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Infosys.ltd.

Infosys Limited (NASDAQ: INFY) was started in 1981 by seven people with US$ 250. Our offerings span business and technology consulting, application services, systems integration, product engineering, custom software development, maintenance, re-engineering, independent testing and validation services, IT infrastructure services and business process outsourcing. Infosys has a global footprint with 64 offices and 65 development centers in US, India, China, Australia, Japan, Middle East, UK, Germany, France, Switzerland, Netherlands, Poland, Canada and many other countries. Infosys and its subsidiaries have 141,822 employees as on September 30, 2011. Capital structure and Balance sheet of company are as follow.

Balance sheet
Mar ' 11 Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-inprogress Investments Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07

287.00 -

287.00 -

286.00 -

286.00 -

286.00 -

24,214.00 21,749.00 17,523.00 13,204.00 10,876.00 24,501.00 22,036.00 17,809.00 13,490.00 11,162.00

6,934.00 2,878.00 4,056.00 499.00 1,325.00

6,357.00 2,578.00 3,779.00 409.00 4,636.00

5,986.00 2,187.00 3,799.00 615.00 1,005.00

4,508.00 1,837.00 2,671.00 1,260.00 964.00

3,889.00 1,739.00 2,150.00 957.00 839.00

23,150.00 17,242.00 15,732.00 12,326.00 9,040.00 4,529.00 4,030.00 3,342.00 3,731.00 1,824.00 7,216.00 -

18,621.00 13,212.00 12,390.00 8,595.00 -

24,501.00 22,036.00 17,809.00 13,490.00 11,162.00

Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding (Lacs)

1,325.00

4,636.00

1,005.00

964.00

839.00

1,013.00 5741.52

295.00 5738.25

347.00 5728.30

603.00 5719.96

670.00 5712.10

Capital structure
From Year To Year Class Of Share Authorized Capital Issued Capital Paid Up Shares (Nos) 574151559 573825192 572830043 571995758 571209862 Paid Up Face Value 5 5 5 5 5 Paid Up Capital

2010 2009 2008 2007 2006

2011 Equity Share 2010 Equity Share 2009 Equity Share 2008 Equity Share 2007 Equity Share

300.00 300.00 300.00 300.00 300.00

287.08 286.91 286.42 286.00 285.60

287.08 286.91 286.42 286.00 285.60

1. ASSET BASED VALUATION METHOD


This method is also known as intrinsic value method. The intrinsic value of an equity share is calculated basing on the proportion of net assets available to each individual equity share. The first thing you must do is make a complete list of the tangible assets owned by your business. Examples of tangible assets include: accounts receivable, furniture and fixtures, equipment, inventory, customer contracts, vehicles, leasehold improvements, prepaid expenses( paid insurance premiums for example), franchise agreements. If you own the real estate that your business occupies you may be better off selling it separately from the business, which means it won't be part of this valuation. But if the business is dependent on the current location, than add the value of the real estate in this step. Next assign a price to each tangible asset based on its fair market value. Fair market value is what the item can be sold for on the open market. It may take some research to determine this. Unless prices have changed drastically, inventory should be valued at your cost. Sometimes an owner will attempt to value the company's assets based on book value (the non-depreciated value of the item as it is currently valued on your balance sheet). It is the rare buyer who will pay you book value - they can buy brand new equipment and vehicles for nearly the same price as the book value. So do your best to assign a value to each item based on what it can realistically be sold for on the open market. And make sure to note next to the price why it is worth that amount. Finally, make a comprehensive list of the intangible assets owned by the company.

Examples of intangible assets: Customer lists, proprietary information and software, trained and experienced employees and patents, copyrights trademarks etc. Come up with what you consider to be a fair value for each item. Next, clearly describe the item and explain why you believe it is worth the amount you're asking. An intangible asset that gets a lot of attention is "goodwill". But Goodwill, in actuality, is just the sum total of all of your intangible assets. Adding the total of your tangible assets plus the total for your intangible assets will give you a good idea of what your asking price will be.

1.

ASSET BASED VALUATION OF INFOSYS:

Particular
Assets: Net Block Investments Net Current Assets Less liabilities: Net Liabilities TOTAL NET ASSET VALUE IN HAND OF SHARE HOLDER NUMBERS OF SHARE ISSUED

Amt (in cr.) Amt (in cr.)


4,056.00 1,325.00 18,621.00 24002.00 0 24002.00 574151559

2.

EARNINGS YIELD METHOD

To overcome the problem associated with dividends, the yields based upon earning can be used. The undistributed profit used to finance the growth of business helps to increase the value of share, and is just as much a part of the share holders return on the investment as the dividend. The value of company on the earning yield bases is the value of the stream of profit or earning which the company is expected to generate. Calculation of earning yield value involves 3 steps.
1. Predict the future maintainable profits of the company being valued. 2. Identify the require earning yield by reference to the results of similar

companies.
3. Apply the earning yield to future profits using the following formula;

Value of business = companies expected future maintainable profits Industries normal earnings yield

2. EARNINGS YIELD METHOD:

Companys expected future maintainable profits:


YEAR 2011 2010 2009 2006 2007 Profits (in cr.) 6443.00 5803.00 5819.00 4470.00 3783.00
TOTAL PROFIT(A) 26318.00 NO OF YEARS(B) 05

Companys expected future maintainable profits(A/B) Industrys normal earning rate

5263.60 24.41 OR 0.2441

VALUE OF BUSINESS= 21563.29 cr.

Bibliography

Books:
Strategic financial management (Ravi M. Kishore)

Websites:
1) http://www.infosys.com/about/what-we-do/pages/index.aspx 2) http://money.rediff.com/companies/infosysltd/13020007/capital-structures 3) http://money.rediff.com/companies/infosysltd/13020007/balance-sheet 4) www.nseindia.com