ANNUAL REPORT OF INFOSYS

Directors Report

The report presents the business and operations of the company for the year
ended March 31, 2007.

Total income increased to Rs. 13149 crore from Rs. 9028 crore in the
previous year, at the growth rate of 45.6%
During the current year, internal cash flows have more than adequate
covered working capital requirements, capital expenditure, investment in
subsidiaries, leaving a surplus of Rs. 659 crore.
As on 31 March, 2007 we had liquid asset including in liquid mutual funds
of Rs. 5650 crore against Rs. 4463 crore at the previous year end.

As there was vigorous growth with strong macro economic fundamentals

characterized development of Indian economy in 2006-07. The bank took
the buoyancy in economic growth and expanded the credit in all segments
including priority and retail sector. The increased its share in infrastructure
sector, and added its business in corporate and export finance.
 Auditors Report

They have audited the balance sheet as well as profit and loss account as on
31st march 2007 for the accounting year 2006-07.

The audit conducted by them was as per the accounting standards. Those
standards require proper planning and perform the audit with assurance that
the financial statements are free from misstatements. An audit also includes
examining on test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes accounting principles used
and significant estimates made by the management, as well as evaluating the
overall financial statement presentation.

The cash flow statement also gives a true and fair view of the cash flows for
the year ended. Profit and loss account read by them was with significant
accounting policies, notes forming part of accounts shows a true and fair
balance of profit for the year.
 Financial Statement

Profit & loss account

In the books of Infosys Technologies Limited, profit & loss account for the
year ended 31st march 2007.

Incomes
The incomes earned by the Infosys Technologies Limited have increased
from Rs. 9028 crore to Rs 13149 crore.

Expenditure
As there is an increase in incomes, the expenses are also increased from
Rs1152 crore to Rs. 1646 crore.

Retained Earnings
It has increased from Rs. 3849 crore to Rs. 5973 crore.

Balance Sheet
In the books of Infosys Technologies Limited, Balance Sheet as at 31st
march 2007

Sources of Funds
The share capital of the Co. has increased from Rs. 138 crore to Rs. 286
crore.
The reserves and surplus increased from Rs. 6759 crore to Rs. 10876 crore
Therefore by clubbing all the above Sources of Funds, we can see that the
Sources of Funds has been increased from Rs 6897 crore to Rs. 11162 crore.

Application of Funds
The Co has fixed assets which been increased from Rs 2837 crore to Rs.
3889 crore.
The Co has investments which reduced from Rs. 876 crore to Rs. 839 crore.
The net current assets increased from Rs. 3832 crore to Rs. 7137 crore.