<DOCUMENT>
<TYPE>EX-19.1
<SEQUENCE>3
<FILENAME>f78575orex19-1.txt
<DESCRIPTION>EXHIBIT 19.1
<TEXT>
<PAGE>
INFOSYS TECHNOLOGIES LIMITED
Report for the third quarter ended December 31, 2001
[INFOSYS LOGO]
<PAGE>
At a glance - Indian GAAP
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
Rs. in crores, except per share data
-----------------------------------------------------------------------------------------------------------
Quarter ended Nine months ended Year ended
December 31, December 31, March 31,
2001 2000 2001 2000 2001
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
For the period
Total revenue 660.81 537.07 1,923.46 1,338.69 1,900.57
Export revenue 648.35 529.24 1,882.93 1,321.56 1,874.03
Operating profit (PBIDT) 267.45 217.46 766.88 531.52 764.84
Profit after tax (PAT) from
ordinary activities 206.04 166.33 597.63 441.64 623.32
PBIDT as a percentage of total revenue 40.47% 40.49% 39.87% 39.70% 40.24%
PAT from ordinary activities as a
percentage of total revenue 31.18% 30.97% 31.07% 32.99% 32.80%
Earnings per share from ordinary activities(*)
(par value of Rs. 5 each, fully paid)
Basic 31.14 25.14 90.33 66.76 94.23
Diluted 31.02 24.86 89.86 65.97 93.93
Dividend per share NA NA 7.50 2.50 10.00
Dividend amount(**) NA NA 49.62 16.54 66.16
Capital investment 53.05 125.16 284.56 325.01 463.35
At the end of the period
Total Assets 1,949.93 1,261.09 1,389.64
Fixed assets - net 725.28 457.23 557.66
Cash and cash equivalents 866.35 517.75 577.74
Working capital 1,157.87 767.54 797.86
Total debt -- -- --
Net worth 1,949.93 1,261.09 1,389.64
Equity 33.08 33.08 33.08
Market capitalization 26,871.66 37,667.93 26,926.35
-----------------------------------------------------------------------------------------------------------
</TABLE>
Note:
Market capitalization is calculated by considering the price at the National
Stock Exchange on the shares outstanding at the period / year end.
(*) EPS figures have been calculated for the period and have not been
annualized.
(**) Excluding dividend tax.
Total Revenue
(in Rs. Crores)
<TABLE>
<S> <C>
Year ended March 31, 2001 1,900.57
Quarter ended December 31, 2000 537.07
Quarter ended December 31, 2001 660.81
</TABLE>
Exports
(in Rs. Crores)
<TABLE>
<S> <C>
Year ended March 31, 2001 1,874.03
Quarter ended December 31, 2000 529.24
Quarter ended December 31, 2001 648.35
</TABLE>
Net Profit from
Ordinary Activities
(in Rs. Crores)
<TABLE>
<S> <C>
Year ended March 31, 2001 623.32
Quarter ended December 31, 2000 166.33
Quarter ended December 31, 2001 206.04
</TABLE>
2
<PAGE>
Letter to the shareholders
--------------------------------------------------------------------------------
Dear shareholders,
We are delighted to report on yet another comfortable quarter despite
challenging conditions. This quarter was one of the most challenging, both for
Infosys and the Indian software industry. According to Indian GAAP, revenues
grew by 23.0% over Q3 FY2001 while net profits from ordinary activities
witnessed an increase of 23.9%. In fact, we achieved record free cash flows of
Rs. 151.5 crore during this quarter. Gross addition in employees stood at 219
for the quarter, including 151 lateral hires - net employee addition for the
quarter stood at 109.
Software spending continued to weaken globally and the events of September 11
created a lot of uncertainty in the external environment. Short-term
uncertainties continue to remain. Software revenues in US dollar terms grew by
0.2% for the quarter as compared to the previous quarter ended September 30,
2001. Revenue growth comprised volume growth of 3.4% offset by a price decline
of 3.2%, as compared to the previous quarter. Thus, though we experienced growth
in volumes, our quarterly revenue growth was impacted due to continuing pricing
pressures.
We expanded our customer base by adding more mainstream customers. Though the
revenue ramp-up from new clients is slow, we believe that the new client
addition would be an important asset for Infosys in the future.
We added 33 new clients this quarter as compared to 28 in the previous quarter.
Significant wins included SunAmerica Inc., a leading financial services company
and part of the American International Group; Aizawa Koatsu Concrete KK, Japan's
largest concrete manufacturer; Texas Instruments, the world leader in real-time
technologies; Spatial Wireless, a US major that builds switching network
elements for packet based wireless networks; Target Corporation, America's
fourth largest general merchandise retailer; Cosmos Cooperative Bank, one of
India's oldest banks; and ABN Amro - India, one of the leading foreign banks in
India.
Infosys increased its presence in the government sector with another engagement
with the National Health Service (NHS), UK. In fact, Infosys is the only Indian
company to figure in the UK government's single-window Services Catalogue
(S-Cat).
There will be significant changes in the senior management setup effective March
31, 2002. The Board of Directors appointed Nandan M. Nilekani as the Chief
Executive Officer, President and Managing Director, and S. Gopalakrishnan as the
Chief Operating Officer and Deputy Managing Director, effective March 31, 2002.
N.R. Narayana Murthy continues to be the Chairman and his designation will be
Chairman and Chief Mentor, effective March 31, 2002.
Mr. Ramesh Vangal retired as a director of the company on October 24, 2001. We
place on record our deep appreciation of the yeoman service rendered by Mr.
Ramesh Vangal during his tenure on the Board.
The Board of Directors co-opted Mr. Claude Smadja, Principal Advisor, World
Economic Forum, as an Additional Director of the company with effect from
October 25, 2001. Mr. Claude Smadja's appointment as director requires the
approval of the members at the ensuing Annual General Meeting.
As in the past, Infoscions continue to work hard and remain highly motivated. On
your behalf, we thank our fellow Infoscions for contributing to yet another
successful quarter through their unstinting commitment and dedication.
Nandan M. Nilekani N.R. Narayana Murthy
Bangalore Managing Director, President Chairman and
January 10, 2002 and Chief Operating Officer Chief Executive Officer
3
<PAGE>
Auditors' report to the members of Infosys Technologies Limited
--------------------------------------------------------------------------------
We have audited the attached Balance Sheet of Infosys Technologies Limited (the
Company) as at December 31, 2001 and the Profit and Loss Accounts of the Company
for the quarter and nine month periods ended on that date, annexed thereto, and
report that:
1 As required by the Manufacturing and Other Companies (Auditor's Report)
Order, 1988, issued by the Company Law Board in terms of Section 227(4A) of
the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
2 Further to our comments in the Annexure referred to in paragraph 1 above:
(a) we have obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purpose of our audit;
(b) in our opinion, proper books of account as required by law have been kept
by the Company so far as appears from our examination of these books;
(c) the Balance Sheet and Profit and Loss Accounts dealt with by this report
are in agreement with the books of account;
(d) in our opinion, the Balance Sheet and Profit and Loss Accounts dealt with
by this report are prepared in compliance with the accounting standards
referred to in Section 211(3C) of the Companies Act, 1956, to the extent
applicable;
(e) in our opinion, and to the best of our information and according to the
explanations given to us, the said accounts give the information required
by the Companies Act, 1956, in the manner so required and give a true and
fair view:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at December 31, 2001; and
(ii) in the case of the Profit and Loss Accounts, of the profits for the
quarter and nine month periods ended on that date.
for Bharat S Raut & Co.
Chartered Accountants
Bangalore S Balasubrahmanyam
January 10, 2002 Partner
4
<PAGE>
Balance sheet as at
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
in Rs.
------------------------------------------------------------------------------------------------------
December 31, 2001 December 31, 2000 March 31, 2001
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SOURCES OF FUNDS
SHAREHOLDERS' FUNDS
Share capital 33,08,47,735 33,07,64,335 33,07,92,085
Reserves and surplus 1916,84,14,713 1228,01,09,686 1356,55,99,903
------------------------------------------------------------------------------------------------------
1949,92,62,448 1261,08,74,021 1389,63,91,988
======================================================================================================
APPLICATION OF FUNDS
FIXED ASSETS
Original cost 849,44,50,085 504,18,02,852 631,14,44,025
Less: Depreciation 350,60,89,223 207,06,98,673 244,13,15,982
------------------------------------------------------------------------------------------------------
Net book value 498,83,60,862 297,11,04,179 387,01,28,043
Add: Capital work-in-progress 226,44,82,864 160,11,55,758 170,65,04,250
------------------------------------------------------------------------------------------------------
725,28,43,726 457,22,59,937 557,66,32,293
INVESTMENTS 44,44,22,821 36,32,53,429 34,11,54,821
DEFERRED TAX ASSETS 22,33,00,000 -- --
CURRENT ASSETS, LOANS AND ADVANCES
Sundry debtors 310,53,09,864 303,96,24,611 302,37,02,417
Cash and bank balances 609,55,24,216 365,07,68,672 385,06,10,285
Loans and advances 634,58,66,530 355,39,12,507 430,27,93,623
------------------------------------------------------------------------------------------------------
1554,67,00,610 1024,43,05,790 1117,71,06,325
Less: Current liabilities 163,55,77,178 148,35,86,795 134,91,81,176
Provisions 233,24,27,531 108,53,58,340 184,93,20,275
------------------------------------------------------------------------------------------------------
NET CURRENT ASSETS 1157,86,95,901 767,53,60,655 797,86,04,874
------------------------------------------------------------------------------------------------------
1949,92,62,448 1261,08,74,021 1389,63,91,988
======================================================================================================
SIGNIFICANT EXTRACTS FROM THE
ACCOUNTING POLICIES AND NOTES ON ACCOUNTS 1
------------------------------------------------------------------------------------------------------
</TABLE>
The schedules referred to above and the notes thereon form an integral part of
the Balance Sheet
This is the Balance Sheet referred to in our report of even date
for Bharat S Raut & Co.
Chartered Accountants
<TABLE>
<S> <C> <C> <C> <C> <C>
S. Balasubrahmanyam N.R. Narayana Murthy Nandan M. Nilekani Deepak M. Satwalekar Marti G. Subrahmanyan Jitendra Vir Singh
Partner Chairman and Managing Director, Director Director Director
Chief Executive Officer President and Chief
Operating Officer
Omkar Goswami Larry Pressler Rama Bijapurkar Claude Smadja S. Gopalakrishnan
Director Director Director Director Deputy Managing
Director
K. Dinesh S.D. Shibulal T.V. Mohandas Pai Phaneesh Murthy Srinath Batni
Director Director Director and Director Director
Chief Financial
Officer
V. Balakrishnan
Bangalore Company Secretary and
January 10, 2002 Vice President - Finance
</TABLE>
5
<PAGE>
Profit and loss account for the
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
in Rs.
