<DOCUMENT>
<TYPE>EX-19.1
<SEQUENCE>2
<FILENAME>0002.txt
<DESCRIPTION>INFOSYS QUARTERLY REPORT TO THE SHAREHOLDERS
<TEXT>
<PAGE>
Exhibit 19.1
INFOSYS TECHNOLOGIES LIMITED
Report for the nine months ended December 31, 2000
[LOGO OF INFOSYS]
<PAGE>
At a glance - Indian GAAP
--------------------------------------------------------------------------------
Rs. in crores, except per share data
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
Quarter ended Nine months ended Year ended
December 31 December 31 March 31, 2000
--------------------------------------------------
2000 1999 2000 1999
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
For the period
Total revenue 551.54 233.52 1387.86 635.47 921.46
Export revenue 529.24 224.41 1321.56 598.10 869.70
Operating Profit (PBIDT) 218.85 98.47 567.60 262.33 378.88
Profit after tax (PAT) from ordinary activities 166.33 73.79 441.64 200.10 285.95
PBIDT as a percentage of total revenue 39.68% 42.17% 40.90% 41.28% 41.12%
PAT (from ordinary activities) as a percentage of
total revenue 30.16% 31.60% 31.82% 31.49% 31.03%
Earnings per share (from ordinary activities)* 25.14 11.16 66.76 30.25 43.23
Dividend per share NA NA 2.50 1.50 4.50
Dividend amount NA NA 16.54 9.92 29.76
Capital investment 125.16 46.98 325.01 106.74 159.87
At the end of the period
Total assets 1261.09 761.26 833.30
Fixed assets-net 457.23 172.92 207.34
Cash and equivalents 517.75 464.43 508.37
Working capital 767.54 587.58 612.13
Total debt -- -- --
Net worth 1261.09 761.26 833.30
Equity 33.08 33.07 33.08
Market capitalization 37,667.93 47,843.98 59,338.17
</TABLE>
Note:
Market capitalization is calculated by considering the Indian market price for
shares outstanding at the period / year end.
* EPS figures have been calculated for the period and have not been annualized.
Export Revenue
Rs. in crores
Year ended Nine months ended Nine months ended
Mar. 31, 2000 Dec. 31, 1999 Dec. 31, 2000
869.69 598.10 1,321.56
Total Revenue
Rs. in crores
Year ended Nine months ended Nine months ended
Mar. 31, 2000 Dec. 31, 1999 Dec. 31, 2000
921.46 635.46 1,387.85
Net Profit
Rs. in crores
Year ended Nine months ended Nine months ended
Mar. 31, 2000 Dec. 31, 1999 Dec. 31, 2000
285.94 200.10 441.64
<PAGE>
Letter to the shareholders
--------------------------------------------------------------------------------
Dear shareholders:
We are pleased to report on another strong quarter. Under Indian GAAP, revenues
grew by 136% over Q3FY2000 while net profits witnessed an increase of 125%. Net
of separations, we added 985 employees in the quarter -- highlighting the
continued vigorous growth in our business. A key driver of this performance is
the de-risked nature of the Infosys business model. Prudent risk management
policies, strong processes to monitor various risk factors, and a focus on
diversification continue to guide our business strategy. Our strong
relationships with Fortune 1000 corporations, our in-depth understanding of
their decision cycles, and our track record of customer satisfaction enabled us
to maintain topline predictability while ceaselessly improving overall revenue
productivity.
As transformation partners to traditional economy corporations, we help them
build next-generation information infrastructure for the new economy. In light
of the talk of a slowdown in the US economy, we recently polled many of our
large clients and believe that IT spending trends in these organizations will
work in our favor. Further, we are encouraged by the intentions of most of our
clients to expand the scope of their relationship with Infosys in the years to
come. We continue to focus on long-term symbiotic partnerships -- evidenced by
our repeat business rate of 83.4% in the quarter.
We added 26 new clients this quarter, the majority of them from the Fortune 1000
space. Significant wins include Providian, the fifth-largest bankcard provider
in the US; The Bank of Nova Scotia, a leading global financial institution
headquartered in Canada; Fairfax Financial Services, a leading
financial-services-holding company; Suncorp Metway, Australia's sixth-largest
bank and seventh largest general insurance company; Schlumberger, a leading
international technical company; The Business Depot Limited, a leading office
supplies company; and Dynegy Inc., a leading provider of energy and
communications solutions. In the communications segment, we undertook
cutting-edge projects for Cisco, the worldwide leader in networking for the
Internet; Nortel Networks, a global Internet and communications leader; and
Lucent Technologies, a leading provider of broadband and mobile Internet
infrastructure. Further, in order to supplement our expertise in working with
large corporations, we continued to work with high-quality venture-funded
companies in order to garner expertise in high-potential technology areas such
as wireless, broadband and optical networking.
EC Cubed Inc., a US-based provider of B2B e-commerce solutions, in which Infosys
had made a strategic investment, filed for liquidation during the quarter. In
line with our conservative reporting policies, pending the conclusion of
liquidation proceedings, we have fully provided for this investment and for
receivables from this client in our income statement for the quarter. Our
investments continue to be key to Infosys' strategic objectives of gaining
access to niche technologies and markets. We have recently evaluated our other
investments and are comfortable with them.
We continued to globalize our operations -- our proximity development center in
Chicago became operational during the quarter, as did our marketing office in
Paris. Our Infosys City facility in Bangalore was formally inaugurated this
quarter and includes a world-class customer care center. We continue to build
capacity in our other development centers in India and abroad.
During the quarter, Infosys was ranked No. 1 in a survey by Hewitt Associates
and Business Today on the best companies to work for in India. A hundred and
fifty five organizations spanning several industries participated in this study.
The Far Eastern Economic Review rated Infosys as the No. 1 company in India in
the Review 200, an annual survey of Asia's leading companies. Infosys became the
first IT company to win the IMC Ramkrishna Bajaj National Quality Award and was
also judged by the Financial Technology Asia Magazine as the Best Regional
Software House. The BankAway product from Infosys won the CSI-Wipro award for
the Best Packaged Application for the Year 2000.
We inducted Dr. Omkar Goswami, Chief Economist to the Confederation of Indian
Industry, and Sen. Larry Pressler, Former Senator, US Senate, and presently
Attorney and Senior Partner, O'Connor and Hannan LLP, onto the board of
directors. During the quarter, V. Balakrishnan, Associate Vice President -
Finance, took up additional responsibilities as Company Secretary. On your
behalf, we wish them the very best and also extend our appreciation to our
fellow Infoscions who contributed to yet another successful quarter in our
history.
Sd. Sd.
Bangalore Nandan M. Nilekani N. R. Narayana Murthy
January 9, 2001 Managing Director, President and Chairman and
Chief Operating Officer Chief Executive Officer
<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, 2000 and the Profit and Loss Accounts of the Company
for the nine-month period and quarter 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, 2000; and
(ii) in the case of the Profit and Loss Accounts, of the profit for
the nine-month period and quarter ended on that date.
3 We have also examined the attached Cash Flow Statements of the Company for
the nine-month and quarter ended December 31, 2000. The Statements have
been prepared by the Company in accordance with the requirements of Clause
32 of the listing agreements entered into with the Stock Exchanges.
for Bharat S Raut & Co.
Chartered Accountants
Bangalore Balaji Swaminathan
January 9, 2001 Partner
<PAGE>
Balance Sheet as at
--------------------------------------------------------------------------------
in Rs.
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
Dec 31, 2000 Dec 31, 1999 Mar 31, 2000
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SOURCES OF FUNDS
SHAREHOLDERS' FUNDS
Share capital 33,07,64,335 33,06,95,500 33,07,55,000
Reserves and surplus 1228,01,09,686 728,18,83,990 800,22,73,248
------------------------------------------------------------------------------------------------------------------------
1261,08,74,021 761,25,79,490 833,30,28,248
========================================================================================================================
APPLICATION OF FUNDS
FIXED ASSETS
Gross block 504,18,02,852 232,93,48,993 284,03,05,143
Less: Depreciation 207,06,98,673 116,24,08,642 133,65,20,594
------------------------------------------------------------------------------------------------------------------------
Net block 297,11,04,179 116,69,40,351 150,37,84,549
Add: Capital work-in-progress 160,11,55,758 56,23,06,951 56,96,03,505
------------------------------------------------------------------------------------------------------------------------
457,22,59,937 172,92,47,302 207,33,88,054
INVESTMENTS 36,32,53,429 75,48,469 13,83,48,469
CURRENT ASSETS, LOANS AND ADVANCES
Sundry debtors 303,96,24,611 138,35,95,210 136,17,81,253
Cash and bank balances 365,07,68,672 395,23,42,087 431,79,35,730
Loans and advances 355,39,12,507 178,21,08,869 210,12,77,161
------------------------------------------------------------------------------------------------------------------------
1024,43,05,790 711,80,46,166 778,09,94,144
Less: Current liabilities 148,35,86,795 57,84,73,154 67,15,06,459
Provisions 108,53,58,340 66,37,89,293 98,81,95,960
------------------------------------------------------------------------------------------------------------------------
NET CURRENT ASSETS 767,53,60,655 587,57,83,719 612,12,91,725
------------------------------------------------------------------------------------------------------------------------
1261,08,74,021 761,25,79,490 833,30,28,248
========================================================================================================================
</TABLE>
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>
Balaji Swaminathan N. R. Narayana Murthy Nandan M. Nilekani Deepak M. Satwalekar
Partner Chairman and Managing Director, President and Director
Chief Executive Officer Chief Operating Officer
Ramesh Vangal Marti G. Subrahmanyam Philip Yeo Jitendra Vir Singh
Director Director Director Director
Omkar Goswami S. Gopalakrishnan K. Dinesh S. D. Shibulal
Director Deputy Managing Director Director Director
T. V. Mohandas Pai Phaneesh Murthy Srinath Batni V. Viswanathan
Director and Chief Financial Officer Director Director Company Secretary
</TABLE>
Bangalore
January 9, 2001
<PAGE>
Profit and Loss Accounts for the
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
in Rs.
