INFOSYS LIMITED

Condensed Standalone Financial Statements

under Indian Accounting Standards (Ind AS)
for the three months and year ended March 31, 2024

Index Page No.

Condensed Balance Sheet…………………………………………………………………………………………………………… 1
Condensed Statement of Profit and Loss………………………………………………………………………………………….. 2
Condensed Statement of Changes in Equity……………………………………………………………………………………….. 3
Condensed Statement of Cash Flows…………………………………………………………………………………………………..
5

Overview and Notes to the Interim Condensed Standalone Financial Statements

1. Overview
1.1 Company overview ……………………………………………………………………………………………………………
7
1.2 Basis of preparation of financial statements ……………………………………………………………………………………………………………
7
1.3 Use of estimates and judgments……………………………………………………………………………………………………………
7
1.4 Critical accounting estimates and judgements……………………………………………………………………………………………………………
7
2. Notes to Interim Condensed Financial Statements

2.1 Property, plant and equipment……………………………………………………………………………………………………………

9

2.2 Goodwill and intangible assets………………………………………………………………………………………… 11

2.3 Leases……………………………………………………………………………………………………………………….12

2.4 Investments……………………………………………………………………………………………………………….. 14

2.5 Loans………………………………………………………………………………………………………………………...16

2.6 Other financial assets………………………………………………………………………………………………………….

16

2.7 Trade Receivables …………………………………………………………………………………………………………. 16

2.8 Cash and cash equivalents………………………………………………………………………………………………………….

17

2.9 Other assets……………………………………………………………………………………………………………… 17

2.10 Financial instruments………………………………………………………………………………………………………….

18

2.11 Equity…………………………………………………………………………………………………………………….. 21

2.12 Other financial liabilities………………………………………………………………………………………………………….

24

2.13 Trade payables…………………………………………………………………………………………………………. 24

2.14 Other liabilities…………………………………………………………………………………………………………. 24

2.15 Provisions………………………………………………………………………………………………………………. 25

2.16 Income taxes……………………………………………………………………………………………………………. 25

2.17 Revenue from operations………………………………………………………………………………………………………….

26

2.18 Other income, net…………………………………………………………………………………………………………. 28

2.19 Expenses……………………………………………………………………………………………………………….. 29

2.20 Basic and diluted shares used in computing earnings per equity share…………………………………………………………………………………
30

2.21 Contingent liabilities and commitments………………………………………………………………………………………………………….

30

2.22 Related party transactions………………………………………………………………………………………………………….

31

2.23 Segment Reporting………………………………………………………………………………………………………….32

INFOSYS LIMITED

(In ₹ crore)
Condensed Balance Sheet as at Note No. March 31, 2024 March 31, 2023
ASSETS
Non-current assets
Property, plant and equipment 2.1 10,813 11,656
Right-of-use assets 2.3 3,303 3,561
Capital work-in-progress 277 275
Goodwill 2.2 211 211
Other intangible assets - 3
Financial assets
Investments 2.4 23,352 23,686
Loans 2.5 34 39
Other financial assets 2.6 1,756 1,341
Deferred tax assets (net) 2.16 - 779
Income tax assets (net) 2.16 2,583 5,916
Other non-current assets 2.9 1,669 1,788
Total non - current assets 43,998 49,255

Current assets
Financial assets
Investments 2.4 11,307 4,476
Trade receivables 2.7 25,152 20,773
Cash and cash equivalents 2.8 8,191 6,534
Loans 2.5 208 291
Other financial assets 2.6 10,129 9,088
Income tax assets (net) 2.16 6,329 -
Other current assets 2.9 9,636 10,920
Total current assets 70,952 52,082
Total assets 114,950 101,337

EQUITY AND LIABILITIES

Equity
Equity share capital 2.11 2,075 2,074
Other equity 79,101 65,671
Total equity 81,176 67,745

LIABILITIES
Non-current liabilities
Financial liabilities
Lease liabilities 2.3 3,088 3,553
Other financial liabilities 2.12 1,941 1,317
Deferred tax liabilities (net) 1,509 866
Other non-current liabilities 2.14 150 414
Total non - current liabilities 6,688 6,150

Current liabilities
Financial liabilities
Lease liabilities 2.3 678 713
Trade payables 2.13
Total outstanding dues of micro enterprises and small enterprises 92 97
Total outstanding dues of creditors other than micro enterprises and small
enterprises 2,401 2,329

Other financial liabilities 2.12 11,808 12,697

Other current liabilities 2.14 7,681 7,609
Provisions 2.15 1,464 1,163
Income tax liabilities (net) 2,962 2,834
Total current liabilities 27,086 27,442
Total equity and liabilities 114,950 101,337
The accompanying notes form an integral part of the interim condensed standalone financial statements.

As per our report of even date attached

for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited
Chartered Accountants
Firm's Registration No:
117366W/W-100018

Sanjiv V. Pilgaonkar D. Sundaram Salil Parekh Bobby Parikh

Partner Lead Independent Director Chief Executive Officer Director
Membership No. 039826 DIN: 00016304 and Managing Director DIN: 00019437
DIN: 01876159

Jayesh Sanghrajka A.G.S. Manikantha

Bengaluru Chief Financial Officer Company Secretary
April 18, 2024 Membership No. A21918

1
INFOSYS LIMITED

(In ₹ crore except equity share and per equity share data)
Condensed Statement of Profit and Loss for the Note No. Three months ended March 31, Year ended March 31,
2024 2023 2024 2023
Revenue from operations 2.17 32,001 30,531 128,933 124,014
Other income, net 2.18 3,483 766 7,417 3,859
Total income 35,484 31,297 136,350 127,873

Expenses
Employee benefit expenses 2.19 16,047 15,581 65,139 62,764
Cost of technical sub-contractors 4,648 4,551 18,638 19,096
Travel expenses 371 335 1,372 1,227
Cost of software packages and others 2.19 2,098 875 6,891 5,214
Communication expenses 109 117 489 502
Consultancy and professional charges 287 261 1,059 1,236
Depreciation and amortization expenses 722 714 2,944 2,753
Finance cost 62 43 277 157
Other expenses 2.19 726 863 3,588 3,281
Total expenses 25,070 23,340 100,397 96,230
Profit before tax 10,414 7,957 35,953 31,643
Tax expense:
Current tax 2.16 830 1,906 7,306 8,167
Deferred tax 2.16 1,104 147 1,413 208
Profit for the period 8,480 5,904 27,234 23,268

Other comprehensive income

Items that will not be reclassified subsequently to profit or loss
Remeasurement of the net defined benefit liability/asset, net 36 10 128 (19)
Equity instruments through other comprehensive income, net (12) (14) 19 (6)

Items that will be reclassified subsequently to profit or loss

Fair value changes on derivatives designated as cash flow hedge, net 28 36 11 (7)
Fair value changes on investments, net 34 38 129 (236)

Total other comprehensive income/ (loss), net of tax 86 70 287 (268)

Total comprehensive income for the period 8,566 5,974 27,521 23,000

Earnings per equity share

Equity shares of par value ₹5/- each
Basic (in ₹ per share) 20.43 14.20 65.62 55.48
Diluted (in ₹ per share) 20.41 14.19 65.56 55.42
Weighted average equity shares used in computing earnings
per equity share
Basic (in shares) 2.20 4,150,556,748 4,156,430,034 4,150,099,796 4,193,813,881
Diluted (in shares) 2.20 4,154,351,655 4,160,203,417 4,153,994,624 4,198,234,378
The accompanying notes form an integral part of the interim condensed standalone financial statements.

As per our report of even date attached

for Deloitte Haskins & Sells LLP

Chartered Accountants for and on behalf of the Board of Directors of Infosys Limited
Firm's Registration No:
117366W/W-100018

Sanjiv V. Pilgaonkar D. Sundaram Salil Parekh Bobby Parikh

Partner Lead Independent Director Chief Executive Officer Director
Membership No. 039826 DIN: 00016304 and Managing Director DIN: 00019437
DIN: 01876159

Jayesh Sanghrajka A.G.S. Manikantha

Bengaluru Chief Financial Officer Company Secretary
April 18, 2024 Membership No. A21918

2
INFOSYS LIMITED

Condensed Statement of Changes in Equity (In ₹ crore)

Particulars Other Equity
Reserves & Surplus Other comprehensive income
Capital reserve Capital Securities Retained General Share Options Special Equity Instruments Effective portion Other items of
Equity Total equity attributable
redemption Premium earnings reserve Outstanding Economic through other of Cash flow other
Share Capital Other to equity holders of the
reserve Account Zone Re- comprehensive hedges comprehensive
Capital reserve reserves (2) Company
investment income income / (loss)
reserve (1)

Balance as at April 1, 2022 2,103 54 2,844 139 172 55,449 9 606 7,926 266 2 (264) 69,306
Impact on adoption of amendment to Ind AS 37 # - - - - - (9) - - - - - - (9)
2,103 54 2,844 139 172 55,440 9 606 7,926 266 2 (264) 69,297

Changes in equity for the period ended March 31, 2023

Profit for the period - - - - - 23,268 - - - - - - 23,268
Remeasurement of the net defined benefit liability/asset, net* - - - - - - - - - - - (19) (19)
Equity instruments through other comprehensive income, net* - - - - - - - - - (6) - - (6)
Fair value changes on derivatives designated as cash flow hedge, net* - - - - - - - - - - (7) - (7)
Fair value changes on investments, net* - - - - - - - - - - - (236) (236)
Total comprehensive income for the period - - - - - 23,268 - - - (6) (7) (255) 23,000
Transferred to Special Economic Zone Re-investment reserve - - - - - (3,125) - - 3,125 - - - -
Buyback of equity shares** (30) - - - (340) (11,096) - - - - - - (11,466)
Transaction cost relating to buyback* - - - - (19) (5) - - - - - - (24)
Amount transferred to capital redemption reserve upon buyback - - - 30 - (21) (9) - - - - - -
Transferred from Special Economic Zone Re-investment reserve on utilization - - - - - 1,397 - - (1,397) - - - -
Transferred on account of exercise of stock options (Refer to note 2.11) - - - - 291 - - (291) - - - - -
Transferred on account of options not exercised - - - - - - 2 (2) - - - - -
Shares issued on exercise of employee stock options (Refer to note 2.11) 1 - - - 29 - - - - - - - 30
Employee stock compensation expense (Refer to note 2.11) - - - - - - - 514 - - - - 514
Income tax benefit arising on exercise of stock options - - - - - - - 51 - - - - 51
Reserves on common control transaction - - 18 - - - - - - - - - 18
Dividends - - - - - (13,675) - - - - - - (13,675)
Balance as at March 31, 2023 2,074 54 2,862 169 133 52,183 2 878 9,654 260 (5) (519) 67,745

3
INFOSYS LIMITED
Condensed Statement of Changes in Equity (contd.) (In ₹ crore)
Particulars Other Equity
Reserves & Surplus Other comprehensive income
Capital reserve Capital Securities Retained General Share Options Special Equity Instruments Effective portion Other items of
Equity Total equity attributable
redemption Premium earnings reserve Outstanding Economic through other of Cash flow other
Share Capital Other to equity holders of the
reserve Account Zone Re- comprehensive hedges comprehensive
Capital reserve reserves (2) Company
investment income income / (loss)
reserve (1)

Balance as at April 1, 2023 2,074 54 2,862 169 133 52,183 2 878 9,654 260 (5) (519) 67,745
Changes in equity for the period ended March 31, 2024
Profit for the period - - - - - 27,234 - - - - - - 27,234
Remeasurement of the net defined benefit liability/asset, net* - - - - - - - - - - - 128 128
Equity instruments through other comprehensive income, net* - - - - - - - - - 19 - - 19
Fair value changes on derivatives designated as cash flow hedge, net* - - - - - - - - - - 11 - 11
Fair value changes on investments, net* - - - - - - - - - - - 129 129
Total comprehensive income for the period - - - - - 27,234 - - - 19 11 257 27,521
Transferred to Special Economic Zone Re-investment reserve - - - - - (2,957) - - 2,957 - - - -
Transferred from Special Economic Zone Re-investment reserve on utilization - - - - - 824 - - (824) - - - -
Transferred on account of exercise of stock options (Refer to note 2.11) - - - - 447 - - (447) - - - - -
Transferred on account of options not exercised - - - - - - 160 (160) - - - - -
Shares issued on exercise of employee stock options (Refer to note 2.11) 1 - - - - - - - - - - - 1
Employee stock compensation expense (Refer to note 2.11) - - - - - - - 639 - - - - 639
Income tax benefit arising on exercise of stock options - - - - - - - 3 - - - - 3
Dividends - - - - - (14,733) - - - - - - (14,733)
Balance as at March 31, 2024 2,075 54 2,862 169 580 62,551 162 913 11,787 279 6 (262) 81,176
*net of tax
**Including tax on buyback of ₹2,166 crore for the year ended March 31, 2023.
#
Impact on account of adoption of amendment to Ind AS 37 Provisions, Contingent Liabilities and Contingents Assets
(1)
The Special Economic Zone Re-investment Reserve has been created out of the profit of eligible SEZ units in terms of the provisions of Sec 10AA(1)(ii) of Income Tax Act, 1961. The reserve should be utilized by the Company for acquiring new plant and machinery for the purpose of its business in the terms of the
Sec 10AA(2) of the Income Tax Act, 1961.
(2)
Profit / loss on transfer of business between entities under common control taken to reserve.