----------------------------------------------------------------------------------------------------------------------------------
Quarter ended Nine months ended Year ended
December 31, December 31, March 31,
2001 2000 2001 2000 2001
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INCOME
Software development services and products
Overseas 648,35,15,437 529,24,01,389 1882,92,66,922 1321,55,65,725 1874,02,66,421
Domestic 12,45,42,488 7,82,82,900 40,53,05,387 17,13,76,490 26,53,92,386
----------------------------------------------------------------------------------------------------------------------------------
660,80,57,925 537,06,84,289 1923,45,72,309 1338,69,42,215 1900,56,58,807
SOFTWARE DEVELOPMENT EXPENSES 309,50,06,743 250,14,38,519 902,01,39,078 625,56,50,627 870,83,23,900
----------------------------------------------------------------------------------------------------------------------------------
GROSS PROFIT 351,30,51,182 286,92,45,770 1021,44,33,231 713,12,91,588 1029,73,34,907
SELLING AND MARKETING EXPENSES 32,85,36,972 21,55,13,629 93,96,28,938 62,09,20,141 92,06,78,511
GENERAL AND ADMINISTRATION EXPENSES 51,00,42,542 47,91,63,936 160,60,31,362 119,52,17,799 172,82,35,210
----------------------------------------------------------------------------------------------------------------------------------
83,85,79,514 69,46,77,565 254,56,60,300 181,61,37,940 264,89,13,721
OPERATING PROFIT (PBIDT) 267,44,71,668 217,45,68,205 766,87,72,931 531,51,53,648 764,84,21,186
Interest -- -- -- -- --
Depreciation 41,33,27,825 33,01,92,680 115,82,69,242 74,99,31,944 112,89,45,152
----------------------------------------------------------------------------------------------------------------------------------
OPERATING PROFIT AFTER
DEPRECIATION AND INTEREST 226,11,43,843 184,43,75,525 651,05,03,689 456,52,21,704 651,94,76,034
Other income 14,92,53,753 14,47,31,965 43,07,77,367 49,16,27,114 59,37,14,915
Provision for investment -- 13,08,00,000 -- 13,08,00,000 15,28,98,608
----------------------------------------------------------------------------------------------------------------------------------
PROFIT BEFORE TAX AND EXTRAORDINARY ITEM 241,03,97,596 185,83,07,490 694,12,81,056 492,60,48,818 696,02,92,341
Provision for taxation 35,00,00,000 19,50,00,000 96,50,00,000 50,96,00,000 72,71,00,000
----------------------------------------------------------------------------------------------------------------------------------
PROFIT AFTER TAX BEFORE EXTRAORDINARY ITEM 206,03,97,596 166,33,07,490 597,62,81,056 441,64,48,818 623,31,92,341
Extraordinary item
Transfer of intellectual property rights
(net of tax) -- -- -- 5,49,44,000 5,49,44,000
----------------------------------------------------------------------------------------------------------------------------------
NET PROFIT AFTER TAX AND EXTRAORDINARY ITEM 206,03,97,596 166,33,07,490 597,62,81,056 447,13,92,818 628,81,36,341
----------------------------------------------------------------------------------------------------------------------------------
AMOUNT AVAILABLE FOR APPROPRIATION 206,03,97,596 166,33,07,490 597,62,81,056 447,13,92,818 628,81,36,341
----------------------------------------------------------------------------------------------------------------------------------
DIVIDEND
Interim -- -- 49,62,05,378 16,53,78,418 16,53,78,418
Final -- -- -- -- 49,61,85,878
Dividend Tax -- -- 5,06,12,949 3,63,83,252 8,69,94,211
Amount transferred - general reserve -- -- -- -- 553,95,77,834
Balance in Profit and Loss Account 206,03,97,596 166,33,07,490 542,94,62,729 426,96,31,148 --
----------------------------------------------------------------------------------------------------------------------------------
206,03,97,596 166,33,07,490 597,62,81,056 447,13,92,818 628,81,36,341
==================================================================================================================================
EARNINGS PER SHARE
(equity shares, par value Rs. 5 each)
Basic 31.14 25.14 90.33 67.59 95.06
Diluted 31.02 24.86 89.86 66.79 94.76
Number of shares used in computing
earnings per share
Basic 6,61,64,388 6,61,51,724 6,61,61,389 6,61,51,377 6,61,52,131
Diluted 6,64,27,919 6,68,95,876 6,65,03,734 6,69,44,332 6,63,58,311
==================================================================================================================================
SIGNIFICANT EXTRACTS FROM THE
ACCOUNTING POLICIES AND NOTES ON ACCOUNTS 1
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The schedules referred to above and the notes form an integral part of the
Profit and Loss Account
This is the Profit and Loss Account referred to in our
report of even date
For Bharat S Raut & Co.
Chartered Accountants
<TABLE>
<S> <C> <C> <C> <C> <C>
S. Balasubrahmanyam N.R. Narayana Murthy Nandan M. Nilekani Deepak M. Satwalekar Marti G. Subrahmanyan Jitendra Vir Singh
Partner Chairman and Managing Director, Director Director Director
Chief Executive Officer President and Chief
Operating Officer
Omkar Goswami Larry Pressler Rama Bijapurkar Claude Smadja S. Gopalakrishnan
Director Director Director Director Deputy Managing
Director
K. Dinesh S.D. Shibulal T.V. Mohandas Pai Phaneesh Murthy Srinath Batni
Director Director Director and Director Director
Chief Financial
Officer
V. Balakrishnan
Bangalore Company Secretary and
January 10, 2002 Vice President - Finance
</TABLE>
6
<PAGE>
Profit and loss account for the
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
in Rs.
---------------------------------------------------------------------------------------------------------------------------
Quarter ended Nine months ended Year ended
December 31, December 31, March 31,
2001 2000 2001 2000 2001
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SOFTWARE DEVELOPMENT EXPENSES
Salaries and bonus including
overseas staff expenses 252,82,99,726 170,68,74,953 719,81,36,772 427,83,37,885 605,50,65,446
Staff welfare 1,41,59,828 2,11,76,119 4,86,33,476 5,07,24,010 7,62,88,618
Contribution to provident and other funds 6,51,09,403 8,29,87,484 18,99,76,999 23,82,75,466 30,99,68,667
Foreign travel expenses 26,05,22,981 39,58,91,842 82,51,94,124 99,90,03,648 133,66,21,566
Consumables 1,15,55,687 2,11,69,196 2,23,05,800 4,06,76,271 5,86,87,245
Cost of software packages for
own use 8,99,27,090 8,10,39,921 26,05,35,499 27,89,89,511 31,83,50,293
service delivery to clients 1,52,51,994 2,45,17,799 7,57,07,441 3,78,29,076 5,70,13,753
Provision for post-sales client support (4,02,052) 1,06,07,014 1,01,06,810 1,86,55,572 1,83,20,669
Computer maintenance 2,01,46,659 1,97,46,312 4,91,77,197 4,66,83,745 7,13,47,686
Communication expenses 7,87,44,937 11,02,30,345 28,60,56,536 20,94,22,226 31,47,34,348
Consultancy charges 1,16,90,490 2,71,97,534 5,43,08,424 5,70,53,217 9,19,25,609
---------------------------------------------------------------------------------------------------------------------------
309,50,06,743 250,14,38,519 902,01,39,078 625,56,50,627 870,83,23,900
===========================================================================================================================
SELLING AND MARKETING EXPENSES
Salaries and bonus including
overseas staff expenses 14,65,40,566 10,65,60,519 45,16,64,388 31,63,24,458 44,24,50,822
Staff welfare 5,48,116 6,97,772 22,31,928 35,61,746 83,17,692
Contribution to provident and other funds 5,09,250 5,66,033 12,23,732 18,62,117 23,63,480
Foreign travel expenses 5,17,84,315 3,15,48,049 12,66,77,182 7,45,22,498 10,71,57,557
Consumables 23,592 -- 1,26,549 -- --
Cost of software packages for own use 2,10,904 92,859 9,63,306 1,28,095 2,31,458
Computer maintenance 5,219 2,56,956 17,126 4,30,811 5,94,392
Communication expenses 17,09,332 (87,211) 26,05,031 2,04,296 5,21,638
Traveling and conveyance 50,58,533 52,88,507 2,87,88,012 1,46,02,177 2,34,94,934
Rent 76,96,846 86,81,745 3,39,50,783 1,96,45,951 2,46,88,860
Telephone charges 83,90,111 50,45,821 2,35,92,648 1,32,68,834 2,34,14,698
Professional charges 1,98,21,529 17,58,184 4,09,27,527 1,36,06,831 4,78,37,412
Printing and stationery 43,48,515 24,90,297 1,17,63,538 42,39,176 95,70,534
Advertisements 9,93,407 1,57,531 13,21,911 45,38,131 72,82,105
Brand building 2,52,95,458 2,47,18,294 10,19,45,833 7,48,95,563 10,52,01,392
Office maintenance 7,51,575 13,51,520 20,37,160 54,67,665 77,28,128
Repairs to plant and machinery -- -- 1,09,365 17,41,984 17,41,984
Power and fuel 1,43,019 1,68,144 4,94,284 5,59,440 7,53,535
Insurance charges -- 77,87,617 -- 1,46,60,788 2,33,32,600
Rates and taxes 17,757 (7,64,193) 23,43,176 42,66,323 84,89,250
Bank charges and commission 34,448 2,95,130 1,86,776 3,78,077 5,15,576
Commission charges 4,11,71,575 33,82,901 6,12,55,217 1,24,08,622 1,79,03,784
Marketing expenses 1,19,11,154 98,00,148 3,84,01,106 3,26,51,683 4,26,87,545
Sales promotion expenses 15,29,172 48,36,888 36,94,182 54,48,790 70,16,656
Other miscellaneous expenses 42,579 8,80,118 33,08,178 15,06,085 73,82,479
---------------------------------------------------------------------------------------------------------------------------
32,85,36,972 21,55,13,629 93,96,28,938 62,09,20,141 92,06,78,511
===========================================================================================================================
</TABLE>
7
<PAGE>
Profit and loss account for the
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
in Rs.
