduced performed and revenue from the end of the last invoicing to
to its recoverable amount. An impairment loss is recognized the reporting date is recognized as contract assets.
immediately in profit or loss, unless the relevant asset is Dividend income
carried at a revalued amount, in which case the impairment Dividend income from investments is recognized when the
loss is treated as a revaluation decrease. shareholders’ right to receive payment have been established.
Where an impairment loss subsequently reverses, the carrying Interest income
amount of the asset (cash-generating unit) is increased to
Interest income is accrued on a time basis, by reference to the
the revised estimate of its recoverable amount, but so that
principal outstanding and the effective interest rate applicable.
the increased carrying amount does not exceed the carrying
amount that would have been determined had no impairment Management fee income
loss been recognized for the asset (cash-generating unit) in Revenue from management fee income is recognized when
prior years. A reversal of an impairment loss is recognized such services are rendered and on accrual basis.

Retirement benefit costs - Payments to defined contribution credited or debited outside profit or loss (either in other
retirement benefit plans are charged as an expense when comprehensive income or directly in equity), in which
employees have rendered the services entitling them to the case the tax is also recognized directly outside profit or
contributions. Payments made to state-managed retirement loss (either in other comprehensive income or directly in
benefit schemes, such as the Singapore Central Provident equity, respectively).
Fund, are dealt with as payments to defined contribution Foreign currency transactions and translation - The
plans where the Company’s obligations under the plans financial statements of the Company are measured and
are equivalent to those arising in a defined contribution presented in Singapore dollar, the currency of the primary
retirement benefit plan. economic environment in which the Company operates (its
Compensated absences - The Company has a policy on functional currency).
compensated absences which are accumulating in nature. In preparing the financial statements of the Company,
The expected cost of accumulating absences is determined transactions in currencies other than the Company’s
by actuarial valuation at the end of each reporting period. functional currency are recorded at the rate of exchange
Income tax - Income tax expense represents the sum of the prevailing on the date of the transaction. At the end of each
tax currently payable and deferred tax. reporting period, monetary items denominated in foreign
The tax currently payable is based on taxable profit for the currencies are retranslated at the rates prevailing at the end of
year. Taxable profit differs from profit as reported in the the reporting period. Non-monetary items carried at fair value
statement of profit or loss and other comprehensive income that are denominated in foreign currencies are retranslated
because it excludes items of income or expense that are at the rates prevailing on the date when the fair value was
taxable or deductible in other years and it further excludes determined. Non-monetary items that are measured in terms
items that are not taxable or tax deductible. The Company’s of historical cost in a foreign currency are not retranslated.
liability for current tax is calculated using tax rates (and tax Exchange differences arising on the settlement of monetary
laws) that have been enacted or substantively enacted by the items, and on retranslation of monetary items are included
end of the reporting period. in profit or loss for the period. Exchange differences arising
Deferred tax is recognized on differences between the carrying on the retranslation of non-monetary items carried at fair
amounts of assets and liabilities in the financial statements value are included in profit or loss for the period except for
and the corresponding tax bases used in the computation of differences arising on the retranslation of non-monetary items
taxable profit. Deferred tax liabilities are generally recognized in respect of which gains and losses are recognized in other
for all taxable temporary differences and deferred tax assets comprehensive income. For such non-monetary items, any
are recognized to the extent that it is probable that taxable exchange component of that gain or loss is also recognized
profits will be available against which deductible temporary in other comprehensive income.
differences can be utilized. Such assets and liabilities are not Cash and cash equivalents in the statement of cash flows - Cash
recognized if the temporary difference arises from goodwill and cash equivalents in the statement of cash flows comprise
or from the initial recognition (other than in a business cash on hand and demand deposits, bank overdrafts, and
combination) of other assets and liabilities in a transaction other short-term highly liquid investments that are readily
that affects neither the taxable profit nor the accounting profit. convertible to a known amount of cash and are subject to an
The carrying amount of deferred tax assets is reviewed at the insignificant risk of changes in value.
end of each reporting period and reduced to the extent that 3 Critical accounting judgements and key
it is no longer probable that sufficient taxable profits will be
available to allow all or part of the asset to be recovered.
sources of estimation uncertainty
In the application of the Company’s accounting policies,
Deferred tax is calculated at the tax rates that are expected to
which are described in Note 2, management is required
apply in the period when the liability is settled or the asset
to make judgements, estimates and assumptions about the
realized based on the tax rates (and tax laws) that have been
carrying amounts of assets and liabilities that are not readily
enacted or substantively enacted by the end of the reporting
apparent from other sources. The estimates and associated
period. The measurement of deferred tax liabilities and assets
assumptions are based on historical experience and other
reflects the tax consequences that would follow from the
factors that are considered relevant. Actual results may differ
manner in which the Company expects, at the end of the
from these estimates.
reporting period, to recover or settle the carrying amount of
its assets and liabilities. The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are
Deferred tax assets and liabilities are offset when there is a
recognized in the period in which the estimate is revised
legally enforceable right to set off current tax assets against
if the revision affects only that period, or in the period of
current tax liabilities and when they relate to income taxes
the revision and future periods if the revision affects both
levied by the same taxation authority and the Company intends
current and future periods.
to settle its current tax assets and liabilities on a net basis.
Current and deferred tax are recognized as an expense or
income in profit or loss, except when they relate to items