-----------------------------------------------------------------------------------------------------------------------------------
Quarter ended Nine months ended Year ended
-----------------------------------------------------------------
Dec 31, 2000 Dec 31, 1999 Dec 31, 2000 Dec 31, 1999 Mar 31, 2000
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INCOME
Software development services and products
Overseas 529,24,01,389 224,40,92,531 1321,55,65,725 598,10,25,956 869,69,80,931
Domestic 7,82,82,900 2,00,37,227 17,13,76,490 6,87,97,826 12,62,56,042
Other income 14,47,31,965 7,11,00,819 49,16,27,114 30,48,32,499 39,14,11,095
-----------------------------------------------------------------------------------------------------------------------------------
551,54,16,254 233,52,30,577 1387,85,69,329 635,46,56,281 921,46,48,068
===================================================================================================================================
EXPENDITURE
Software development expenses 273,14,49,717 117,78,46,621 688,98,50,133 320,04,95,341 466,26,84,578
Administration and other expenses 46,46,66,367 17,27,30,083 118,19,38,434 46,26,00,508 69,48,50,282
Provision for contingencies -- -- -- 3,33,00,000 3,33,00,000
Provision for e-inventing the company -- -- -- 3,50,00,000 3,50,00,000
Provision for investment 13,08,00,000 -- 13,08,00,000 -- --
-----------------------------------------------------------------------------------------------------------------------------------
332,69,16,084 135,05,76,704 820,25,88,567 373,13,95,849 542,58,34,860
Operating profit (PBIDT) 218,85,00,170 98,46,53,873 567,59,80,762 262,32,60,432 378,88,13,208
Interest -- -- -- -- --
Depreciation 33,01,92,680 14,47,99,080 74,99,31,944 34,52,40,998 53,23,27,389
Profit before tax and extraordinary items 185,83,07,490 83,98,54,793 492,60,48,818 227,80,19,434 325,64,85,819
Provision for tax - earlier periods -- 6,00,000 1,40,00,000 23,00,000 24,00,000
- current period 19,50,00,000 10,14,00,000 49,56,00,000 27,47,00,000 39,46,00,000
Profit after tax before extraordinary items 166,33,07,490 73,78,54,793 441,64,48,818 200,10,19,434 285,94,85,819
Effect of extraordinary item - provision no longer
required -- -- -- -- 7,56,70,846
Extraordinary income (net of tax) -- -- 5,49,44,000 -- --
Net profit after tax and extraordinary items 166,33,07,490 73,78,54,793 447,13,92,818 200,10,19,434 293,51,56,665
-----------------------------------------------------------------------------------------------------------------------------------
AMOUNT AVAILABLE FOR APPROPRIATION 166,33,07,490 73,78,54,793 447,13,92,818 200,10,19,434 293,51,56,665
-----------------------------------------------------------------------------------------------------------------------------------
Dividend
Interim -- -- 16,53,78,418 9,92,08,200 9,92,08,200
Final -- -- -- -- 19,84,18,210
Dividend Tax -- -- 3,63,83,252 1,09,12,902 3,27,38,905
Amount transferred - general reserve -- -- -- -- 260,47,91,350
-----------------------------------------------------------------------------------------------------------------------------------
Balance in Profit & Loss Account 166,33,07,490 73,78,54,793 426,96,31,148 189,08,98,332 -
-----------------------------------------------------------------------------------------------------------------------------------
166,33,07,490 73,78,54,793 447,13,92,818 200,10,19,434 293,51,56,665
===================================================================================================================================
</TABLE>
These are the Profit & Loss Accounts referred to in our report of even date,
for Bharat S Raut & Co.
<TABLE>
<S> <C> <C> <C>
Chartered Accountants
Balaji Swaminathan N. R. Narayana Murthy Nandan M. Nilekani Deepak M. Satwalekar
Partner Chairman and Managing Director, President Director
Chief Executive Officer and Chief Operating Officer
Ramesh Vangal Marti G. Subrahmanyam Philip Yeo Jitendra Vir Singh
Director Director Director Director
Omkar Goswami S. Gopalakrishnan K. Dinesh S. D. Shibulal
Director Deputy Managing Director Director Director
T. V. Mohandas Pai Phaneesh Murthy Srinath Batni V. Viswanathan
Director and Chief Financial Director Director Company Secretary
Officer
Bangalore
January 9, 2001
</TABLE>
<PAGE>
Schedules to the Profit and Loss Accounts for the
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
in Rs.
----------------------------------------------------------------------------------------------------------------------------
Quarter ended Nine months ended Year ended
-------------------------------------------------------------------------
Dec 31, 2000 Dec 31, 1999 Dec 31, 2000 Dec 31, 1999 Mar 31, 2000
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OTHER INCOME
Interest received on deposits with banks and
others 10,68,10,037 6,87,87,893 27,26,13,143 18,98,10,230 26,68,79,106
(Tax deducted at source Rs. 1,43,43,030, Rs.
49,08,629,
Rs. 2,54,72,210, Rs. 1,01,56,924 and Rs.
1,67,51,195 respectively)
Sale of special import licenses -- 72,35,156 6,77,431 2,02,31,549 2,02,31,549
Miscellaneous income 34,73,009 12,03,605 1,28,90,220 31,57,854 49,73,365
Exchange differences * 3,44,48,919 (61,25,835) 20,54,46,320 9,16,32,866 9,93,27,075
----------------------------------------------------------------------------------------------------------------------------
14,47,31,965 7,11,00,819 49,16,27,114 30,48,32,499 39,14,11,095
============================================================================================================================
* arising on translation of foreign currency deposits maintained abroad includes a realized gain of Rs. 1,52,33,885 and
Rs. 5,06,25,885 during the quarter and nine months ended December 31, 2000 (prior periods / year : Rs. nil).
SOFTWARE DEVELOPMENT EXPENSES
Salaries and bonus including overseas staff
expenses 188,63,43,160 81,15,35,725 478,65,24,542 213,58,96,745 307,54,46,295
Staff welfare 2,18,73,891 1,20,75,533 5,42,85,756 3,17,77,904 4,93,07,308
Contribution to provident and other funds 8,82,04,890 3,83,57,945 25,75,56,485 9,93,25,259 22,08,36,923
Foreign travel expenses 44,02,57,051 20,19,68,835 110,14,10,530 57,55,38,493 84,09,02,293
Consumables 2,11,69,196 59,07,518 4,06,76,271 1,65,15,050 2,70,06,251
Cost of software packages
for own use 8,11,32,780 4,42,89,192 27,91,17,606 13,71,43,852 16,53,57,382
for banking product 2,45,17,799 15,50,489 3,78,29,076 56,15,548 2,84,48,397
Computer maintenance 2,00,03,268 1,46,47,267 4,71,14,556 2,47,25,626 3,27,43,350
Communication expenses 11,01,43,134 3,94,21,621 20,96,26,522 13,41,81,710 17,31,23,718
Consultancy charges 2,71,97,534 58,12,786 5,70,53,217 1,98,99,290 2,85,50,034
Provision for post-sales client support 1,06,07,014 22,79,710 1,86,55,572 1,98,75,864 2,09,62,627
----------------------------------------------------------------------------------------------------------------------------
273,14,49,717 117,78,46,621 688,98,50,133 320,04,95,341 466,26,84,578
============================================================================================================================
ADMINISTRATION AND OTHER EXPENSES
Traveling and conveyance 5,03,33,615 2,12,19,985 12,73,73,079 4,83,98,364 7,68,26,394
Rent 4,48,41,073 2,94,91,308 11,43,78,110 7,37,30,739 10,34,93,593
Telephone charges 3,68,91,306 1,34,11,165 10,19,81,069 3,80,10,382 5,93,95,252
Professional charges 5,05,13,391 2,12,23,219 11,47,21,141 5,07,17,048 7,55,68,079
Office maintenance 2,93,12,737 1,50,73,562 8,60,34,491 3,32,62,319 5,81,01,381
Brand building 2,47,18,294 47,97,411 7,48,95,563 47,97,411 99,17,816
Provision for bad and doubtful debts 7,26,85,587 25,07,614 12,18,80,048 2,15,50,851 94,03,099
Power and fuel 3,35,13,263 1,24,49,207 7,93,39,269 3,25,57,317 5,01,41,466
Printing and stationery 1,15,13,158 59,54,552 4,76,37,455 2,13,46,379 2,76,70,902
Donations 1,49,59,500 80,00,000 4,77,68,563 2,21,86,367 3,49,27,871
Advertisements 1,37,18,952 (1,69,062) 4,25,94,491 1,10,67,865 2,12,41,343
Marketing expenses 98,00,148 99,89,474 3,26,51,683 2,30,42,736 3,14,93,837
Repairs to building 1,11,35,584 17,62,336 2,52,18,521 57,67,172 1,13,44,232
Insurance charges 1,07,21,154 87,73,960 2,32,87,345 1,78,04,591 2,41,35,289
Rates and taxes 7,42,710 19,31,644 1,05,85,709 76,75,290 1,03,80,848
Postage and courier 56,07,009 33,70,815 1,52,13,860 95,70,551 1,37,56,638
Commission charges 33,82,901 15,94,215 1,24,08,622 50,79,015 64,70,454
Books and periodicals 32,48,425 13,34,638 1,21,62,970 34,83,388 77,13,886
Repairs to plant and machinery 82,15,361 21,39,787 1,55,99,302 62,89,049 84,12,905
Research grants 25,00,000 37,50,000 75,00,000 62,50,000 1,03,00,000
Bad debts written off -- -- 27,70,254 -- 1,59,20,938
Bank charges and commission 33,25,944 9,67,665 42,50,287 27,30,597 42,21,668
Bad loans and advances written off 11,891 -- 11,891 3,46,577 3,13,050
Auditor's remuneration
- audit fees 4,45,500 4,46,250 13,38,750 13,38,750 17,85,000
- certification charges -- -- -- -- 2,00,000
- other services -- -- -- -- 4,50,000
- out-of-pocket expenses 50,000 50,000 1,50,000 1,50,000 2,00,000
Freight 21,33,762 4,43,453 43,63,988 17,60,484 23,84,003
Membership and participation fee 1,28,00,739 7,83,132 2,41,80,298 37,02,506 80,12,040
Other miscellaneous expenses 75,44,363 14,33,753 3,16,41,675 99,84,760 1,06,68,298
----------------------------------------------------------------------------------------------------------------------------
46,46,66,367 17,27,30,083 118,19,38,434 46,26,00,508 69,48,50,282
============================================================================================================================
</TABLE>
<PAGE>
1. Significant accounting policies and notes on accounts
--------------------------------------------------------------------------------
Company overview
Infosys Technologies Limited ("Infosys" or "the company") is a publicly
held company providing information technology ("IT") solutions principally
to Fortune 1000 and emerging new economy companies. Infosys' range of
services includes IT consulting, IT architecture, application development,
e-commerce and Internet consulting, and software maintenance. In addition,
the company develops and markets certain software products. Headquartered
in Bangalore, India, Infosys has 17 state-of-the-art offshore software
development facilities located throughout India that enables it to provide
high quality, cost-effective services to clients in a resource-constrained
environment. The company also maintains offices in North America, Europe
and Asia.
1.1 Significant accounting policies
1.1.1 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")
comprising the accounting standards issued by the Institute of Chartered
Accountants of India and the provisions of the Companies Act, 1956, as
adopted consistently by the company. All income and expenditure having a
material bearing on the financial statements are recognized on the accrual
basis. 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 revenue 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 contract
costs to be incurred to complete software development, provision for
doubtful debts, future obligations under employee retirement benefit plans
and the useful lives of fixed assets. Actual results could differ from
those estimates.
1.1.2 Revenue recognition
Revenue from software development on time-and-materials contracts is
recognized based on software developed and billed to clients as per the
terms of specific contracts. On fixed-price contracts, revenue is
recognized based on milestones achieved as specified in the contracts on
the percentage-of-completion basis. Revenue from rendering Annual Technical
Services ("ATS") is recognized proportionately over the period in which
services are rendered. Revenue from the sale of licenses for the use of
software applications is recognized on transfer of the title in the user
license. Interest on deployment of surplus funds is recognized using the
time-proportion method, based on interest rates implicit in the
transaction. Dividend income is recognized when the right to receive
dividend is established. Revenue from the sale of special import licenses
is recognized when the licenses are transferred.