-----------------------------------------------------------------------------------------------------------------------------------
Quarter ended Nine months ended Year ended
December 31, December 31, March 31,
2001 2000 2001 2000 2001
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
GENERAL AND ADMINISTRATION EXPENSES
Salaries and bonus including
overseas staff expenses 11,39,83,238 7,29,07,688 34,20,64,878 19,18,62,199 26,11,29,018
Contribution to provident and other funds 79,81,605 46,51,373 2,46,73,379 1,74,18,902 2,22,44,161
Foreign travel expenses 99,46,042 1,28,17,160 3,50,31,506 2,78,84,384 2,84,32,532
Traveling and conveyance 4,08,51,386 4,50,45,108 11,53,19,126 11,27,70,902 16,05,69,888
Rent 5,34,37,142 3,61,59,328 14,75,06,043 9,47,32,159 14,47,93,848
Telephone charges 2,27,88,253 3,18,45,485 9,04,29,008 8,87,12,235 11,68,45,665
Professional charges 3,61,07,753 4,87,55,207 10,09,05,743 10,11,14,310 15,61,83,973
Printing and stationery 70,58,667 90,22,861 4,12,67,527 4,33,98,279 5,29,83,672
Advertisements 62,22,692 1,35,61,421 2,03,65,901 3,80,56,360 5,57,95,726
Office maintenance 3,68,48,576 2,79,61,217 10,26,14,363 8,05,66,826 12,07,04,514
Repairs to building 1,28,65,632 1,11,35,584 5,06,90,746 2,52,18,521 3,95,22,458
Repairs to plant and machinery 58,18,703 82,15,361 1,84,06,206 1,38,57,318 2,09,12,187
Power and fuel 4,68,37,943 3,33,45,119 14,04,39,140 7,87,79,829 11,70,91,723
Insurance charges 1,46,54,203 29,33,537 3,96,82,943 86,26,557 2,84,22,698
Rates and taxes 1,40,36,232 15,06,903 3,09,57,149 63,19,386 97,28,274
Donations 84,22,889 1,49,59,500 4,82,72,214 4,77,68,563 7,21,92,883
Auditor's remuneration
audit fees 5,37,500 4,45,500 16,12,500 13,38,750 17,85,000
certification charges -- -- -- -- 2,00,000
out-of-pocket expenses 50,000 50,000 1,50,000 1,50,000 2,00,000
Bad loans and advances written off -- 11,891 -- 11,891 4,141
Bad debts written off -- -- -- 27,70,254 27,70,254
Provision for bad and doubtful debts 2,76,84,253 7,26,85,587 13,23,69,927 12,18,80,048 19,27,45,549
Provision for doubtful loans and advances -- -- 5,71,148 (1,412) 7,10,404
Bank charges and commission 4,24,953 30,30,814 16,05,124 38,72,210 54,23,907
Commission to non-whole time directors 24,00,000 15,00,000 72,00,000 45,00,000 59,22,049
Postage and courier 76,52,114 56,07,009 2,70,16,826 1,52,13,860 2,27,86,459
Books and periodicals 28,51,343 32,48,425 87,09,452 1,21,62,970 1,69,10,978
Research grants 25,00,000 25,00,000 75,00,000 75,00,000 1,00,00,000
Freight charges 17,22,183 21,33,762 38,37,545 43,63,988 55,72,484
Professional membership and
seminar participation fees 68,26,016 61,63,223 1,58,56,018 1,52,15,381 2,17,10,613
Transaction processing fee and filing fees 1,72,72,533 29,68,134 4,01,64,910 59,32,979 1,52,76,339
Other miscellaneous expenses 22,60,691 39,96,739 1,08,12,040 2,32,20,150 1,86,63,813
-----------------------------------------------------------------------------------------------------------------------------------
51,00,42,542 47,91,63,936 160,60,31,362 119,52,17,799 172,82,35,210
==================================================================================================================================
OTHER INCOME
Interest received on deposits with
banks and others 12,36,22,062 10,82,08,984 35,95,66,627 28,02,26,173 38,46,83,890
(Tax deducted at source
Rs. 2,16,26,269;
Rs. 1,43,43,030; Rs. 5,95,40,347;
Rs. 2,54,72,210 and Rs. 4,30,12,428
respectively)
Exchange differences 2,07,05,674 3,44,48,919 5,89,34,278 20,54,46,320 20,17,12,483
Miscellaneous income 49,26,017 20,74,062 1,22,76,462 59,54,621 73,18,542
----------------------------------------------------------------------------------------------------------------------------------
14,92,53,753 14,47,31,965 43,07,77,367 49,16,27,114 59,37,14,915
==================================================================================================================================
PROVISION FOR TAXATION
Current year
Income taxes 38,69,00,000 19,50,00000 103,30,00,000 49,56,00,000 71,31,00,000
Deferred taxes (3,69,00,000) -- (6,80,00,000) -- --
----------------------------------------------------------------------------------------------------------------------------------
35,00,00,000 19,50,00,000 96,50,00,000 49,56,00,000 71,31,00,000
Prior years -- -- -- 1,40,00,000 1,40,00,000
----------------------------------------------------------------------------------------------------------------------------------
35,00,00,000 19,50,00,000 96,50,00,000 50,96,00,000 72,71,00,000
==================================================================================================================================
</TABLE>
8
<PAGE>
1. Extracts of significant accounting policies and notes on accounts
--------------------------------------------------------------------------------
Company overview
Infosys Technologies Limited ("Infosys" or the "company"), a world leader in
consulting and information technology ("IT") services partners with Global 2000
companies to provide business consulting, systems integration, application
development and product engineering services. Through these services, Infosys
enables its clients to fully exploit technology for business transformation.
Clients leverage Infosys' Global Delivery Model to achieve higher quality,
improved time-to-market and cost-effective solutions.
1.1 Significant accounting policies
Basis of preparation of financial statements
The financial statements are prepared under the historical cost
convention, in accordance with Indian Generally Accepted Accounting
Principles ("GAAP") on the accrual basis. GAAP comprises mandatory
accounting standards issued by the Institute of Chartered Accountants of
India ("ICAI") and the provisions of the Companies Act, 1956. These
accounting policies have been consistently applied, except for certain
recently issued accounting standards made mandatory by the ICAI effective
the current fiscal year and adopted by the company, as described below.
All amounts are stated in Indian Rupees, except as otherwise specified.
The ICAI issued accounting standards on segment reporting, related party
disclosures, leases, earnings per share and accounting for taxes on income
that became mandatory effective accounting periods commencing on or after
April 1, 2001. The company adopted the accounting standards on segment
reporting, related party disclosures and earnings per share from the year
ended March 31, 2001. The standards on accounting for leases and income
taxes are adopted effective from April 1, 2001.
The accounting standard on consolidated financial statements became
effective from April 1, 2001. Although Yantra Corporation, USA, is a
subsidiary of Infosys as per the Companies Act, 1956, the financial
statements have not been consolidated since the company does not have
control as envisaged by the accounting standard on consolidated financial
statements. The company does not have any investments in associates and
accordingly the related accounting standard, mandatory effective April 1,
2002, does not affect these financial statements.
The preparation of the financial statements in conformity with GAAP
requires that the management of the company ("Management") make estimates
and assumptions that affect the reported amounts of income and expenses of
the period, reported balances of assets and liabilities and disclosures
relating to contingent assets and liabilities as of the date of the
financial statements. Examples of such estimates include expected
development costs to complete software contracts, provisions for doubtful
debts, future obligations under employee retirement benefit plans and the
useful lives of fixed assets. Actual results could differ from those
estimates.
Management's statement on significant accounting policies contained in the
audited financial statements
There are no changes in the accounting policies during the quarter or the
nine months ended December 31, 2001. The significant accounting policies
of the company relate to revenue recognition, expenditure, fixed assets
and capital work-in-progress, depreciation, retirement benefits to
employees -- principally gratuity, superannuation and provident fund
benefits, research and development, income tax, earning per share, foreign
currency transactions and investments.
1.2 Notes on accounts
The previous period's/year's figures have been regrouped/reclassified,
wherever necessary, to conform to the current period's presentation. The
company is engaged in the development and maintenance of computer
software. The production and sale of such software cannot be expressed in
any generic unit. Hence, it is not possible to give the quantitative
details of sales and certain information as required under paragraphs 3,
4C and 4D of part II of Schedule VI to the Companies Act, 1956.
1.2.1 Deferred income taxes
Consequent to the standard on accounting for taxes on income becoming
mandatory effective April 1, 2001, the company recorded the cumulative net
deferred tax credit of Rs 15,53,00,000 until April 1, 2001, as an addition
to the general reserves. The deferred tax credit of Rs 3,69,00,000 for the
quarter and Rs 6,80,00,000 for the nine months ended December 31, 2001 are
included in the provision for taxation for the respective periods.
1.2.2 Investments
There were no investments during the quarter ended December 31, 2001.
During the nine months ended December 31, 2001, the company invested Rs
10.33 crore in Workadia, Inc., USA ("Workadia") purchasing 22,00,000 fully
paid Series "B" convertible preferred stock, par value of US$0.0002, at
US$1.00 each. Workadia provides companies with comprehensive,
customizable business intranets through browser accessed hosted portals
and also offer consulting services to help customers select and deploy
their intranet applications, content and services.
An amount of Rs 15,28,98,608 was provided for the investments in Alpha
Thinx and EC Cubed, Inc., USA, in the latter half of the year ended March
31, 2001, when the investee companies filed for liquidation.
9
<PAGE>
1.2.3 Fixed assets
Depreciation charge to the profit and loss account relating to assets
costing less than Rs. 5,000/- each
<TABLE>
<CAPTION>
in Rs.
-----------------------------------------------------------------------------------------------------------------------
Quarter ended Nine months ended Year ended
December 31, December 31, March 31,
2001 2000 2001 2000 2001
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Charged during the period/year 5,18,17,535 11,81,34,465 12,41,67,610 21,85,52,260 34,99,43,502
-----------------------------------------------------------------------------------------------------------------------
Profit/loss on disposal of fixed assets
-----------------------------------------------------------------------------------------------------------------------
Profit on sale of fixed assets 3,79,810 8,47,021 60,79,913 9,92,437 11,22,939
Loss on sale of fixed assets (4,66,055) (5,804) (59,63,396) (2,05,049) (2,05,049)
-----------------------------------------------------------------------------------------------------------------------
Profit/(loss) on sale of fixed assets, net (86,245) 8,41,217 1,16,517 7,87,388 9,17,890
=======================================================================================================================
</TABLE>
1.2.4 Capital commitments and contingent liabilities
a. The company has outstanding guarantees and counter guarantees of Rs.
16,03,50,000 as at December 31, 2001, to various banks, in respect of
the guarantees given by the banks in favor of various government
authorities. The guarantees outstanding as at December 31, 2000 were
Rs. 5,24,55,000 and as at March 31, 2001 were Rs. 6,83,05,000.
b. Claims against the company, not acknowledged as debts, amounted to Rs.
3,22,39,754 as at December 31, 2001. The claims as at December 31, 2000
amounted to Rs. 8,75,532, which was also the amount as at March 31,
2001.
c. Outstanding forward contracts amounted to US$20,000,000 (approximately
Rs 96,28,00,000 at nine months end exchange rates) at December 31,
2001. Such contracts as at December 31, 2000 were Rs. Nil and as at
March 31, 2001 were US$20,000,000 (approximately Rs. 93,12,00,000 at
year end exchange rates).
d. The estimated amount of contracts remaining to be executed on capital
account, and not provided for (net of advances) is Rs. 65,36,61,038 as
at December 31, 2001. The amount of such contracts as at December 31,
2000 was Rs. 122,65,64,426 and as at March 31, 2001 was Rs.
158,25,35,171.
Obligations on long-term non-cancelable operating leases
The maximum obligations on long-term non-cancelable operating leases
payable as per the rentals stated in the respective agreements are as
follows:
<TABLE>
<CAPTION>
in Rs.
------------------------------------------------------------------------------------------------
Nine months ended Year ended
December 31, March 31,
2001 2000 2001
------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Within one year of the balance sheet date 16,64,51,897 10,30,31,617 7,30,43,980
Due in a period between one year and five years 49,90,79,126 36,65,92,325 27,71,79,409
Due after five years 7,67,98,705 4,92,41,188 14,40,05,657
------------------------------------------------------------------------------------------------
74,23,29,728 51,88,65,130 49,42,29,046
================================================================================================
</TABLE>
The operating lease arrangements extend for a maximum of ten years from
their respective dates of inception and relate to rented overseas
premises.
1.2.5 Balance of unutilized money raised by issue of American Depositary
Shares ("ADSs")
During the year ended March 31, 1999, Infosys made an Initial Public
Offering of ADS, of US$70,380,000, equivalent to Rs. 296,86,00,000. The
issue proceeds net of expenses of Rs. 19,68,00,000 are entirely utilized
by December 31, 2000.