(i) Critical judgements in applying the Company’s Particulars As at December 31,
accounting policies 2019 2018
Management is of the opinion that any instances of judgements Financial liabilities
(other than those arising from estimates discussed below) Financial liabilities at
are not expected to have a significant effect on the amounts amortized cost 117,200,038 87,640,814
recognized in the financial statements. Derivative financial
instruments not
(ii) Key sources of estimation uncertainty designated as hedges 476,076 –
The key assumptions concerning the future, and other key Contingent
sources of estimation uncertainty at the end of the reporting consideration for a
period, that have a significant risk of causing a material business combination 16,041,151 15,789,521
adjustment to the carrying amounts of assets and liabilities
within the next financial year, are discussed below: (b) Financial instruments subject to offsetting,
Fair value measurements and valuation process enforceable master netting arrangements and
Some of the Company’s liabilities are measured at fair value similar agreements
for financial reporting purposes. The Company does not have any financial instruments which
In estimating the fair value of a liability, the Company uses are subject to enforceable master netting arrangements or
market-observable data to the extent it is available. Where similar netting agreements.
Level 1 inputs are not available, the Company engages third (c) Financial risk management policies and
party qualified valuers to perform the valuation. Management objectives
works closely with the qualified external valuers to establish
the appropriate valuation techniques and inputs to the model. The Board of Directors has an overall responsibility for
the establishment and oversight of the Company’s risk
Information about the valuation techniques and inputs used management framework.
in determining the fair value of various assets and liabilities
are disclosed in Notes 4 and 14. The Company is exposed to a variety of financial risks,
comprising market risk (including foreign currency risk,
Impairment assessment of investment in subsidiaries (Note 11) commodity price risk and interest rate risk), credit risk
Market related information and estimates are used to and liquidity risk.
determine the recoverable amount. Key assumptions There has been no change to the Company’s exposure to
on which management has based its determination of these financial risks or the manner in which it manages and
recoverable amount include estimated long term growth measures the risk. Market risk exposures are measured using
rates, weighted average cost of capital and estimated sensitivity analysis indicated below:
operating margins. Cash flow projections take into account
past experience and represent management’s best estimate Foreign exchange risk management
about future developments. The Company’s foreign currency exposures arise mainly from
Determining whether investment in subsidiaries is the exchange rate movements of the Japanese yen and United
impaired involves the consideration of the performance States dollar against the Singapore dollar.
of the subsidiaries and the market conditions in which The company ensure that the net exposure is kept to an
the subsidiaries operate in. At the end of the reporting acceptable level by entering into hedging activities such
period, management of the Company has performed an as forward foreign currency contracts. Forward foreign
impairment assessment of its investment in its subsidiaries. currency contracts are entered purely as a hedging tool
As at December 31, 2019, no allowance for impairment loss and the Company do not hold or issue derivative financial
has been recognized. instruments for speculative purposes. The Company’s
commitments on forward contracts at the end of the reporting
4 Financial risks and capital risks management
period are disclosed in Note 12A.
(a) Categories of financial instruments
The following table sets out the financial instruments as at
the end of reporting period:
in SG $
2019 2018
Financial assets
Financial assets at
amortized cost 15,348,790 5,300,964

The carrying amounts of foreign currency denominated monetary assets and monetary liabilities denominated in currency
other than the Company’s functional currency at the end of the reporting period are as follows:
in SG $
Liabilities Assets
2019 2018 2019 2018
United States dollar – – 796,996 424,925
Chinese Yuan (RMB) (238,724) (668,559) – –
Japanese yen (40,960,093) – – –
Euro (18,989) (16,830) – 27,276
Swiss Franc (CHF) – (2,497) 15,823 29,507
Total (41,217,806) (687,886) 812,819 481,708
Foreign currency sensitivity