The accompanying notes form an integral part of the interim condensed standalone financial statements.

As per our report of even date attached

for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited
Chartered Accountants
Firm's Registration No:
117366W/W-100018

Sanjiv V. Pilgaonkar D. Sundaram Salil Parekh Bobby Parikh

Partner Lead Independent Director Chief Executive Officer Director
Membership No. 039826 DIN: 00016304 and Managing Director DIN: 00019437
DIN: 01876159

Jayesh Sanghrajka A.G.S. Manikantha

Bengaluru Chief Financial Officer Company Secretary
April 18, 2024 Membership No. A21918
4
INFOSYS LIMITED

Condensed Statement of Cash Flows

Accounting Policy

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of
past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating,
investing and financing activities of the Company are segregated. The Company considers all highly liquid investments that are readily convertible to known amounts of
cash to be cash equivalents.

(In ₹ crore)
Particulars Note No. Year ended March 31,
2024 2023
Cash flow from operating activities:
Profit for the period 27,234 23,268
Adjustments to reconcile net profit to net cash provided by operating activities:
Depreciation and Amortization 2,944 2,753
Income tax expense 2.16 8,719 8,375
Impairment loss recognized / (reversed) under expected credit loss model 130 183
Finance cost 277 157
Interest and dividend income (4,670) (3,028)
Stock compensation expense 575 460
Provision for post sale client support 77 121
Exchange differences on translation of assets and liabilities, net 63 (116)
Interest receivable on income tax refund (1,934) -
Other adjustments 235 34
Changes in assets and liabilities
Trade receivables and unbilled revenue (2,933) (5,065)
Loans, other financial assets and other assets (1,645) (2,171)
Trade payables 67 (243)
Other financial liabilities, other liabilities and provisions (117) 2,248
Cash generated from operations 29,022 26,976
Income taxes paid (8,235) (7,807)
Net cash generated by operating activities 20,787 19,169
Cash flow from investing activities:
Expenditure on property, plant and equipment (1,832) (2,130)
Deposits placed with corporation (688) (634)
Redemption of deposits placed with corporation 522 482
Interest and dividend received 1,441 1,299
Dividend received from subsidiary 2,976 1,463
Loan given to subsidiaries - (427)
Loan repaid by subsidiaries 4 393
Investment in subsidiaries (63) (1,530)
Receipt / (payment) towards business transfer for entities under common control 35 19
Receipt / (payment) from entities under liquidation 80 -
Escrow and other deposits pertaining to Buyback - (483)
Redemption of Escrow and other deposits pertaining to Buyback - 483
Other receipts 123 61
Payments to acquire investments
Liquid mutual fund units (57,606) (62,952)
Target maturity fund units - (400)
Tax free bonds and government bonds - (14)
Commercial papers (9,405) (2,485)
Certificates of deposit (7,011) (8,909)
Government Securities - (1,370)
Non-convertible debentures (1,526) -
Other investments (2) (4)
Proceeds on sale of investments
Tax free bonds and government bonds 150 213
Liquid mutual fund units 56,124 64,168
Non-convertible debentures 955 395
Certificates of deposit 6,962 9,454
Commercial papers 5,475 2,098
Government Securities 5 1,532
Other investments 20 99
Net cash (used in) / generated from investing activities (3,261) 821

5
 (In ₹ crore)
Particulars Note No. Year ended March 31,
2024 2023
Cash flow from financing activities:
Buyback of equity shares including transaction costs and tax on buyback - (11,499)
Payment of lease liabilities (850) (694)
Shares issued on exercise of employee stock options 1 30
Other receipts - 44
Other payments (243) (64)
Payment of dividends (14,733) (13,674)
Net cash used in financing activities (15,825) (25,857)
Net increase / (decrease) in cash and cash equivalents 1,701 (5,867)
Effect of exchange differences on translation of foreign currency cash and cash equivalents (44) 131
Cash and cash equivalents at the beginning of the period 2.8 6,534 12,270
Cash and cash equivalents at the end of the period 2.8 8,191 6,534
Supplementary information:
Restricted cash balance 2.8 44 46
The accompanying notes form an integral part of the interim condensed standalone financial statements.
As per our report of even date attached
for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited
Chartered Accountants
Firm's Registration No:
117366W/W-100018

Sanjiv V. Pilgaonkar D. Sundaram Salil Parekh Bobby Parikh

Partner Lead Independent Director Chief Executive Officer Director
Membership No. 039826 DIN: 00016304 and Managing Director DIN: 00019437
DIN: 01876159

Jayesh Sanghrajka A.G.S. Manikantha

Bengaluru Chief Financial Officer Company Secretary
April 18, 2024 Membership No. A21918

6
INFOSYS LIMITED

Overview and Notes to the Interim Condensed Standalone Financial Statements

1. Overview

1.1 Company overview

Infosys Limited ('the Company' or Infosys) provides consulting, technology, outsourcing and next-generation digital services, to enable clients to execute strategies for
their digital transformation. Infosys strategic objective is to build a sustainable organization that remains relevant to the agenda of clients, while creating growth
opportunities for employees and generating profitable returns for investors. Infosys strategy is to be a navigator for our clients as they ideate, plan and execute on their
journey to a digital future.

The Company is a public limited company incorporated and domiciled in India and has its registered office at Electronics City, Hosur Road, Bengaluru 560100,
Karnataka, India. The company has its primary listings on the BSE Ltd. and National Stock Exchange of India Limited. The Company’s American Depositary Shares
(ADS) representing equity shares are listed on the New York Stock Exchange (NYSE).

The interim condensed standalone financial statements are approved for issue by the Company's Board of Directors on April 18, 2024.

1.2 Basis of preparation of financial statements

These interim condensed standalone financial statements are prepared in compliance with Indian Accounting Standard (Ind AS) 34 Interim Financial Reporting, under
the historical cost convention on accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013
(''the Act'') and guidelines issued by the Securities and Exchange Board of India (SEBI). Accordingly, these interim condensed standalone financial statements do not
include all the information required for a complete set of financial statements. These interim condensed standalone financial statements should be read in conjunction
with the standalone financial statements and related notes included in the Company’s Annual Report for the year ended March 31, 2023. The Ind AS are prescribed
under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting
standard requires a change in the accounting policy hitherto in use. The material accounting policy information used in preparation of the audited condensed
standalone interim financial statements have been discussed in the respective notes.

As the quarter and year to date figures are taken from the source and rounded to the nearest digits, the figures reported for the previous quarters might not always add
up to the year to date figures reported in this statement.

1.3 Use of estimates and judgments

The preparation of the interim condensed standalone financial statements in conformity with Ind AS requires the management to make estimates, judgments and
assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the
disclosures of contingent assets and liabilities at the date of the interim condensed standalone financial statements and reported amounts of revenues and expenses
during the period. The application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of
assumptions in these financial statements have been disclosed in Note no. 1.4. Accounting estimates could change from period to period. Actual results could differ
from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in
estimates and judgements are reflected in the interim condensed standalone financial statements in the period in which changes are made and, if material, their effects
are disclosed in the notes to the interim condensed standalone financial statements.

1.4 Critical accounting estimates and judgments

a. Revenue recognition

The Company’s contracts with customers include promises to transfer multiple products and services to a customer. Revenues from customer contracts are considered
for recognition and measurement when the contract has been approved, in writing, by the parties to the contract, the parties to contract are committed to perform their
respective obligations under the contract, and the contract is legally enforceable. The Company assesses the services promised in a contract and identifies distinct
performance obligations in the contract. Identification of distinct performance obligations to determine the deliverables and the ability of the customer to benefit
independently from such deliverables, and allocation of transaction price to these distinct performance obligations involves significant judgement.

Fixed price maintenance revenue is recognized ratably on a straight-line basis when services are performed through an indefinite number of repetitive acts over a
specified period. Revenue from fixed price maintenance contract is recognized ratably using a percentage of completion method when the pattern of benefits from the
services rendered to the customer and Company’s costs to fulfil the contract is not even through the period of the contract because the services are generally discrete in
nature and not repetitive. The use of method to recognize the maintenance revenues requires judgment and is based on the promises in the contract and nature of the
deliverables.

The Company uses the percentage-of-completion method in accounting for other fixed-price contracts. Use of the percentage-of-completion method requires the
Company to determine the actual efforts or costs expended to date as a proportion of the estimated total efforts or costs to be incurred. Efforts or costs expended have
been used to measure progress towards completion as there is a direct relationship between input and productivity. The estimation of total efforts or costs involves
significant judgement and is assessed throughout the period of the contract to reflect any changes based on the latest available information.

Contracts with customers includes subcontractor services or third-party vendor equipment or software in certain integrated services arrangements. In these types of
arrangements, revenue from sales of third-party vendor products or services is recorded net of costs when the Company is acting as an agent between the customer and
the vendor, and gross when the Company is the principal for the transaction. In doing so, the Company first evaluates whether it obtains control of the specified goods
or services before they are transferred to the customer. The Company considers whether it is primarily responsible for fulfilling the promise to provide the specified
goods or services, inventory risk, pricing discretion and other factors to determine whether it controls the specified goods or services and therefore, is acting as a
principal or an agent.

Provisions for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses become probable based on the estimated efforts or costs
to complete the contract.

7
b. Income taxes

The Company's two major tax jurisdictions are India and the United States, though the Company also files tax returns in other overseas jurisdictions.

Significant judgments are involved in determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions.

In assessing the realizability of deferred income tax assets, Management considers whether some portion or all of the deferred income tax assets will not be realized.
The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences
become deductible. Management considers the scheduled reversals of deferred income tax liabilities, projected future taxable income and tax planning strategies in
making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred income tax
assets are deductible, management believes that the company will realize the benefits of those deductible differences. The amount of the deferred income tax assets
considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced. (Refer to note
2.16).

c. Property, plant and equipment

Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after
determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company's assets
are determined by the management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical
experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology. (Refer to note 2.1).

8
2. Notes to the Interim Condensed Standalone Financial Statements

2.1 PROPERTY, PLANT AND EQUIPMENT

Accounting Policy

Property, plant and equipment are stated at cost, less accumulated depreciation and impairment, if any. Costs directly attributable to acquisition are capitalized until the property, plant and
equipment are ready for use, as intended by the Management. The charge in respect of periodic depreciation is derived at after determining an estimate of an asset’s expected useful life and the
expected residual value at the end of its life. The Company depreciates property, plant and equipment over their estimated useful lives using the straight-line method.

The estimated useful lives of assets are as follows:

Building(1) 22-25 years
Plant and machinery(1) 5 years
Office equipment 5 years
Computer equipment(1) 3-5 years
Furniture and fixtures(1) 5 years
Vehicles(1) 5 years
Leasehold improvements Lower of useful life of the asset or lease term

(1)
Based on technical evaluation, the Management believes that the useful lives as given above best represent the period over which Management expects to use these assets. Hence, the useful
lives for these assets is different from the useful lives as prescribed under Part C of Schedule II of the Companies Act 2013.

Depreciation methods, useful lives and residual values are reviewed periodically, including at each financial year end. The useful lives are based on historical experience with similar assets as well
as anticipation of future events, which may impact their life, such as changes in technology.

Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is classified as capital advances under other non-current assets and the cost of assets
not ready to use before such date are disclosed under ‘Capital work-in-progress’. Subsequent expenditures relating to property, plant and equipment is capitalized only when it is probable that future
economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably. The cost and related accumulated depreciation are eliminated from the financial
statements upon sale or retirement of the asset.

Impairment

Property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of
impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash
flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognized in the condensed Statement of Profit and Loss is measured by the amount by which the carrying value of the assets
exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the condensed Statement of Profit and Loss if there has been a change in the estimates used to determine
the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been
determined (net of any accumulated depreciation) had no impairment loss been recognized for the asset in prior years.