1.2.6 Stock option plans
The company currently has three stock option plans. These are summarized
below.
1994 Stock Option Plan ("the 1994 Plan")
As of December 31, 2001 options to acquire 3,11,000 shares were
outstanding with the Employee Welfare Trust and options to acquire
3,23,000 shares are outstanding with the employees under the 1994 Plan.
These options were granted at an exercise price of Rs 50/- (post split)
per option. Additionally, 13,05,400 shares earlier issued are subject to
lock-in. No options were issued under this plan during the period.
1998 Stock Option Plan ("the 1998 Plan")
The 1998 Plan provides for the grant of stock options to employees. The
1998 Plan was approved by the board of directors in December 1997 and by
the shareholders in January 1998. The Government of India approved
29,40,000
10
<PAGE>
ADSs representing 14,70,000 equity shares for issue under the Plan. The
options may be issued at an exercise price that is not less than 90% of
the fair market value of the underlying equity share on the date of the
grant. The 1998 Plan automatically expires in January 2008, unless
terminated earlier. All options under the 1998 Plan are exercisable for
ADSs representing equity shares. A compensation committee comprising
independent members of the board of directors administers the 1998 Plan.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
Quarter ended Nine months ended Year ended
Number of options granted, December 31, December 31, March 31,
exercised and forfeited 2001 2000 2001 2000 2001
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Options granted, beginning of period/year 21,09,816 8,71,466 15,65,506 6,89,500 6,89,500
Granted during the period/year 2,28,150 80,800 8,30,850 3,12,800 9,64,840
Exercised during the period/year (17,000) (1,400) (22,200) (2,734) (12,434)
Forfeited during the period/year (44,580) (6,200) (97,770) (54,900) (76,400)
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Options granted, end of period/year 22,76,386 9,44,666 22,76,386 9,44,666 15,65,506
======================================================================================================================
Weighted average exercise price US$ 73.68 US$ 86.67 US$ 73.68 US$ 86.67 US$ 90.98
----------------------------------------------------------------------------------------------------------------------
(Rs. 3,547) (Rs. 4,046) (Rs. 3,547) (Rs. 4,046) (Rs. 4,236)
======================================================================================================================
</TABLE>
1999 Stock Option Plan ("the 1999 Plan")
In fiscal 2000, the company instituted the 1999 Plan. The shareholders and
the board of directors approved the plan in June 1999, which provides for
the issue of 66,00,000 equity shares to the employees. The compensation
committee administers the 1999 Plan. Options will be issued to employees
at an exercise price that is not less than the fair market value.
Fair market value is the closing price of the company's shares in the
stock exchange, where there is the highest trading volume on a given date
and if the shares are not traded on that day, the closing price on the
next trading day.
Under the 1999 Plan, options may be issued to employees at exercise prices
that are less than the fair market value only if specifically approved by
the members of the company in a general meeting. No approval has been
sought to date in this regard.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
Quarter ended Nine months ended Year ended
Number of options granted, December 31, December 31, March 31,
exercised and forfeited 2001 2000 2001 2000 2001
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Options granted, beginning of period/year 41,41,060 18,83,000 27,93,980 10,06,800 10,06,800
Granted during the period/year 5,26,780 1,78,200 19,79,600 11,32,300 19,57,830
Exercised during the period/year (30) (500) (30) (500) (1,200)
Forfeited during the period/year (27,295) (48,700) (1,33,035) (1,26,600) (1,69,450)
----------------------------------------------------------------------------------------------------------------------
Options granted, end of period/year 46,40,515 20,12,000 46,40,515 20,12,000 27,93,980
=====================================================================================================================
Weighted average exercise price Rs. 4,511 Rs. 5,512 Rs. 4,511 Rs. 5,512 Rs. 5,572
---------------------------------------------------------------------------------------------------------------------
</TABLE>
The aggregate options outstanding and considered for dilution as at
December 31, 2001 are 57,78,708 (as at December 31, 2000 - 24,84,333
options and as at March 31, 2001-- 35,76,733 options).
1.2.7 Loans and advances
Deposits with financial institutions and a body corporate comprise:
<TABLE>
<CAPTION>
in Rs.
-----------------------------------------------------------------------------------------------------------------
As at December 31, As at December 31, As at March 31,
2001 2000 2001
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Deposits with financial institutions:
Housing Development Finance Corporation Limited 101,10,22,147 51,14,87,343 50,87,03,015
ICICI Limited 54,82,20,744 50,91,88,495 50,87,01,373
IDBI Limited - - 40,35,30,424
Deposits with body corporate:
GE Capital Services India Limited 100,87,12,672 50,60,89,326 50,58,17,345
-----------------------------------------------------------------------------------------------------------------
256,79,55,563 152,67,65,164 192,67,52,157
=================================================================================================================
</TABLE>
The above amounts include interest accrued but not due amounting to Rs.
2,79,55,563 (the nine months ended December 31, 2000 - Rs. 2,67,65,164 and
the year ended March 31, 2001 - Rs. 2,67,52,157).
The financial institutions and the body corporate have superior credit
ratings from a premier credit rating agency in the country.
Mr. Deepak M Satwalekar, Director, is also Director of HDFC. Mr. N R
Narayana Murthy, Chairman and CEO, and Prof. Marti G. Subrahmanyam,
Director, are also directors in ICICI Limited. Except as directors in
these financial institutions, these persons have no direct interest in
these transactions.
11
<PAGE>
1.2.8 Pro-forma disclosures relating to the Employee Stock Option Plans
("ESOPs")
The company's 1994 stock option plan was established prior to the SEBI
guidelines on stock options.
Had the stock compensation costs for this stock option plan been
determined as per the guidelines issued by SEBI, the company's reported
net profit would have been reduced to the pro forma amounts indicated
below.
<TABLE>
<CAPTION>
in Rs.
-------------------------------------------------------------------------------------------------------
Quarter ended Nine months ended Year ended
December 31, December 31, March 31,
2001 2000 2001 2000 2001
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net profit:
- As reported 206,03,97,596 166,33,07,490 597,62,81,056 447,13,92,818 628,81,36,341
- Adjusted pro forma 200,11,18,251 160,39,26,704 579,86,31,160 429,74,13,557 605,55,42,584
-------------------------------------------------------------------------------------------------------
</TABLE>
1.2.9 Aggregate expenses
Following are the aggregate amounts incurred on certain specific expenses
that are required to be disclosed under schedule VI to the Companies Act,
1956 :
<TABLE>
<CAPTION>
in Rs.
-----------------------------------------------------------------------------------------------------------------------------------
Quarter ended Nine months ended Year ended
December 31, December 31, December 31, December 31, March 31,
2001 2000 2001 2000 2001
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Salaries and bonus including overseas
staff expenses 280,35,31,474 190,82,17,051 804,27,31,442 484,08,10,298 684,32,51,596
Contribution to provident and other funds 7,36,00,258 8,82,04,890 21,58,74,110 25,75,56,485 33,45,76,308
Foreign travel expenses 32,22,53,338 44,02,57,051 98,69,02,812 110,14,10,530 147,22,11,655
Consumables 1,15,79,279 2,11,69,196 2,24,32,349 4,06,76,271 5,86,87,245
Cost of software packages for own use 9,01,37,994 8,11,32,780 26,14,98,805 27,91,17,606 31,85,81,751
Cost of software packages for service
delivery to clients 1,52,51,994 2,45,17,799 7,57,07,441 3,78,29,076 5,70,13,753
Computer maintenance 2,01,51,878 2,00,03,268 4,91,94,323 4,71,14,556 7,19,42,078
Communication expenses 8,04,54,269 11,01,43,134 28,86,61,567 20,96,26,522 31,52,55,986
Consultancy charges 1,16,90,490 2,71,97,534 5,43,08,424 5,70,53,217 9,19,25,609
Provision for post-sales client support (4,02,052) 1,06,07,014 1,01,06,810 1,86,55,572 1,83,20,669
Traveling and conveyance 4,59,09,919 5,03,33,615 14,41,07,138 12,73,73,079 18,40,64,822
Rent 6,11,33,988 4,48,41,073 18,14,56,826 11,43,78,110 16,94,82,708
Telephone charges 3,11,78,364 3,68,91,306 11,40,21,656 10,19,81,069 14,02,60,363
Professional charges 5,59,29,282 5,05,13,391 14,18,33,270 11,47,21,141 20,40,21,385
Printing and stationery 1,14,07,182 1,15,13,158 5,30,31,065 4,76,37,455 6,25,54,206
Advertisements 72,16,099 1,37,18,952 2,16,87,812 4,25,94,491 6,30,77,831
Office maintenance 3,76,00,151 2,93,12,737 10,46,51,523 8,60,34,491 12,84,32,642
Repairs to building 1,28,65,632 1,11,35,584 5,06,90,746 2,52,18,521 3,95,22,458
Repairs to plant and machinery 58,18,703 82,15,361 1,85,15,571 1,55,99,302 2,26,54,171
Power and fuel 4,69,80,962 3,35,13,263 14,09,33,424 7,93,39,269 11,78,45,258
Brand building 2,52,95,458 2,47,18,294 10,19,45,833 7,48,95,563 10,52,01,392
Insurance charges 1,46,54,203 1,07,21,154 3,96,82,943 2,32,87,345 5,17,55,298
Rates and taxes 1,40,53,989 7,42,710 3,33,00,325 1,05,85,709 1,82,17,524
Commission charges 4,11,71,575 33,82,901 6,12,55,217 1,24,08,622 1,79,03,784
Donations 84,22,889 1,49,59,500 4,82,72,214 4,77,68,563 7,21,92,883
Auditor's remuneration
- audit fees 5,37,500 4,45,500 16,12,500 13,38,750 17,85,000
- certification charges -- -- -- -- 2,00,000
- out-of-pocket expenses 50,000 50,000 1,50,000 1,50,000 2,00,000
Bad loans and advances written off -- 11,891 -- 11,891 4,141
Bad debts written off -- -- -- 27,70,254 27,70,254
Provision for bad and doubtful debts 2,76,84,253 7,26,85,587 13,23,69,927 12,18,80,048 19,27,45,549
Provision for doubtful loans and advances -- -- 5,71,148 (1,412) 7,10,404
Bank charges and commission 4,59,401 33,25,944 17,91,900 42,50,287 59,39,483
Commission to non-whole time directors 24,00,000 15,00,000 72,00,000 45,00,000 59,22,049
Postage and courier 76,52,114 56,07,009 2,70,16,826 1,52,13,860 2,27,86,459
Books and periodicals 28,51,343 32,48,425 87,09,452 1,21,62,970 1,69,10,978
Research grants 25,00,000 25,00,000 75,00,000 75,00,000 1,00,00,000
Freight charges 17,22,183 21,33,762 38,37,545 43,63,988 55,72,484
Professional membership and seminar
participation fees 68,26,016 61,63,223 1,58,56,018 1,52,15,381 2,17,10,613
Marketing expenses 1,19,11,154 98,00,148 3,84,01,106 3,26,51,683 4,26,87,545
Sales promotion expenses 15,29,172 48,36,888 36,94,182 54,48,790 70,16,656
Transaction processing fee and filing fees 1,72,72,533 29,68,134 4,01,64,910 59,32,979 1,52,76,339
Other miscellaneous expenses 23,03,270 48,76,857 1,41,20,218 2,47,26,235 2,60,46,292
-----------------------------------------------------------------------------------------------------------------------------------
393,35,86,257 319,61,16,084 1156,57,99,378 807,17,88,567 1135,72,37,621
===================================================================================================================================
</TABLE>
12
<PAGE>
1.2.10 Segment reporting
The company's operations predominantly relate to providing Information
Technology ( "IT" ) services to customers operating in various industry
segments. Accordingly, IT service revenues represented along industry
classes comprise the primary basis of segmental information set out below.
