INFOSYS TECHNOLOGIES LIMITED Balance Sheet as at SOURCES OF FUNDS SHAREHOLDERS' FUNDS Share capital Reserves and surplus Schedule

March 31, 2011 in ` crore March 31, 2010

1 2

287 24,214 24,501 176 24,677

287 21,749 22,036 232 22,268

DEFERRED TAX LIABILITIES

APPLICATION OF FUNDS FIXED ASSETS Original cost Less: Accumulated depreciation and amortization Net book value Add: Capital work-in-progress

3 6,934 2,878 4,056 499 4,555 4 5 6 7 8 1,325 406 4,212 13,665 4,867 22,744 1,880 2,473 18,391 24,677 6,357 2,578 3,779 409 4,188 4,626 313 3,244 9,797 3,898 16,939 1,763 2,035 13,141 22,268

INVESTMENTS DEFERRED TAX ASSETS CURRENT ASSETS, LOANS AND ADVANCES Sundry debtors Cash and bank balances Loans and advances LESS: CURRENT LIABILITIES AND PROVISIONS Current liabilities Provisions NET CURRENT ASSETS

9 10

SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS Note: The schedules referred to above are an integral part of the Balance Sheet. As per our report attached for B S R & Co. Chartered Accountants Firm Reg No : 101248W

23

Natrajh Ramakrishna Partner Membership No. 32815

N. R. Narayana Murthy Chairman and Chief Mentor

S. Gopalakrishnan Chief Executive Officer and Managing Director

S. D. Shibulal Chief Operating Officer and Director

Deepak M. Satwalekar Director

Prof. Marti G. Subrahmanyam Director

Dr. Omkar Goswami Director

Sridar A. Iyengar Director

David L. Boyles Director

Prof. Jeffrey S. Lehman Director

K.V.Kamath Director

R.Seshasayee Director

K. Dinesh Director

Bangalore April 15, 2011

T. V. Mohandas Pai Director

Srinath Batni Director

V. Balakrishnan Chief Financial Officer

K. Parvatheesam Company Secretary

INFOSYS TECHNOLOGIES LIMITED Profit and Loss account for the Schedule in ` crore, except per share data Year ended March 31, 2,011 Income from software services and products Software development expenses GROSS PROFIT Selling and marketing expenses General and administration expenses OPERATING PROFIT BEFORE DEPRECIATION Depreciation OPERATING PROFIT Other income, net Provision for investments NET PROFIT BEFORE TAX AND EXCEPTIONAL ITEM Provision for taxation (refer to note 23.2.11 ) NET PROFIT AFTER TAX BEFORE EXCEPTIONAL ITEM Income on sale of investments, net of taxes (refer to note 23.2.25) NET PROFIT AFTER TAX AND EXCEPTIONAL ITEM Balance Brought Forward Balance in profit and loss account 14 25,385 14,267 11,118 1,219 1,485 2,704 8,414 740 7,674 1,147 8,821 2,378 6,443 6,443 13,806 20,249 20,249 574 1,722 1,149 3,445 568 645 15,591 20,249 2010 21,140 11,559 9,581 974 1,247 2,221 7,360 807 6,553 910 (9) 7,472 1,717 5,755 48 5,803 10,305 16,108 16,108 573 861 1,434 240 580 48 13,806 16,108

11 12 13

15

AMOUNT AVAILABLE FOR APPROPRIATION

Dividend Interim dividend 30th year special dividend Final dividend Total Dividend Dividend tax Amount transferred to general reserve Amount transferred to capital reserve Balance in profit and loss account EARNINGS PER SHARE Equity shares of par value `5/- each Before exceptional item Basic Diluted After exceptional item Basic Diluted Number of shares used in computing earnings per share (1) Basic Diluted SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS Note: The schedules referred to above are an integral part of the Profit and Loss account.
(1)

112.26 112.22 112.26 112.22

100.37 100.26 101.22 101.10

57,40,13,650 57,42,01,958 23

57,33,09,523 57,39,49,631

Refer to note 23.2.19

As per our report attached for B S R & Co. Chartered Accountants Firm Reg No : 101248W