The changes in the carrying value of property, plant and equipment for the three months ended March 31, 2024 are as follows:
(In ₹ crore)

Furniture
Land- Plant and Office Computer Leasehold
Particulars Buildings(1)(2) and Vehicles Total
Freehold machinery(2) Equipment(2) equipment (2)
Improvements
fixtures(2)
Gross carrying value as at January 1, 2024 1,430 10,403 3,154 1,354 7,240 2,141 977 45 26,744
Additions - 276 76 29 298 48 16 - 743
Deletions** - - (16) (13) (159) (29) (30) - (247)
Gross carrying value as at March 31, 2024 1,430 10,679 3,214 1,370 7,379 2,160 963 45 27,240
Accumulated depreciation as at January 1, 2024 - (4,475) (2,694) (1,123) (5,373) (1,680) (722) (42) (16,109)
Depreciation - (100) (54) (28) (277) (53) (39) - (551)
Accumulated depreciation on deletions** - - 16 12 153 24 28 - 233
Accumulated depreciation as at March 31, 2024 - (4,575) (2,732) (1,139) (5,497) (1,709) (733) (42) (16,427)
Carrying value as at January 1, 2024 1,430 5,928 460 231 1,867 461 255 3 10,635
Carrying value as at March 31, 2024 1,430 6,104 482 231 1,882 451 230 3 10,813

The changes in the carrying value of property, plant and equipment for the three months ended March 31, 2023 are as follows:
(In ₹ crore)
Furniture
Land- Plant and Office Computer Leasehold
Particulars Buildings(1)(2) and Vehicles Total
Freehold machinery(2) Equipment(2) equipment(2) Improvements
fixtures(2)
Gross carrying value as at January 1, 2023 1,429 10,423 3,209 1,296 7,562 2,249 898 44 27,110
Additions 2 22 103 46 441 157 84 1 856
Deletions* (2) - (168) (28) (768) (277) (14) - (1,257)
Gross carrying value as at March 31, 2023 1,429 10,445 3,144 1,314 7,235 2,129 968 45 26,709
Accumulated depreciation as at January 1, 2023 - (4,126) (2,667) (1,060) (5,452) (1,767) (616) (39) (15,727)
Depreciation - (97) (59) (28) (288) (58) (40) (1) (571)
Accumulated depreciation on deletions* - - 168 28 763 276 10 - 1,245
Accumulated depreciation as at March 31, 2023 - (4,223) (2,558) (1,060) (4,977) (1,549) (646) (40) (15,053)
Carrying value as at January 1, 2023 1,429 6,297 542 236 2,110 482 282 5 11,383
Carrying value as at March 31, 2023 1,429 6,222 586 254 2,258 580 322 5 11,656

9
The changes in the carrying value of property, plant and equipment for the year ended March 31, 2024 are as follows:

(In ₹ crore)

Furniture
Land- Plant and Office Computer Leasehold
Particulars Buildings(1)(2) and Vehicles Total
Freehold machinery(2) Equipment(2) equipment(2) Improvements
fixtures(2)
Gross carrying value as at April 1, 2023 1,429 10,445 3,144 1,314 7,235 2,129 968 45 26,709
Additions 1 289 119 90 765 100 70 1 1,435
Additions through business transfer (Refer to note 2.4) - - - 2 12 8 12 - 34
Deletions** - (55) (49) (36) (633) (77) (87) (1) (938)
Gross carrying value as at March 31, 2024 1,430 10,679 3,214 1,370 7,379 2,160 963 45 27,240
Accumulated depreciation as at April 1, 2023 - (4,223) (2,558) (1,060) (4,977) (1,549) (646) (40) (15,053)
Depreciation - (407) (223) (114) (1,144) (230) (171) (3) (2,292)
Accumulated depreciation on deletions** - 55 49 35 624 70 84 1 918
Accumulated depreciation as at March 31, 2024 - (4,575) (2,732) (1,139) (5,497) (1,709) (733) (42) (16,427)
Carrying value as at April 1, 2023 1,429 6,222 586 254 2,258 580 322 5 11,656
Carrying value as at March 31, 2024 1,430 6,104 482 231 1,882 451 230 3 10,813

** During the three months and year ended March 31, 2024, certain assets which were not in use having gross book value of ₹156 crore (net book value: Nil) and ₹646 crore (net book value: Nil),
respectively were retired.

The changes in the carrying value of property, plant and equipment for the year ended March 31, 2023 are as follows:
(In ₹ crore)
Furniture
Land- (1)(2) Plant and Office Computer Leasehold
Particulars Buildings and Vehicles Total
Freehold machinery(2) Equipment(2) equipment(2) Improvements
fixtures(2)
Gross carrying value as at April 1, 2022 1,429 10,115 3,054 1,250 7,239 2,070 817 44 26,018
Additions 2 330 264 106 1,267 341 165 2 2,477
Deletions* (2) - (174) (42) (1,271) (282) (14) (1) (1,786)
Gross carrying value as at March 31, 2023 1,429 10,445 3,144 1,314 7,235 2,129 968 45 26,709
Accumulated depreciation as at April 1, 2022 - (3,834) (2,494) (993) (5,163) (1,614) (499) (37) (14,634)
Depreciation - (389) (238) (109) (1,080) (216) (157) (4) (2,193)
Accumulated depreciation on deletions* - - 174 42 1,266 281 10 1 1,774
Accumulated depreciation as at March 31, 2023 - (4,223) (2,558) (1,060) (4,977) (1,549) (646) (40) (15,053)
Carrying value as at April 1, 2022 1,429 6,281 560 257 2,076 456 318 7 11,384
Carrying value as at March 31, 2023 1,429 6,222 586 254 2,258 580 322 5 11,656
*During each of the three months and year ended March 31, 2023, certain assets which were not in use having gross book value of ₹1,197 crore (net book value: nil) and ₹1,598 crore (net book
value: nil), respectively were retired.

(1)
Buildings include ₹250/- being the value of five shares of ₹50/- each in Mittal Towers Premises Co-operative Society Limited.
(2)
Includes certain assets provided on cancellable operating lease to subsidiaries.

The aggregate depreciation has been included under depreciation and amortization expense in the statement of Profit and Loss.

Repairs and maintenance costs are recognized in the statement of Profit and Loss when incurred.

10
2.2 GOODWILL AND INTANGIBLE ASSETS

2.2.1 Goodwill

Following is a summary of changes in the carrying amount of goodwill:

(In ₹ crore)
Particulars As at
March 31, 2024 March 31, 2023
Carrying value at the beginning 211 211
Carrying value at the end 211 211

2.2.2 Other Intangible Assets

Accounting Policy

Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are amortized over their respective individual
estimated useful lives on a straight-line basis, from the date that they are available for use. The estimated useful life of an identifiable intangible
asset is based on a number of factors including the effects of obsolescence, demand, competition, and other economic factors (such as the stability
of the industry, and known technological advances), and the level of maintenance expenditures required to obtain the expected future cash flows
from the asset. Amortization methods and useful lives are reviewed periodically including at each financial year end.

Research costs are expensed as incurred. Software product development costs are expensed as incurred unless technical and commercial feasibility
of the project is demonstrated, future economic benefits are probable, the Company has an intention and ability to complete and use or sell the
software and the costs can be measured reliably. The costs which can be capitalized include the cost of material, direct labor, overhead costs that
are directly attributable to prepare the asset for its intended use.

11
2.3 LEASES

Accounting Policy

The Company as a lessee

The Company’s lease asset classes primarily consist of leases for land, buildings and computers. The Company assesses whether a contract contains a lease, at inception of a
contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess
whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company
has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a right-of-use asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it is a lessee,
except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Company recognizes the lease
payments as an operating expense on a straight-line basis over the term of the lease.

As a lessee, the Company determines the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is
reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to
extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the
lease term, costs relating to the termination of the lease and the importance of the underlying asset to Infosys’s operations taking into account the location of the underlying asset and
the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances.

Certain lease arrangements include the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is
reasonably certain that they will be exercised.

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the
commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. Right-of-use assets
are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the
recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that
are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the
lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding
adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an extension or a termination option.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.

The Company as a lessor

Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to
the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The sublease is classified as a finance or operating lease by
reference to the right-of-use asset arising from the head lease.

For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease.

Following are the changes in the carrying value of right-of-use assets for the three months ended March 31, 2024:
(In ₹ crore)
Particulars Category of ROU asset Total
Land Buildings Computers
Balance as at January 1, 2024 535 2,435 517 3,487
Additions* - 45 49 94
Deletions - (91) (16) (107)
Depreciation (1) (123) (47) (171)
Balance as at March 31, 2024 534 2,266 503 3,303
* Net of adjustments on account of modifications

Following are the changes in the carrying value of right-of-use assets for the three months ended March 31, 2023:
(In ₹ crore)
Particulars Category of ROU asset Total
Land Buildings Computers
Balance as at January 1, 2023 549 2,700 289 3,538
Additions* - 99 105 204
Deletions - (18) (11) (29)
Depreciation (1) (112) (39) (152)
Balance as at March 31, 2023 548 2,669 344 3,561
* Net of adjustments on account of modifications and lease incentives

Following are the changes in the carrying value of right of use assets for the year ended March 31, 2024:
(In ₹ crore)
Particulars Category of ROU asset Total
Land Buildings Computers
Balance as at April 1, 2023 548 2,669 344 3,561
Additions* - 336 420 756
Deletions (10) (169) (92) (271)
Impairment# - (88) - (88)
Depreciation (4) (482) (169) (655)
Balance as at March 31, 2024 534 2,266 503 3,303
* Net of adjustments on account of modifications and lease incentives
#
included under other expenses. Refer note 2.19

12
Following are the changes in the carrying value of right of use assets for the year ended March 31, 2023:

(In ₹ crore)
Particulars Category of ROU asset Total
Land Buildings Computers
Balance as at April 1, 2022 552 2,621 138 3,311
Additions* - 510 371 881
Deletions - (21) (61) (82)
Depreciation (4) (441) (104) (549)
Balance as at March 31, 2023 548 2,669 344 3,561

* Net of adjustments on account of modifications and lease incentives

The aggregate depreciation expense on ROU assets is included under depreciation and amortization expense in the interim condensed statement of Profit and Loss.

The following is the break-up of current and non-current lease liabilities as at March 31, 2024 and March 31, 2023:
(In ₹ crore)
Particulars As at
March 31, 2024 March 31, 2023
Current lease liabilities 678 713
Non-current lease liabilities 3,088 3,553
Total 3,766 4,266

13
2.4 INVESTMENTS
(In ₹ crore)
Particulars As at
March 31, 2024 March 31, 2023
Non-current investments
Equity instruments of subsidiaries 9,150 9,078
Redeemable Preference shares of subsidiary 2,831 2,831
Preference securities and equity securities 206 196
Target maturity fund units 431 402
Others 84 82
Tax free bonds 1,731 1,742
Government bonds 14 14
Non-convertible debentures 2,216 2,490
Government Securities 6,689 6,851
Total non-current investments 23,352 23,686
Current investments
Liquid mutual fund units 1,913 260
Commercial Papers 4,507 420
Certificates of deposit 2,945 2,765
Tax free bonds - 150
Government Securities 204 5
Non-convertible debentures 1,738 876
Total current investments 11,307 4,476
Total carrying value 34,659 28,162

(In ₹ crore, except as otherwise stated)

Particulars As at
March 31, 2024 March 31, 2023
Non-current investments

Unquoted
Investment carried at cost
Investments in equity instruments of subsidiaries
Infosys BPM Limited 662 662
33,828 (33,828) equity shares of ₹10,000/- each, fully paid up
Infosys Technologies (China) Co. Limited 369 369
Infosys Technologies, S. de R.L. de C.V., Mexico 65 65
17,49,99,990 (17,49,99,990) equity shares of MXN 1 par value, fully paid up
Infosys Technologies (Sweden) AB 76 76
1,000 (1,000) equity shares of SEK 100 par value, fully paid
Infosys Technologies (Shanghai) Company Limited 1,010 1,010
Infosys Public Services, Inc. 99 99
3,50,00,000 (3,50,00,000) shares of USD 0.50 par value, fully paid
Infosys Consulting Holding AG 1,323 1,323
23,350 (23,350) - Class A shares of CHF 1,000 each and
26,460 (26,460) - Class B Shares of CHF 100 each, fully paid up
Infosys Americas Inc. - 1
Nil (10,000) shares of USD 10 per share, fully paid up
EdgeVerve Systems Limited 1,312 1,312
1,31,18,40,000 (1,31,18,40,000) equity shares of ₹10/- each, fully paid up
Infosys Nova Holdings LLC# 2,637 2,637
Infosys Singapore Pte Ltd 10 10
1,09,90,000 (1,09,90,000) shares of SGD 1.00 par value, fully paid
Brilliant Basics Holding Limited 59 59
1,346 (1,346) shares of GBP 0.005 each, fully paid up
Infosys Arabia Limited 2 2
70 (70) shares
Skava Systems Private Limited - 59
'Nil (25,000) shares of ₹10/- each, fully paid up
Panaya Inc. 582 582
2 (2) shares of USD 0.01 per share, fully paid up
Infosys Chile SpA 7 7
100 (100) shares
WongDoody, Inc. 380 380
100 (100) shares
Infosys Luxembourg S.a r.l. 26 17
30,000 (20,000) shares
Infosys Austria GmbH - -
80,000 (80,000) shares of EUR 1 par value, fully paid up
Infosys Consulting Brazil 337 337
27,50,71,070 (27,50,71,070) shares of BRL 1 per share, fully paid up
Infosys Consulting S.R.L. (Romania) 34 34
99,183 (99,183) shares of RON 100 per share, fully paid up
Infosys Limited Bulgaria EOOD 2 2
4,58,000 (4,58,000) shares of BGN 1 per share, fully paid up
Infosys Germany Holdings GmbH 2 2
25,000 (25,000) shares EUR 1 per share, fully paid up
Infosys Green Forum 1 1
10,00,000 (10,00,000) shares ₹10 per share, fully paid up
Infosys Automotive and Mobility GmbH 15 15
Infosys Turkey Bilgi Teknolojileri Limited Sirketi 48 7
1,508,060 (1,30,842) share Turkish Liras 100 (10,000) per share, fully paid up
Infosys Consulting S.R.L. (Argentina) 2 2
2,94,500 (2,94,500) shares AR$ 100 per share, fully paid up
Infosys Business Solutions LLC 8 8
10,000 (10,000) shares USD 100 per share, fully paid up
Danske IT and Support Services India Private Limited 82 -
3,27,788 (Nil) shared ₹ 10 per share fully paid up
Investments in Redeemable Preference shares of subsidiary
Infosys Singapore Pte Ltd 2,831 2,831
45,62,00,000 (45,62,00,000) shares of SGD 1 per share, fully paid up
40,000,000 (40,000,000) shares of USD 1 per share, fully paid up
11,981 11,909