The secondary segmental is geographical, determined based on the location
of the customer who is invoiced or in relation to which the revenue is
otherwise recognized. Fixed assets used in the company's business or
liabilities contracted have not been identified to any of the reportable
segments, as the fixed assets and services are used interchangeably
between segments. The company believes that it is currently not practical
to provide segment disclosures relating to total assets and liabilities
since a meaningful segregation of the available data is onerous.
<TABLE>
<CAPTION>
in Rs.
-----------------------------------------------------------------------------------------------------------------------------------
Quarter ended December 31, 2001 Financial services Manufacturing Telecom Retail Others Total
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Revenues 226,20,45,266 104,75,85,215 100,06,69,011 89,83,62,668 139,93,95,765 660,80,57,925
Identifiable operating expenses 88,69,28,977 45,15,97,293 25,80,69,122 24,41,14,216 44,57,63,049 228,64,72,657
Allocated expenses 57,38,64,655 25,87,01,439 24,71,15,470 22,18,50,892 34,55,81,144 164,71,13,600
-------------------------------------------------------------------------------------------
Segmental operating income 80,12,51,634 33,72,86,483 49,54,84,419 43,23,97,560 60,80,51,572 267,44,71,668
Unallocable expenses 41,33,27,825
Operating income 226,11,43,843
Other income (expense), net 14,92,53,753
Net profit before taxes 241,03,97,596
Income taxes 35,00,00,000
-----------------------------------------------------------------------------------------------------------------------------------
Net profit after taxes 206,03,97,596
===================================================================================================================================
-----------------------------------------------------------------------------------------------------------------------------------
Quarter ended December 31, 2000 Financial services Manufacturing Telecom Retail Others Total
-----------------------------------------------------------------------------------------------------------------------------------
Revenues 196,56,70,450 89,69,04,276 95,06,11,119 46,72,49,533 109,02,48,911 537,06,84,289
Identifiable operating expenses 64,95,80,074 36,28,28,425 25,92,61,153 14,73,49,507 33,05,83,802 174,96,02,961
Allocated expenses 54,49,68,088 23,74,73,219 25,16,93,172 12,37,13,593 28,86,65,051 144,65,13,123
-------------------------------------------------------------------------------------------
Segmental operating income 77,11,22,288 29,66,02,632 43,96,56,794 19,61,86,433 47,10,00,058 217,45,68,205
Unallocable expenses 46,09,92,680
Operating income 171,35,75,525
Other income (expense), net 14,47,31,965
Net profit before taxes 185,83,07,490
Income taxes 19,50,00,000
-----------------------------------------------------------------------------------------------------------------------------------
Net profit after taxes 166,33,07,490
===================================================================================================================================
-----------------------------------------------------------------------------------------------------------------------------------
Nine months ended
December 31, 2001 Financial services Manufacturing Telecom Retail Others Total
-----------------------------------------------------------------------------------------------------------------------------------
Revenues 700,22,62,077 328,99,65,733 301,73,41,639 232,63,11,817 359,86,91,043 1923,45,72,309
Identifiable operating expenses 256,72,86,450 136,78,29,242 78,74,06,362 63,19,60,880 125,02,33,939 660,47,16,873
Allocated expenses 185,48,11,037 83,72,77,894 76,77,10,017 58,95,32,406 91,17,51,151 496,10,82,505
-------------------------------------------------------------------------------------------
Segmental operating income 258,01,64,590 108,48,58,597 146,22,25,260 110,48,18,531 143,67,05,953 766,87,72,931
Unallocable expenses 115,82,69,242
Operating income 651,05,03,689
Other income (expense), net 43,07,77,367
Net profit before taxes 694,12,81,056
Income taxes 96,50,00,000
-----------------------------------------------------------------------------------------------------------------------------------
Net profit after taxes 597,62,81,056
===================================================================================================================================
-----------------------------------------------------------------------------------------------------------------------------------
Nine months ended
December 31, 2000 Financial services Manufacturing Telecom Retail Others Total
-----------------------------------------------------------------------------------------------------------------------------------
Revenues 452,31,93,381 238,50,76,617 247,37,67,456 110,39,54,549 290,09,50,212 1338,69,42,215
Identifiable operating expenses 160,79,27,274 90,20,80,564 65,71,32,600 40,33,12,389 90,66,43,854 447,70,96,681
Allocated expenses 124,20,47,410 63,23,82,782 65,78,67,058 29,21,57,823 77,02,36,813 359,46,91,886
-------------------------------------------------------------------------------------------
Segmental operating income 167,32,18,697 85,06,13,271 115,87,67,798 40,84,84,337 122,40,69,545 531,51,53,648
Unallocable expenses 88,07,31,944
Operating income 443,44,21,704
Other income (expense), net 49,16,27,114
Net profit before taxes 492,60,48,818
Income taxes 50,96,00,000
-----------------------------------------------------------------------------------------------------------------------------------
Net profit after taxes 441,64,48,818
===================================================================================================================================
-----------------------------------------------------------------------------------------------------------------------------------
Year ended March 31, 2001 Financial services Manufacturing Telecom Retail Others Total
-----------------------------------------------------------------------------------------------------------------------------------
Revenues 640,77,55,042 338,84,20,263 350,11,16,331 172,86,39,345 397,97,27,826 1900,56,58,807
Identifiable operating expenses 225,87,90,591 130,66,14,108 88,39,38,378 54,74,24,303 120,92,12,385 620,59,79,765
Allocated expenses 177,68,81,844 90,69,15,538 93,89,68,074 46,30,82,749 106,54,09,651 515,12,57,856
-------------------------------------------------------------------------------------------
Segmental operating income 237,20,82,607 117,48,90,617 167,82,09,879 71,81,32,293 170,51,05,790 764,84,21,186
Unallocable expenses 128,18,43,760
Operating income 636,65,77,426
Other income (expense), net 59,37,14,915
Net profit before taxes 696,02,92,341
Income taxes 72,71,00,000
-----------------------------------------------------------------------------------------------------------------------------------
Net profit after taxes 623,31,92,341
===================================================================================================================================
</TABLE>
13
<PAGE>
Geographic segments
<TABLE>
<CAPTION>
in Rs.
-----------------------------------------------------------------------------------------------------------------------------------
Quarter ended December 31, 2001 North America Europe India Rest of the World Total
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Revenues 468,49,88,158 128,38,66,686 12,45,42,488 51,46,60,593 660,80,57,925
Identifiable operating expenses 164,19,13,038 45,18,85,229 468,64,905 14,58,09,485 228,64,72,657
Allocated expenses 117,41,03,279 32,17,49,391 270,93,923 12,41,67,007 164,71,13,600
-------------------------------------------------------------------------------------------
Segmental operating income 186,89,71,841 51,02,32,066 5,05,83,660 24,46,84,101 267,44,71,668
Unallocable expenses 41,33,27,825
Operating income 226,11,43,843
Other income (expense), net 14,92,53,753
Net profit before taxes 241,03,97,596
Income taxes 35,00,00,000
-----------------------------------------------------------------------------------------------------------------------------------
Net profit after taxes 206,03,97,596
===================================================================================================================================
-----------------------------------------------------------------------------------------------------------------------------------
Quarter ended December 31, 2000 North America Europe India Rest of the World Total
-----------------------------------------------------------------------------------------------------------------------------------
Revenues 395,34,56,605 101,08,71,777 7,82,82,900 32,80,73,007 537,06,84,289
Identifiable operating expenses 125,52,72,510 36,33,39,515 1,76,06,878 11,33,84,058 174,96,02,961
Allocated expenses 105,38,56,826 26,94,63,973 3,01,19,876 9,30,72,448 144,65,13,124
-------------------------------------------------------------------------------------------
Segmental operating income 164,43,27,269 37,80,68,289 3,05,56,146 12,16,16,501 217,45,68,205
Unallocable expenses 46,09,92,680
Operating income 171,35,75,525
Other income (expense), net 14,47,31,965
Net profit before taxes 185,83,07,490
Income taxes 19,50,00,000
-----------------------------------------------------------------------------------------------------------------------------------
Net profit after taxes 166,33,07,490
===================================================================================================================================
-----------------------------------------------------------------------------------------------------------------------------------
Nine months ended December 31, 2001 North America Europe India Rest of the World Total
-----------------------------------------------------------------------------------------------------------------------------------
Revenues 1373,09,71,866 372,67,15,240 40,53,05,386 137,15,79,817 1923,45,72,309
Identifiable operating expenses 467,32,28,283 134,32,83,275 14,45,63,101 44,36,42,214 660,47,16,873
Allocated expenses 353,31,48,305 95,92,38,451 12,23,57,859 34,63,37,890 496,10,82,505
-------------------------------------------------------------------------------------------
Segmental operating income 552,45,95,278 142,41,93,514 13,83,84,426 58,15,99,713 766,87,72,931
Unallocable expenses 115,82,69,242
Operating income 651,05,03,689
Other income (expense), net 43,07,77,367
Net profit before taxes 694,12,81,056
Income taxes 96,50,00,000
-----------------------------------------------------------------------------------------------------------------------------------
Net profit after taxes 597,62,81,056
===================================================================================================================================
-----------------------------------------------------------------------------------------------------------------------------------
Nine months ended December 31, 2000 North America Europe India Rest of the World Total
-----------------------------------------------------------------------------------------------------------------------------------
Revenues 994,53,71,891 243,02,61,946 17,13,76,490 83,99,31,888 1338,69,42,215
Identifiable operating expenses 325,39,17,167 88,07,14,953 5,33,72,696 28,90,91,865 447,70,96,681
Allocated expenses 266,16,27,224 65,08,51,462 5,43,48,093 22,78,65,107 359,46,91,886
-------------------------------------------------------------------------------------------
Segmental operating income 402,98,27,500 89,86,95,531 6,36,55,701 32,29,74,916 531,51,53,648
Unallocable expenses 88,07,31,944
Operating income 443,44,21,704
Other income (expense), net 49,16,27,114
Net profit before taxes 492,60,48,818
Income taxes 50,96,00,000
-----------------------------------------------------------------------------------------------------------------------------------
Net profit after taxes 441,64,48,818
===================================================================================================================================
-----------------------------------------------------------------------------------------------------------------------------------
Year ended March 31, 2001 North America Europe India Rest of the World Total
-----------------------------------------------------------------------------------------------------------------------------------
Revenues 1396,90,84,594 358,05,91,607 26,53,92,386 119,05,90,220 1900,56,58,807
Identifiable operating expenses 443,71,64,129 125,44,88,260 8,95,83,246 42,47,44,130 620,59,79,765
Allocated expenses 377,03,71,740 96,78,27,796 8,59,85,652 32,70,72,668 515,12,57,856
-------------------------------------------------------------------------------------------
Segmental operating income 576,15,48,725 135,82,75,551 8,98,23,488 43,87,73,422 764,84,21,186
Unallocable expenses 128,18,43,760
Operating income 636,65,77,426
Other income (expense), net 59,37,14,915
Net profit before taxes 696,02,92,341
Income taxes 72,71,00,000
-----------------------------------------------------------------------------------------------------------------------------------
Net profit after taxes 623,31,92,341
===================================================================================================================================
</TABLE>
14
<PAGE>
1.2.11 Related party transactions
The company entered into related party transactions during the nine months
ended December 31, 2001 with Yantra Corporation, USA, the subsidiary of
the company, and key management personnel.