1.1.3 Expenditure
The cost of software purchased for use in software development and services
is charged to revenue in the year the software is acquired. Project costs
in the nature of salaries, travel and other expenses incurred on fixed
price contracts, where milestones are yet to be reached are classified as
"Costs in excess of billings" in the balance sheet. Provisions are made for
all known losses and liabilities. Provisions are made for future
unforeseeable factors that may affect the profit on fixed-price software
development contracts. Provisions are made towards likely expenses for
providing post-sales client support on fixed-price contracts. The leave
encashment liability of the company is provided on the basis of an
actuarial valuation.
1.1.4 Fixed assets
Fixed assets are stated at cost, after reducing accumulated depreciation
until the date of the balance sheet. Direct costs are capitalized until the
assets are ready for use and include financing costs relating to any
specific borrowing attributable to the acquisition of the fixed assets.
1.1.5 Capital work-in-progress
Advances paid to acquire fixed assets and the cost of assets not put to use
before the period-end, are disclosed under capital work-in-progress.
1.1.6 Depreciation
Depreciation on fixed assets is determined using the straight-line method
based on useful lives of assets as estimated by Management. Depreciation
for assets purchased/ sold during the period is proportionately charged.
Individual assets acquired for less than Rs. 5,000 are entirely depreciated
in the year of acquisition. Management estimates the useful lives for the
various fixed assets as follows:
--------------------------------------------------------------------------
Buildings 15 years
Plant and machinery 5 years
Computer equipment 2-5 years
Furniture and fixtures 5 years
Vehicles 5 years
--------------------------------------------------------------------------
<PAGE>
1.1.7 Retirement benefits to employees
1.1.7a Gratuity
In accordance with the Payment of Gratuity Act, 1972, Infosys provides for
gratuity, a defined benefit retirement plan (the "Gratuity Plan") covering
eligible employees. The Gratuity plan provides a lump sum payment to vested
employees at retirement, death or termination of employment, of an amount
based on the respective employee's salary and the years of employment with
the company. The company established the Infosys Technologies Limited
Employees' Gratuity Fund Trust (the "Trust") in 1997, until which the
company made contributions to a gratuity plan managed by the Life Insurance
Corporation of India. Liabilities with regard to the Gratuity Plan are
determined by actuarial valuation, based upon which, the company
contributes to the Trust. Trustees administer the contributions made to the
Trust. The funds contributed to the Trust are invested in specific
designated securities as mandated by law and generally comprise central and
state government bonds and debt instruments of government-owned
corporations.
1.1.7b Superannuation
Apart from being covered under the Gratuity Plan described above, certain
employees of Infosys are also participants of a defined contribution plan.
The company makes monthly contributions to the superannuation plan (the
"Plan") based on a specified percentage of each covered employee's salary.
The company has no further obligations under the Plan beyond its monthly
contributions.
1.1.7c Provident fund
In addition to the above benefits, eligible employees receive benefits from
a provident fund, which is a defined contribution plan. Both the employee
and the company make monthly contributions to this provident fund plan
equal to a specified percentage of the covered employee's salary.
Infosys established a Provident Fund Trust in 1996 to which a part of the
contributions are made each month. Prior thereto, the company made
contributions to the provident fund plan administered by the Government of
India. The remainders of the contributions are made to the Government
administered provident fund. The company has no further obligations under
the provident fund plan beyond its monthly contributions.
1.1.8 Research and development
Revenue expenditure incurred on research and development is charged off as
incurred. Capital expenditure incurred on research and development is
depreciated over the estimated useful lives of the related assets.
1.1.9 Foreign currency transactions
Sales made to overseas clients and collections deposited in foreign
currency bank accounts are recorded at the exchange rate as of the date of
the respective transactions. Expenditure in foreign currency is accounted
at the exchange rate prevalent when such expenditure is incurred.
Disbursements made out of foreign currency bank accounts are reported at a
rate that approximates the actual monthly rate. Exchange differences are
recorded when the amount actually received on sales or actually paid when
expenditure is incurred is converted into Indian Rupee. The exchange
differences arising on foreign currency transactions are recognized as
income or expense in the period in which they arise.
Fixed assets purchased at overseas offices are recorded at cost, based on
the exchange rate as of the date of purchase. The charge for depreciation
is determined as per the company's accounting policy. Current assets and
current liabilities denominated in foreign currency are translated at the
exchange rate prevalent at the date of the balance sheet. The resulting
difference is also recorded in the profit and loss account. In the case of
forward contracts, the difference between the forward rate and the exchange
rate on the date of the transaction is recognized as income or expense over
the life of the contract.
1.1.10 Investments
Trade investments refer to the investments made with the aim of enhancing
the company's business interests in software development and services. The
investments are classified as current investments or long-term investments.
Current investments are carried at the lower of cost and fair value. Cost
for overseas investments comprises the Indian Rupee value of the
consideration paid for the investment. Provisions are recorded for any
decline in the carrying value as of the balance sheet date.
Long-term investments are carried at cost and provisions recorded to
recognize any decline, other than temporary, in the carrying value of such
investment. The investment in the subsidiary is accounted on the cost
method, whereby, the investment is carried at cost and the company
recognizes only dividends received from the subsidiary as income in the
profit and loss account. Provisions are recorded to recognize any decline,
other than temporary, in the carrying value of the investment.
1.1.11 Income tax
Provision is made for income tax annually based on the tax liability
computed after considering tax allowances and exemptions. Provisions are
recorded as considered appropriate for matters under appeal due to
disallowances or for other reasons.
<PAGE>
1.2 Notes on accounts
The previous period's figures have been recast / restated, wherever
necessary, to conform to the current period's classification.
1.2.1 Capital commitments and contingent liabilities
a. The estimated amount of contracts remaining to be executed on
capital account, and not provided for (net of advances) is Rs.
122,65,64,426 as at December 31, 2000. The amount of such
contracts as at December 31, 1999 was Rs. 69,54,19,558 and as at
March 31, 2000 was Rs. 80,31,29,007.
b. The company has outstanding guarantees and counter guarantees of
Rs. 5,24,55,000 as at December 31, 2000, to various banks, in
respect of the guarantees given by the banks in favor of various
government authorities. The guarantees and counter guarantees
outstanding as at December 31, 1999 were Rs. 1,58,84,263 and as at
March 31, 2000 were Rs. 5,26,30,000.
c. Claims against the company, not acknowledged as debts, amounted to
Rs. 8,75,532 as at December 31, 2000. Such claims, as at December
31, 1999 were Rs. 17,91,814 and as at March 31, 2000 were Rs.
32,89,661.
1.2.2 Quantitative details
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.
1.2.3 Managerial remuneration paid to the chairman, managing director
and whole-time directors
<TABLE>
<CAPTION>
in Rs.
----------------------------------------------------------------------------------------------------------------
Three months ended Dec 31, Nine months ended Year ended
Dec 31, Mar 31,
-----------------------------------------------------------------------------
2000* 1999 2000* 1999 2000
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Salary 44,28,013 9,73,800 1,10,70,522 29,21,400 38,00,059
Contribution to provident fund and
other funds 4,79,325 3,09,780 13,49,791 9,29,340 12,08,855
Perquisites 62,31,308 11,19,870 80,59,982 26,98,239 37,32,482
----------------------------------------------------------------------------------------------------------------
</TABLE>
* includes the remuneration paid to three directors who were co-opted into
the board on May 27, 2000.
1.2.4 Managerial remuneration paid to non-whole-time directors
<TABLE>
<CAPTION>
in Rs.
---------------------------------------------------------------------------------------------------------------
Three months ended Dec 31, Nine months ended Year ended
Dec 31, Mar 31,
---------------------------------------------------------------------------
2000 1999 2000 1999 2000
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Commission -- -- -- -- 48,17,800
Sitting fees 40,000 34,000 1,77,000 78,000 92,000
Reimbursement of expenses 1,99,558 4,45,123 6,98,232 9,01,728 10,13,703
---------------------------------------------------------------------------------------------------------------
</TABLE>
1.2.5 Imports on the Cost, Insurance and Freight basis
<TABLE>
<CAPTION>
in Rs.
---------------------------------------------------------------------------------------------------------------
Three months ended Nine months ended Year ended
Dec 31, Dec 31, Mar 31,
---------------------------------------------------------------------------
2000 1999 2000 1999 2000
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Capital goods 33,87,91,131 7,31,57,517 77,08,00,573 22,70,52,455 37,47,31,691
Software packages 64,03,627 20,60,167 1,56,42,543 2,28,66,965 2,54,95,652
---------------------------------------------------------------------------------------------------------------
</TABLE>
1.2.6 Expenditure in foreign currency (on the payments basis)
<TABLE>
<CAPTION>
in Rs.
---------------------------------------------------------------------------------------------------------------
Three months ended Nine months ended Year ended
Dec 31, Dec 31, Mar 31,
---------------------------------------------------------------------------
2000 1999 2000 1999 2000
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Travel expenses 33,61,54,345 18,62,06,010 79,26,44,748 49,97,76,870 70,29,13,532
Professional charges 4,10,08,733 80,48,926 7,90,58,475 2,01,25,172 4,51,95,637
Other expenditure incurred
overseas for software development 145,60,82,397 62,24,10,619 342,62,24,925 154,40,25,716 221,74,57,133
---------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
1.2.7 Earnings in foreign exchange (on the receipts basis)
<TABLE>
<CAPTION>
in Rs.
-------------------------------------------------------------------------------------------------------------------
Three months ended Nine months ended Year ended
Dec 31, Dec 31, Mar 31,
-------------------------------------------------------------------------------
2000 1999 2000 1999 2000
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Income from software development
services and products 437,33,71,715 216,85,95,849 1172,86,45,074 565,67,38,823 833,29,73,465
Interest received on deposits with
banks 4,93,37,030 4,63,87,145 10,69,20,563 13,19,57,503 18,42,65,368
-------------------------------------------------------------------------------------------------------------------
</TABLE>
1.2.8 Depreciation on assets costing less than Rs. 5,000 each
During the nine months ended December 31, 2000, the company charged
depreciation at 100% in respect of assets costing less than Rs. 5,000 each,
amounting to Rs. 21,85,52,260 (previous period Rs. 6,49,71,753). For the
three months ended December 31, 2000 the charge is Rs. 11,81,34,465
(previous period Rs. 4,22,62,848) and for the previous year March 31, 2000
is Rs. 13,21,59,074.
1.2.9 Exchange differences
<TABLE>
<CAPTION>
in Rs.
---------------------------------------------------------------------------------------------------------------
Three months ended Nine months ended Year ended
Dec 31, Dec 31, Mar 31,
---------------------------------------------------------------------------
2000 1999 2000 1999 2000
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Gains on the translation of
Foreign currency deposits 3,44,48,919 (61,25,835) 20,54,46,320 9,16,32,866 9,93,27,075
Net realized and unrealized
exchange gains - others 5,77,89,866 5,59,25,835 23,09,17,899 14,44,67,134 8,76,31,024
---------------------------------------------------------------------------------------------------------------
Total net realized and unrealized
gains 9,22,38,785 4,98,00,000 43,63,64,219 23,61,00,000 18,69,58,099
---------------------------------------------------------------------------------------------------------------
</TABLE>
Total realized and unrealized exchange gains comprise, gains on the
translation of foreign currency deposits which is classified as "other
income" and net realized and unrealized exchange gains, which are
classified as "Income from software development services and products-
overseas".
1.2.10 Research and development expenditure
<TABLE>
<CAPTION>
in Rs.