The sensitivity rate used when reporting foreign exchange risk to key management personnel is 5%, which is the change in a
foreign exchange rate that management deems reasonably possible, which will affect outstanding foreign currency denominated
monetary items at the end of the reporting period.
If the relevant foreign currency strengthens by 5% against the functional currency of the Company, the effect on profit or loss
(before tax) will increase by:
As at December 31,
2019 2018
United States dollar 39,850 21,246
Chinese Yuan (RMB) (11,936) (33,427)
Euro (949) 522
Swiss Franc (CHF) 791 1,351
If the relevant foreign currency weakens by 5% against the functional currency of the Company, the above will have an opposite effect.
(i) Interest rate risk management
The Company is not exposed to significant interest rate risk.
Interest rate risk is the risk that the fair value or future cash flows of the Company’s financial instrument will fluctuate because
of changes in market interest rates.
The Company’s exposure to interest rate risk arises primarily from its loans from holding and related company. The Company
has no policy to hedge against its interest rate risk.
(ii) Credit risk management
The Company develops and maintains its credit risk gradings to categorize exposures according to their degree of risk of default.
The Company uses its own trading records to rate its major customers and other debtors.
The Company’s current credit risk grading framework comprises the following categories:
Category Description Basis for recognizing expected
credit losses
Performing The counterparty has a low risk of default and does not have any past-due 12m ECL
amounts
Doubtful Amount is >30 days past due or there has been a significant increase in Lifetime ECL – not credit-
credit risk since initial recognition impaired
In default Amount is >90 days past due or there is evidence indicating the asset is Lifetime ECL – credit-
credit-impaired impaired
Write-off There is evidence indicating that the debtor is in severe financial difficulty Amount is written off
and the Company has no realistic prospect of recovery
in SG $
Particulars Note Internal credit rating 12-month or lifetime ECL Gross Loss Net carrying
carrying allowance amount
amount
2019
Trade receivables 8 (i) Lifetime ECL 3,159,197 – 3,159,197
Other receivables 8 Performing 12-month ECL 67,382 – 67,382
Loan to related
company 8 Performing 12-month ECL 674,064 – 674,064

Particulars Note Internal credit rating 12-month or lifetime ECL Gross Loss Net carrying
carrying allowance amount
amount
2018
Trade receivables 8 (i) Lifetime ECL 4,497,415 – 4,497,415
Other receivables 8 Performing 12-month ECL 67,395 – 67,395
(i) The Company has applied the simplified approach to measure the loss allowance at lifetime ECL and in determining, has taken into account the historical
default experience and the financial position of the counterparties, adjusted for factors that are specific to the debtors and general economic conditions
of the industry in which the debtors operate, in estimating the probability of default of each of these financial assets occurring within their respective
loss assessment time horizon, as well as the loss upon default in each case.
The carrying amount of financial assets recorded in the financial statements,
grossed up for any allowances for losses, represents the Company’s maximum exposure to credit risk without taking into
account of the value of any collateral obtained.
(iii) Liquidity risk management
Liquidity risk refers to the risk in which the Company has difficulties in meeting its
short-term obligations. The holding Company will also provide the Company with sufficient liquidity to meet the working
capital needs when required. The holding company will also provide the Company with sufficient liquidity to meet the working
capital needs when required.
As at December 31, 2019, the Company’s current liabilities exceeded its current assets by $107,597,837 (2018 : $83,937,450).
In addition, the Company has capital surplus of $259,554,923 (2018 : capital deficiency $120,621). The financial statements
have been prepared on a going concern basis based on the letter of undertaking received from holding company, Infosys
Limited, incorporated in India, and a subsidiary, HIPUS CO. Ltd, incorporated in Japan, not to recall or demand repayment of
the amount owing by the Company to it unless the Company has the ability to repay such obligation and Infosys Limited has
also committed to provide continuing financial support to the Company to enable it to operate as going concern. The directors
are satisfied that such financial support will be available and forthcoming as and when required.
All financial assets and liabilities in 2018 and 2019 are repayable on demand or due within 1 year from the end of the reporting
period, except for the non-current portion of the contingent consideration and lease liabilities as disclosed in Note 14 and
Note 21 respectively.
Non-derivative financial liabilities
The table below summarizes the maturity profile of the Company’s non-derivative financial liabilities at the end of the reporting
period based on contractual undiscounted payments.
in SG $
Particulars Average On demand 1 to 5 years Over 5 years Adjustment Total
effective or within 1
interest rate year
(%)
2019
Trade and other payables – 1,535,947 – – 1,535,947
Loan from holding
company and related
company 2.07 114,485,031 – – – 114,485,031
Contingent consideration 12.50 5,981,926 22,044,737 – (11,985,512) 16,041,151
Lease liabilities 1.58 376,127 802,933 – 1,179,060
122,379,031 22,847,670 – (11,985,512) 133,241,189
2018
Trade and other payables – 8,122,349 – – – 8,122,349
Loan from holding
company 3.00 79,518,465 – – – 79,518,465
Contingent consideration 12.50 3,112,623 24,662,410 (11,985,512) 15,789,521
90,753,437 24,662,410 – (11,985,512) 103,430,335
(iii) Fair values of financial assets and financial liabilities

Fair value of the Company’s financial liabilities that are measured at fair value on a recurring basis
Some of the Company’s financial assets and financial liabilities are measured at fair value at the end of each reporting period.
The following table gives information about how the fair values of these financial assets and financial liabilities are determined
(in particular, the valuation technique(s) and inputs used).