14
 (In ₹ crore, except as otherwise stated)
Particulars As at
March 31, 2024 March 31, 2023

Investments carried at fair value through profit or loss

Target maturity fund units 431 402
Others (1) 84 82
515 484
Investments carried at fair value through other comprehensive income
Preference securities 91 193
Equity securities 2 3
93 196
Quoted
Investments carried at amortized cost
Tax free bonds 1,731 1,742
Government bonds 14 14
1,745 1,756

Investments carried at fair value through other comprehensive income

Non-convertible debentures 2,216 2,490
Equity Securities 113 -
Government Securities 6,689 6,851
9,018 9,341

Total non-current investments 23,352 23,686

Current investments
Unquoted
Investments carried at fair value through profit or loss
Liquid mutual fund units 1,913 260
1,913 260
Investments carried at fair value through other comprehensive income
Commercial Papers 4,507 420
Certificates of deposit 2,945 2,765
7,452 3,185

Quoted
Investments carried at amortized cost
Tax free bonds - 150
- 150

Investments carried at fair value through other comprehensive income

Government Securities 204 5
Non-convertible debentures 1,738 876
1,942 881

Total current investments 11,307 4,476

Total investments 34,659 28,162

Aggregate amount of quoted investments 12,705 12,128

Market value of quoted investments (including interest accrued), current 1,942 1,050
Market value of quoted investments (including interest accrued), non-current 10,978 11,336
Aggregate amount of unquoted investments 21,954 16,034
#
Aggregate amount of impairment in value of investments 94 94
Reduction in the fair value of assets held for sale 854 854
Investments carried at cost 11,981 11,909
Investments carried at amortized cost 1,745 1,906
Investments carried at fair value through other comprehensive income 18,505 13,603
Investments carried at fair value through profit or loss 2,428 744
(1)
Uncalled capital commitments outstanding as of March 31, 2024 and March 31, 2023 was ₹5 crore and ₹8 crore, respectively.
Refer to note 2.10 for accounting policies on financial instruments.

Method of fair valuation:

(In ₹ crore)
Class of investment Method Fair value as at
March 31, 2024 March 31, 2023
Liquid mutual fund units - carried at fair value through profit or loss Quoted price 1,913 260
Target maturity fund units - carried at fair value through profit or loss Quoted price 431 402
Tax free bonds and government bonds - carried at amortized cost Quoted price and market observable inputs 1,959 2,134
Non-convertible debentures - carried at fair value through other
Quoted price and market observable inputs 3,954 3,366
comprehensive income
Government securities - carried at fair value through other
Quoted price and market observable inputs 6,893 6,856
comprehensive income
Commercial Papers - carried at fair value through other comprehensive
Market observable inputs 4,507 420
income
Certificates of deposit - carried at fair value through other
Market observable inputs 2,945 2,765
comprehensive income
Quoted equity securities - carried at fair value through other
Quoted price 113 -
comprehensive income
Unquoted equity and preference securities - carried at fair value through
Discounted cash flows method, Market multiples method, Option pricing model 93 196
other comprehensive income
Others - carried at fair value through profit or loss Discounted cash flows method, Market multiples method, Option pricing model 84 82
Total 22,892 16,481
Note : Certain quoted investments are classified as Level 2 in the absence of active market for such investments.

Business transfer - Danske IT and Support Services India Private Limited

On June 26, 2023, the Board of Directors of Infosys authorized the Company to execute a Business Transfer Agreement (“BTA”) with Danske IT and Support Services India Private Limited ("DIT") to
transfer the assets, liabilities and employees from DIT to the Company. The Purchase consideration is based on the adjusted net asset value as on the closing date i.e September 1, 2023. The details of the
assets and liabilities transferred and the consideration receivable is as below:
(In ₹ crore)
Particulars Total
Property plant and equipment 34
Net liabilities (72)
Net consideration (38)

Proposed acquisition

On January 11, 2024, Infosys Limited entered into a definitive agreement to acquire 100% of the equity share capital in InSemi Technology Services Private Limited, a semiconductor design services
company headquartered in India, for a consideration including earn-outs, and management incentives and retention bonuses totalling up to ₹280 crore (approximately $34 million) , subject to customary
closing adjustments.

15
2.5 LOANS
(In ₹ crore)
Particulars As at
March 31, 2024 March 31, 2023
Non- Current
Loans considered good - Unsecured
Other Loans
Loans to employees 34 39
34 39
Loans credit impaired - Unsecured
Other Loans
Loans to employees - -
Less: Allowance for credit impairment - -
- -
Total non - current loans 34 39

Current
Loans considered good - Unsecured
Loans to subsidiaries - 43
Other Loans
Loans to employees 208 248
Total current loans 208 291
Total Loans 242 330

2.6 OTHER FINANCIAL ASSETS

(In ₹ crore)
Particulars As at
March 31, 2024 March 31, 2023
Non-current
Security deposits (1) 205 226
Net investment in Sublease of right of use asset (1) - 298
Unbilled revenues (1)(5)# 1,366 686
Others(1)** 185 131
Total non-current other financial assets 1,756 1,341
Current
Security deposits (1) 25 6
Restricted deposits (1)* 2,282 2,116
Unbilled revenues (1)(5)# 4,993 5,166
Interest accrued but not due (1) 476 441
Foreign currency forward and options contracts (2)(3) 81 79
Net investment in Sublease of right-of-use asset (1) - 48
Others (1)(4)** 2,272 1,232
Total current other financial assets 10,129 9,088
Total other financial assets 11,885 10,429
(1)
Financial assets carried at amortized cost 11,804 10,350
(2)
Financial assets carried at fair value through other comprehensive income 23 32
(3)
Financial assets carried at fair value through Profit or Loss 58 47
(4)
Includes dues from subsidiaries 2,052 1,051
(5)
Includes dues from subsidiaries 153 290

* Restricted deposits represent deposit with financial institutions to settle employee related obligations as and when they arise during the normal course of
business.
#
Classified as financial asset as right to consideration is unconditional and is due only after a passage of time.
** Primarily includes net investment in lease.

2.7 TRADE RECEIVABLES

(In ₹ crore)
Particulars As at
March 31, 2024 March 31, 2023
Current

Trade Receivable considered good - Unsecured (1) 25,575 21,202

Less: Allowance for expected credit loss 423 429
Trade Receivable considered good - Unsecured 25,152 20,773

Trade Receivable - credit impaired - Unsecured 157 106

Less: Allowance for credit impairment 157 106
Trade Receivable - credit impaired - Unsecured - -
Total trade receivables (2) 25,152 20,773
(1)
Includes dues from subsidiaries 259 611
(2)
Includes dues from companies where directors are interested - -

16
2.8 CASH AND CASH EQUIVALENTS
(In ₹ crore)
Particulars As at
March 31, 2024 March 31, 2023
Balances with banks
In current and deposit accounts 8,191 4,864
Cash on hand - -
Others
Deposits with financial institutions - 1,670
Total Cash and cash equivalents 8,191 6,534
Balances with banks in unpaid dividend accounts 37 37
Deposit with more than 12 months maturity - 700

Cash and cash equivalents as at March 31, 2024 and March 31, 2023 include restricted cash and bank balances of ₹44 crore and ₹46 crore, respectively.

The deposits maintained by the Company with banks and financial institutions comprise of time deposits, which can be withdrawn by the Company at any point
without prior notice or penalty on the principal.

2.9 OTHER ASSETS

(In ₹ crore)
Particulars As at
March 31, 2024 March 31, 2023
Non-current
Capital advances 151 141
Advances other than capital advances
Others
Prepaid expenses 68 63
Defined benefit plan assets 9 9
Deferred contract cost
Cost of obtaining a contract(3) 88 139
Cost of fulfillment 640 601
Other receivables - -
Unbilled revenues(2) 58 167
Withholding taxes and others 655 668
Total non-current other assets 1,669 1,788
Current
Advances other than capital advances
Payment to vendors for supply of goods 325 171
Others
Prepaid expenses (1) 1,886 1,705
Unbilled revenues(2) 4,397 6,365
Deferred contract cost
Cost of obtaining a contract (3) 154 400
Cost of fulfillment 266 109
Withholding taxes and others 2,593 2,047
Other receivables (1) 15 123
Total current other assets 9,636 10,920
Total other assets 11,305 12,708
(1)
Includes dues from subsidiaries 155 198
(2)
Classified as non-financial asset as the contractual right to consideration is dependent on completion of contractual milestones.
(3)
Includes technology assets taken over by the Company from a customer as a part of transformation project which is not considered as distinct goods or
services and the control related to the assets is not transferred to the Company in accordance with Ind AS 15 - Revenue from contract with customers.
Accordingly, the same has been considered as a reduction to the total contract value and accounted as Deferred contract cost. The Comapany has entered into
financing arrangements with a third party for these assets. As at March 31, 2024 and March 31, 2023, the financial liability pertaining to such arrangements
amounts to ₹58 crore and ₹114 crore, respectively. (Refer to note 2.12)
Withholding taxes and others primarily consist of input tax credits and Cenvat/ VAT recoverable from Government of India.

17
2.10 FINANCIAL INSTRUMENTS

Accounting Policy

2.10.1 Initial recognition

The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognized at fair
value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial
assets and financial liabilities, which are not at fair value through profit or loss, are added to the fair value on initial recognition. Regular way purchase and sale of financial assets are accounted
for at trade date.

2.10.2 Subsequent measurement

a. Non-derivative financial instruments

(i) Financial assets carried at amortized cost

A financial asset is subsequently measured at amortized cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual
terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(ii) Financial assets carried at fair value through other comprehensive income (FVOCI)
A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash
flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding. The Company has made an irrevocable election for its investments which are classified as equity instruments to present the subsequent changes in fair value in other
comprehensive income based on its business model.

(iii) Financial assets carried at fair value through profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss.

(iv) Financial liabilities

Financial liabilities are subsequently carried at amortized cost using the effective interest method, except for contingent consideration recognized in a business combination which is
subsequently measured at fair value through profit or loss.

(v) Investment in subsidiaries

Investment in subsidiaries is carried at cost in the separate financial statements.

b. Derivative financial instruments

The Company holds derivative financial instruments such as foreign exchange forward and option contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The
counterparty for such contracts is generally a bank.

(i) Financial assets or financial liabilities, carried at fair value through profit or loss.

This category includes derivative financial assets or liabilities which are not designated as hedges.

Although the Company believes that these derivatives constitute hedges from an economic perspective, they may not qualify for hedge accounting under Ind AS 109, Financial Instruments. Any
derivative that is either not designated as hedge, or is so designated but is ineffective as per Ind AS 109, is categorized as a financial asset or financial liability, at fair value through profit or loss.

Derivatives not designated as hedges are recognized initially at fair value and attributable transaction costs are recognized in net profit in the Statement of Profit and Loss when incurred.
Subsequent to initial recognition, these derivatives are measured at fair value through profit or loss and the resulting exchange gains or losses are included in other income. Assets/ liabilities in
this category are presented as current assets/current liabilities if they are either held for trading or are expected to be realized within 12 months after the Balance Sheet date.

(ii) Cash flow hedge

The Company designates certain foreign exchange forward and options contracts as cash flow hedges to mitigate the risk of foreign exchange exposure on highly probable forecast cash
transactions.

When a derivative is designated as a cash flow hedge instrument, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and accumulated
in the cash flow hedge reserve. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in the net profit in the Statement of Profit and Loss. If the hedging
instrument no longer meets the criteria for hedge accounting, then hedge accounting is discontinued prospectively. If the hedging instrument expires or is sold, terminated or exercised, the
cumulative gain or loss on the hedging instrument recognized in cash flow hedge reserve till the period the hedge was effective remains in cash flow hedge reserve until the forecasted transaction
occurs. The cumulative gain or loss previously recognized in the cash flow hedge reserve is transferred to the net profit in the condensed Statement of Profit and Loss upon the occurrence of the
related forecasted transaction. If the forecasted transaction is no longer expected to occur, then the amount accumulated in cash flow hedge reserve is reclassified to net profit in the Statement of
Profit and Loss.