---------------------------------------------------------------------------------------------------------------
Three months ended Nine months ended Year ended
Dec 31, Dec 31, Mar 31,
---------------------------------------------------------------------------
2000 1999 2000 1999 2000
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Capital 73,00,838 -- 1,41,29,064 -- 15,27,500
Revenue 3,87,87,821 2,27,65,340 11,04,47,197 6,16,17,330 8,07,35,940
---------------------------------------------------------------------------------------------------------------
Total research and development
expenses 4,60,88,659 2,27,65,340 12,45,76,261 6,16,17,330 8,22,63,440
---------------------------------------------------------------------------------------------------------------
</TABLE>
1.2.11 Provision for contingencies
The company had instituted a contingency plan effective October 1, 1998 and
made a total provision of Rs. 9,99,00,000 to meet any possible disruption
in client support due to the Year 2000 impact on the technology and
communication infrastructure provided to the company by its vendors. For
the year ended March 31, 2000, Rs. 2,42,29,154 was spent towards the Year
2000 transition effort, which was set off against the provision and the
remainder of Rs. 7,56,70,846 was written back to the profit and loss
account.
1.2.12 Provision for e-inventing the company
The company made a provision of Rs. 3,50,00,000 for the quarter ended
September 30, 1999 towards e-inventing the company. Until March 31, 2000
the company had incurred Rs. 3,10,99,023 towards e-inventing Infosys, which
was set-off against the provision earlier made. The remainder of Rs.
39,00,977 was incurred and set-off against this provision during the first
quarter of the current year.
1.2.13 Unearned revenue
Unearned revenue as of December 31, 2000 amounting to Rs. 49,62,20,659
(previous period Rs. 23,11,41,772 and previous year Rs. 17,56,71,963)
primarily consists of client billings on fixed-price, fixed-time-frame
contracts for which the related costs have not yet been incurred.
1.2.14 Dues to small-scale industrial undertakings
As of December 31, 2000, the company had no outstanding dues to small-scale
industrial undertakings (previous period Rs. nil; previous year Rs. nil).
<PAGE>
1.2.15 Balance of unutilized money raised by issue of American Depositary
Shares
During the year ended March 31, 1999, Infosys made an Initial Public
Offering of American Depositary Shares ("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 were entirely utilized as of the balance sheet date. The
unutilized ADS proceeds as at December 31, 2000 is Rs. nil (Rs.
140,99,00,000 as at December 31, 1999 and March 31, 2000).
1.2.16 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, 2000, options to acquire 3,32,200 shares are outstanding
with the employees under the 1994 Plan. These options were granted at an
exercise price of Rs. 50 per option. Additionally, the number of shares
earlier issued to employees subject to lock-in-period is 16,74,800 shares.
1998 Stock Option Plan ("the 1998 Plan")
The company's 1998 Stock Option Plan ("the 1998 Plan") provides for the
grant of non-statutory stock options and incentive stock options to
employees. The 1998 Plan was approved by the Board of Directors in December
1997 and by the company's shareholders in January 1998. The Government of
India approved the 1998 Plan, subject to a limit of 14,70,000 equity shares
representing 29,40,000 ADSs to be issued under the plan. A total of
16,00,000 equity shares corresponding to 32,00,000 ADSs are currently
reserved for issue pursuant to the 1998 Plan. These 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 will
terminate in January 2008, unless terminated earlier. All options under the
1998 Plan are exercisable for ADSs representing equity shares. A committee
of the Board of Directors administers the 1998 Plan.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
Number of options granted, Three months ended Nine months ended Year ended
exercised and forfeited Dec 31, Dec 31, Mar 31,
---------------------------------------------------------------------------
2000 1999 2000 1999 2000
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Options outstanding,
Beginning of period/year 8,71,466 4,19,000 6,89,500 4,19,000 4,19,000
Granted 80,800 2,32,000 3,12,800 2,32,000 2,94,300
Exercised 1,400 -- 2,734 -- 23,800
Forfeited 6,200 -- 54,900 -- --
---------------------------------------------------------------------------------------------------------------
Options outstanding,
end of period/year 9,44,666 6,51,000 9,44,666 6,51,000 6,89,500
---------------------------------------------------------------------------------------------------------------
Weighted average US$ 86.67 US$ 42.84 US$ 86.67 US$ 42.84 US$ 58.53
Exercise price (Rs. 4,046) (Rs. 1,863) (Rs. 4,046) (Rs. 1,863) (Rs. 2,552)
---------------------------------------------------------------------------------------------------------------
</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 1999 Plan in June 1999. The 1999 Plan
provides for the issue of 66,00,000 equity shares to the employees. The
1999 Plan is administered by a Compensation Committee comprising a maximum
of seven members, the majority of whom are independent directors on the
Board of Directors. Under the 1999 Plan, options will be issued to
employees at an exercise price, which shall not be 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 Fair Market Value only if specifically approved by the
members of the company in a general meeting.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
Number of options granted, Three months ended Nine months ended Year ended
exercised and forfeited Dec 31, Dec 31, Mar 31,
---------------------------------------------------------------------------
2000 1999 2000 1999 2000
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Options outstanding, beginning of
period/year 18,83,000 -- 10,06,800 -- --
Granted 1,78,200 9,53,200 11,32,300 9,53,200 10,14,500
Exercised 500 -- 500 -- --
Forfeited 48,700 2,200 1,26,600 2,200 7,700
---------------------------------------------------------------------------------------------------------------
Options outstanding, end of
period/year 20,12,000 9,51,000 20,12,000 9,51,000 10,06,800
---------------------------------------------------------------------------------------------------------------
Weighted average exercise price Rs. 5,512 Rs. 4,065 Rs. 5,512 Rs. 4,065 Rs. 4,268
---------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
1.2.17 Pro-forma disclosures relating to the Employee Stock Option Plans
("ESOPs")
The Securities and Exchange Board of India (SEBI) recently issued the
(Employee Stock Option Scheme and Employee Stock Purchase Scheme)
Guidelines, 1999 which is applicable to all stock option schemes
established after June 19, 1999. In accordance with these guidelines, the
excess of the market price of the underlying equity shares as of the date
of the grant of the options over the exercise price of the options,
including up-front payments, if any is to be recognized and amortized on a
straight-line basis over the vesting period. All options under the 1998 and
1999 stock option plans have been issued at fair market value, hence there
are no compensation costs.
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.
-----------------------------------------------------------------------------------------------------------------
Three months ended Nine months ended Year ended
Dec 31, Dec 31, Mar 31,
-----------------------------------------------------------------------------
2000 1999 2000 1999 2000
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net profit:
- As reported 166,33,07,490 73,78,54,793 447,13,92,818 200,10,19,434 293,51,56,665
- Adjusted pro forma 160,39,26,704 68,17,38,506 429,74,13,557 183,51,84,658 271,34,60,717
-----------------------------------------------------------------------------------------------------------------
</TABLE>
1.2.18 Provision for taxation
The company's profits from export activities are partly deductible from
taxable income. However, most of Infosys' operations are conducted through
100% Export Oriented Units ("EOU"), which are entitled to a tax holiday for
a period of ten years from the date of commencement of operations. The
Government of India amended the tax incentive available to companies
operating through EOUs. The period of tax exemption available to such
companies has been restricted to 10 consecutive years, commencing from the
earlier of, the fiscal year in which the unit commences software
development, and March 31, 2000. Additionally, export related tax
deductions apart from the 100% EOU scheme earlier described are being
phased out by fiscal 2004. The provision for taxation includes tax
liabilities in India on the company's global income as reduced by exempt
incomes and any tax liabilities arising overseas on income sourced from
those countries.
1.2.19 Cash and bank balances
The cash and bank balances include interest accrued but not due on fixed
deposits amounting to Rs. 1,80,15,245 for the nine month period ended
December 31, 2000 (previous period Rs. 32,93,237 and previous year Rs.
94,92,514).
1.2.20 Loans and advances
"Advances recoverable in cash or in kind or for value to be received"
mainly comprises prepaid travel and per-diem expenses and advances to
vendors for current assets. Deposits with financial institutions and a body
corporate comprise:
<TABLE>
<CAPTION>
in Rs.
----------------------------------------------------------------------------------------------------------------
As at Dec 31, As at Mar 31,
-----------------------------------------------------------------
2000 1999 2000
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Deposits with financial institutions:
Housing Development Finance
Corporation Limited 51,14,87,343 25,50,22,081 25,50,19,994
ICICI Limited 50,91,88,495 18,10,98,742 25,75,52,742
Deposits with body corporate:
G E Capital Services India Limited 50,60,89,326 25,58,23,674 25,32,29,129
----------------------------------------------------------------------------------------------------------------
152,67,65,164 69,19,44,497 76,58,01,865
----------------------------------------------------------------------------------------------------------------
</TABLE>
The above amounts include interest accrued but not due amounting to Rs.
2,67,65,164 (corresponding previous period Rs. 1,19,44,497 and previous
year Rs. 1,58,01,865).The financial institutions and the body corporate
have AAA rating from Credit Rating and Information Services of India
Limited ("CRISIL"). Mr. Deepak M Satwalekar, Director, is also the 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.
1.2.21 Current liabilities
Sundry creditors for other liabilities represent mainly the retention
amounts payable to the vendors, and amounts accrued for various other
operational expenses.
1.2.22 Fixed assets
The company has entered into lease-cum-sale agreements to acquire certain
properties. In accordance with the terms of these agreements, the company
has the option to purchase the properties outright at the expiry of the
lease period. The company has
<PAGE>
already paid 99% of the value of the properties at the time of entering into the
lease-cum-sale agreements. These amounts are disclosed as "Land -leasehold"
under "Fixed assets" in the financial statements.
1.2.23 Transfer of intellectual property rights
During the first quarter of the current fiscal, the company transferred its
intellectual property rights in Onscan - a web-focussed wireless-enabled
notification product, to Onscan Inc., USA, a company incubated by Infosys as
part of its ongoing effort to encourage and promote budding entrepreneurs among
its employees. The product was transferred for a gross consideration of Rs.
8,93,40,000 (US$ 2 million), received as equity, preferred voting and preferred
non-voting securities in Onscan Inc. The income arising out of the transfer of
Rs. 5,49,44,000 (net of tax) is disclosed as an extraordinary item.
1.2.24 Investments
Purpleyogi Inc., USA
During the current quarter, the company made a strategic investment of Rs.
2,33,34,992 comprising 2,76,243 fully paid Series D Convertible Preferred Stock,
par value of US$ 0.001 each, at US$ 1.81 each in Purpleyogi Inc., USA.
Purpleyogi Inc. is a developer of infrastructure software for information
management, related to empowering networks to enable next generation content
management and enterprise knowledge management solutions.
M-Commerce Ventures Pte. Ltd., Singapore
Until December 31, 2000, the company has agreed to invest an aggregate amount of
Singapore $ ("S$") 1,000,000 in M-Commerce Ventures Pte. Ltd ("MCV"), a
Singapore based venture fund. As at December 31, 2000, the company made an
investment of Rs. 1,84,47,700 (equivalent to S$ 700,000), and acquired 70
capital units in MCV. Each unit in MCV represents one ordinary share of S$ 1
each, issued at par, and nine redeemable preference shares at a par value of S$
1 each, with a premium of S$ 1,110 per redeemable preference share. MCV is
promoted by the Economic Development Board, Singapore and intends to focus on
companies offering mobile portals, personal information management and
messaging, bandwidth optimization and offer key enablers of m-commerce.