Entity Fair value as at Fair value Valuation technique and Significant Relationship of
2019 2018 hierarchy key input unobservable unobservable
$ $ input inputs to fair
value
Discounted cash flow A slight increase
method was used to in the discount
capture the present Discount rate of rate used
value of the expected 16% per annum in isolation
Contingent future economic benefits determined would result
consideration that will flow out of the using a Capital in a significant
payable to Company arising from the Asset Pricing decrease in the
Fluido Oy 9,310,895 10,818,860 Level 3 contingent consideration. Model. fair value.
The present
value has been
computed at a
Discounted cash flow discount rate A slight increase
method was used to of 9%, which in the discount
capture the present is higher than rate used
Contingent value of the expected cost of debt but in isolation
consideration future economic benefits lower than cost would result
payable to that will flow out of the of equity of the in a significant
Infosys Compaz Company arising from the Infosys Compaz decrease in the
Pte. Ltd. 4,549,520 4,549,520 Level 3 contingent consideration. Pte. Ltd. fair value.
Discounted cash flow.
Future cash flows are
estimated based on
forward exchange rates
Foreign (from observable forward
currency exchange rates at the end
forward of the reporting period)
contracts and contract forward
(Derivative rates, discounted at a rate
financial that reflects the credit risk
instruments) 476,076 – Level 2 of various counterparties. Not Applicable Not Applicable
Fair value of the Company’s financial assets and liabilities that 5 Holding company and related company
are not measured at fair value on a recurring basis transactions
Management considers that the carrying amounts of cash The Company is a wholly owned subsidiary of Infosys
and cash equivalents, trade and other current receivables Limited, incorporated in India, which is also the Company’s
and payables and other liabilities recorded at amortized ultimate holding company. Related companies in these
cost in the financial statements approximate their fair values financial statements refer to members of the ultimate holding
due to the relatively short-term maturity of these financial company’s group of companies.
instruments. In respect of the financial assets and liabilities
Some of the Company’s transactions and arrangements and
recorded at amortized cost whose maturity is more than a year,
terms thereof are arranged by or between members of the group.
management also considers that such financial instruments
approximate their fair values. The fair values of other classes Significant intercompany transactions are as follows:
in SG $
of financial assets and financial liabilities are disclosed in the
respective notes to the financial statements. Particulars As at December 31,
2019 2018
(d) Capital risk management policies and objectives Holding company and
The Company reviews its capital structure at least annually to related companies
ensure that the Company will be able to continue as a going Management fee
concern. The capital structure of the Company comprises income (204,412) (241,760)
only of issued capital and retained earnings. Dividend income
The Company’s overall strategy remains unchanged from subsidiary (19,475,859) –
from the prior year. Services rendered (11,778,022) (15,539,718)
Interest income 1,208 –
Management fee
expense 88,018 111,978

2019 2018 2019 2018
Guarantee fee 156,000 26,663 Prepayments 161,617 236,282
Loan interest expense 7,694,507 551,150 4,062,260 4,801,092
Reversal of Classified as:
intercompany Current 3,937,558 4,603,659
contractor expense - (45,856) Non-current 124,702 197,433
4,062,260 4,801,092
6 Related party transactions Loan to related company ‘Infosys Austria GmbH’ is denominated in US
(1)
Some of the Company’s transactions and arrangements are with Dollars, bears interest at LIBOR plus 0.60% per annum, is unsecured
related parties and the effect of these on the basis determined and repayable on demand.
between the parties are reflected in these financial statements. The average credit period on rendering of services is
The balances are unsecured, interest-free and repayable 30 days (2018 : 30 days). No interest is charged on
within the next twelve months unless otherwise stated. overdue trade receivables.
Compensation of directors and key management personnel Loss allowance for trade receivables has been measured at an
The transactions with related parties, remuneration of amount equal to lifetime expected credit losses (ECL). The
directors and other members of key management during the ECL on trade receivables are estimated using reference to
year were as follows: past default experience of the debtor and an analysis of the
in SG $ debtor’s current financial position, adjusted for factors that
Particulars As at December 31, are specific to the debtors, general economic conditions of
2019 2018 the industry in which the debtors operate.
Remuneration of ECL on loan to subsidiary is measured at an amount equal to
directors and other the 12-month ECL, as there is low risk default and does not
members of key have any past due amount.
management There has been no change in the estimation
Short-term benefits 384,742 465,131 techniques or significant assumptions made during the
Post-employment current reporting period.
benefits – – A trade receivable is written off when there is information
384,742 465,131 indicating that the debtor is in severe financial difficulty and
there is no realistic prospect of recovery.
7 Cash and cash equivalents Aging of receivables that are past due but not impaired:
in SG $
in SG $
2019 2018
2019 2018
Cash at bank 11,448,128 736,089
Not past due 1,755,679 1,471,804
Cash in hand 19 65
Past due 1 – 30 days 367,718 –
11,448,147 736,154
Past due 31 – 60 days 426,220 544,330
Past due 61 – 90 days 410,608 960,877
8 Trade and other receivables Past due more than
in SG $
90 days 940,418 1,587,799
Particulars As at December 31, 3,900,643 4,564,810
2019 2018
Holding company - Included in the Company’s trade receivable balance are
trade (Note 5) 431,989 808,019 debtors with a carrying amount of $ 3,833,552 (2018:
Related companies - $4,497,827) which are past due at the end of the reporting
trade (Note 5) 2,727,208 3,689,396 period for which the Company has not provided as there
Loan to related has not been a significant change in credit quality and the
company (1) 674,064 – amounts are still considered recoverable. The Company does
Other receivables 291 412 not hold any collateral over these balances.
Deposits 67,091 66,983