2.10.3 Derecognition of financial instruments

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for
derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the Company's Balance Sheet when the obligation specified in the contract is
discharged or cancelled or expires.

2.10.4 Fair value of financial instruments

In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date.
The methods used to determine fair value include discounted cash flow analysis, option pricing model, market multiples, available quoted market prices and dealer quotes. All methods of
assessing fair value result in general approximation of value, and such value may never actually be realized.

Refer to table 'Financial instruments by category' below for the disclosure on carrying value and fair value of financial assets and liabilities. For financial assets and liabilities maturing within one
year from the Balance Sheet date and which are not carried at fair value, the carrying amounts approximate fair value due to the short maturity of these instruments.

18
2.10.5 Impairment

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets and unbilled revenues which are not fair valued through profit or loss. Loss
allowance for trade receivables and unbilled revenues with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit
losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL.

The Company determines the allowance for credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions. The Company considers current
and anticipated future economic conditions relating to industries the Company deals with and the countries where it operates.

The amount of ECLs (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recorded is recognized as an impairment loss or gain in
statement of profit and loss.

Financial instruments by category

The carrying value and fair value of financial instruments by categories as at March 31, 2024 are as follows:
(In ₹ crore)
Particulars Amortized Financial assets/ liabilities at Financial assets/liabilities at fair Total carrying Total fair value
cost fair value through profit or loss value through OCI value

Designated upon Mandatory Equity Mandatory

initial instruments
recognition designated upon
initial recognition
Assets:
Cash and cash equivalents (Refer to note 2.8) 8,191 - - - - 8,191 8,191
Investments (Refer to note 2.4)
Preference securities, Equity securities and others - - 84 206 - 290 290
(1)
Tax free bonds and government bonds 1,745 - - - - 1,745 1,959
Liquid mutual fund units - - 1,913 - - 1,913 1,913
Target maturity fund units - - 431 - - 431 431
Commercial Papers - - - - 4,507 4,507 4,507
Certificates of deposit - - - - 2,945 2,945 2,945
Non convertible debentures - - - - 3,954 3,954 3,954
Government Securities - - - - 6,893 6,893 6,893
Trade receivables (Refer to note 2.7) 25,152 - - - - 25,152 25,152
Loans (Refer to note 2.5) 242 - - - - 242 242
(2)
Other financial assets (Refer to note 2.6) (3) 11,804 - 58 - 23 11,885 11,801
Total 47,134 - 2,486 206 18,322 68,148 68,278
Liabilities:
Trade payables (Refer to note 2.13) 2,493 - - - - 2,493 2,493
Lease liabilities (Refer to note 2.3) 3,766 - - - - 3,766 3,766
Other financial liabilities (Refer to note 2.12) 11,569 - 20 - 1 11,590 11,590
Total 17,828 - 20 - 1 17,849 17,849
(1)
On account of fair value changes including interest accrued
(2)
Excludes interest accrued on tax free bonds and government bonds carried at amortized cost of ₹84 crore
(3)
Excludes unbilled revenue on contracts where the right to consideration is dependent on completion of contractual milestones

The carrying value and fair value of financial instruments by categories as at March 31, 2023 were as follows:
(In ₹ crore)
Particulars Amortized Financial assets/ liabilities at Financial assets/liabilities at fair Total carrying Total fair value
cost fair value through profit or loss value through OCI value

Designated upon Mandatory Equity Mandatory

initial instruments
recognition designated upon
initial recognition
Assets:
Cash and cash equivalents (Refer to note 2.8) 6,534 - - - - 6,534 6,534
Investments (Refer to note 2.4)
Preference securities, Equity securities and others - - 82 196 - 278 278
(1)
Tax free bonds and government bonds 1,906 - - - - 1,906 2,134
Target maturity fund units - - 402 - - 402 402
Liquid mutual fund units - - 260 - - 260 260
Commercial Papers - - - - 420 420 420
Certificates of deposit - - - - 2,765 2,765 2,765
Non convertible debentures - - - - 3,366 3,366 3,366
Government Securities - - - - 6,856 6,856 6,856
Trade receivables (Refer to note 2.7) 20,773 - - - - 20,773 20,773
Loans (Refer to note 2.5) 330 - - - - 330 330
(2)
Other financial assets (Refer to note 2.6) (3) 10,350 - 47 - 32 10,429 10,345
Total 39,893 - 791 196 13,439 54,319 54,463

Liabilities:
Trade payables (Refer to note 2.13) 2,426 - - - - 2,426 2,426
Lease Liabilities (Refer to note 2.3) 4,266 - - - - 4,266 4,266
Other financial liabilities (Refer to note 2.12) 11,989 - 42 - 14 12,045 12,045
Total 18,681 - 42 - 14 18,737 18,737
(1)
On account of fair value changes including interest accrued
(2)
Excludes interest accrued on tax free bonds and government bonds carried at amortized cost of ₹84 crore
(3)
Excludes unbilled revenue on contracts where the right to consideration is dependent on completion of contractual milestones

19
For trade receivables, trade payables, other assets and payables maturing within one year from the Balance Sheet date, the carrying amounts approximate the fair value due to the short maturity
of these instruments.
Fair value hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as at March 31, 2024 is as follows:
(In ₹ crore)
As at March 31, Fair value measurement at end of the
Particulars
2024 reporting period using
Level 1 Level 2 Level 3
Assets
Investments (Refer to note 2.4)
Investments in tax free bonds 1,944 1,944 - -
Investments in government bonds 15 15 - -
Investments in liquid mutual fund units 1,913 1,913 - -
Investments in target maturity fund units 431 431 - -
Investments in certificates of deposit 2,945 - 2,945 -
Investments in commercial papers 4,507 - 4,507 -
Investments in non convertible debentures 3,954 3,697 257 -
Investments in government securities 6,893 6,820 73 -
Investments in equity securities 115 113 - 2
Investments in preference securities 91 - - 91
Other investments 84 - - 84
Others
Derivative financial instruments - gain on outstanding foreign exchange forward and option contracts (Refer to
81 - 81 -
note 2.6)
Liabilities
Derivative financial instruments - loss on outstanding foreign exchange forward and option contracts (Refer to
note 2.12) 21 - 21 -

During the year ended March 31, 2024, tax free bonds and non-convertible debentures of ₹1,986 crore were transferred from Level 2 to Level 1 of fair value hierarchy since these were
valued based on quoted price. Further government securities of ₹73 crore were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market
observable inputs.

The fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as at March 31, 2023 was as follows:
(In ₹ crore)
As at March 31, Fair value measurement at end of the reporting
Particulars
2023 period using
Level 1 Level 2 Level 3
Assets
Investments (Refer to note 2.4)
Investments in tax free bonds 2,120 1,331 789 -
Investments in target maturity fund units 402 402 - -
Investments in government bonds 14 14 - -
Investments in liquid mutual fund units 260 260 - -
Investments in certificates of deposit 2,765 - 2,765 -
Investments in commercial papers 420 - 420 -
Investments in non convertible debentures 3,366 1,364 2,002 -
Investments in government securities 6,856 6,856 - -
Investments in equity securities 3 - - 3
Investments in preference securities 193 - - 193
Other investments 82 - - 82
Others
Derivative financial instruments - gain on outstanding foreign exchange forward and option -
contracts (Refer to note 2.6) 79 - 79

Liabilities
Derivative financial instruments - loss on outstanding foreign exchange forward and option 56 - 56 -
contracts (Refer note 2.12)

During the year ended March 31, 2023, tax free bonds and government securities of ₹383 crore were transferred from Level 2 to Level 1 of fair value hierarchy since these were valued based
on quoted price. Further non-convertible debentures of ₹1,611 crore were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable
inputs.
A one percentage point change in the unobservable inputs used in fair valuation of Level 3 assets and liabilities does not have a significant impact in its value.

Majority of investments of the Company are fair valued based on Level 1 or Level 2 inputs. These investments primarily include investment in liquid mutual fund units, target maturity fund
units, tax free bonds, certificates of deposit, commercial papers, treasury bills, government securities, non-convertible debentures, quoted bonds issued by government and quasi-government
organizations. The Company invests after considering counterparty risks based on multiple criteria including Tier I capital, Capital Adequacy Ratio, Credit Rating, Profitability, NPA levels
and Deposit base of banks and financial institutions. These risks are monitored regularly as per Company's risk management program.

20
2.11 EQUITY

Accounting policy

Ordinary Shares

Ordinary shares are classified as equity share capital. Incremental costs directly attributable to the issuance of new ordinary shares, share options and buyback are recognized as a deduction from equity, net of any
tax effects.

Description of reserves

Capital redemption reserve

In accordance with section 69 of the Indian Companies Act, 2013, the Company creates capital redemption reserve equal to the nominal value of the shares bought back as an appropriation from general reserve /
retained earnings.
Retained earnings

Retained earnings represent the amount of accumulated earnings of the Company.

Securities premium

The amount received in excess of the par value of equity shares has been classified as securities premium. Amounts have been utilized for bonus issue and share buyback from share premium account.

Share options outstanding account

The Share options outstanding account is used to record the fair value of equity-settled share based payment transactions with employees. The amounts recorded in share options outstanding account are transferred
to securities premium upon exercise of stock options and transferred to general reserve on account of stock options not exercised by employees.

Special Economic Zone Re-investment reserve

The Special Economic Zone Re-investment reserve has been created out of the profit of the eligible SEZ unit in terms of the provisions of Sec 10AA (1)(ii) of Income Tax Act, 1961. The reserve should be utilized
by the Company for acquiring new plant and machinery for the purpose of its business in terms of the provisions of the Sec 10AA (2) of the Income Tax Act, 1961.

Other components of equity

Other components of equity include remeasurement of net defined benefit liability / asset, equity instruments fair valued through other comprehensive income, changes on fair valuation of investments and changes in
fair value of derivatives designated as cash flow hedges, net of taxes.

Cash flow hedge reserve

When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and accumulated in the cash flow
hedging reserve. The cumulative gain or loss previously recognized in the cash flow hedging reserve is transferred to the Statement of Profit and Loss upon the occurrence of the related forecasted transaction.

2.11.1 EQUITY SHARE CAPITAL

(In ₹ crore, except as otherwise stated)
Particulars As at
March 31, 2024 March 31, 2023
Authorized
Equity shares, ₹5/- par value
4,80,00,00,000 (4,80,00,00,000) equity shares 2,400 2,400

Issued, Subscribed and Paid-Up

Equity shares, ₹5/- par value (1) 2,075 2,074
4,15,08,67,464 (4,14,85,60,044) equity shares fully paid-up
2,075 2,074
(1)
Refer to note 2.20 for details of basic and diluted shares
Forfeited shares amounted to ₹1,500/- (₹1,500/-)

The Company has only one class of shares referred to as equity shares having a par value of ₹5/-. Each holder of equity shares is entitled to one vote per share. The equity shares represented by American
Depository Shares (ADS) carry similar rights to voting and dividends as the other equity shares. Each ADS represents one underlying equity share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company in proportion to the number of equity shares held by the shareholders,
after distribution of all preferential amounts. However, no such preferential amounts exist currently.

There are no voting, dividend or liquidation rights to the holders of options issued under the company's share option plans.

For details of shares reserved for issue under the employee stock option plan of the Company, refer to the note below.

The reconciliation of the number of shares outstanding and the amount of share capital as at March 31, 2024 and March 31, 2023 is set out below:

(in ₹ crore, except as stated otherwise)

Particulars As at March 31, 2024 As at March 31, 2023
Number of shares Amount Number of shares Amount
As at the beginning of the period 4,14,85,60,044 2,074 4,20,67,38,641 2,103
Add: Shares issued on exercise of employee stock options 2,307,420 1 2,247,751 1
Less: Shares bought back - - 60,426,348 30
As at the end of the period 4,15,08,67,464 2,075 4,14,85,60,044 2,074

Capital allocation policy

Effective from financial year 2025, the Company expects to continue its policy of returning approximately 85% of the free cash flow cumulatively over a 5-year period through a combination of semi-annual
dividends and/or share buyback/ special dividends subject to applicable laws and requisite approvals, if any. Under this policy, the Company expects to progressively increase its annual dividend per share (excluding
special dividend if any).

Free cash flow is defined as net cash provided by operating activities less capital expenditure as per the consolidated statement of cash flows prepared under IFRS. Dividend and buyback include applicable taxes

21
Buyback completed in February 2023

In line with the capital allocation policy, the Board, at its meeting held on October 13, 2022, approved the buyback of equity shares, from the open market route through the Indian stock exchanges, amounting to
₹9,300 crore (Maximum Buyback Size, excluding buyback tax) at a price not exceeding ₹1,850 per share (Maximum Buyback Price), subject to shareholders' approval by way of Postal Ballot.