Natrajh Ramakrishna Partner Membership No. 32815

N. R. Narayana Murthy Chairman and Chief Mentor

S. Gopalakrishnan Chief Executive Officer and Managing Director

S. D. Shibulal Chief Operating Officer and Director

Deepak M. Satwalekar Director

Prof. Marti G. Subrahmanyam Director

Dr. Omkar Goswami Director

Sridar A. Iyengar Director

David L. Boyles Director

Prof. Jeffrey S. Lehman Director

K.V.Kamath Director

R. Seshasayee Director

K. Dinesh Director

Bangalore April 15, 2011

T. V. Mohandas Pai Director

Srinath Batni Director

2

V. Balakrishnan Chief Financial Officer

K. Parvatheesam Company Secretary

INFOSYS TECHNOLOGIES LIMITED Cash Flow statement for the year ended March 31, CASH FLOWS FROM OPERATING ACTIVITIES Net profit before tax Adjustments to reconcile net profit before tax to cash provided by operating activities Depreciation Provision for Investments Interest and dividend income Effect of exchange differences on translation of deferred tax liabilities Effect of exchange differences on translation of foreign currency cash and cash equivalents Changes in current assets and liabilities Sundry debtors Loans and advances Current liabilities and provisions Income taxes paid NET CASH GENERATED BY OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Purchase of fixed assets and change in capital work-in-progress Investments in subsidiaries Investment/(Disposal) of other securities Interest and dividend received CASH FLOWS FROM INVESTING ACTIVITIES BEFORE EXCEPTIONAL ITEM Proceeds on sale of long term investments, net of taxes (refer to note 23.2.25) NET CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of share capital on exercise of stock options Repayment of loan given to subsidiary Dividends paid including residual dividend Dividend tax paid NET CASH USED IN FINANCING ACTIVITIES Effect of exchange differences on translation of foreign currency cash and cash equivalents NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS Note: The schedules referred to above are an integral part of the Cash Flow statement. As per our report attached for B S R & Co. Chartered Accountants Firm Reg No : 101248W 22 23 20 (c) 19 20 (a) 20 (b) 21 (1,152) (77) 3,378 1,086 3,235 3,235 (565) (120) (3,497) 831 (3,351) 53 (3,298) 16 17 18 (968) (704) 234 7,026 (2,756) 4,270 146 (368) 236 7,508 (1,653) 5,855 740 (1,086) (6) (5) 807 (9) (844) 68 8,821 7,472 Schedule 2011 in ` crore 2010

24 14 (3,156) (524) (3,642) 5 3,868 11,297 15,165

88 5 (1,346) (228) (1,481) (68) 1,008 10,289 11,297

Natrajh Ramakrishna Partner Membership No. 32815

N. R. Narayana Murthy Chairman and Chief Mentor

S. Gopalakrishnan Chief Executive Officer and Managing Director

S. D. Shibulal Chief Operating Officer and Director

Deepak M. Satwalekar Director

Prof. Marti G. Subrahmanyam Director

Dr. Omkar Goswami Director

Sridar A. Iyengar Director

David L. Boyles Director

Prof. Jeffrey S. Lehman Director

K.V.Kamath Director

R.Seshasayee Director

K. Dinesh Director

Bangalore April 15, 2011

T. V. Mohandas Pai Director

Srinath Batni Director 3

V. Balakrishnan Chief Financial Officer

Parvatheesam K. Company Secretary

INFOSYS TECHNOLOGIES LIMITED Schedules to the Balance Sheet as at March 31, 1 SHARE CAPITAL Authorized Equity shares, `5/- par value 60,00,00,000 (60,00,00,000) equity shares Issued, Subscribed and Paid Up Equity shares, `5/- par value (1) 57,41,51,559 (57,38,25,192) equity shares fully paid up [Of the above, 53,53,35,478 (53,53,35,478) equity shares, fully paid up have been issued as bonus shares by capitalization of the general reserve] 287 287 Forfeited shares amounted to `1,500/- (`1,500/-) (1) For details of options in respect of equity shares, refer to note 23.2.10 and also refer to note 23.2.19 for details of basic and diluted shares 2 RESERVES AND SURPLUS Capital reserve Add: Transferred from Profit and Loss account 54 54 6 48 54 287 287 in ` crore, except as otherwise stated 2011 2010

300

300

Share premium account - Opening balance Add: Receipts on exercise of employee stock options Income tax benefit arising from exercise of stock options