EC Cubed Inc., USA
During the current quarter, EC Cubed Inc., USA, one of the companies in which
Infosys had made a strategic investment, filed for liquidation. Pending the
conclusion of liquidation proceedings, the company has provided for the entire
amount of investment amounting to Rs. 13,08,00,000 in its income statement.
Alpha Thinx Mobile Phone Services AG, Austria
During the second quarter of the current fiscal, the company invested Rs.
2,20,98,608 (equivalent to <128> 555,800) and acquired 27,790 bearer shares of
nominal value <128> 1 each, at an issue price of <128> 20 per share in Alpha
Thinx Mobile Phone Services AG ("Alpha Thinx"), a Vienna-based company. Alpha
Thinx operates in the wireless Internet space and plans to host interactive
services for mobile users across Europe.
Asia Net Media BVI Limited, the British Virgin Islands
During the second quarter of the current fiscal, the company invested Rs.
6,84,75,000 (equivalent to US$ 1,500,000) and acquired 3,00,00,000 Ordinary
Shares of par value US$ 0.01 each, at an issue price of US$ 0.05 per Ordinary
Share in Asia Net Media BVI Limited ("Asia Net"). Asia Net intends to leverage
under-exploited offline brands in media and entertainment by delivering them
through online channels and to establish a synergistic network of companies in
this space.
CiDRA Corporation, USA
During the first quarter of the current fiscal, the company made a strategic
investment of Rs. 13,40,08,660 comprising 33,333 fully paid Series D Convertible
Preferred Stock, par value of US$ 0.01 each, at US$ 90 each in CiDRA
Corporation, USA. CiDRA Corporation is a developer of photonic devices for high-
precision wavelength management and control for next-generation optical
networks.
<PAGE>
1.2.25 Segment reporting
The company's operations predominantly relate to providing IT services, which is
delivered to globally located customers. The accounting principles that have
been consistently used to record revenue, expenditure, assets and liabilities in
the individual segments are as set out in the note on significant accounting
policies. While the primary segment reporting is already set out in detail in
the company's balance sheet, statement of profit and loss and the various
schedules and notes thereto, the secondary disclosures in relation to Revenues
are as follows:
<TABLE>
<CAPTION>
in Rs.
-------------------------------------------------------------------------------------------------------------------
Three months ended Dec 31, Nine months ended Dec 31, Year ended
Mar 31,
--------------------------------------------------------------------------------------
2000 1999 2000 1999 2000
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
North America 401,92,65,784 182,73,81,277 1027,74,30,757 493,56,33,001 713,27,33,054
Europe 101,07,66,302 26,80,13,811 243,08,05,236 85,56,72,711 129,09,73,822
Rest of the world 32,85,91,803 19,25,10,236 84,07,03,516 39,23,29,074 52,40,04,100
India 15,67,92,365 4,73,25,253 32,96,29,820 17,10,21,495 26,69,37,092
-------------------------------------------------------------------------------------------------------------------
Total 551,54,16,254 233,52,30,577 1387,85,69,329 635,46,56,281 921,46,48,068
-------------------------------------------------------------------------------------------------------------------
</TABLE>
Certain expenses such as personnel costs, communication, depreciation on plant
and machinery, etc., which form a significant component of total expenses, have
not being specifically allocated to these geographical segments as the
underlying services are used inter-changeably between reportable segments.
Management believes that it is not practicable to provide segment disclosures
relating to segment costs and expenses, and consequently segment profits or
losses, since detailed allocation is presently unfeasible. Moreover, the fixed
assets used in the company's business or the liabilities contracted have not
been identified to any particular reportable segment as the fixed assets and
services can be used inter-changeably amongst segments. Accordingly, management
believes that it is currently not practicable to provide segment disclosures
relating to total assets since a meaningful segregation of the available data
among the various geographic segments is onerous.
1.2.26 Related party transactions
The company entered into related party transactions during the nine months with
Yantra Corporation, USA, the subsidiary of the company and key management
personnel.
The transactions with Yantra comprise sales of Rs. 15,76,72,000
during the nine months ended December 31, 2000. The corresponding amounts for
the nine months ended December 31, 1999 and the year ended March 31, 2000 were
Rs. 7,77,25,748 and Rs. 11,40,18,372 respectively. The amount due by Yantra to
the company as at December 31, 2000 was Rs 1,87,57,679 (December 31, 1999 - Rs
1,00,84,800 and March 31, 2000 - nil).
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 table below represents details of the dues to the
company by the non-director officers of the company:
<TABLE>
<CAPTION>
in Rs.
----------------------------------------------------------------------------------------------------------------
Nine months ended Dec 31, Year ended Mar 31,
---------------------------------------------------------------
2000 1999 2000
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Amount due as at end of period/year 71,07,809 1,66,40,680 1,35,08,825
Maximum amount due during the period/year 2,34,98,527 1,86,66,659 2,29,89,747
</TABLE>
1.2.27 Provisions for doubtful debts
Periodically management evaluates all customer dues to the company for
collectibility. The need for provisions is assessed based on various factors
including collectibility of specific dues, risk perceptions of the industry in
which the customer operates and general economic factors, which could effect the
customer's ability to settle. The company normally provides for debtor dues
outstanding for 180 days or longer. In the nine months ended December 31, 2000,
the company provided for doubtful debts of Rs. 5,31,11,414 (previous period Rs.
nil and previous fiscal year Rs. nil) for dues from certain customers although
the outstanding amounts were under 180 days old, since the amounts were
considered doubtful of recovery. Management continues pursuing the parties for
recovery of the dues, in part or full.
<PAGE>
<TABLE>
<CAPTION>
Statement of Cash Flows
----------------------------------------------------------------------------------------------------------------------
in Rs.
---------------------------------------------------------------------------------------------------------------------------------
Quarter ended Dec 31, Nine months ended Dec 31,
------------------------------------------------------------------- Year ended
2000 1999 2000 1999 Mar 31, 2000
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Cash flows from operations
Profit before tax 185,83,07,490 83,98,54,793 492,60,48,818 227,80,19,434 325,64,85,819
Non-operating income (14,13,12,785) (6,26,62,058) (47,80,59,463) (28,14,43,096) (36,62,06,181)
Profit on sale of fixed assets (7,87,388) (4,06,879) (7,87,388) (8,70,656) (8,73,015)
Provision for long-term investments 13,08,00,000 -- 13,08,00,000 -- --
Increase (decrease)in provision for contingencies -- (1,05,17,012) -- 2,27,82,988 (6,66,00,000)
Increase (decrease) in provision for e-inventing
the company -- (2,08,21,326) (39,00,977) 1,41,78,674 39,00,977
Depreciation, depletion and amortization 33,01,92,680 14,47,99,080 74,99,31,944 34,52,40,998 53,23,27,389
Decrease (increase) in sundry debtors (60,90,55,865) (4,88,85,406) (167,78,43,358) (53,84,06,785) (51,65,92,828)
Decrease (increase) in loans and advances (8,27,15,875) (9,21,43,936) (21,45,10,572) (26,95,41,820) (41,49,70,588)
Increase (decrease) in current liabilities and
provisions (1,40,20,268) (70,61,317) 74,78,95,908 17,00,06,537 42,26,37,450
Income taxes paid (31,31,33,686) (11,69,30,617) (63,56,65,477) (25,53,68,098) (35,53,53,877)
----------------------------------------------------------------------------------------------------------------------------------
Net cash from operations 115,82,74,303 62,52,25,322 354,39,09,435 148,45,98,176 249,47,55,146
----------------------------------------------------------------------------------------------------------------------------------
Cash flows from financing
Proceeds from conversion of options 72,13,119 -- 82,14,625 -- 1,76,25,277
Expenses relating to issue of American Depositary
Shares (ADS) -- (21,00,000) -- (2,26,30,090) (2,35,06,514)
Expenses relating to issue of ADS linked stock (1,01,93,113)
options -- -- -- --
Dividends paid (including dividend tax) (20,17,61,670) (11,01,21,102) (42,20,05,883) (19,92,57,109) (19,92,57,109)
----------------------------------------------------------------------------------------------------------------------------------
Net cash used for financing (19,45,48,551) (11,22,21,102) (41,37,91,258) (22,18,87,199) (21,53,31,459)
----------------------------------------------------------------------------------------------------------------------------------
Cash flows from investing
Income from investments 10,68,10,037 6,87,87,893 27,26,13,143 18,98,10,230 26,68,79,106
Proceeds of sale of fixed assets 18,31,825 4,06,879 20,69,586 9,78,588 10,20,400
Purchases of fixed assets (125,15,71,385) (46,98,20,540) (325,00,86,025) (106,74,37,021) (159,87,03,617)
Long-term investments (3,67,46,692) -- (26,63,64,960) -- (13,08,00,000)
----------------------------------------------------------------------------------------------------------------------------------
Net cash used for investing (117,96,76,215) (40,06,25,768) (324,17,68,256) (87,66,48,203) (146,16,04,111)
----------------------------------------------------------------------------------------------------------------------------------
Effect of exchange differences on translation of
foreign currency deposit maintained abroad 3,44,48,919 (61,25,835) 20,54,46,320 9,16,32,866 9,93,27,075
Total increase (decrease) in cash and cash
equivalents during the period (18,15,01,544) 10,62,52,617 9,37,96,241 47,76,95,640 91,71,46,651
Cash and cash equivalents at the beginning of the
period 535,90,35,380 453,80,33,967 508,37,37,595 416,65,90,944 416,65,90,944
----------------------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at the end of the period 517,75,33,836 464,42,86,584 517,75,33,836 464,42,86,584 508,37,37,595
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Note: During the nine months ended December 31, 2000, the company transferred
intellectual property rights in Onscan- a web focussed wireless-enabled
notification product, to Onscan Inc., USA, a company incubated by Infosys as
part of its ongoing effort to encourage and promote enterpreneurs amongst its
employees. The product was transferred for a gross consideration of Rs. 8.93
crore (US$ 2 million) received as equity, preferred voting and preferred non-
voting securities in Onscan Inc. and accordingly, is not considered in these
statements of cash flows.
<TABLE>
<S> <C> <C> <C>
These are the Cash Flow Statements
referred to in our report of even
date.
for Bharat S Raut & Co.
Chartered Accountants
Balaji Swaminathan N. R. Narayana Murthy Nandan M. Nilekani Deepak M. Satwalekar
Partner Chairman and Managing Director, President Director
Chief Executive Officer and Chief Operating Officer
Ramesh Vangal Marti G. Subrahmanyam Philip Yeo Jitendra Vir Singh
Director Director Director Director
Omkar Goswami S. Gopalakrishnan K. Dinesh S. D. Shibulal
Director Deputy Managing Director Director Director
T. V. Mohandas Pai Phaneesh Murthy Srinath Batni V. Viswanathan
Director and Chief Financial Director Director Company Secretary
Officer
Bangalore
January 9, 2001
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statement of Cash Flows
-----------------------------------------------------------------------------------------------------------------------
in Rs.