The shareholders approved the proposal of buyback of Equity Shares recommended by its Board of Directors by way of e-voting on the postal ballot, the results of which were declared on December 3, 2022. The
buyback was offered to all equity shareholders of the Company (other than the Promoters, the Promoter Group and Persons in Control of the Company) under the open market route through the stock exchange.
The buyback of equity shares through the stock exchange commenced on December 7, 2022 and was completed on February 13, 2023. During this buyback period the Company had purchased and extinguished a
total of 60,426,348 equity shares from the stock exchange at a volume weighted average buyback price of ₹1,539.06/- per equity share comprising 1.44% of the pre buyback paid-up equity share capital of the
Company. The buyback resulted in a cash outflow of ₹9,300 crore (excluding transaction costs and tax on buyback). The Company funded the buyback from its free reserves including Securities Premium as
explained in Section 68 of the Companies Act, 2013.

In accordance with section 69 of the Companies Act, 2013, as at March 31, 2023, the Company has created ‘Capital Redemption Reserve’ of ₹30 crore equal to the nominal value of the shares bought back as an
appropriation from general reserve and retained earnings.

The Company’s objective when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value. In order to maintain or
achieve an optimal capital structure, the Company may adjust the amount of dividend payment, return capital to shareholders, issue new shares or buy back issued shares. As of March 31, 2024, the Company has
only one class of equity shares and has no debt. Consequent to the above capital structure there are no externally imposed capital requirements.

2.11.2 DIVIDEND

The final dividend on shares is recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company's Board of Directors.
Income tax consequences of dividends on financial instruments classified as equity will be recognized according to where the entity originally recognized those past transactions or events that generated distributable
profits.

The Company declares and pays dividends in Indian rupees. Companies are required to pay/distribute dividend after deducting applicable taxes. The remittance of dividends outside India is governed by Indian law
on foreign exchange and is also subject to withholding tax at applicable rates.

The amount of per share dividend recognized as distribution to equity shareholders is as follows:-
(in ₹)
Particulars Three months ended March 31, Year ended March 31,
2024 2023 2024 2023
Final dividend for fiscal 2022 - - - 16.00
Interim dividend for fiscal 2023 - - - 16.50
Final dividend for fiscal 2023 - - 17.50 -
Interim dividend for fiscal 2024 - - 18.00 -

During the year ended March 31, 2024, on account of the final dividend for fiscal 2023 and interim dividend for fiscal 2024, the Company has incurred a net cash outflow of ₹14,733 crore.

The Board of Directors in their meeting held on April 18, 2024 recommended a final dividend of ₹20/- per equity share for the financial year ended March 31, 2024 and a special dividend of ₹8/- per equity share.
The payment is subject to the approval of shareholders in the AGM of the Company to be held on June 26, 2024 and if approved, would result in a net cash outflow of approximately ₹11,622 crore.

2.11.3 Employee Stock Option Plan (ESOP):

Accounting Policy

The Company recognizes compensation expense relating to share-based payments in net profit based on estimated fair-values of the awards on the grant date. The estimated fair value of awards is recognized as an
expense in the statement of profit and loss on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was in-substance, multiple awards with a
corresponding increase to share options outstanding account.

Infosys Expanded Stock Ownership Program 2019 (the 2019 Plan):

On June 22, 2019 pursuant to approval by the shareholders in the Annual General Meeting, the Board has been authorized to introduce, offer, issue and provide share-based incentives to eligible employees of the
Company and its subsidiaries under the 2019 Plan. The maximum number of shares under the 2019 plan shall not exceed 5,00,00,000 equity shares. To implement the 2019 Plan, up to 4,50,00,000 equity shares may
be issued by way of secondary acquisition of shares by Infosys Expanded Stock Ownership Trust. The Restricted Stock Units (RSUs) granted under the 2019 plan shall vest based on the achievement of defined
annual performance parameters as determined by the administrator (Nomination and Remuneration Committee). The performance parameters will be based on a combination of relative Total Shareholder Return
(TSR) against selected industry peers and certain broader market domestic and global indices and operating performance metrics of the company as decided by administrator. Each of the above performance
parameters will be distinct for the purposes of calculation of quantity of shares to vest based on performance. These instruments will generally vest between a minimum of 1 to maximum of 3 years from the grant
date.

2015 Stock Incentive Compensation Plan (the 2015 Plan):

On March 31, 2016, pursuant to the approval by the shareholders through postal ballot, the Board was authorized to introduce, offer, issue and allot share-based incentives to eligible employees of the Company and
its subsidiaries under the 2015 Plan. The maximum number of shares under the 2015 plan shall not exceed 2,40,38,883 equity shares (this includes 1,12,23,576 equity shares which are held by the trust towards the
2011 Plan as at March 31, 2016). These instruments will generally vest over a period of 4 years. The plan numbers mentioned above are further adjusted with the September 2018 bonus issue.

The equity settled and cash settled RSUs and stock options would vest generally over a period of 4 years and shall be exercisable within the period as approved by the Nomination and Remuneration Committee
(NARC). The exercise price of the RSUs will be equal to the par value of the shares and the exercise price of the stock options would be the market price as on the date of grant.

Controlled trust holds 10,916,829 shares and 12,172,119 shares as at March 31, 2024 and March 31, 2023, respectively under the 2015 plan. Out of these shares, 2,00,000 equity shares each have been earmarked
for welfare activities of the employees as at March 31, 2024 and March 31, 2023.

The following is the summary of grants made during the three months and year ended March 31, 2024 and March 31, 2023:

2019 Plan 2015 Plan

Particulars Three months ended March 31, Year ended March 31, Three months ended March 31, Year ended March 31,
2024 2023 2024 2023 2024 2023 2024 2023
Equity settled RSUs
Key Management Personnel (KMP) 26,900 33,750 141,171 210,643 77,094 80,154 498,730 367,479
Employees other than KMP 3,582,471 3,329,240 4,046,731 3,704,014 3,442,700 1,736,925 4,640,640 1,784,975
3,609,371 3,362,990 4,187,902 3,914,657 3,519,794 1,817,079 5,139,370 2,152,454
Cash settled RSUs
Key Management Personnel (KMP) - - - - - - - -
Employees other than KMP - - - - 169,040 92,400 176,990 92,400
- - - - 169,040 92,400 176,990 92,400
Total Grants 3,609,371 3,362,990 4,187,902 3,914,657 3,688,834 1,909,479 5,316,360 2,244,854

22
Notes on grants to KMP:

CEO & MD

Under the 2015 plan:

The Board, on April 13, 2023, based on the recommendations of the Nomination and Remuneration Committee approved the following grants for fiscal 2024. In accordance with such approval the following grants
were made effective May 2, 2023.

- 2,72,026 performance-based RSUs (Annual performance equity grant) of fair value of ₹34.75 crore. These RSUs will vest in line with the employment agreement based on achievement of certain performance
targets.
- 15,656 performance-based grant of RSUs (Annual performance equity ESG grant) of fair value of ₹2 crore. These RSUs will vest in line with the employment agreement based on achievement of certain
environment, social and governance milestones as determined by the Board.
- 39,140 performance-based grant of RSUs (Annual performance Equity TSR grant) of fair value of ₹5 crore . These RSUs will vest in line with the employment agreement based on Company’s performance on
cumulative relative TSR over the years and as determined by the Board.

Further, in accordance with the employee agreement which has been approved by the shareholders, the CEO is eligible to receive an annual grant of RSUs of fair value ₹3 crore which will vest overtime in three
equal annual installments upon the completion of each year of service from the respective grant date. Accordingly, annual time-based grant of 18,104 RSUs was made effective February 1, 2024 for fiscal 2024.

Though the annual time based grants and annual performance equity TSR grant for the remaining employment term ending on March 31, 2027 have not been granted as of March 31, 2024, since the service
commencement date precedes the grant date, the company has recorded employment stock compensation expense in accordance with Ind AS 102, Share based payment. The grant date for this purpose in
accordance with Ind AS 102, Share based payment is July 1, 2022.

Under the 2019 plan:

The Board, on April 13, 2023, based on the recommendations of the Nomination and Remuneration Committee, approved performance-based grant of RSUs amounting to ₹10 crore for fiscal 2024 under the 2019
Plan. These RSUs will vest based on achievement of certain performance targets. Accordingly, 78,281 performance based RSU’s were granted effective May 2, 2023.

Other KMP

Under the 2015 plan:

During the year ended March 31, 2024, based on recommendations of Nomination and Remuneration Committee, the Board approved 1,47,030 time based RSUs and 6,774 performance based RSUs to other KMP
under the 2015 plan. Time based RSUs will vest over three to four years and performance based RSUs will vest over three years based on certain performance targets.

Under the 2019 plan:

During the year ended March 31, 2024, based on recommendations of Nomination and Remuneration Committee, the Board approved performance based grants of 62,890 RSUs to other KMPs under the 2019
plan. These RSUs will vest over three years based on achievement of certain performance targets.

The break-up of employee stock compensation expense is as follows:

(in ₹ crore)
Particulars Three months ended March 31, Year ended March 31,
2024 2023 2024 2023
Granted to:
#
KMP 17 8 68 49
Employees other than KMP 181 109 507 411
Total (1) 198 117 575 460
(1) 2 1 5 1
Cash settled stock compensation expense included in the above
#
Includes reversal of employee stock compensation expense on account of resignation / retirement of key managerial personnel.

The fair value of the awards are estimated using the Black-Scholes Model for time and non-market performance-based options and Monte Carlo simulation model is used for TSR based options.

The inputs to the model include the share price at date of grant, exercise price, expected volatility, expected dividends, expected term and the risk free rate of interest. Expected volatility during the expected term of
the options is based on historical volatility of the observed market prices of the Company's publicly traded equity shares during a period equivalent to the expected term of the options. Expected volatility of the
comparative company have been modelled based on historical movements in the market prices of their publicly traded equity shares during a period equivalent to the expected term of the options. Correlation
coefficient is calculated between each peer entity and the indices as a whole or between each entity in the peer group.

The fair value of each equity settled award is estimated on the date of grant using the following assumptions:

Particulars For options granted in

Fiscal 2024- Fiscal 2024- Fiscal 2023- Fiscal 2023-
Equity Shares- ADR-RSU Equity Shares-RSU ADS-RSU
RSU
Weighted average share price (₹) / ($ ADS) 1,588 19.19 1,525 18.08
Exercise price (₹) / ($ ADS) 5.00 0.07 5.00 0.07
Expected volatility (%) 23-31 25-33 23-32 27-34
Expected life of the option (years) 1-4 1-4 1-4 1-4
Expected dividends (%) 2-3 2-3 2-3 2-3
Risk-free interest rate (%) 7 4-5 5-7 2-5
Weighted average fair value as on grant date (₹) / ($ ADS) 1,317 16.27 1,210 13.69

The expected life of the RSU/ESOP is estimated based on the vesting term and contractual term of the RSU/ESOP, as well as expected exercise behavior of the employee who receives the RSU/ESOP.

23
2.12 OTHER FINANCIAL LIABILITIES
(In ₹ crore)
Particulars As at
March 31, 2024 March 31, 2023
Non-current
Others
Compensated absences 81 76
(1)
Accrued compensation to employees 7 5
Accrued expenses (1) 1,779 1,184
Other payables (1)(6) 74 52
Total non-current other financial liabilities 1,941 1,317
Current
(1)
Unpaid dividends 37 37
Others
Accrued compensation to employees (1) 3,336 3,072
(1)(4)
Accrued expenses 5,134 4,430
(1)
Capital creditors 269 652
Compensated absences 2,078 1,893
(1)(5)(6)
Other payables 933 2,557
(2)(3)
Foreign currency forward and options contracts 21 56
Total current other financial liabilities 11,808 12,697
Total other financial liabilities 13,749 14,014
(1)
Financial liability carried at amortized cost 11,569 11,989
(2)
Financial liability carried at fair value through profit or loss 20 42
(3)
Financial liability carried at fair value through other comprehensive income 1 14
(4)
Includes dues to subsidiaries 29 30
(5)
Includes dues to subsidiaries 405 422
(6)
Deferred contract cost (Refer to note 2.9) includes technology assets taken over by the Company from a customer as a part of transformation project
which is not considered as distinct goods or services and the control related to the assets is not transferred to the Company in accordance with Ind AS 15
- Revenue from contract with customers. Accordingly, the same has been considered as a reduction to the total contract value and accounted as Deferred
contract cost. The Comapany has entered into financing arrangements with a third party for these assets. As at March 31, 2024 and March 31, 2023, the
financial liability pertaining to such arrangements amounts to ₹58 crore and ₹114 crore, respectively.

Accrued expenses primarily relate to cost of technical sub-contractors, telecommunication charges, legal and professional charges, brand building
expenses, overseas travel expenses, office maintenance and cost of third party software and hardware.