9 Plant and equipment
in SG $
Particulars Computers Office Furniture and Total
equipment fittings
Cost:
At January 1, 2018 225,609 18,860 298,327 542,796
Disposals – (9,575) – (9,575)
At December 31, 2018 225,609 9,285 298,327 533,221
Additions 9,160 – – 9,160
Disposals (27,660) – – (27,660)
At December 31, 2019 207,109 9,285 298,327 514,721
Accumulated depreciation:
At January 1, 2018 183,431 8,412 185,659 377,502
Depreciation 25,344 1,662 102,298 129,304
Disposals – (3,740) – (3,740)
At December 31, 2018 208,775 6,334 287,957 503,066
Depreciation 14,091 1,349 10,370 25,810
Disposals (27,660) – – (27,660)
At December 31, 2019 195,206 7,683 298,327 501,216
Carrying amounts:
At December 31, 2018 16,834 2,951 10,370 30,155
At December 31, 2019 11,903 1,602 – 13,505
10 Right-of-use-assets
The Company has taken office space on leases. The average lease term is 4 years (2018 : 2 years).
in SG $
Particulars Building
Cost:
At January 1, 2019 –
Additions 1,518,665
At December 31, 2019 1,518,665
Accumulated depreciation:
Depreciation for the year 348,027
At December 31, 2019 348,027
Carrying amount:
At December 31, 2019 1,170,638
11 Subsidiaries
in SG $
2019 2018
Unquoted equity shares, at cost 376,706,073 97,948,138
The subsidiaries of the Company are set out below:

Name of subsidiaries Country of Proportion of ownership interest and Principal activities
incorporation and voting power held by the Company
operation 2019 2018
% %
Infosys Middle East Information technology
FZ-LLC Middle East 100 100 application support services
Fluido Oy Salesforce advisor and
consulting partner in cloud
consulting, implementation
Finland 100 100 and training services
Stater NV Finland 75 – Mortgage service provider

Name of subsidiaries Country of Proportion of ownership interest and Principal activities
incorporation and voting power held by the Company
operation 2019 2018
% %
HIPUS Co., Ltd Japan 81 – Procurement BPO service
Infosys Compaz Pte.
Ltd. Singapore 60 60 IT services

in SG $
2019 2018
Holding company - trade (Note 5) 39,000 27,010
Related companies - trade (Note 5) 16,976 435,729
Outside parties 295,707 319,591
Accrued expenses 1,015,419 1,497,647
Compensated absences 145,312 249,805
Other payables (1) 23,533 5,592,567
1,535,947 8,122,349
The average credit period on purchases of goods is 60 days (2018: 60 days). No interest is charged on the outstanding balance.
Included in other payables for the year ended December 31, 2018 was an amount payable to an outside party for the acquisition of Infosys Compaz Pte.
(1)
Ltd. of $5,563,008 which has been fully paid during the financial year.
Derivative financial instrument

in SG $
Particulars As at December 31, 2019
Assets Liabilities
Foreign exchange forward contracts:
Not designated in a hedge accounting relationship – 476,076
– 476,076
The Company holds derivative financial instruments such as foreign currency forward contracts to mitigate the risk of changes
in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank. These derivative
financial instruments are valued based on quoted prices for similar assets and liabilities in active markets or inputs that are
directly or indirectly observable in the marketplace.
The details in respect of outstanding foreign currency forward contracts in traded currency are as follows:
Outstanding Average exchange rates Foreign currency Contract value Fair value
contracts 2019 2018 2019 2018 2019 2018 2019 2018
FC’000 FC’000 $’000 $’000 $ $
Buy Japanese Yen 0.012 – 3,194,000 – 40,185 – 449,756 –
Buy EURO 1.518 – 7,000 – 10,626 – 26,320 –
13 Loan from holding company and related company

in SG $
2019 2018
Holding company (Note 5) 74,340,672 79,518,465
Subsidiary (Note 5) 40,144,359 –
114,485,031 79,518,465
The loan from holding company is denominated in Singapore dollar, bears interest at 3% per annum (2018 : 3% per annum),
is unsecured and repayable on demand.
The loan from subsidiary ‘Hipus Co. Ltd.’ is denominated in Japanese Yen, bears interest at 0.35% per annum, is unsecured
and repayable on demand.