3,022 24 11 3,057 4,867 645 5,512 15,591 24,214

2,925 87 10 3,022 4,287 580 4,867 13,806 21,749

General reserve - Opening balance Add: Transferred from Profit and Loss account

Balance in Profit and Loss account

INFOSYS TECHNOLOGIES LIMITED Schedules to the Balance Sheet 3 FIXED ASSETS Original cost Additions Deductions/ during the year Retirement during the year 228 323 147 251 69 2 1,020 787 3 144 196 100 443 416 Depreciation and amortization For the Deductions year during the year 227 215 186 112 740 807 144 196 100 440 416 in ` crore, except as otherwise stated Net book value As at As at As at March 31, March 31, March 31, 2011 2011 2010 964 668 872 359 3 12 2,878 2,578 406 135 2,568 484 220 239 4 4,056 3,779 178 138 2,472 552 155 282 2 3,779

Particulars

As at April 1, 2010 178 138 3,209 1,149 1,037 629 5 12 6,357 5,986

As at March 31, 2011 406 135 3,532 1,152 1,092 598 7 12 6,934 6,357

As at April 1, 2010 737 597 882 347 3 12 2,578 2,187

Land : Free-hold Leasehold Buildings (1)(2) Plant and machinery (2)(3) Computer equipment (2)(3) Furniture and fixtures (2)(3) Vehicles Intellectual property rights Previous year Notes:
(1) (2) 3)

Buildings include ` 250/- being the value of 5 shares of ` 50/- each in Mittal Towers Premises Co-operative Society Limited. Includes certain assets provided on operating lease to Infosys BPO, a subsidiary. Refer to note 23.2.6 for details

During the year ended March 31, 2011 and March 31, 2010, certain assets which were old and not in use having gross book value of ` 440 crore and ` 387 crore respectively (net book value nil) were retired.

INFOSYS TECHNOLOGIES LIMITED Schedules to the Balance Sheet as at March 31, 4 INVESTMENTS (1) Long- term investments at cost Trade (unquoted) Other investments Less: Provision for investments 6 2 4 Non-trade (unquoted) Subsidiaries Infosys BPO Limited 3,38,22,319 (3,38,22,319) equity shares of ` 10/- each, fully paid Infosys Technologies (China) Co. Limited Infosys Technologies (Australia) Pty Limited 1,01,08,869 (1,01,08,869) equity shares of AUD 0.11 par value, fully paid Infosys Consulting, Inc., USA 5,50,00,000 (5,50,00,000) common stock of USD 1.00 par value, fully paid Infosys Technologies, S. De R.L. De C.V., Mexico Infosys Technologies Sweden AB 1,000 (1,000) equity shares of SEK 100 par value, fully paid Infosys Technologies DO Brasil LTDA 1,45,16,997 (1,07,16,997) shares of BRL 1.00 par value, fully paid Infosys Technologies (Shanghai) Company Limited Infosys Public Services, Inc 1,00,00,000 (1,00,00,000) common stock of USD 0.50 par value, fully paid 243 54 38 11 24 1,202 Current investments at the lower of cost and fair value Non-trade (unquoted) Liquid mutual fund units Certificates of deposit 243 40 28 24 1,125
(2)

in ` crore, except as otherwise stated 2011 2010

6 2 4

659 107

659 65

66

66

119 119 1,325 1,325

2,317 1,180 3,497 4,626 4,626

Aggregate amount of unquoted investments

(1) (2)

Refer to note 23.2.15 for details of investments Investments include 6,79,250 (13,36,331) options of Infosys BPO

5 DEFERRED TAXES Deferred tax assets Fixed assets Sundry debtors Other assets

234 19 153 406

201 28 84 313

Deferred tax liabilities Branch profit tax

176 176

232 232

INFOSYS TECHNOLOGIES LIMITED Schedules to the Balance Sheet as at March 31, 6 SUNDRY DEBTORS(1) Debts outstanding for a period exceeding six months Unsecured Considered doubtful Other debts Unsecured Considered good(2) Considered doubtful Less: Provision for doubtful debts
(1) (2)

in ` crore, except as otherwise stated 2011 2010

64

79

4,212 19 4,295 83 4,212 2 72

3,244 21 3,344 100 3,244 11 56

Includes dues from companies where directors are interested Includes dues from subsidiaries (refer to note 23.2.7)

7 CASH AND BANK BALANCES(1) Cash on hand Balances with scheduled banks In current accounts (2) In deposit accounts Balances with non-scheduled banks In current accounts 197 13,024 444 13,665
(1) (2)

153 8,868 776 9,797 2

Refer to note 23.2.12 for details of balances with scheduled and non-scheduled banks Includes balance in unclaimed dividend account (refer to note 23.2.23.a)