2.13 TRADE PAYABLES

(In ₹ crore)
Particulars As at
March 31, 2024 March 31, 2023
Outstanding dues of micro enterprises and small enterprises 92 97
Outstanding dues of creditors other than micro enterprises and small enterprises (1) 2,401 2,329
Total trade payables 2,493 2,426
(1) 778 653
Includes dues to subsidiaries

2.14 OTHER LIABILITIES

(In ₹ crore)
Particulars As at
March 31, 2024 March 31, 2023
Non-current
Accrued defined benefit liability 123 412
Others 27 2
Total non - current other liabilities 150 414

Current
Accrued defined benefit liability 2 2
Unearned revenue 5,698 5,491
Others
Withholding taxes and others 1,974 2,088
Others 7 28
Total current other liabilities 7,681 7,609
Total other liabilities 7,831 8,023

24
2.15 PROVISIONS
Accounting Policy

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will
be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the
risks specific to the liability.

a. Post-sales client support

The Company provides its clients with a fixed-period post sales support on its fixed-price, fixed-timeframe contracts. Costs associated with such support services are accrued at the time related revenues
are recorded in the Statement of Profit and Loss. The Company estimates such costs based on historical experience and estimates are reviewed on a periodic basis for any material changes in assumptions
and likelihood of occurrence.

b. Onerous contracts
Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable costs of meeting the future obligations under the
contract. Provisions for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses become probable based on the estimated efforts or costs to complete the contract.
The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the
Company recognizes any impairment loss on the assets associated with that contract.

Provision for post-sales client support and other provisions

(In ₹ crore)
Particulars As at
March 31, 2024 March 31, 2023
Current
Others
Post-sales client support and other provisions 1,464 1,163
Total provisions 1,464 1,163

Provision for post sales client support and other provisions majorly represents costs associated with providing sales support services which are accrued at the time of recognition of revenues and are
expected to be utilized over a period of 1 year.

2.16 INCOME TAXES

Accounting Policy

Income tax expense comprises current and deferred income tax. Income tax expense is recognized in net profit in the Statement of Profit and Loss except to the extent that it relates to items recognized
directly in equity, in which case it is recognized in equity or other comprehensive income. Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered
from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred income tax assets and liabilities are recognized for all
temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are reviewed at each reporting date and are reduced
to the extent that it is no longer probable that the related tax benefit will be realized.

Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date and are expected to apply to taxable income
in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognized as income or expense
in the period that includes the enactment or the substantive enactment date. A deferred income tax asset is recognized to the extent that it is probable that future taxable profit will be available against
which the deductible temporary differences and tax losses can be utilized. Deferred income taxes are not provided on the undistributed earnings of subsidiaries and branches where it is expected that the
earnings of the subsidiary or branch will not be distributed in the foreseeable future.

The Company offsets current tax assets and current tax liabilities; deferred tax assets and deferred tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it
intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. Tax benefits of deductions earned on exercise of employee share options in excess of compensation
charged to income are credited to equity.

Income tax expense in the statement of Profit and Loss comprises:

(In ₹ crore)
Particulars Three months ended March 31, Year ended March 31,
2024 2023 2024 2023
Current taxes 830 1,906 7,306 8,167
Deferred taxes 1,104 147 1,413 208
Income tax expense 1,934 2,053 8,719 8,375

Income tax expense for the three months ended March 31, 2024 and March 31, 2023 includes reversal (net of provisions) of ₹832 crore and ₹51 crore, respectively. Income tax expense for the year ended
March 31, 2024 and March 31, 2023 includes reversal (net of provisions) of ₹913 crore and ₹116 crore, respectively. These reversals pertaining to prior periods are primarily on account of adjudication
of certain disputed matters, upon filing of tax return and completion of assessments, across various jurisdictions.

During the quarter ending March 31, 2024, the Company received orders under sections 250 and 254 of the Income Tax Act, 1961, from the Income Tax Authorities in India for the assessment years,
2007-08 to 2015-16, 2017-18 and 2018-19. These orders confirmed the Company's position with respect to tax treatment of certain contentious matters. As a result interest income (pre-tax) of ₹1,933
crore was recognised and provision for income tax aggregating ₹ 525 crore was reversed with a corresponding credit to the Statement of Profit and Loss. Also, upon resolution of the disputes, an amount
aggregating to ₹ 1,628 crore has been reduced from contingent liabilities.

Deferred income tax for the three months and year ended March 31, 2024 and March 31, 2023 substantially relates to origination and reversal of temporary differences.

The Company’s Advanced Pricing Arrangement (APA) with the Internal Revenue Service (IRS) for US branch income tax expired in March 2021. The Company has applied for renewal of APA and
currently the US taxable income is based on the Company’s best estimate determined based on the expected value method.

25
2.17 REVENUE FROM OPERATIONS

Accounting Policy

The Company derives revenues primarily from IT services comprising software development and related services, cloud and infrastructure services,
maintenance, consulting and package implementation, licensing of software products and platforms across the Company’s core and digital offerings
(together called as “software related services”). Contracts with customers are either on a time-and-material, unit of work, fixed-price or on a fixed-
timeframe basis.

Revenues from customer contracts are considered for recognition and measurement when the contract has been approved in writing, by the parties, to the
contract, the parties to contract are committed to perform their respective obligations under the contract, and the contract is legally enforceable. Revenue
is recognized upon transfer of control of promised products or services (“performance obligations”) to customers in an amount that reflects the
consideration the Company has received or expects to receive in exchange for these products or services (“transaction price”). When there is uncertainty
as to collectability, revenue recognition is postponed until such uncertainty is resolved.

The Company assesses the services promised in a contract and identifies distinct performance obligations in the contract. The Company allocates the
transaction price to each distinct performance obligation based on the relative standalone selling price. The price that is regularly charged for an item
when sold separately is the best evidence of its standalone selling price. In the absence of such evidence, the primary method used to estimate standalone
selling price is the expected cost plus a margin, under which the Company estimates the cost of satisfying the performance obligation and then adds an
appropriate margin based on similar services.

The Company’s contracts may include variable consideration including rebates, volume discounts and penalties. The Company includes variable
consideration as part of transaction price when there is a basis to reasonably estimate the amount of the variable consideration and when it is probable
that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved.

Revenue on time-and-material and unit of work based contracts, are recognized as the related services are performed. Fixed price maintenance revenue is
recognized ratably either on a straight-line basis when services are performed through an indefinite number of repetitive acts over a specified period or
ratably using a percentage of completion method when the pattern of benefits from the services rendered to the customer and Company’s costs to fulfil
the contract is not even through the period of contract because the services are generally discrete in nature and not repetitive. Revenue from other fixed-
price, fixed-timeframe contracts, where the performance obligations are satisfied over time is recognized using the percentage-of-completion method.
Efforts or costs expended are used to determine progress towards completion as there is a direct relationship between input and productivity. Progress
towards completion is measured as the ratio of costs or efforts incurred to date (representing work performed) to the estimated total costs or efforts.
Estimates of transaction price and total costs or efforts are continuously monitored over the term of the contracts and are recognized in net profit in the
period when these estimates change or when the estimates are revised. Revenues and the estimated total costs or efforts are subject to revision as the
contract progresses. Provisions for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses become probable
based on the estimated efforts or costs to complete the contract.

The billing schedules agreed with customers include periodic performance based billing and / or milestone based progress billings. Revenues in excess of
billing are classified as unbilled revenue while billing in excess of revenues are classified as contract liabilities (which we refer to as "unearned
revenues").

In arrangements for software development and related services and maintenance services, by applying the revenue recognition criteria for each distinct
performance obligation, the arrangements with customers generally meet the criteria for considering software development and related services as
distinct performance obligations. For allocating the transaction price, the Company measures the revenue in respect of each performance obligation of a
contract at its relative standalone selling price. The price that is regularly charged for an item when sold separately is the best evidence of its standalone
selling price. In cases where the Company is unable to determine the standalone selling price, the Company uses the expected cost plus margin approach
in estimating the standalone selling price. For software development and related services, the performance obligations are satisfied as and when the
services are rendered since the customer generally obtains control of the work as it progresses.

Certain cloud and infrastructure services contracts include multiple elements which may be subject to other specific accounting guidance, such as leasing
guidance. These contracts are accounted in accordance with such specific accounting guidance. In such arrangements where the Company is able to
determine that hardware and services are distinct performance obligations, it allocates the consideration to these performance obligations on a relative
standalone selling price basis. In the absence of standalone selling price, the Company uses the expected cost-plus margin approach in estimating the
standalone selling price. When such arrangements are considered as a single performance obligation, revenue is recognized over the period and measure
of progress is determined based on promise in the contract.

Revenue from licenses where the customer obtains a “right to use” the licenses is recognized at the time the license is made available to the customer.
Revenue from licenses where the customer obtains a “right to access” is recognized over the access period.

Arrangements to deliver software products generally have three elements: license, implementation and Annual Technical Services (ATS). When
implementation services are provided in conjunction with the licensing arrangement and the license and implementation have been identified as two
distinct separate performance obligations, the transaction price for such contracts are allocated to each performance obligation of the contract based on
their relative standalone selling prices. In the absence of standalone selling price for implementation, the Company uses the expected cost plus margin
approach in estimating the standalone selling price. Where the license is required to be substantially customized as part of the implementation service the
entire arrangement fee for license and implementation is considered to be a single performance obligation and the revenue is recognized using the
percentage-of-completion method as the implementation is performed. Revenue from client training, support and other services arising due to the sale of
software products is recognized as the performance obligations are satisfied. ATS revenue is recognized ratably on a straight line basis over the period in
which the services are rendered.

26
Contracts with customers includes subcontractor services or third-party vendor equipment or software in certain integrated services arrangements. In
these types of arrangements, revenue from sales of third-party vendor products or services is recorded net of costs when the Company is acting as an
agent between the customer and the vendor, and gross when the Company is the principal for the transaction. In doing so, the Company first evaluates
whether it obtains control of the specified goods or services before they are transferred to the customer. The Company considers whether it is primarily
responsible for fulfilling the promise to provide the specified goods or services, inventory risk, pricing discretion and other factors to determine whether
it controls the specified goods or services and therefore, is acting as a principal or an agent.

A contract modification is a change in the scope or price or both of a contract that is approved by the parties to the contract. A contract modification that
results in the addition of distinct performance obligations are accounted for either as a separate contract if the additional services are priced at the
standalone selling price or as a termination of the existing contract and creation of a new contract if they are not priced at the standalone selling price. If
the modification does not result in a distinct performance obligation, it is accounted for as part of the existing contract on a cumulative catch-up basis.

The incremental costs of obtaining a contract (i.e., costs that would not have been incurred if the contract had not been obtained) are recognized as an
asset if the Company expects to recover them.

Certain eligible, nonrecurring costs (e.g. set-up or transition or transformation costs) that do not represent a separate performance obligation are
recognized as an asset when such costs (a) relate directly to the contract; (b) generate or enhance resources of the Company that will be used in satisfying
the performance obligation in the future; and (c) are expected to be recovered.

Capitalized contract costs relating to upfront payments to customers are amortized to revenue and other capitalized costs are amortized to expenses over
the respective contract life on a systematic basis consistent with the transfer of goods or services to customer to which the asset relates. Capitalized costs
are monitored regularly for impairment. Impairment losses are recorded when present value of projected remaining operating cash flows is not sufficient
to recover the carrying amount of the capitalized costs.

The Company presents revenues net of indirect taxes in its Statement of Profit and Loss.

Revenue from operations for the three months and year ended March 31, 2024 and March 31, 2023 is as follows:
(In ₹ crore)
Particulars Three months ended March 31, Year ended March 31,
2024 2023 2024 2023
Revenue from software services 31,940 30,444 128,637 123,755
Revenue from products and platforms 61 87 296 259
Total revenue from operations 32,001 30,531 128,933 124,014

Products & platforms

The Company derives revenues from the sale of products and platforms including Infosys Applied AI which applies next-generation AI and machine
learning.

The percentage of revenue from fixed-price contracts for the three months ended March 31, 2024 and March 31, 2023 is 57% and 55%, respectively. The
percentage of revenue from fixed-price contracts for the year ended March 31, 2024 and March 31, 2023 is 56% and 55%, respectively.

Trade receivables and Contract Balances

The timing of revenue recognition, billings and cash collections results in receivables, unbilled revenue, and unearned revenue on the Company’s
Balance Sheet. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., monthly or
quarterly) or upon achievement of contractual milestones.

The Company’s receivables are rights to consideration that are unconditional. Unbilled revenues comprising revenues in excess of billings from time
and material contracts and fixed price maintenance contracts are classified as financial asset when the right to consideration is unconditional and is due
only after a passage of time.

Invoicing to the clients for other fixed price contracts is based on milestones as defined in the contract and therefore the timing of revenue recognition is
different from the timing of invoicing to the customers. Therefore unbilled revenues for other fixed price contracts (contract asset) are classified as non-
financial asset because the right to consideration is dependent on completion of contractual milestones.

Invoicing in excess of earnings are classified as unearned revenue.

Trade receivables and unbilled revenues are presented net of impairment in the Balance Sheet.

27
2.18 OTHER INCOME, NET

2.18.1 Other income

Accounting Policy
Other income is comprised primarily of interest income, dividend income, gain / loss on investments and exchange gain/loss on forward and options contracts and on
translation of foreign currency assets and liabilities. Interest income is recognized using the effective interest method. Dividend income is recognized when the right to
receive payment is established.

2.18.2 Foreign currency

Accounting Policy

Functional currency

The functional currency of the Company is the Indian rupee. These financial statements are presented in Indian rupees (rounded off to crore; one crore equals ten million).