Reconciliation of liabilities arising from financing activities
The table below details changes in the Company’s liabilities arising from financing activities, including both cash and non-cash changes. Liabilities arising from financing activities
are those for which cash flows were, or future cash flows will be, classified in the Company’s statements of cash flows as cash flows from financing activities.
in SG $
Particulars December 31, January 1, 2019 New lease Financing cash Conversion Other changes December 31,
(3)
2018 liabilities flow (1) to redeemable 2019
preference
shares (2)
(a) Loans from holding
972 I Infosys Consulting Pte. Ltd

company (79,518,465) (79,518,465) – (241,134,000) 249,200,000 (2,888,207) (74,340,672)
(b) Loan from subsidiary – – – (40,115,676) – (28,683) (40,144,359)
(c) Lease liabilities (Note 21) – – (1,518,665) 359,370 – (19,765) (1,179,060)
(79,518,465) (79,518,465) (1,518,665) (280,890,306) 249,200,000 (2,936,655) (115,664,091)
(1)
The cash flows make up the net amount of proceeds from borrowings and repayments of borrowings in the statement of cash flows.
(2)
During the year, loan of $ 249,200,000 has been converted into redeemable preference shares. (Refer Note 15 for terms and conditions of redeemable preference shares)
(3)
Other changes include interest accruals and payments.
in SG $
January 1, 2018 Financing cash Other changes December 31,
flow (i) (iii) 2018
(a) Loans from holding company – (79,000,000) (518,465) (79,518,465)
(b) Loan from subsidiary (1,861,343) 1,892,806 (31,463) –
(1,861,343) (77,107,194) (549,928) (79,518,465)

14 Contingent consideration
in SG $
Current:
Contingent consideration payable - Fluido Oy(1) 5,981,926 1,430,624
Non-current:
Contingent consideration payable - Fluido Oy(1) 3,328,969 9,388,236
Contingent consideration payable - Infosys Compaz(2) 4,549,520 4,549,520
Interest payable on contingent consideration - Fluido Oy 1,610,090 355,325
Interest payable on contingent consideration - Infosys Compaz 570,646 65,816
10,059,225 14,358,897
(1)
On October 11, 2018, the Company acquired 100% of the issued share capital of Fluido Oy for consideration of EURO 65 million ($110 million),
including cash consideration of EURO 45 million ($76 million), contingent consideration of EURO 12 million ($18.7 million) and retention payouts of
up to EURO 8 million ($13.6 million), payable to the employees of Fluido over the next three years, subject to their continuous employment with the
Infosys Group. This transaction has been accounted for by the acquisition method of accounting.
Fluido Oy is an entity incorporated in Finland with its principal activity being the salesforce advisor and consulting partner in cloud consulting,
implementation and training services.
The payment of contingent consideration to sellers of Fluido is dependent upon the achievement of certain financial targets by Fluido. At the acquisition
date, the key inputs used in determination of the fair value of contingent consideration are the discount rate of 16% and the probabilities of achievement
of the financial targets. $18,700,000 represents the estimated fair value of this obligation.
(2)
On November 16, 2018, the Company acquired 60% of the issued share capital of Infosys Compaz Pte. Ltd. for consideration of $17 million, including
cash consideration of $10 million which includes other payables of $5.6 million (Note 11) and contingent consideration of $7 million. This transaction
has been accounted for by the acquisition method of accounting.
Infosys Compaz Pte. Ltd. is an entity incorporated in Singapore with its principal activity being the provision of IT services.
The payment of contingent consideration to sellers of Infosys Compaz Pte. Ltd is dependent upon the achievement of certain revenue targets by Infosys
Compaz Pte. Ltd. At the acquisition date, the key inputs used in determination of the fair value of contingent consideration are the discount rate of 9%
and the probabilities of achievement of the financial targets. $4,549,520 represents the estimated fair value of this obligation.
The key inputs used in determination of the fair value of contingent considerations are included in Note 4. At the end of the reporting period, there
have been no changes to the amounts recognized arising from changes in range of outcomes or valuation techniques applied.
15 Share capital and redeemable preference shares

Particulars 2019 2018 2019 2018
Number of shares $ $
Issued and paid up:
i) Ordinary shares: At beginning and end of year 10,990,000 10,990,000 10,990,000 10,990,000
ii) Preference shares:
At beginning and end of year 249,200,000 – 249,200,000 –
Total equity 260,190,000 10,990,000
Fully paid ordinary shares, which have no par value, carry one vote per share and carry a right to dividends as and when
declared by the Company.
The main features of the redeemable preference shares are as follows:
1. They may be redeemed wholly or partially only by the Company by giving no less than fourteen (14) days’ notice to holders
of the preference shares.
2. In the event of dividend being declared, which is solely at the discretion of the Company, holders of the preference shares
are entitled to receive, prior and in preference to the holders of ordinary shares, a preferential dividend at the rate of 4%
per annum based on the issue price of the redeemable preference shares. These dividend are cumulative in nature and the
Company shall not pay dividend in respect of ordinary shares unless all accumulated balances declared in respect of the
preference shares has been fully paid.
3. They have preference in return of capital upon liquidation of the Company.