-----------------------------------------------------------------------------------------------------------------------------------
Quarter ended Dec 31, Nine months ended Dec 31,
-------------------------------------------------------------------- Year ended
2000 1999 2000 1999 Mar 31, 2000
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Reconciliation of Balance Sheet items with
cash flow items
Non-operating income
As per Profit and Loss Account 14,47,31,965 7,11,00,819 49,16,27,114 30,48,32,499 39,14,11,095
Less: Income from operating activities (26,31,792) (80,31,882) (1,27,80,263) (2,25,18,747) (2,43,31,899)
Profit on sale of fixed asset
considered separately (7,87,388) (4,06,879) (7,87,388) (8,70,656) (8,73,015)
----------------------------------------------------------------------------------------------------------------------------------
Balance considered for preparing the cash
flow statement 14,13,12,785 6,26,62,058 47,80,59,463 28,14,43,096 36,62,06,181
---------------------------------------------------------------------------------------------------------------------------------
Loans and advances
As per Balance sheet 355,39,12,507 178,21,08,869 355,39,12,507 178,21,08,869 210,12,77,161
Less: Deposits with financial
institutions/body corporate, included
in cash equivalents (152,67,65,164) (69,19,44,497) (152,67,65,164) (69,19,44,497) 76,58,01,865)
Advance income taxes considered
separately (102,12,57,828) (44,42,14,197) (102,12,57,828) (44,42,14,197) (54,40,96,353)
---------------------------------------------------------------------------------------------------------------------------------
Balance considered for preparing the cash
flow statement 100,58,89,515 64,59,50,175 100,58,89,515 64,59,50,175 79,13,78,943
---------------------------------------------------------------------------------------------------------------------------------
Current liabilities and provisions
As per Balance sheet 256,89,45,135 124,22,62,447 256,89,45,135 124,22,62,447 165,97,02,419
Less: Provision for taxation considered
separately (101,15,11,740) (50,61,23,365) (101,15,11,740) (50,61,23,365) (62,60,19,742)
Provision for dividend considered
separately -- -- -- -- (19,84,18,210)
Provision for dividend tax considered
separately -- -- -- -- (2,18,26,003)
Provision for contingencies -- (8,93,82,988) -- (8,93,82,988) --
Provision for e-inventing the company -- (1,41,78,674) -- (1,41,78,674) (39,00,977)
---------------------------------------------------------------------------------------------------------------------------------
Balance considered for preparing the cash
flow statement 155,74,33,395 63,25,77,420 155,74,33,395 63,25,77,420 80,95,37,487
---------------------------------------------------------------------------------------------------------------------------------
Income taxes paid
As per Profit and Loss Account 19,50,00,000 10,20,00,000 50,96,00,000 27,70,00,000 39,70,00,000
Add: Provision for tax on sale of
intellectual property rights -- -- 3,43,96,000 -- --
Decrease(increase) in balance in
provision for taxes account (5,69,47,253) (10,14,38,084) (38,54,91,998) (27,47,65,877) (39,46,62,254)
Increase(decrease) in balance in
advance income tax account 17,50,80,939 11,63,68,701 47,71,61,475 25,31,33,975 35,30,16,131
---------------------------------------------------------------------------------------------------------------------------------
Balance considered for preparing the cash 35,53,53,877
flow statement 31,31,33,686 11,69,30,617 63,56,65,477 25,53,68,098
---------------------------------------------------------------------------------------------------------------------------------
Purchases of fixed assets
As per Balance sheet 69,62,40,707 32,04,12,874 221,85,33,772 65,39,65,870 117,79,35,912
Add: Closing capital work-in-progress 160,11,55,758 56,23,06,951 160,11,55,758 56,23,06,951 56,96,03,505
Less: Opening capital work-in-progress (104,58,25,080) (41,28,99,285) (56,96,03,505) (14,88,35,800) (14,88,35,800)
---------------------------------------------------------------------------------------------------------------------------------
Balance considered for preparing the cash
flow statement 125,15,71,385 46,98,20,540 325,00,86,025 106,74,37,021 159,87,03,617
---------------------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents
As per Balance sheet 365,07,68,672 395,23,42,087 365,07,68,672 395,23,42,087 431,79,35,730
Add: Deposits with financial
institutions/body corporate considered
herein 152,67,65,164 69,19,44,497 152,67,65,164 69,19,44,497 76,58,01,865
---------------------------------------------------------------------------------------------------------------------------------
Balance considered for preparing the cash
flow statement 517,75,33,836 464,42,86,584 517,75,33,836 464,42,86,584 508,37,37,595
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
These are the Cash Flow Statements referred
to in our report of even date.
for Bharat S Raut & Co.
Chartered Accountants
Balaji Swaminathan N. R. Narayana Murthy Nandan M. Nilekani Deepak M. Satwalekar
Partner Chairman and Managing Director, President Director
Chief Executive Officer and Chief Operating Officer
Ramesh Vangal Marti G. Subrahmanyam Philip Yeo Jitendra Vir Singh
Director Director Director Director
Omkar Goswami S. Gopalakrishnan K. Dinesh S. D. Shibulal
Director Deputy Managing Director Director Director
T. V. Mohandas Pai Phaneesh Murthy Srinath Batni V. Viswanathan
Director and Chief Financial Director Director Company Secretary
Officer
Bangalore
January 9, 2001
</TABLE>
<PAGE>
At a glance - US GAAP
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
US$ in millions, except as otherwise stated
-------------------------------------------------------------------------------------------------------------------------------
Three months ended December 31 Nine months ended December 31 Year ended
--------------------------------------------------------------------
2000 1999 2000 1999 March 31, 2000
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
For the period
Revenues 114.91 52.16 293.11 139.83 203.44
Export revenues 113.22 51.69 289.34 138.25 200.54
Operating income 38.19 15.69 96.79 42.61 60.50
Net income 34.01 15.42 93.62 43.45 61.34
Operating income as a percentage of total
revenues 33.23% 30.08% 33.02% 30.47% 29.74%
Net income as a percentage of total
revenues 29.60% 29.56% 31.94% 31.07% 30.15%
Basic earnings per share $ 0.52 $ 0.24 $ 1.43 $ 0.66 $ 0.93
Dividend declared per equity share NA NA $ 0.05 $ 0.03 $ 0.10
Capital investments 25.64 10.87 66.78 23.84 35.93
At the end of the period
Total assets 304.50 195.18 219.28
Property, plant and equipment - net 97.93 39.76 47.55
Cash and cash equivalents 110.89 106.79 116.60
Working capital 156.94 131.30 137.94
Total debt -- -- --
Stockholders' equity 271.14 179.22 198.14
Common stock 8.59 8.59 8.59
Market capitalization 12,205.15 21,825.8 13,609.67
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Note:
Market capitalization is calculated by considering the Indian market price for
the shares outstanding at the period / year end.
Export Revenue
US$ in millions
Year ended Nine months ended Nine months ended
Mar 31, 2000 Dec 31, 1999 Dec 31, 2000
200.54 138.25 289.34
Total Revenue
US$ in millions
Year ended Nine months ended Nine months ended
Mar 31, 2000 Dec 31, 1999 Dec 31, 2000
203.44 139.83 293.11
Net Profit
US$ in millions
Year ended Nine months ended Nine months ended
Mar 31, 2000 Dec 31, 1999 Dec 31, 2000
61.34 43.45 93.62
<PAGE>
<TABLE>
<CAPTION>
Shareholder information
-----------------------------------------------------------------------------------------------------------------------
<S> <C>
1. Listing on stock exchanges Bangalore Stock Exchange Ltd.
in India at Stock Exchange Towers, No. 51, 1st Cross, J.C. Road, Bangalore - 560 027, India.
Tel.: +91-80-299 5234, Fax: +91-80-299 5242
The Stock Exchange, Mumbai
Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001, India.
Tel.: +91-22-265 5581, Fax: +91-22-265 8121
National Stock Exchange of India Ltd.
Trade World, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013, India.
Tel.: +91-22-497 2950, Fax: +91-22-491 4275 / 85
2. Listing fees Paid for all the above stock exchanges for 2000-2001.
3. Listing on stock exchanges NASDAQ National Market in the United States
outside India 33 Whitehall Street, New York, NY-1004-4087
Tel.: +1-212-709-2400, Fax: +1-212-709-2496
4. Registered office Electronics City, Hosur Road, Bangalore - 561 229, India.
Tel.: +91-80-852 0261, Fax: +91-80-852 0362
Homepage: www.infy.com
------------
5. 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 three-month
period ended December 31, 2000 are:
</TABLE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------------
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 7,714 6,102 1,41,69,566 7,725 6,120 1,57,50,857 7,700 6,110 59,794
November 8,042 7,150 1,08,26,217 8,014 7,160 1,28,90,086 8,025 7,150 47,303
December 7,680 5,416 1,51,85,245 8,042 5,422 1,67,18,910 7,872 5,411 45,266
------------------------------------------------------------------------------------------------------------------------------
Total 4,01,81,028 4,53,59,853 1,52,363
% of volume traded to
average shares outstanding
for the period 62.71%** 70.80% ** 0.24% **
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
** The number of shares outstanding is 6,40,69,300. The equity shares
underlying the American Depositary Shares (ADSs) have been excluded for the
purpose of this calculation.
<TABLE>
<S> <C>
6. Par value of equity shares Rs. 5 each fully paid-up
7. 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,
change of address, etc., in India Opp. National College, Basavanagudi,
may be addressed to Bangalore - 560 004, India.
Tel.: +91-80-662 1184/92/93, Fax: +91-80-662 1169
E-mail: bangalore@karvy.com
</TABLE>
8. Share transfer system
Shares sent for physical transfer are generally registered and returned
within a period of 15 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, 2000 was 1,500 (previous year -
18,110). 100.00% of transfers (previous year - 96.08%) were completed
within 10 days.
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
Three-month period ended December 31,
------------------------------------------------------------------------------------------------------------------
2000 1999
------------------------------------------------------------------------------------------------------------------
Transfer No. of No. of No. of No. of
period transferees (folios) shares % transferees (folios) shares %
in days New Existing New Existing
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 - 10 4 -- 1,500 100.00 29 12 17,400 96.08
11 - 15 -- -- -- -- 1 1 110 0.61
16 - 20 -- -- -- -- -- -- -- --
* 21 and above -- -- -- -- 1 1 600 3.31
------------------------------------------------------------------------------------------------------------------
4 -- 1,500 100.00 31 14 18,110 100.00
------------------------------------------------------------------------------------------------------------------
</TABLE>
* Delays beyond 21 days were due to compliance with legal requirements
9. Investors' services - complaints received during
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
Three-month period ended December 31,
------------------------------------------------------------------------------------------------------------------
Nature of complaints 2000 1999
------------------------------------------------------------------------------------------------------------------
Received Attended to Received Attended to
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Non-receipt of share certificates -- -- -- --
2. Non-receipt of bonus shares/split shares 1 1 3 3
3. Letters from Stock Exchanges, SEBI, etc. -- -- -- --
4. Non-receipt of dividend 21 21 19 19
------------------------------------------------------------------------------------------------------------------
22 22 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 three-month period ended December 31, 2000
except in cases of disputes or legal impediments.
10. Legal proceedings
The company is responding to various petitions, relating to the title to
its shares, filed by certain parties. These are unlikely to have a
significant effect on the affairs of the company.