Transactions and translations

Foreign-currency denominated monetary assets and liabilities are translated into the relevant functional currency at exchange rates in effect at the Balance Sheet date. The
gains or losses resulting from such translations are recognized in the Statement of Profit and Loss and reported within exchange gains/(losses) on translation of assets and
liabilities, net, except when deferred in Other Comprehensive Income as qualifying cash flow hedges. Non-monetary assets and non-monetary liabilities denominated in a
foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and non-
monetary liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of the transaction. The related
revenue and expense are recognized using the same exchange rate.

Transaction gains or losses realized upon settlement of foreign currency transactions are included in determining net profit for the period in which the transaction is settled.
Revenue, expense and cash-flow items denominated in foreign currencies are translated into the relevant functional currencies using the exchange rate in effect on the date of
the transaction.

Other Comprehensive Income, net of taxes includes translation differences on non-monetary financial assets measured at fair value at the reporting date, such as equities
classified as financial instruments and measured at fair value through other comprehensive income (FVOCI).

Government grant

The Company recognizes government grants only when there is reasonable assurance that the conditions attached to them shall be complied with, and the grants will be
received. Government grants related to assets are treated as deferred income and are recognized in the net profit in the Statement of Profit and Loss on a systematic and
rational basis over the useful life of the asset. Government grants related to revenue are recognized on a systematic basis in the net profit in the Statement of Profit and Loss
over the periods necessary to match them with the related costs which they are intended to compensate.

Other income for the three months and year ended March 31, 2024 and March 31, 2023 is as follows:

(In ₹ crore)
Particulars Three months ended March 31, Year ended March 31,
2024 2023 2024 2023
Interest income on financial assets carried at amortized cost
Tax free bonds and government bonds 30 35 131 148
Deposit with Bank and others 160 116 665 567
Interest income on financial assets carried at fair value through other
comprehensive income
Non-convertible debentures, commercial papers, certificates of deposit and
297 200 898 850
government securities
Income on investments carried at fair value through other comprehensive income - - - 1
Income on investments carried at fair value through profit or loss
Gain / (loss) on liquid mutual funds and other investments 64 36 224 142
Interest income on income tax refund 1,934 - 1,936 -
Dividend received from subsidiary 858 275 2,976 1,463
Exchange gains/(losses) on foreign currency forward and options contracts 214 142 111 (531)
Exchange gains/(losses) on translation of other assets and liabilities (126) (113) 214 960
Miscellaneous income, net 52 75 262 259
Total other income 3,483 766 7,417 3,859

28
2.19 EXPENSES

Accounting Policy
2.19.1 Gratuity and Pension

The Company provides for gratuity, a defined benefit retirement plan ('the Gratuity Plan') covering eligible Indian employees of Infosys. The Gratuity Plan provides a lump-
sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure
of employment with the Company. The Company contributes Gratuity liabilities to the Infosys Limited Employees' Gratuity Fund Trust (the Trust). Trustees administer
contributions made to the Trusts and contributions are invested in a scheme with the Life Insurance Corporation of India as permitted by Indian law.

The Company operates defined benefit pension plan in certain overseas jurisdictions, in accordance with the local laws. These plans are managed by third party fund
managers. The plans provide for periodic payouts after retirement and / or for a lumpsum payment as set out in rules of each fund and includes death and disability benefits.
The defined benefit plans require contributions which are based on a percentage of salary that varies depending on the age of the respective employees.

Liabilities with regard to these defined benefit plans are determined by actuarial valuation, performed by an external actuary, at each Balance Sheet date using the projected
unit credit method. These defined benefit plans expose the Company to actuarial risks, such as longevity risk, interest rate risk and market risk.

The Company recognizes the net obligation of a defined benefit plan in its Balance Sheet as an asset or liability. Gains and losses through re-measurements of the net defined
benefit liability/(asset) are recognized in other comprehensive income and are not reclassified to profit or loss in subsequent periods. The actual return of the portfolio of plan
assets, in excess of the yields computed by applying the discount rate used to measure the defined benefit obligation is recognized in other comprehensive income. The effect
of any plan amendments is recognized in net profit in the Statement of Profit and Loss.

2.19.2 Provident fund

Eligible employees of Infosys receive benefits from a provident fund, which is a defined benefit plan. Both the eligible employee and the Company make monthly
contributions to the provident fund plan equal to a specified percentage of the covered employee's salary. The Company contributes a portion to the Infosys Limited
Employees' Provident Fund Trust. The trust invests in specific designated instruments as permitted by Indian law. The remaining portion is contributed to the government
administered pension fund. The rate at which the annual interest is payable to the beneficiaries by the trust is being administered by the Government of India. The Company
has an obligation to make good the shortfall, if any, between the return from the investments of the Trust and the notified interest rate.

2.19.3 Superannuation

Certain employees of Infosys are participants in a defined contribution plan. The Company has no further obligations to the Plan beyond its monthly contributions which are
periodically contributed to a trust fund, the corpus of which is invested with the Life Insurance Corporation of India.

2.19.4 Compensated absences

The Company has a policy on compensated absences which are both accumulating and non-accumulating in nature. The expected cost of accumulating compensated
absences is determined by actuarial valuation performed by an external actuary at each Balance Sheet date using projected unit credit method on the additional amount
expected to be paid/availed as a result of the unused entitlement that has accumulated at the Balance Sheet date. Expense on non-accumulating compensated absences is
recognized in the period in which the absences occur.
(In ₹ crore)
Particulars Three months ended March 31, Year ended March 31,
2024 2023 2024 2023
Employee benefit expenses
Salaries including bonus 15,349 14,945 62,383 60,194
Contribution to provident and other funds 470 489 1,972 1,914
Share based payments to employees (Refer to note 2.11) 198 117 575 460
Staff welfare 30 30 209 196
16,047 15,581 65,139 62,764
Cost of software packages and others
For own use 420 373 1,635 1,454
Third party items bought for service delivery to clients 1,678 502 5,256 3,760
2,098 875 6,891 5,214
Other expenses
Power and fuel 42 42 172 155
Brand and Marketing 250 230 851 756
Rates and taxes 60 61 248 217
Repairs and Maintenance 234 252 953 922
Consumables 5 5 23 23
Insurance 44 34 172 140
Provision for post-sales client support and others (128) (80) 77 121
Commission to non-whole time directors 5 4 16 15
Impairment loss recognized / (reversed) under expected credit loss model (64) 70 130 183
Auditor's remuneration
Statutory audit fees 3 2 8 7
Tax matters - - - -
Other services - - - -
Contributions towards Corporate Social Responsibility 177 147 492 437
Others 98 96 446 305
726 863 3,588 3,281

29
2.20 BASIC AND DILUTED SHARES USED IN COMPUTING EARNINGS PER EQUITY SHARE

Accounting Policy

Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity shares
outstanding during the period. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Company by the weighted
average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been
issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been
actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as at the beginning of
the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues
including for changes effected prior to the approval of the financial statements by the Board of Directors.

2.21 CONTINGENT LIABILITIES AND COMMITMENTS

Accounting Policy

Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognized because it is not probable that
an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient
reliability.
(In ₹ crore)
Particulars As at
March 31, 2024 March 31, 2023
Contingent liabilities:
Claims against the Company, not acknowledged as debts (1) 2,649 4,316
[Amount paid to statutory authorities ₹8,283 crore (₹6,115 crore)]
Commitments:
Estimated amount of contracts remaining to be executed on capital contracts and not provided for 688 824
(net of advances and deposits)(2)
Other Commitments* 5 8
* Uncalled capital pertaining to investments
(1)
As at March 31, 2024 and March 31, 2023, claims against the Company not acknowledged as debts in respect of income tax matters amounted to ₹2,260 crore and
₹3,953 crore, respectively.

The claims against the Company primarily represent demands arising on completion of assessment proceedings under the Income Tax Act, 1961. These claims are on
account of issues of disallowance of expenditure towards software being held as capital in nature, payments made to Associated Enterprises held as liable for withholding
of taxes, among others. These matters are pending before various Income Tax Authorities and the Management including its tax advisors expect that its position will likely
be upheld on ultimate resolution and will not have a material adverse effect on the Company financial position and results of operations.

Amount paid to statutory authorities against the tax claims amounted to ₹8,273 crore and ₹6,105 crore as at March 31, 2024 and March 31, 2023, respectively.
(2)
Capital contracts primarily comprises of commitments for infrastructure facilities and computer equipments.

Legal Proceedings

The Company is subject to legal proceedings and claims, which have arisen in the ordinary course of business. The Company’s management reasonably expects that such
ordinary course legal actions, when ultimately concluded and determined, will not have a material and adverse effect on the Company’s results of operations or financial
condition.

30
2.22 RELATED PARTY TRANSACTIONS

Refer to the Company's Annual Report for the year ended March 31, 2023 for the full names and other details of the Company's subsidiaries and controlled trusts.
Changes in Subsidiaries
During the year ended March 31, 2024, the following are the changes in the subsidiaries:

- Infosys Americas Inc., (Infosys Americas) a Wholly-owned subsidiary of Infosys Limited is liquidated effective July 14, 2023.
- oddity GmbH renamed as WongDoody GmbH.
- On September 29, 2023, oddity space GmbH, oddity waves GmbH, oddity jungle GmbH, oddity group services GmbH and oddity code GmbH merged into
WongDoody GmbH and oddity code d.o.o which was formerly a subsidiary of oddity code Gmbh has become a subsidiary of Wongdoody Gmbh (formerly
known as oddity GmbH).
-
On September 1, 2023 Infosys Ltd. acquired 100% of voting interests in Danske IT and Support Services India Private Limited (“Danske IT”). Danske IT
renamed as Idunn Information Technology Private Limited from April 1, 2024.

- Infosys BPM Canada Inc, a Wholly-owned subsidiary of Infosys BPM Limited was incorporated on August 11, 2023.
- Kaleidoscope Prototyping LLC, a Wholly-owned subsidiary of Kaleidoscope Animations is liquidated effective November 1, 2023.
- oddity Code d.o.o renamed as WongDoody d.o.o
- On November 24, 2023 Stater Participations B.V (Wholly-owned subsidiary of Stater N.V) merged with Stater N.V and Stater Belgium N.V./S.A which was
formerly a wholly owned subsidiary of Stater Participations B.V. became a wholly owned subsidiary of Stater N.V.
- On March 15, 2024, Infosys BPM Canada Inc, a Wholly-owned subsidiary of Infosys BPM Limited was dissolved.

- oddity Limited (Taipei) renamed as WongDoody limited (Taipei) and oddity (Shanghai) Co., Ltd. renamed as WongDoody (Shanghai) Co. Limited.

The Company’s related party transactions during the three months and year ended March 31, 2024 and March 31, 2023 and outstanding balances as at March 31, 2024
and March 31, 2023 are with its subsidiaries with whom the Company generally enters into transactions which are at arms length and in the ordinary course of business.

Change in key management personnel

The following are the changes in the key management personnel:

Non-whole-time Directors

- Uri Levine (retired as independent director effective April 19, 2023)

- Helene Auriol Potier (appointed as independent director effective May 26, 2023)

- Nitin Paranjpe (appointed as an additional and independent director effective January 1, 2024)

Executive Officers:

- Mohit Joshi (resigned as President effective March 11, 2023 and was on leave till June 9, 2023 which was his last date with the company)

- Nilanjan Roy (resigned as Chief Financial Officer of the Company effective March 31, 2024)

- Jayesh Sanghrajka (appointed as Chief Financial Officer effective April 1, 2024)

Transactions with key management personnel

The table below describes the compensation to key management personnel which comprise directors and executive officers:
(In ₹ crore)
Particulars Three months ended March 31, Year ended March 31,
2024 2023 2024 2023
Salaries and other short term employee benefits to whole-time directors and executive 30 25 113 111
officers(1)(2)
Commission and other benefits to non-executive / independent directors 5 4 17 16
Total 35 29 130 127

⁽¹⁾ Total employee stock compensation expense for the three months ended March 31, 2024 and March 31, 2023 includes a charge of ₹17 crore and 8 crore,
respectively, towards key management personnel. For the year ended March 31, 2024 and March 31, 2023, includes a charge of ₹68 crore and ₹49 crore respectively,
towards key management personnel. (Refer to note 2.11).

(2)
Does not include post-employment benefits and other long-term benefits based on actuarial valuation as these are done for the Company as a whole.

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2.23 SEGMENT REPORTING

The Company publishes this financial statement along with the interim condensed consolidated financial statements. In accordance with Ind AS 108, Operating Segments,
the Company has disclosed the segment information in the interim condensed consolidated financial statements.

for and on behalf of the Board of Directors of Infosys Limited

D. Sundaram Salil Parekh Bobby Parikh

Lead Independent Director Chief Executive Officer Director
DIN: 00016304 and Managing Director DIN: 00019437
DIN: 01876159

Jayesh Sanghrajka A.G.S. Manikantha

Bengaluru Chief Financial Officer Company Secretary
April 18, 2024 Membership No. A21918

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