The transactions with Yantra Corporation comprise sales of Rs. 4,15,10,478
during the nine months ended December 31, 2001 (the nine months ended
December 31, 2000 -- Rs. 15,76,72,000 and the year ended March 31, 2001 -
Rs. 19,64,85,967). The outstanding dues from the subsidiary as at December
31, 2001 are Rs. 41,68,924 (as at December 31, 2000 - Rs. 1,87,57,679 and
as at March 31, 2001 - Rs. 99,80,017).
Key management personnel are non-director officers of the company, who
have the authority and responsibility for planning, directing and
controlling the activities of the company. The loans and advances
receivable from non-director officers as at December 31, 2001 are Rs.
2,24,31,923 (as at December 31, 2000 - Rs. 71,07,809 and as at March 31,
2001 - Rs. 1,05,74,738).
1.2.12 Reconciliation of basic and diluted shares used in computing
earnings per share
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
Quarter ended Nine months ended Year ended
December 31, December 31, March 31,
2001 2000 2001 2000 2001
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Number of shares considered as
basic weighted average
shares outstanding 6,61,64,388 6,61,51,724 6,61,61,389 6,61,51,377 6,61,52,131
Add: Effect of dilutive issues of
shares/stock options 2,63,531 7,44,152 3,42,345 7,92,955 2,06,180
-------------------------------------------------------------------------------------------------------
Number of shares considered as
weighted average shares and
potential shares outstanding 6,64,27,919 6,68,95,876 6,65,03,734 6,69,44,332 6,63,58,311
-------------------------------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
Statement of cash flows
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
in Rs.
----------------------------------------------------------------------------------------------------------------------------------
Quarter ended Nine months ended Year ended
December 31, December 31, March 31,
2001 2000 2001 2000 2001
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Cashflows from operating activities
Profit before tax 241,03,97,596 185,83,07,490 694,12,81,056 492,60,48,818 696,02,92,341
Adjustments to reconcile profit
before tax to cash provided
By operating activities
(Profit)/Loss on sale of fixed assets 86,245 (8,41,217) (1,16,517) (7,87,388) (9,17,890)
Depreciation and amortization 41,33,27,825 33,01,92,680 115,82,69,242 74,99,31,944 112,89,45,152
Interest income (12,36,22,062) (10,82,08,984) (35,95,66,627) (27,26,13,143) (38,46,83,890)
Effect of Deferred Taxes (3,69,00,000) -- (6,80,00,000) -- --
Provisions on long-term investments -- 13,08,00,000 -- 13,08,00,000 15,28,98,608
Income taxes paid during the
period/year (25,29,84,506) (31,31,33,686) (104,13,89,285) (63,56,65,477) (85,18,05,440)
Exchange differences on
translation of foreign
currency deposits (86,92,344) (3,44,48,919) (4,69,20,948) (20,54,46,320) (20,17,12,483)
Changes in current assets and liabilities
Sundry debtors 33,06,55,341 (60,90,55,865) (8,16,07,447) (167,78,43,358) (166,19,21,164)
Loans and advances (12,46,99,173) (8,27,15,875) (30,56,82,932) (21,45,10,572) (34,72,64,731)
Current liabilities and provisions (16,23,41,792) ( 1,40,20,268) 29,65,02,811 74,39,94,931 60,92,54,409
----------------------------------------------------------------------------------------------------------------------------------
Net cash generated by
operating activities 244,52,27,130 115,68,75,356 649,27,69,353 354,39,09,435 540,30,84,912
----------------------------------------------------------------------------------------------------------------------------------
Cashflows from financing activities
Proceeds on exercise of stock options 1,39,68,418 72,13,119 1,81,07,731 82,14,625 2,37,85,906
Dividends paid during the period/year,
including Dividend Tax (54,68,18,327) (20,17,61,670) (109,36,15,164) (42,20,05,883) (42,20,05,883)
----------------------------------------------------------------------------------------------------------------------------------
Net cash used in financing activities (53,28,49,909) (19,45,48,551) (107,55,07,433) (41,37,91,258) (39,82,19,977)
----------------------------------------------------------------------------------------------------------------------------------
Cashflows from investing activities
Purchases of fixed assets and
change in capital work-in-progress (53,05,32,761) (125,15,71,385) (284,55,90,479) (325,00,86,025) (463,35,45,172)
Proceeds on disposal of fixed assets 9,02,894 18,31,825 1,12,26,321 20,69,586 22,73,671
Long-term investments in securities -- (3,67,46,692) (10,32,68,000) (26,63,64,960) (26,63,64,960)
Interest income 12,36,22,062 10,82,08,984 35,95,66,627 27,26,13,143 38,46,83,890
----------------------------------------------------------------------------------------------------------------------------------
Net cash used in investing activities (40,60,07,805) (117,82,77,268) (257,80,65,531) (324,17,68,256) (451,29,52,571)
----------------------------------------------------------------------------------------------------------------------------------
Effect of exchange differences on
translation of foreign
currency deposits 86,92,344 3,44,48,919 4,69,20,948 20,54,46,320 20,17,12,483
----------------------------------------------------------------------------------------------------------------------------------
Net (decrease)/increase in cash and
cash equivalents during the
period/year 151,50,61,760 (18,15,01,544) 288,61,17,337 9,37,96,241 69,36,24,847
Cash and cash equivalents
at the beginning of the
period/year 714,84,18,019 535,90,35,380 577,73,62,442 508,37,37,595 508,37,37,595
----------------------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents
at the end of the period/year 866,34,79,779 517,75,33,836 866,34,79,779 517,75,33,836 577,73,62,442
===================================================================================================================================
</TABLE>
AUDITORS' CERTIFICATE TO THE MEMBERS OF INFOSYS TECHNOLOGIES LIMITED
We have examined the cash flow statement of Infosys Technologies Limited (the
company) for the quarter and nine month periods ended December 31, 2001. The
statement has been prepared by the company in accordance with the requirements
of Clause 32 of the listing agreements entered into with Indian Stock Exchanges.
for Bharat S Raut & Co.
Chartered Accountants
Bangalore S Balasubrahmanyam
January 10, 2002 Partner
16
<PAGE>
Statement of cash flows
<TABLE>
<CAPTION>
in Rs.
-----------------------------------------------------------------------------------------------------------------------------------
Quarter ended Nine months ended Year ended
December 31, December 31, March 31,
2001 2000 2001 2000 2001
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Income taxes paid during the period/year
Charge as per the
Profit and Loss Account 35,00,00,000 19,50,00,000 96,50,00,000 50,96,00,000 72,71,00,000
Add: Tax provided on Intellectual
property rights transferred -- -- -- 3,43,96,000 3,43,96,000
Increase in advance income taxes 29,21,41,086 17,50,80,939 109,61,86,569 47,71,61,475 69,33,01,439
Less: Increase/(Decrease) in
income tax provision (38,91,56,580) (5,69,47,253) (101,97,97,284) (38,54,91,998) (60,29,91,999)
-----------------------------------------------------------------------------------------------------------------------------------
25,29,84,506 31,31,33,686 104,13,89,285 63,56,65,477 85,18,05,440
===================================================================================================================================
Change in loans and advances during the period/year
As per the Balance Sheet 634,58,66,530 355,39,12,507 634,58,66,530 355,39,12,507 430,27,93,623
Less: Deposits with financial
institutions and body corporate,
included in cash and
cash equivalents (256,79,55,563) (152,67,65,164) (256,79,55,563) (152,67,65,164) (192,67,52,157)
Advance income taxes
separately considered (233,35,84,361) (102,12,57,828) (233,35,84,361) (102,12,57,828) (123,73,97,792)
------------------------------------------------------------------------------------
144,43,26,606 100,58,89,515 144,43,26,606 100,58,89,515 113,86,43,674
Less: Opening balance considered (131,96,27,433) (92,31,73,640) (113,86,43,674) (79,13,78,943) (79,13,78,943)
-----------------------------------------------------------------------------------------------------------------------------------
12,46,99,173 8,27,15,875 30,56,82,932 21,45,10,572 34,72,64,731
===================================================================================================================================
Change in current liabilities and provisions during the period/year
As per the Balance Sheet 396,80,04,709 256,89,45,135 396,80,04,709 256,89,45,135 319,85,01,451
Add/Less: Provisions separately
considered in the
cash flow Statement:
Income taxes (224,88,09,025) (101,15,11,740) (224,88,09,025) (101,15,11,740) (122,90,11,741)
Dividends -- -- -- -- (49,61,85,878)
Dividend tax -- -- -- -- (5,06,10,959)
------------------------------------------------------------------------------------
171,91,95,684 155,74,33,395 171,91,95,684 155,74,33,395 142,26,92,873
Less: Opening balance considered (188,15,37,476) (157,14,53,663) (142,26,92,873) (81,34,38,464) (81,34,38,464)
-----------------------------------------------------------------------------------------------------------------------------------
(16,23,41,792) (1,40,20,268) 29,65,02,811 74,39,94,931 60,92,54,409
===================================================================================================================================
Purchases of fixed assets and change in capital work-in-progress
As per the Balance Sheet 62,80,70,336 69,62,40,707 228,76,11,865 221,85,33,772 349,66,44,427
Less: Opening Capital work-in-progress (236,20,20,439) (104,58,25,080) (170,65,04,250) (56,96,03,505) (56,96,03,505)
Add: Closing Capital work-in-progress 226,44,82,864 160,11,55,758 226,44,82,864 160,11,55,758 170,65,04,250
-----------------------------------------------------------------------------------------------------------------------------------
53,05,32,761 125,15,71,385 284,55,90,479 325,00,86,025 463,35,45,172
===================================================================================================================================
Long-term investments in securities during the period/year
As per the Balance Sheet 44,44,22,821 36,32,53,429 44,44,22,821 36,32,53,429 34,11,54,821
Add: Provisions on investments -- 13,08,00,000 -- 13,08,00,000 15,28,98,608
Less: Non-cash investment (see note below) -- (8,93,40,000) -- (8,93,40,000) (8,93,40,000)
------------------------------------------------------------------------------------
44,44,22,821 40,47,13,429 44,44,22,821 40,47,13,429 40,47,13,429
Less: Opening balance considered (44,44,22,821) (36,79,66,737) (34,11,54,821) (13,83,48,469) (13,83,48,469)
-----------------------------------------------------------------------------------------------------------------------------------
-- 3,67,46,692 10,32,68,000 26,63,64,960 26,63,64,960
===================================================================================================================================
Cash and cash equivalents at the end of the period/year
As per the Balance Sheet 609,55,24,216 365,07,68,672 609,55,24,216 365,07,68,672 385,06,10,285
Add: Deposits with financial institutions
and body corporate, included herein 256,79,55,563 152,67,65,164 256,79,55,563 152,67,65,164 192,67,52,157
-----------------------------------------------------------------------------------------------------------------------------------
866,34,79,779 517,75,33,836 866,34,79,779 517,75,33,836 577,73,62,442
===================================================================================================================================
</TABLE>
NOTES ON THE STATEMENT OF CASH FLOWS
Cash flows are reported using the indirect method, whereby profit before tax is
adjusted for the effects of transactions of a non-cash nature and any deferrals
or accruals of past or future cash receipts or payments. The cash flows from
regular revenue generating, financing and investing activities of the company
are segregated. Cash flows in foreign currencies are accounted at average
monthly exchange rates that approximate the actual rates of exchange prevailing
at the dates of the transactions.