16 Revenue The total charge for the year can be reconciled to the
in SG $ accounting profit as follows:
in SG $
2019 2018 Particulars As at December 31,
Type of goods or service 2019 2018
Provision of IT support Profit before income tax 10,411,427 53,086
services 11,778,022 15,688,814 Income tax expense
Timing of revenue calculated at 17% 1,769,943 9,025
recognition Exempt income (3,310,896) –
Over time 11,778,022 15,688,814 Non-deductible expenses 5,404 12,821
Effects of deferred tax
There are no performance obligations that are unsatisfied (or benefits not recognised as
partially unsatisfied) at the end of the reporting period. deferred tax assets 1,553,175 –
Utilisation of previously
17 Other income
in SG $
unrecognised tax benefit – (21,846)
Withholding tax 13,273 153,809
Particulars As at december 31, Overprovision in prior years (77,390) –
2019 2018 Others (17,626) –
Dividend from subsidiary (64,117) 153,809
(Note 5) 19,475,859 –
Interest received from loan to The company has unutilized tax losses carry forwards available
subsidiary (Note 5) 1,208 – for offsetting against future taxable income as follows:
Management fee income in SG $
(Note 5) 204,412 241,760 Particulars Tax losses Unutilized Total
Miscellaneous income 132,535 46,229 capital
19,814,014 287,990 allowances
At January 1,
18 Finance costs 2018 7,380,637 – 7,380,637
in SG $ Utilized
Particulars As at December 31, during the
2019 2018 year (128,503) – (128,503)
Interest expense: At December
Loan from related company 31, 2018 7,252,134 – 7,252,134
(Note 5) 7,694,507 551,150 Arising during
Interest expense on lease the year 9,136,325 – 9,136,325
liabilities 19,765 – At December
Interest on contingent 31, 2019 16,388,459 – 16,388,459
consideration 2,112,523 425,545 in SG $
Interest on redemption
As at December 31,
liability – 129,008
2019 2018
9,826,795 1,105,703
Deferred tax benefit on above
unrecorded at 17% 2,786,038 1,232,863
19 Income tax (benefit) expense
in SG $ The tax losses are available for set-off against future taxable
Particulars As at December 31, profits, subject to compliance with the provision of Section 37
2019 2018 of the Singapore Income Tax Act, Chapter 134 and agreement
Income tax recognized in of the Comptroller of Income Tax.
profit or loss: Deferred tax assets have not been recognized in respect of
Withholding tax (64,117) 153,809 these items because it is not probable that future taxable
profit will be available against which the Company can
Domestic income tax is calculated at 17% (2018 : 17%) of the
utilize the benefits.
estimated assessable income for the year.

20 Profit for the year 23 Events after the reporting period
Other than as disclosed in other notes to the financial (i) The Company has made decision for further investment in
statements, profit before income tax includes Fluido Qy, the wholly owned subsidiary of the Company
the following charges: for an amount of EUR 2.5 million ($3.9 million) to
in SG $ facilitate the payout related to the Management incentive
Particulars As at December 31, Program which is part of the purchase consideration
2019 2018 decided at the time of acquisition.
Directors’ remuneration 384,742 465,131 (ii) Subsequent to the financial year ended December 31,
Employee benefits expense 2019 and up to the date of this report there was a global
(including directors’ outbreak of the COVID-19 virus and associated slow-
remuneration): 6,603,125 7,620,225 down in global economy. It is not possible to reliably
Cost of defined contributions estimate the length or severity of these developments,
plans included in employee and hence their financial impact. However, this could
benefits expense 279,794 318,671 have an adverse impact on some of their customers and
6,882,919 7,938,896 may affect the Company’s results in the future periods.
Notwithstanding this, management has assessed that
21 Lease liabilities (Disclosure required under the company is still able to maintain sufficient liquidity
FRS 116) to enable the company to continue as a going concern
in SG $ with the financial support from its holding company as
Particulars 2019 disclosed in Note 4 (c)(iv).
Maturity analysis:
Year 1 392,040
Year 2 392,040
Year 3 392,040
Year 4 32,670
1,208,790
Less: Unearned interest (29,730)
1,179,060
Analysed as:
Current 376,127
Non-current 802,933
1,179,060
The Company does not face a significant liquidity risk with

regard to its lease liabilities. Lease liabilities are monitored
within the Company’s treasury function. The weighted
average incremental borrowing rate is 1.58% per annum.
22 Operating lease arrangements (The
Company as lessee)
At December 31, 2018, the Company had outstanding
commitments under non-cancellable operating leases, which
fall due as follows:
in SG $
Particulars 2018
Within one year 393,855
Within two to five years 424,710
After five years –
818,565