11. Distribution of shareholding as on December 31
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
2000 1999
------------------------------------------------------------------------------------------------------------------
No. of equity No. of % of No. of % of No. of % of No. of % of
shares held share- share- shares share- share- share- shares share-
holders holders holding holders holders # holding
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 - 100 64,159 83.93 8,50,963 1.33 12,098 57.17 5,82,144 0.91
101 - 200 2,710 3.55 4,48,303 0.70 2,294 10.84 8,63,548 1.35
201 - 500 3,172 4.15 11,13,906 1.74 2,800 13.23 20,84,142 3.25
501 - 1000 2,673 3.50 19,76,590 3.09 2,071 9.79 31,17,150 4.87
1001 - 5000 2,953 3.86 61,51,441 9.60 1,395 6.59 57,83,822 9.03
5001 - 10000 331 0.43 23,48,692 3.67 208 0.98 29,93,362 4.67
10001 and above 440 0.58 5,02,83,733 78.47 297 1.40 4,80,14,342 74.94
Shares in transit in NSDL - - 8,95,672 1.40 - - 6,30,290 0.98
------------------------------------------------------------------------------------------------------------------
76,438 100.00 6,40,69,300 100.00 21,163 100.00 6,40,68,800 100.00
Equity shares 1 *20,83,267 1* 20,70,000
underlying ADSs
------------------------------------------------------------------------------------------------------------------
Total 76,439 6,61,52,567 21,164 6,61,38,800
------------------------------------------------------------------------------------------------------------------
</TABLE>
* Held by beneficial owners outside India.
# Shares have been restated consequent to the 2-for-1 stock-split in
February 2000.
<PAGE>
12. Categories of shareholders as on December 31
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
2000 1999
------------------------------------------------------------------------------------------------------------------
Category No. of Voting No. of shares No. of Voting No.of shares
shareholders strength (%) held shareholders strength (%) held #
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Individuals 72,110 25.17 1,66,49,341 19,698 25.84 1,70,92,256
Companies 3,139 2.24 14,80,588 988 1.52 10,03,608
FIIs 363 25.45 1,68,33,123 209 24.88 1,64,54,358
OCBs and NRIs 594 0.73 4,85,473 143 0.72 4,75,664
Founders and their families 23 29.22 1,93,32,960 18 29.44 1,94,70,260
Mutual Funds, Banks, FIs 209 12.69 83,92,143 107 13.52 89,42,364
Shares in transit in NSDL - 1.35 8,95,672 - 0.95 6,30,290
Equity shares underlying 1* 3.15 20,83,267 1* 3.13 20,70,000
American Depositary Shares
------------------------------------------------------------------------------------------------------------------
Total 76,439 100.00 6,61,52,567 21,164 100.00 6,61,38,800
------------------------------------------------------------------------------------------------------------------
</TABLE>
* Held by beneficial owners outside India.
# Shares have been restated consequent to the 2-for-1 stock-split in
February 2000.
13. Shares under lock-in
Employees Stock Offer Plan (ESOP) 1994
Details of shares of par value of Rs. 5 each held by employees under the
Employee Stock Offer Plan (ESOP) 1994 subject to lock-in are given below.
These shares are also included in the categories of shareholders given in
(12) above.
<TABLE>
<CAPTION>
No. of shares subject to lock-in as on December 31,
------------------------------------------------------------------------------------------------------------------
2000 1999
------------------------------------------------------------------------------------------------------------------
Period of lock-in No. of shares No. of employees No. of shares # No. of employees
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
4-5 years - - 7,84,600 1,042
3-4 years 7,56,400 1,000 5,00,800 341
2-3 years 4,82,400 332 2,04,000 151
1-2 years 1,92,800 146 2,57,200 105
0-1 years 2,43,200 102 2,12,600 74
------------------------------------------------------------------------------------------------------------------
</TABLE>
# Shares have been restated consequent to the 2-for-1 stock-split in
February 2000.
As on December 31, 2000, 540 employees hold rights to 3,32,200 shares of
par value of Rs. 5 each which are subject to a lock-in of 3-4 years.
Currently, 1,562 employees hold shares under the 1994 Stock Offer Plan.
Shares subject to lock-in held by the employees will be transferred back to
the ITL Employees Welfare Trust if such employees leave the services of the
company before the vesting period. As on December 31, 2000, the ITL
Employees Welfare Trust holds 2,44,800 shares of par value of Rs. 5 each.
The 1994 Stock Offer Plan has since been terminated.
Employees Stock Offer Plan (ESOP) 1998
The company established the 1998 Stock Offer Plan, which provides for the
grant of non-statutory stock options and incentive stock options to its
employees. This plan was approved by the Board of Directors in December
1997 and by the shareholders in January 1998. The Government of India has
approved the 1998 plan, subject to a limit of 14,70,000 equity shares of
par value Rs. 5 each representing 29,40,000 ADSs to be issued under the
plan. During the quarter ended December 31, 2000, options were granted to
36 employees to acquire 80,800 ADSs corresponding to 40,400 equity shares
of par value Rs. 5 each. During the three-month period ended December 31,
2000, 4 employees exercised the options to acquire 1,400 ADSs corresponding
to 700 equity shares of par value of Rs. 5 each. As of December 31, 2000,
194 employees hold options to acquire 9,44,666 ADSs corresponding to
4,72,333 equity shares of par value of Rs. 5 each. Details of the number of
ADSs options granted and exercised are given below.
No. of options granted and exercised
<TABLE>
-----------------------------------------------------------------------------------------------------------------
Granted Exercised
------------------------------------------------------------
No. of ADSs Options No. of Balance ADSs
Period employees (Net) employees ADSs options
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Year ended March 31, 1999 32 4,01,200 20 24,934 3,76,266
Year ended March 31, 2000 67 2,73,500 4 1,200 2,72,300
Quarter ended June 30, 2000 53 1,32,600 -- -- 1,32,600
Quarter ended September 30, 2000 49 82,700 -- -- 82,700
Quarter ended December 31, 2000 36 80,800 -- -- 80,800
------------------------------------------------------------------------------------------------------------------
Total 9,70,800 26,134 9,44,666
------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Employees Stock Offer Plan (ESOP) 1999
The 1999 plan was approved by the board of directors and the shareholders
in June 1999 and was instituted in fiscal 2000. The plan provides for the
issue of 66,00,000 equity shares of par value of Rs. 5 each to the
employees. During the three-month period ended December 31, 2000, options
were granted to 1,123 employees to acquire 1,78,200 equity shares of par
value of Rs. 5 each. During the three-month period ended December 31, 2000,
7 employees exercised the option to acquire 500 shares of par value of Rs.
5 each. As on December 31, 2000, 8,047 employees hold options to acquire
20,12,000 shares of par value of Rs. 5 each. Details of options held by
employees under the Employee Stock Offer Plan (ESOP) 1999 are given below.
No. of options granted and forfeited
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
Period Granted (net) Exercised Balance
------------------------------------------------------
No. of No. of No. of No. of
employees options employees options
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Year ended March 31, 2000 1,161 9,55,100 7 500 9,54,600
Quarter ended June 30, 2000 3,840 5,98,250 -- -- 5,98,250
Quarter ended September 30, 2000 2,155 2,84,000 -- -- 2,84,000
Quarter ended December 31, 2000 1,108 1,75,150 -- -- 1,75,150
-------------------------------------------------------------------------------------------------------------------
Total 20,12,500 500 20,12,000
-------------------------------------------------------------------------------------------------------------------
</TABLE>
14. Dematerialization of shares and liquidity
Your company was the first in India to pay a one-time custodial fee of Rs.
44.43 lakh to National Securities Depositary Limited (NSDL). Consequently,
the company's shareholders do not have to pay depositary participants, the
custodial fee charged by the NSDL on their holding. Over 98% of the
company's shares are now held in electronic form.
15. Financial calendar (tentative and subject to change)
Financial results for the year ending March 31, 2001 April 11, 2001
Annual General Meeting for the year ending March 31, 2001 May 2001
<TABLE>
<S> <C>
16. 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 1518, Fax: +91-80-852 0362 Tel.: +91-80-852 0396, Fax: +91-80-852 0362
(e-mail address: invest@infy.com) (e-mail address: mdpai@infy.com)
17. Reuters code - 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>
18. Stock market data relating to American Depositary Shares (ADSs)
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
<PAGE>
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 three-month
period ended December 31, 2000 are:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------
High Low Volume
----------------------------------------------------------------------------
$ Rs. $ Rs. Nos.
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
October 137.55 12,839 105.13 9,813 25,84,900
November 147.25 13,800 112.00 10,497 13,72,600
December 141.50 13,213 90.06 8,410 29,63,900
--------------------------------------------------------------------------------------------------
Total 69,21,400
--------------------------------------------------------------------------------------------------
% of volume traded to total float 166.12%*
</TABLE>
* 2 ADS = 1 equity share
$ have been converted into Indian rupees at the monthly closing rates
e. Premium of American Depositary Shares over the shares traded on the
Indian stock exchanges The ADS price considered for the comparison below
is in $ and has been converted into Indian Rupees at the monthly closing
rates.
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
ADS Premiun
Price (INR) % Premium
15,000 80.00
70.00
10,000 60.00
50.00
5,000 40.00
30.00
0 20.00
10.00
0.00
6-Oct 13-Oct 20-Oct 27-Oct 3-Nov 10-Nov 17-Nov 24-Nov 1-Dec 8-Dec 15-Dec 22-Dec 29-Dec
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Series 2 11037 11014 11854 12064 13133 11984 11715 12582 11562 11713 11532 9151 8614
Series 1 7534 6517 7124 7201 7570 7738 7636 7583 7288 7392 7202 5812 5694
Series 3 46.50 69.01 66.40 67.54 73.48 54.88 53.41 65.93 58.64 58.47 60.12 57.45 51.28
</TABLE>
* 2 ADS = 1 equity share (Source: Bloomberg)
<TABLE>
<S> <C> <C>
f. 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
-------------
g. Name and address of the Deutsche Bank A.G.
depositary bank Corporate Trust and Agency Services
4 Albany Street
New York, NY 10006, USA.
Tel.: +1-212-250-8500, Fax: +1-212-250-5644.
Corporate Trust and Agency Services
Deutsche Bank A.G.
1 st Floor, Kodak House
222, Dr. D. N. Road.
Fort, Mumbai - 400 001, India.
Tel.: +91-22-207 3262, Fax: +91-22-207 9614
h. Name and address of the ICICI Limited
custodian in India ICICI Towers
Bandra Kurla Complex
Mumbai - 400 051, India.
Tel.: +91-22-653 1414, Fax: +91-22-653 1164/65.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Segment Information
-----------------------------------------------------------------------------------------------------------------------
Rs. in lakhs
-------------------------------------------------------------------------------------------------------------------
Revenue by Quarter ended December 31, Nine months ended December 31, Year ended
------------------------------------------------------------------
2000 1999 2000 1999 March 31, 2000
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Geographical segments
North America 40,192.66 18,273.82 1,02,774.31 49,356.35 71,327.35
Europe 10,107.66 2,680.14 24,308.05 8,556.73 12,909.74
Rest of the world 3,285.92 1,925.10 8,407.03 3,923.29 5,240.03
India 1,567.92 473.25 3,296.30 1,710.20 2,669.36
-------------------------------------------------------------------------------------------------------------------
55,154.16 23,352.31 1,38,785.69 63,546.57 92,146.48
-------------------------------------------------------------------------------------------------------------------
Business segments
Branded services -- 1,395.24 -- 5,638.42 5,895.00
Products 1,226.93 444.48 3,290.21 1,576.81 2,290.12
Software development and
maintenance 52,479.91 20,801.59 1,30,579.21 53,283.03 80,047.26
Treasury 1,447.32 711.00 4,916.27 3,048.31 3,914.10
-------------------------------------------------------------------------------------------------------------------
55,154.16 23,352.31 1,38,785.69 63,546.57 92,146.48
-------------------------------------------------------------------------------------------------------------------
</TABLE>
Note: Exchange differences arising on translation of foreign currency deposits
kept abroad has been included under treasury.