The balance of cash and cash equivalents includes Rs 173,05,518 as at December
31, 2001 (as at December 31, 2000 - Rs. 70,05,983 and as at March 31, 2001 - Rs.
48,15,163) set aside for payment of dividends and accordingly is not otherwise
available to the company.
During the year ended March 31, 2001, the company transferred intellectual
property rights in OnScan - a web-based wireless enabled notification product,
to OnMobile Systems, Inc., USA (formerly OnScan, Inc.) - a company incubated by
Infosys. The product was transferred for a gross consideration of Rs 8,93,40,000
(approximately US$ 2,000,000) that was received as equity preferred convertible
voting and non-voting stock in OnMobile Systems, Inc. Accordingly the
transaction being non-cash has not been considered in the statement of cash
flows, except for the related income taxes.
The previous year's/periods' figures have been recast/ restated, wherever
necessary, to conform to the current periods' classifications.
17
<PAGE>
At a glance - US GAAP
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
US $ in millions, except as otherwise stated
--------------------------------------------------------------------------------------------
Quarter ended Nine months ended Year ended
December 31, December 31, March 31,
2001 2000 2001 2000 2001
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
For the period
Revenues 137.58 114.91 405.37 293.11 413.85
Operating income 45.83 38.19 133.43 96.79 137.51
Net income 41.65 34.01 122.18 93.62 131.95
Operating income
as a percentage of total revenues 33.31% 33.24% 32.92% 33.02% 33.23%
Net income
as a percentage of total revenues 30.27% 29.59% 30.14% 31.94% 31.88%
Basic earnings per share ($) 0.64 0.52 1.86 1.43 2.01
Cash dividend per equity share ($) NA NA 0.16 0.05 0.14
Capital investments 14.60 30.26 59.98 71.40 101.24
At the end of the period
Total assets 439.42 304.50 342.35
Property, plant and equipment - net 150.66 97.93 119.77
Cash and cash equivalents 179.96 110.89 124.08
Working capital 229.70 156.94 176.18
Total debt -- -- --
Stockholders' equity 403.71 271.14 311.79
Common stock 8.60 8.59 8.59
Market capitalization 5,581.98 8,067.67 5,783.15
-------------------------------------------------------------------------------------------
</TABLE>
Note:
Market capitalization is calculated by considering the Indian market price for
the shares outstanding at the period / year end.
Revenues
(US $ in millions)
<TABLE>
<S> <C>
Year ended March 31, 2001 413.85
Quarter ended December 31, 2000 114.91
Quarter ended December 31, 2001 137.58
</TABLE>
Operating Income
(US $ in millions)
<TABLE>
<S> <C>
Year ended March 31, 2001 137.51
Quarter ended December 31, 2000 38.19
Quarter ended December 31, 2001 45.83
</TABLE>
Net Income
(US $ in millions)
<TABLE>
<S> <C>
Year ended March 31, 2001 131.95
Quarter ended December 31, 2000 34.01
Quarter ended December 31, 2001 41.65
</TABLE>
18
<PAGE>
FORM 6K
(From Page no. 19-48)
<PAGE>
Shareholder information
1. Listing on stock exchanges Bangalore Stock Exchange Ltd. (BgSE)
The Stock Exchange, Mumbai (BSE)
National Stock Exchange of India Ltd. (NSE)
NASDAQ National Market in the United States
2. Registered office Electronics City, Hosur Road, Bangalore -
561 229, India
Tel.: +91-80-852 0261, Fax: +91-80-852 0362
Homepage: www.infy.com
3. Stock market data relating to shares listed in India
a. The company's market capitalization is included in the computation of the
BSE-30 Sensitive Index (Sensex), the BSE Dollex and S&P CNX NIFTY Index.
b. Monthly high and low quotations as well as the volume of shares traded at
Mumbai, National and Bangalore Stock Exchanges for the quarter ended
December 31, 2001 are:
<TABLE>
<CAPTION>
BSE NSE BgSE
--------------------------- ----------------------------- ----------------------
High Low Volume High Low Volume High Low Volume
Rs. Rs. Nos. Rs. Rs. Nos. Rs. Rs. Nos.
----- ----- ----------- ----- ----- ----------- ---- ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
October, 2001 3,100 2,156 95,35,320 3,098 2,158 1,51,74,621 -- -- --
November 4,109 2,802 71,27,238 4,190 2,802 1,31,19,365 -- -- --
December 4,685 3,762 72,01,508 4,675 3,732 1,26,97,481 -- -- --
----- ----- ----------- ----- ----- ----------- ---- ---- ------
Total 2,38,64,066 4,09,91,467
% of volume traded to average
shares outstanding 37.20%(*) 63.98%(*) --(*)
----------- ----------- ------
</TABLE>
(*) The number of shares outstanding is 6,40,70,030. The equity shares
underlying the American Depositary Shares (ADSs) have been excluded for the
purpose of this calculation.
<TABLE>
<S> <C>
4. Par value of equity shares Rs. 5 each fully paid-up
5. Share transfers in physical form Karvy Consultants Limited
and other communication regarding Registrars and Share Transfer Agents
share certificates, dividends, T.K.N. Complex, No. 51/2, Vanivilas Road, Opp. National College,
change of address etc., in India Basavanagudi, Bangalore - 560 004, India.
may be addressed to Tel.: +91-80-662 1184/92/93, Fax: +91-80-662 1169
E-mail: kumars@karvy.com
</TABLE>
6. Share transfer system
Shares sent for physical transfer are generally registered and returned
within a period of 10 days from the date of receipt, if the documents are
clear in all respects. The share transfer committee of the company meets as
often as required.
The total number of shares transferred in physical form during the
three-month period ended December 31, 2001 was 2,700 (quarter ended December
31, 2000 - 1,500). 100.00% of transfers (quarter ended December 31, 2000 -
100.00%) were completed within 10 days.
7. Investors' services - complaints received during
<TABLE>
<CAPTION>
Quarter ended December 31,
--------------------------------------------------
2001 2000
------------------------ ----------------------
Nature of complaints Received Attended to Received Attended to
-------------------- -------- ----------- -------- -----------
<S> <C> <C> <C> <C>
1. Non-receipt of share certificates 2 2 -- --
2. Non-receipt of bonus shares/split shares -- -- 1 1
3. Letters from Stock Exchanges, SEBI, etc. -- -- -- --
4. Non-receipt of dividend 62 62 21 21
--- --- --- ---
64 64 22 22
--- --- --- ---
</TABLE>
The company has attended to most of the investors' grievances/correspondence
within a period of 10 days from the date of receipt of the same, during the
quarter ended December 31, 2001 except in cases that are constrained by
disputes or legal impediments.
8. Legal proceedings
There are some pending cases relating to disputes over title to shares, in
which the company is made a party. However, these cases are not material in
nature.
49
<PAGE>
9. Categories of shareholders as on December 31
<TABLE>
<CAPTION>
2001 2000
----------------------------------------- -----------------------------------------
No. of No. of
No. of Voting shares No. of Voting shares
Category shareholders strength(%) held shareholders strength(%) held
-------- ------------ ----------- ----------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Individuals 81,805 17.46 1,15,50,817 72,100 24.02 1,58,90,841
Companies 2,938 1.02 6,74,037 3,139 2.24 14,80,588
FIIs 370 37.99 2,51,39,687 363 25.45 1,68,33,123
OCBs and NRIs 732 0.67 4,42,285 594 0.73 4,85,473
Founders and their families 23 28.83 1,90,76,960 23 29.23 1,93,32,960
Mutual Funds, Banks, FIs 193 9.59 63,45,407 209 12.68 83,92,143
ITL Employee Welfare Trust 3 1.27 8,40,837 3 1.15 7,58,000
Shares in transit in NSDL -- -- -- 1 1.35 8,95,672
Equity shares underlying 1 3.17 20,99,217 1 3.15 20,83,267
American Depositary Shares*
---------------------------------------------------------------------------------------------------------------------
Total 86,065 100.00 6,61,69,247 76,439 100.00 6,61,52,567
---------------------------------------------------------------------------------------------------------------------
</TABLE>
----------
* Held by beneficial owners outside India.
10. Financial calendar (tentative and subject to change)
Financial results for the year ending March 31, 2002 April 10, 2002
Annual General Meeting for the year ending March 31, 2002 June 2002
<TABLE>
<S> <C>
11. Investors' correspondence in India Any queries relating to the financial statements
may be addressed to: of the company may be addressed to:
The Company Secretary, Mr. T.V. Mohandas Pai,
Investors' Service Cell, Director (F&A) and CFO,
Infosys Technologies Ltd., Electronics City, Infosys Technologies Ltd., Electronics City,
Hosur Road, Bangalore - 561 229, India. Hosur Road, Bangalore - 561 229, India.
Tel.: +91-80-852 0440, Fax: +91-80-852 0362 Tel.: +91-80-852 0396, Fax: +91-80-852 0362
(E-mail: balakv@infy.com) (E-mail: mdpai@infy.com)
</TABLE>
12. Reuters code
<TABLE>
<S> <C> <C> <C>
- INFY.BO (BSE) Bridge code - IN;INF (BSE) Bloomberg code - INFO IN (BSE)
- INFY.NS (NSE) - IN;INFN (NSE) - NINFO IN (NSE)
- INFY.O (NASDAQ) - US;INFY (NASDAQ)
</TABLE>
13. Stock market data relating to American Depositary Shares (ADSs)
<TABLE>
<S> <C> <C>
a. ADS listed at NASDAQ National Market in the United States
b. Ratio of ADS to equity shares 2 ADS for one equity share
c. ADS symbol INFY
</TABLE>
d. The American Depositary Shares issued under the ADS program of the
company were listed on the NASDAQ National Market in the United States
on March 11, 1999. The monthly high and low quotations as well as the
volume of ADSs traded at the NASDAQ National Market for the quarter
ended December 31, 2001 are:
<TABLE>
<CAPTION>
High Low Volume
------------- ------------- ---------
$ Rs. $ Rs. Nos.
----- ----- ----- ----- ---------
<S> <C> <C> <C> <C> <C>
October, 2001 55.00 2,637 31.69 1,519 37,18,500
November 66.50 3,190 47.00 2,254 26,97,200
December 70.11 3,375 55.66 1,679 20,69,200
--------------------------------------------------------------------------------
Total 84,84,900
--------------------------------------------------------------------------------
202.09%*
</TABLE>
% of volume traded to total float
* 2 ADS = 1 equity share
$ have been converted into Indian rupees at the monthly closing rates
e. Investor correspondence in P.R. Ganapathy
the US may be addressed to Investor Relations Officer
Infosys Technologies Limited
34760, Campus Drive, Fremont CA 94555, USA.
