Current scenario of Indian economy

GDP Gross Domestic Product (GDP) at factor cost at constant (2004-05) prices in the year 201213 is likely to attain a level of Rs.55,03,476 crore, as against the First Revised Estimate of GDP for the year 2011-12 of Rs. 52,43,582 crore, released on 31st January 2013. The growth in GDP during 2012-13 is estimated at 5.0 per cent as compared to the growth rate of 6.2 per cent in 2011-12. Nasscom expects the IT services sector in India to grow by 13-14 % in 2013-14 and to touch US$ 225 billion by 2020.

National Income In terms of growth rates, the national income registered a growth rate of 4.2 per cent in 2012-13 as against the previous years growth rate of 6.1 per cent. The IT&ITeS industry in India has today become a growth engine for the economy, contributing substantially to increases in the GDP. Indian firms, across all other sectors, largely depend on the IT & ITeS service providers to make their business processes efficient and streamlined. Indian manufacturing sector has the highest IT spending followed by automotive, chemicals and consumer products industries.

Market Size Indias total IT industrys (including hardware) share in the global market stands at 7 %, in the IT segment the share is 4% while in the ITeS space the share is 2%. India's IT and BPO sector exports are expected to grow by 12-14 per cent in FY14 to touch US$ 84 billion - US$ 87 billion, according to Nasscom. The enterprise software market in India is expected to reach US$ 3.92 billion in 2013, registering a growth of 13.9 per cent over 2012 revenue of US$ 3.45 billion, according to Gartner.

INFOSYS

Companys Performance Revenue Total income increased to Rs. 36,765 crore from Rs. 31,254 crore in the previous year, at a growth rate of 17.6%. Software export revenues aggregated to Rs. 35,932 crore, up by 17.8% from Rs. 30,514 crore in the previous year. Out of the total revenue, 63.8% came from North America, 21.8% from Europe, 2.3% from India and 12.1% from the Rest of the World. Revenues from India have increased to Rs. 833 crore from Rs. 740 crore, with a growth rate of 12.6%. Profits Gross profit amounted to Rs. 15,103 crore (41.1% of revenue) as against Rs. 13,419 crore (42.9% of revenue) in the previous year. The Profit Before Interest, Depreciation, Taxes and Amortization (PBIDTA) amounted to Rs. 11,015 crore (30.0% of revenue) as against Rs. 10,061 crore (32.2% of revenue) in the previous year. Cost Sales and marketing costs were 5.1% and 4.6% of our revenue for the years ended March 31, 2013 and March 31, 2012, respectively. General and administration expenses were 6.0% and 6.1% of our revenues during the current year and previous year, respectively. Net Profits The net profit before exceptional item and tax was Rs. 12,274 crore (33.4% of revenue) as against Rs. 11,096 crore (35.5% of revenue) in the previous year. The client-centric approach has resulted in high levels of client satisfaction and derived 97.8% of consolidated revenues from repeat business. Along with our subsidiaries, added 235 new clients, including a substantial number of large global corporations.

Investments During FY2012-13, added 23.11 lakh sq. ft. of physical infrastructure space. The total available space as on March 31, 2013 stands at 316.44 lakh sq. ft. The number of marketing offices as at March 31, 2013 was 69 as compared to 65 in the previous year.

Subsidiaries Lodestone Holding AG has become a wholly-owned subsidiary of Infosys Limited. Lodestone Holding AG is a global consulting firm advising international companies on strategy and process optimization as well as IT transformation. Presence in 17 countries across five continents and advisory services are primarily geared to the life science, chemical and financial services industries along with the investment, automotive and consumer goods sectors. 10 subsidiaries Infosys BPO Limited; Infosys Technologies (Australia) Pty Limited; Infosys Technologies (China) Co. and so on.

Capital expenditure Capitalized Rs. 1,422 crore in FY2012-13. 640 crore Investment in computer equipment(Rs640cr.), Intellectual Property rights(Rs30cr.), On vehicles(Rs1cr.), The balance of Rs. 751 crore on infrastructure investments. Invested Rs. 145 crore to acquire 119.35 acres of land in Bangalore, Hubli, Mysore and Thiruvananthapuram.

Increase in share capital During FY2012-13, we issued 6,165 shares on the exercise of stock options under the 1999 Employee Stock Option Plans. As a result of this, the outstanding issued, subscribed and paid-up equity shares increased from 57,42,30,001 as at March 31, 2012 to 57,42,36,166 shares as at March 31, 2013.