<TABLE>
<CAPTION>
Geographical segment - quarter ended December 31, 2000 Business segment - quarter ended December 31, 2000
------------------------------------------------------ --------------------------------------------------
<S> <C>
India - 3% Treasury - 3%
Rest of the world - 6% Products - 2%
Europe - 18%
North America - 73% Software development
and Maintenance - 95%
</TABLE>
<PAGE>
Ratio analysis
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
Quarter ended Nine months ended Year ended
Dec 31, Dec 31, Mar 31,
-------------------------------------------
2000 1999 2000 1999 2000
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Ratios - Financial performance
Export revenue / total revenue (%) 95.96 96.10 95.22 94.12 94.38
Domestic revenue / total revenue (%) 1.42 0.86 1.23 1.08 1.37
Other income / total revenue (%) 2.62 3.04 3.55 4.80 4.25
Employee costs / total revenue (%) 36.20 36.91 36.74 35.67 36.31
Administration expenses / total revenue (%) 8.42 7.40 8.52 7.28 7.54
Operating expenses / total revenue (%) 60.32 57.83 59.10 58.72 58.88
Depreciation / total revenue (%) 5.99 6.20 5.40 5.43 5.78
Tax / total revenue (%) 3.54 4.37 3.67 4.36 4.31
Tax / PBT (%) 10.49 12.14 10.35 12.16 12.19
EBIDTA / total revenue (%) 39.68 42.17 40.90 41.28 41.12
PAT from ordinary activities / total revenue (%) 30.16 31.60 31.82 31.49 31.03
PAT from ordinary activities / average net worth (%) (LTM) 52.17 47.60 52.17 47.60 40.63
ROCE (PBIT/Average capital employed) (%) (LTM) 58.39 54.17 58.39 54.17 46.27
Return on invested capital (%)(LTM) 97.29 99.95 97.29 99.95 111.68
Capital output ratio (LTM) 1.60 1.48 1.60 1.48 1.31
Invested capital output ratio (LTM) 3.11 3.28 3.11 3.28 3.82
Ratios - Balance sheet
Debt-Equity ratio -- -- --
Debtors turnover (Days)* 62 63 56
Current ratio 3.99 5.73 4.69
Cash and equivalents / total assets (%) 41.06 61.01 61.00
Cash and equivalents / total revenue (%) (LTM) 30.93 58.85 55.17
Depreciation / average gross block (%) (LTM) 25.42 25.55 23.50
Technology investment / total revenue (%) (LTM) 6.23 6.74 5.86
Ratios - Growth**
Export revenue (%) 136 63 121 70 74
Total revenue (%) 136 67 118 77 80
Operating expenses (%) 146 58 120 62 69
Operating profit (%) 122 80 116 104 98
Net profit (from ordinary activities) (%) 125 95 121 123 115
Per - share data (Period End)
Earnings per share from ordinary activities (Rs.) 25.14 11.16 66.76 30.25 43.23
Earnings per share (including extraordinary items) (Rs.) 25.14 11.16 67.59 30.25 44.37
Cash earnings per share from ordinary activities (Rs.) 30.13 13.35 78.10 35.47 51.27
Cash earnings per share (including extraordinary items) 30.13 13.35 78.93 35.47 52.42
(Rs.)
Book value (Rs.) 190.63 115.08 125.97
Price / earning (LTM) 71.41 196.72 207.50
Price / cash earnings (LTM) 60.64 163.77 174.96
Price / book value 29.87 62.85 71.21
EPS growth (%) 125.27 89.47 120.69 115.76 115.07
PE / EPS Growth 0.57 2.20 0.59 1.70 1.80
Dividend per share -- -- 2.50 1.50 4.50
----------------------------------------------------------------------------------------------------------------------
</TABLE>
* Annualized.
** Denotes growth compared with figures of the corresponding period in the
previous year.
Note: The ratio calculations are based on Indian GAAP and have been adjusted for
the stock split.
LTM - Last twelve months
<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 St, #2300
Bellevue, WA 98004
Tel.: 425 990 1028
Fax: 425 990 1029
Berkeley Heights
Two Oak way
4/th/ Floor South Wing,
Berkeley Heights, NJ 07922
Tel.: 908 286 3100
Fax: 908 286 3125
Cranford
20 Commerce Drive
Cranford, NJ 07016
Tel.: 908 497 1710
Fax: 908 497 1770
Fremont
34760 Campus Drive
Fremont, CA 94555
Tel.: 510 742 3000
Fax: 510 742 3090
Lisle
2300 Cabot Dr. Suite 250
Lisle, IL 60532
Tel.: 630 482 5000
Fax: 630 505 9144
Marietta
1950 Spectrum Circle, #400
Marietta, GA 30067
Tel.: 770 857 4428
Fax: 770 857 2258
Newport Beach
4590 MacArthur Suite 500
Newport Beach, CA 92660
Tel.: 949 475 0196
Fax: 949 475 0198
Oakbrook Terrace
One Tower Lane, #1700
Oakbrook Terrace,
IL 60181
Tel.: 630 573 6050
Fax: 630 573 6051
Quincy
Two Adams Place
Quincy, MA 02169
Tel.: 781 356 3109
Fax: 781 356 3150
Troy
100 Liberty Center,
#200 West Big Beaver
Troy, MI 48084
Tel.: 248 524 0320
Fax: 248 524 0321
Australia
Melbourne
Level 7, 505 St. Kilda Road
Melbourne, Victoria 3004
Tel.: 61 3 9868 1607
Fax: 61 3 9868 1652
Fax: 61 3 9820 0777
Sydney
Level 4, 90 Mount Street,
North Sydney, NSW 2060
Tel.: 61 2 9954 0036
Fax: 61 2 8904 1344
UK
10/th/ Floor, Emerald House
7-15 Lansdowne Road
Croydon, Surrey
CR0 2BX
Tel.: 44 20 8774 3329
Fax: 44 20 8686 6631
France
12 av du Center,
Faubourg de l'Arche,
92419, Courbevoie Cedex
Paris
Tel.: 33 1 46 91 84 54
Fax: 33 1 46 91 88 00
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 7449
Germany
TOPAS 2
Mergenthalerallee, 79-81
65760 Eschborn/Frankfurt
Tel.: 49 6196 920 2115
Fax: 49 6196 920 2320
Hong Kong
16F Cheung Kong Centre
2 Queen's Road Central
Central, Hong Kong
Tel.: 852 2297 2806
Fax: 852 2297 0066
Japan
4F Madre Matsuda Bldg.
4-13, Kioi-Cho,
Chiyoda-Ku
Tokyo 102-0094
Tel.: 81 3 3234 3597
Fax: 81 3 3239 3300
Sweden
Stureplan 4C, 4tr,
114 35, Stockholm
Tel.: 46 8 463 1112
Fax: 46 8 463 1114
India
Bangalore
Electronics City
Hosur Road, Bangalore 561 229
Tel.: 080 852 0261
Fax: 080 852 0362
Reddy Builiding
K-310, 1st Main, 5th Block
Koramangala, Bangalore 560 095
Tel.: 080 553 0392
Fax: 080 553 0391
Pavithra Complex, #1,27th Main, 2nd Cross, 1st Stage
BTM Layout, Bangalore 560 068
Tel.: 080 668 1755
Fax: 080 668 0181
Infosys Towers
No. 27, Bannerghatta Road, 3rd Phase J. P. Nagar, Bangalore 560 076
Tel.: 080 6588668
Fax: 080 6588676
Bhubaneswar
Plot #N-1/70, Nayapalli,
Adjoining Planetarium on
NH5, Post RRL,
Bhubaneswar 751 013
Tel.: 0674 584068 - 71
Fax: 0674 583991
Plot No. E/4 Infosys City
Chandaka
Bhubaneswar 751 014
Tel.: 0674 442 194
Chennai
1st & 2nd Floor,
Alexander Square,
35 Sardar Patel Road, Guindy,
Chennai 600 032
Tel.: 044 2300031- 40
Fax: 044 2300091
No. 138 Sholinganallur
Old Mahabalipuram Road
Chennai 600 119
Tel.: 044 496 4304
Archbishop Arokia Swamy Building
145, Santhome High Road
Mylapore (Santhome)
Chennai 600 004
Tel.: 044 4612021
Fax: 044 4956958
Hyderabad
#1Q3-A1, First Floor, Cyber Tower, Hitec City
Madhapur, Hyderabad 500 033
Tel.: 040 3100242
Fax: 040 3100243
Mangalore
#16/403 Star of Bombay Complex
3/rd/ Floor, Kankanady
Mangalore 575 002
Tel.: 0824 439401-7 & 434401-06
Fax: 0824 439430
Kuloor Ferry Road,
Kottara Cross, Mangalore 575 006
Tel.: 0824 451485-88
Fax: 0824 451504
Mohali (Chandigarh)
B100, Phase VIII, Industrial
Area, SAS Nagar
Mohali 160 059
Tel.: 0172 254191/92/ 94
Fax.: 0172 254193
Mumbai
85, `C', Mittal Towers,
8th Floor
Nariman Point, Mumbai 400 021
Tel.: 022 2846490
Fax: 022 2846489
Mysore
Sree Jayachamarajendra College of Engineering -
Science and Technology
Entrepreneurs Park (SJCE- STEP),
Manasagangothri
Mysore 570 006
Tel.: 0821 500001 - 06
Fax: 0821 511614
New Delhi
K30, Green Park Main, Behind Green Park Market
New Delhi 110 066
Tel.: 011 6514829/ 30
Fax: 011 6853366
Pune
3/rd/ Floor, 321/A/3 TPS III
Shankar Seth Road
Mahatma Phule Peth
Pune 411 042
Tel.: 0212 647420/21
Fax: 0212 648226
Plot #1, Infotech Park
MIDC
Hinjawadi, Taluka Mulshi,
Pune 411 027
Tel.: 02139 32801 - 03
Fax: 02139 32832
--------------------------------------------------------------------------------
Bankers Visit Inosys at
ICICI Bank Limited www.infy.com
Bank of America
Company secretary Send e-mail to
V. Balakrishnan infosys@infy.com
Auditors
Bharat S Raut and Co. Call us at:
Chartered Accountants within the U.S
1-800-ITL INFO
Independent auditors
(US GAAP) outside the U.S
91-80-853 0261
KPMG
(C) 2001 Infosys Technologies Limited, Bangalore, India
--------------------------------------------------------------------------------
Infosys acknowledges the proprietary rights in the trademarks and product names
of other companies mentioned in this document.
--------------------------------------------------------------------------------
</TEXT>
</DOCUMENT>