Tel.: +1-510-742-3030, Mobile: +1-510-872-4412,
Fax: +1-510-742-2930, E-mail: guns@infy.com
50
<PAGE>
Ratio analysis as per Indian GAAP
<TABLE>
<CAPTION>
Quarter ended Nine months ended
December 31, December 31, Year ended
---------------- ----------------- March 31,
2001 2000 2001 2000 2001
------ ------ ------ ------ ----------
<S> <C> <C> <C> <C> <C>
Ratios-Financial performance
Export revenue / total revenue(%) 98.12 98.54 97.89 98.72 98.60
Domestic revenue / total revenue(%) 1.88 1.46 2.11 1.28 1.40
Software development expenses / total revenue(%) 46.84 46.58 46.90 46.73 45.82
Gross profit / total revenue(%) 53.16 53.42 53.10 53.27 54.18
Selling and marketing expenses / total revenue(%) 4.97 4.01 4.89 4.64 4.84
General and administration expenses / total revenue(%) 7.72 8.92 8.35 8.93 9.09
Selling, general & administration expenses /
total revenue(%) 12.69 12.93 13.23 13.57 13.93
Employee costs / total revenue(%) 43.54 37.17 42.94 38.08 37.77
Operating profit / total revenue(%) 40.47 40.49 39.87 39.70 40.24
Operating profit after depreciation and interest /
total revenue(%) 34.22 34.34 33.85 34.10 34.30
Depreciation / total revenue(%) 6.25 6.15 6.02 5.60 5.94
Other income / total revenue(%) 2.26 2.69 2.24 3.67 3.12
Profit before tax / total revenue(%) 36.48 34.60 36.09 36.80 36.62
Tax / total revenue(%) 5.30 3.63 5.02 3.81 3.83
Tax / PBT(%) 14.52 10.49 13.90 10.35 10.45
PAT from ordinary activities / total revenue(%) 31.18 30.97 31.07 32.99 32.80
PAT from ordinary activities / average net worth(%)(LTM) 48.54 52.17 48.54 52.17 56.08
ROCE (PBIT/Average capital employed)(%)(LTM) 55.90 58.39 55.90 58.39 62.62
Return on invested capital(%)(LTM) 82.14 97.22 82.14 97.22 105.67
Capital output ratio(LTM) 1.55 1.60 1.55 1.60 1.71
Invested capital output ratio(LTM) 2.72 3.11 2.72 3.11 3.34
Ratios - Balance sheet
Debt-equity ratio -- -- -- -- --
Debtors turnover (Days)(*) 44 62 44 62 58
Current ratio 3.92 3.99 3.92 3.99 3.49
Cash and equivalents / total assets(%) 44.43 41.06 44.43 41.06 41.57
Cash and equivalents / total revenue(%)(LTM) 34.86 32.04 34.86 32.04 30.40
Depreciation/ average gross block(%)(LTM) 22.71 25.42 22.71 25.42 24.67
Technology investment / total revenue(%)(LTM) 5.47 6.45 5.47 6.45 7.67
Ratios - Year on Year Growth
Export revenue(%) 23 136 42 121 115
Total revenue(%) 23 137 44 121 115
Operating profit(%) 23 122 44 116 125
Net profit (from ordinary activities)(%) 24 125 35 121 118
EPS (from ordinary activities) growth(%) 24 125 35 121 118
Per - share data (Period End)
Basic earnings per share from ordinary activities(Rs.) 31.14 25.14 90.33 66.76 94.23
Basic earnings per share (including extraordinary
items)(Rs.) 31.14 25.14 90.33 67.59 95.06
Cash earnings per share from ordinary activities(Rs.) 37.39 30.14 107.84 78.10 111.29
Cash earnings per share (including extraordinary
items)(Rs.) 37.39 30.14 107.84 78.93 112.12
Book value(Rs.) 294.71 190.64 294.71 190.64 210.05
Price / earning(LTM) 34.48 71.55 34.48 71.55 43.19
Price / cash earnings(LTM) 28.80 60.76 28.80 60.76 36.57
Price / book value 13.78 29.93 13.78 29.93 19.38
PE / EPS Growth(LTM) 1.45 0.57 0.99 0.59 0.37
</TABLE>
(*)Annualized, net of Provisions.
LTM-Last twelve months
51
<PAGE>
Infosys Technologies Limited
--------------------------------------------------------------------------------
United States
Addison
15305 Dallas Parkway,
Suite 210,
Addison, TX 75001
Tel: (972) 770 0450
Fax: (972) 770 0490
Bellevue
10900 NE 4th Street,
#2300,
Bellevue, WA 98004
Tel: (425) 990 1028
Fax: (425) 990 1029
Fremont
34760 Campus Drive
Fremont, CA 94555
Tel: (510) 742 3000
Fax: (510) 742 3090
Marietta
1950 Spectrum Circle,
#400 Marietta, GA 30067
Tel: (770) 857 4428
Fax: (770) 857 2258
Lake Forest
25341 Commercentre
Drive, Suite 150,
Lake Forest, CA 92630
Tel: (949) 455 9161
Fax: (949) 609 0694
Quincy
Two Adams Place, Quincy,
MA 02169
Tel: (781) 356 3100
Fax: (781) 356 3150
Troy
100 Liberty Center,
#200, West Big
Beaver, Troy, MI 48084
Tel: (248) 524 0320
Fax: (248) 524 0321
Phoenix
10851 N Black Canyon
Fwy, # 830,
Phoenix, AZ 85029
Tel: (602) 944 4855
Fax: (602) 944 4879
Lisle
2300 Cabot Drive,
Ste 250, Lisle, IL 60532
Tel: (630) 482 5000
Fax: (630) 505 9144
Berkeley Heights
Two Connell Drive,
Suite 4100,
Berkeley Heights,
NJ 07922
Tel: (908) 286 3100
Fax: (908) 286 3125
UK
11th Floor, Emerald House
15 Lansdowne Road
Croydon, CR0 2BX, Surrey
Tel: 44 20 8774 3300
Fax: 44 20 8686 6631
Argentina
Avda. Alicia Moreau de Justo
1848 - Piso 1 Of. 36
C1107AFN - Puerto Madero
Capital Federal,
Buenos Aires
Mobile: 54 11 4412 8010
Australia
Level 7, 505 St. Kilda Road
Melbourne, Victoria 3004
Tel: 61 3 9868 1607
Fax: 61 3 9868 1652
Level 4, 90 Mount Street
North Sydney NSW 2060
Tel: 61 2 9954 0036
Fax: 61 2 8904 1344
Belgium
Dreve Richelle 161,
Building N 1410 Waterloo,
Brussels
Tel: 322 352 8743
Fax: 322 352 8844
Canada
5140 Yonge Street
Suite 1400
Toronto, Ontario M2N 6L7
Tel: 416 224 7420
Fax: 416 224 7474
France
12 Avenue de l'Arche
Faubourg de l'Arche
92419 Courbevoie Cedex,
Paris
Tel: 331 4691 8454
Fax: 331 4691 8800
Germany
TOPAS 1
Mergenthalerallee 77,
65760 Eschborn/Frankfurt
Tel: 49 6196 9694 0
Fax: 49 6196 9694 200
Hong Kong
16F Cheung Kong Centre
2 Queen's Road Central
Central, Hong Kong
Tel: 852 2297 2231
Fax: 852 2297 0066
Japan
Kearny Place Akasaka, 2F
2-21-25, Akasaka,
Minato-Ku,
Tokyo 107-0052
Tel: 81 3 5545 3251
Fax: 81 3 5545 3252
Scandinavia
Stureplan 4C, 4tr
114 35, Stockholm, Sweden
Tel: 46 8 463 1112
Fax: 46 8 463 1114
Singapore
30, Raffles Place
#23-00 Caltex House
Singapore 048622
Tel: 65 233 6820
Fax: 65 233 6905
Switzerland
Dreikonigstrasse 31A
8002 Zurich
Tel: 41 1 208 3905
Fax: 41 1 208 3500
United Arab Emirates
Y-45, P.O. Box 8230
Sharjah Airport International
Free Zone (Saif Zone),
Sharjah
Tel: 971 6 5571 068
Fax: 971 6 5571 056
India
Bangalore
Electronics City
Hosur Road
Bangalore-561 229
Tel: (080) 8520261
Fax: (080) 8520362
Reddy Building
K-310, 1st Main
5th Block, Koramangala
Bangalore-560 095
Tel: (080) 5530392
Fax: (080) 5530391
Pavithra Complex
#1, 27th Main, 2nd Cross
1st Stage, BTM Layout
Bangalore-560 068
Tel: (080) 6681755
Fax: (080) 6680181
Infosys Towers
No. 27, Bannerghatta Road
3rd Phase, J. P. Nagar
Bangalore-560 076
Tel: (080) 6588668
Fax: (080) 6588676
Bhubaneswar
Plot No. E/4
Infocity, Chandaka
Bhubaneswar-751 024
Tel: (0674) 320001
Fax: (0674) 320100
Chennai
No. 138,
Old Mahabalipuram Road
Sholinganallur
Chennai-600 119
Tel: (044) 4509530/40
Fax: (044) 4500390
Hyderabad
Survey No. 210,
Manikonda Village,
Rajendranagar Mandal,
Lingampally, Rangareddy
(Dist)
Hyderabad-500 019
Tel : (040) 3005222
Fax: (040) 3005223
Kolkata
C/61, Bapuji Nagar
Regent Estate P.O.
Kolkata-92
Pager No. 9628-304450
Mangalore
Kottara Cross
Kuloor Ferry Road
Mangalore-575 006
Tel: (0824) 451485-88
Fax: (0824) 451504
Mohali (Chandigarh)
B 100, Phase VIII
Industrial Area, SAS Nagar
Mohali-160 059
Tel: (0172) 257191/92/94
Fax: (0172) 254193
Mumbai
No. 85, Mittal Towers `C'
8th Floor, Nariman Point
Mumbai-400 021
Tel: (022) 2882911/14
Fax: (022) 2846489
Mysore
No.350,
Hebbal Electronics City,
Hootagalli, Mysore-571 186
Tel: (0821) 404101
Fax: (0821) 404200
New Delhi
K30, Green Park Main
Behind Green Park Market
New Delhi-110 066
Tel: (011) 6514829-30
Fax: (011) 6853366
Pune
Plot No. 1
Infotech Park MIDC
Hinjewadi, Taluka Mulshi
Pune-411 027
Tel: (020) 2932800-803
Fax: (020) 2932832
Bankers Visit Infosys at
ICICI Bank Ltd. www.infy.com
Bank of America
Send e-mail to
Company Secretary infosys@infy.com
V. Balakrishnan
Call us at
Auditors within the U.S.
Bharat S Raut and Co. 1-800-ITL INFO
Chartered Accountants
outside the U.S.
Independent auditors 91-80-8520261
(US GAAP)
KPMG
(C)2002 Infosys Technologies Limited, Bangalore, India.
Infosys acknowledges the proprietary rights in the trademarks and
product names of other companies mentioned in this document.
52
</TEXT>
</DOCUMENT>