INFOSYS TECHNOLOGIES LIMITED Schedules to the Balance Sheet as at March 31, 8 LOANS AND ADVANCES Unsecured, considered good Loans to subsidiary (refer to note 23.2.7 ) Advances Prepaid expenses For supply of goods and rendering of services Advance to gratuity trust and others Withholding and other taxes receivable Others 32 52 50 516 10 660 Unbilled revenues Advance income taxes Interest accrued but not due Loans and advances to employees Housing and other loans Salary advances Electricity and other deposits Rental deposits Deposits with financial institutions (refer to note 23.2.13 ) Mark-to-market gain on forward and options contracts Unsecured, considered doubtful Loans and advances to employees Less: Provision for doubtful loans and advances to employees 3 4,870 3 4,867 2 3,900 2 3,898 1,158 924 14 42 84 60 18 1,844 63 4,867 46 25 5 2 321 13 412 789 641 14 38 62 60 13 1,781 88 3,898 in ` crore, except as otherwise stated 2011 2010

INFOSYS TECHNOLOGIES LIMITED Schedules to the Balance Sheet as at March 31, 9 CURRENT LIABILITIES Sundry creditors Goods and services Accrued salaries and benefits Salaries Bonus and incentives For other liabilities Provision for expenses Retention monies Withholding and other taxes payable Gratuity obligation - unamortised amount relating to plan amendment Others
(2) (1)

in ` crore, except as otherwise stated 2011 2010

85 42 363 537 21 292 22 8 1,370 19 488 3 1,880 55 7

96 25 421 375 66 235 26 8 1,252 7 502 2 1,763 95 7

Advances received from clients Unearned revenue Unclaimed dividend

(1) (2)

Includes dues to subsidiaries (refer to note 23.2.7) Includes deposits received from subsidiary (refer to note 23.2.7)

10 PROVISIONS Proposed dividend Provision for Tax on dividend Income taxes Unavailed leave Post-sales client support and warranties (2)
(1) (2) (1)

1,149 187 756 303 78 2,473

861 143 719 239 73 2,035

Refer to note 23.2.11 Refer to note 23.2.20

INFOSYS TECHNOLOGIES LIMITED Schedules to Profit and Loss account for the in ` crore, except as otherwise stated Year ended March 31, 2011 11 SOFTWARE DEVELOPMENT EXPENSES Salaries and bonus including overseas staff expenses Contribution to provident and other funds Staff welfare Technical sub-contractors - subsidiaries Technical sub-contractors - others Overseas travel expenses including visa Software packages for own use Third party items bought for service delivery to clients Communication expenses Computer maintenance Consumables Rent Provision for post-sales client support and warranties 10,635 378 53 1,568 476 573 320 139 39 33 23 25 5 14,267 8,972 244 28 1,210 269 401 309 17 45 22 22 22 (2) 11,559 2010

12 SELLING AND MARKETING EXPENSES Salaries and bonus including overseas staff expenses Contribution to provident and other funds Staff welfare Overseas travel expenses Traveling and conveyance Commission charges Brand building Professional charges Rent Marketing expenses Telephone charges Printing and Stationery Communication expenses Sales Promotion expenses 969 7 2 100 4 12 70 13 12 14 14 1 1 1,219 753 4 2 82 3 16 55 22 12 11 11 1 1 1 974

10

INFOSYS TECHNOLOGIES LIMITED Schedules to Profit and Loss account for the in ` crore, except as otherwise stated Year ended March 31, 2011 13 GENERAL AND ADMINISTRATION EXPENSES Salaries and bonus including overseas staff expenses Contribution to provident and other funds Professional charges Telephone charges Power and fuel Traveling and conveyance Overseas travel expenses Office maintenance expenses Insurance charges Printing and stationery Donations Rent Advertisements Repairs to building Repairs to plant and machinery Rates and taxes Professional membership and seminar participation fees Postage and courier Books and periodicals Bank charges and commission Auditor's remuneration Statutory audit fees Provision for bad and doubtful debts and advances Commission to non-whole time directors Freight charges Research grants 390 25 286 116 142 79 15 188 24 10 1 31 6 44 33 48 10 9 3 1 1 3 5 1 14 1,485 330 17 220 106 122 58 10 136 23 8 43 28 3 33 31 26 8 8 3 2 1 (1) 6 1 25 1,247 2010