Safe Harbor
This Annual Report contains ‘forward-looking statements’ within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve substantial risks and uncertainties.
Forward-looking statements generally relate to future events or our future financial or operating performance and are based
on our current expectations, assumptions, estimates and projections about the Company, our industry, economic conditions
in the markets in which we operate, and certain other matters. Generally, these forward-looking statements can be identified
by the use of forward-looking terminology such as ‘anticipate’, ‘believe’, ‘estimate’, ‘expect’, ‘intend’, ‘will’, ‘project’, ‘seek’,
‘should’ and similar expressions. Those statements include, among other things, the discussions of our business strategy,
including the localization of our workforce and investments to reskill our employees and expectations concerning our market
position, future operations, margins, profitability, liquidity, capital resources and corporate actions. These statements are
subject to known and unknown risks, uncertainties and other factors, which may cause actual results or outcomes to differ
materially from those implied by the forward-looking statements. Important factors that may cause actual results or outcomes
to differ from those implied by the forward-looking statements include, but are not limited to, those discussed in the “Outlook,
risks and concerns” section in this Annual Report. In the light of these and other uncertainties, you should not conclude that
the results or outcomes referred to in any of the forward-looking statements will be achieved. All forward-looking statements
included in this Annual Report are based on information and estimates available to us on the date hereof, and we do not
undertake any obligation to update these forward-looking statements unless required to do so by law.
Creative concept and design by Communication Design Group, Infosys Limited.

© 2020 Infosys Limited, Bengaluru, India. Infosys acknowledges the proprietary rights in the trademarks and product names of other companies mentioned in this report.
www.infosys.com

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Subsidiary Financials 2019–20

EdgeVerve Systems Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

Infosys McCamish Systems, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

Infosys Public Services Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

Infy Consulting Company Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131

Infosys Technologies (China) Co. Limited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147

Infosys Poland Sp. z o.o. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169

Infosys Consulting GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199

Infosys Technologies (Shanghai) Co. Limited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215

Infosys Consulting AG. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239

Infosys Technologies S. de R. L. de C. V. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247

Panaya Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263

Fluido Oy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273

Infosys (Czech Republic) Limited s.r.o. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285

WongDoody Holding Company, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305

Infosys Consulting Ltda. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317

Infosys Consulting Sp. z o.o.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 339

Infosys Management Consulting Pty. Limited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 355

Kallidus, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375

Brilliant Basics Limited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 397

Infosys Consulting S.R.L (Argentina). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 413

Portland Group Pty. Ltd.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 433

Infosys Middle East FZ LLC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 455

Panaya Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 473

Infosys Technologies (Sweden) AB. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 491

Infosys Subsidiary Financials 2019-20

Infosys Consulting (Shanghai) Co. Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 523

Skava Systems Private Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 543

Infosys Consulting (Belgium) N.V. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 571

Infosys BPO Americas LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 591

Infosys Consulting S.R.L. (Romania) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 599

Infosys Chile SpA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 619

Panaya GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 629

Infosys Austria GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 647

Infosys Consulting s.r.o.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 663

Lodestone Management Consultants Portugal, Unipessoal, Lda. . . . . . . . . . . . . . . . . . . . 679

Brilliant Basics Holdings Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 697

Infosys Americas Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 711

Infosys Luxembourg S.a.r.l.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 725

Infosys Nova Holdings LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 739

Infosys Consulting Holding AG. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 749

Infosys Arabia Limited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 757

Infosys South Africa Pty. Ltd.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 769

Brilliant Basics (MENA) DMCC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 781

HIPUS Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 791

Infosys Consulting SAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 815

Stater N.V. (Stater). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 841

Infosys Compaz Pte. Ltd.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 919

Infosys Consulting Pte. Ltd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 949

Infosys Subsidiary Financials 2019-20

Report on the Audit of the Standalone Financial Statements

2 I Infosys BPM Limited Infosys Subsidiary Financials 2019-20

Infosys Subsidiary Financials 2019-20 Infosys BPM Limited I 3

For DELOITTE HASKINS & SELLS LLP

4 I Infosys BPM Limited Infosys Subsidiary Financials 2019-20

Infosys Subsidiary Financials 2019-20 Infosys BPM Limited I 5

For DELOITTE HASKINS & SELLS LLP

6 I Infosys BPM Limited Infosys Subsidiary Financials 2019-20

Infosys Subsidiary Financials 2019-20 Infosys BPM Limited I 7

For DELOITTE HASKINS & SELLS LLP

8 I Infosys BPM Limited Infosys Subsidiary Financials 2019-20

Infosys Subsidiary Financials 2019-20 Infosys BPM Limited I 9