11

INFOSYS TECHNOLOGIES LIMITED Schedules to Profit and Loss account for the in ` crore, except as otherwise stated Year ended March 31, 2011 14 OTHER INCOME, NET Interest received on deposits with banks and others (1) Dividend received on investment in liquid mutual fund units (non-trade unquoted) Miscellaneous income, net (2) Gains / (losses) on foreign currency, net
(1) (2)

2010

1,068 18 22 39 1,147 91

743 101 27 39 910 95

includes tax deducted at source refer to note 23.2.6 and 23.2.14

15 PROVISION FOR TAXATION Income taxes(1) MAT credit entitlement 2,521 (143) 2,378
(2)

1,984 (288) 21 1,717

Deferred taxes
(1) (2)

Refer to note 23.2.11 Excludes translation difference of ` 6 crore on deferred tax liabilities

12

INFOSYS TECHNOLOGIES LIMITED Schedules to Cash Flow statements for the year ended March 31, 16 CHANGE IN LOANS AND ADVANCES As per the balance sheet Less: Gratuity obligation - unamortised amount relating to plan amendment
(1) (2)

in ` crore, except as otherwise stated 2011 2010

4,867 22 1,500 14 32 924 2,375 1,671 704

3,898 26 1,500 14 46 641 1,671 1,303 368

Deposits with financial institutions included in cash and cash equivalents Interest accrued but not due Loan to subsidiary Advance income taxes Less: Opening balance considered
(1) (2)

refer to note 23.2.21 Excludes restricted deposits held with LIC of ` 344 crore ( ` 281 crore) for funding leave liability

17 CHANGE IN CURRENT LIABILITIES AND PROVISIONS As per the balance sheet Less: Unclaimed dividend Retention monies Gratuity obligation - unamortised amount relating to plan amendment Provisions separately considered in Cash Flow statement Income taxes Proposed dividend Tax on dividend Less: Opening balance considered 756 1,149 187 2,215 1,981 234 18 INCOME TAXES PAID Charge as per the profit and loss account Add/(Less) : Increase/(Decrease) in advance income taxes Increase/(Decrease) in deferred taxes (1) Increase/(Decrease) in MAT credit entitlement Income tax benefit arising from exercise of stock options (Increase)/Decrease in income tax provision
(1)

4,353 3 21 22

3,798 2 66 26 719 861 143 1,981 1,745 236

2,378 283 143 (11) (37) 2,756

1,717 373 (21) (262) (10) (144) 1,653

Excludes translation difference of ` 6 crore on deferred tax liabilities

13

INFOSYS TECHNOLOGIES LIMITED Schedules to Cash Flow statements for the year ended March 31, 19 PURCHASE OF FIXED ASSETS AND CHANGE IN CAPITAL WORK-IN-PROGRESS As per the balance sheet (1) Less: Opening capital work-in-progress Add: Closing capital work-in-progress Add: Opening retention monies Less: Closing retention monies in ` crore, except as otherwise stated 2011 2010

1,017 409 499 66 21 1,152

787 615 409 50 66 565

(1)

Net of ` 3 crore movement in land from leasehold to free-hold for the year ended March 31, 2011

20 (a) INVESTMENTS IN SUBSIDIARIES (1) As per the balance sheet Less: Opening balance considered
(1)

1,202 1,125 77

1,125 1,005 120

Refer to note 23.2.15 for investment made in subsidiaries

20 (b) INVESTMENT/(DISPOSAL) OF SECURITIES (1) Opening balance considered Less: Closing as per the balance sheet
(1)

3,497 119 3,378

(3,497) 3,497

Refer to note 23.2.15 for investment and redemptions

20 (c) REPAYMENT OF SUBSIDIARY LOAN Opening balance Less: Closing balance (1)
(1)

46 32 14

51 46 5

Net of exchange rate fluctuation of Nil and ` 5 crore as at March 31, 2011 and March 31, 2010 respectively

21 INTEREST AND DIVIDEND RECEIVED Interest and dividend income as per profit and loss account Add: Opening interest accrued but not due Less: Closing interest accrued but not due on Certificate of Deposits and bank deposits 1,086 14 14 1,086 22 CASH AND CASH EQUIVALENTS AT THE END As per the balance sheet Add: Deposits with financial institutions (1)
(1)

844 1 14 831

13,665 1,500 15,165

9,797 1,500 11,297

Excludes restricted deposits held with LIC of `344 crore ( ` 281 crore) for funding leave liability (refer to note 23.2.23b)

14