Dividend Policy is to pay dividend of up to 30% of the consolidated net profit after tax. In October 2012, paid an interim dividend of Rs.15/- per share. Recommended a final dividend of Rs. 27/- per share (par value of Rs. 5/- each), Making in all Rs. 42/- per share as dividend for the year. The total dividend amount pay out (excluding dividend tax) for the current year is Rs. 2,412 crore, as against Rs. 2,699 crore in the previous year. The dividend for the previous year includes a special dividend of Rs. 10/- per share for the completion of 10 years of Infosys BPO operations amounting to Rs. 574 crore. Dividend (including dividend tax) as a percentage of consolidated net profit after tax is 29.9% as compared to 29.7% in the previous year.

Corporate Social Responsibilities. Our sustainability charter is driven by our core values and ethics. The companies sustainability actions rest on three pillars viz Social contract, Resource intensity and Green innovation. Social contract- We believe that these social covenants are fundamental to nurturing stakeholder trust and ensuring business continuity. Education- Campus Connect Program. Project Genesis. SPARK Program. Community development. Resource intensity- the face of accelerated depletion of natural resources, incremental increases in resource efficiency are not sufficient and beyond a point optimization gets prohibitively expensive. Green innovation- Business imperatives like environmental sustenance and resource conservation are providing new opportunities for enterprises to leverage and stimulate innovation and spur business growth. . Green innovation is about addressing sustainability challenges through innovation, differentiation, driving efficiencies and creating new avenues for growth to become trendsetters.

TCS Companys performance Slow growth path during FY2012-13 but signs of faster growth primarily in the emerging markets. Achieved well-rounded growth with steady protability. United Kingdom (44%), Latin America (40%), North America (27%), Europe (21%), Asia Pacic (27%), Middle East Africa (28%) and India (16%). First time, the Company crossed USD 3 billion revenue in Q4 of FY2012-13. Revenue from operations for FY2012-13 exceeded by 28.8% (consolidated) & 27.1% (unconsolidated) over last year EBITDA was higher by 25.0% (consolidated) & 25.7% (unconsolidated) over last year. PAT for FY2012-13 was higher by 33.7% (consolidated) & 16.5% (unconsolidated) over last year.

Dividend Recommend nal dividend of Rs13 per share for the FY2012-13 taking the total dividend to Rs22 per share on the capital of 195,72,20,996 equity shares of Rs1 each. Total cash outow of Rs5,014.83crores (interim as well as proposed, dividend tax) Resulting in a payout of 39.29% of the unconsolidated prots of the Company. The redeemable preference shares are entitled to a xed cumulative dividend of 1% per annum and Variable non-cumulative dividend of 1% of the difference between the rate of dividend declared during the year on the equity shares of the Company and the average rate of dividend declared on the equity shares of the Company for the three years preceding the year of issue of the said redeemable preference shares. Recommended, for approval of the members, a dividend of Rs0.19 per share on 100,00,00,000 redeemable preference shares of Rs1 each for the nancial year 2012-13.

Strategic acquisition Acquisitions over the past few years either directly or through its subsidiaries. Acquired Computational Research Laboratories Limited (CRL) in FY2012-13. CRL was a wholly owned subsidiary of Tata Sons Limited.

The acquisition of CRL, a pioneering start-up company in the area of high performance computing solutions in India, enabled the Company to extend its suite of solutions and offer

integrated high performance computing applications and Cloud services to its large base of customers.

Status of restructuring of unlisted subsidiary companies Retail Full Serve Limited (RFL) and Computational Research Laboratories Limited (CRL) RFL and CRL, both wholly owned subsidiaries amalgamated and engaged in similar business. The amalgamation would lead to efcient utilization of resources and enhanced growth of the consolidated entity. TCS e-Serve Limited (e-Serve) and TCS e-Serve International Limited (TEIL) Proposing amalgamation of e-Serve with the Company and demerger of SEZ undertaking of TEIL into the Company. E-Serve and TEIL are engaged in the business of providing information technology enabled services (ITES) and business process outsourcing services (BPO) for its customers primarily in the banking, nancial services and insurance domain. E-Serves operations include delivering core business process services, analytics/ insights and support services for both data and voice processes. The Scheme will lead to operational synergy.

Human resource development The Company has a diverse workforce of 2,76,196 employees representing 118 nationalities. In FY2012-13, remained the highest recruiter with a gross addition of 69,728 and net addition of 37,613 employees across the globe. Campus placement drive was conducted in 371 engineering institutes in India resulting in 24,531 job offers to students to join in the FY2013-14. Individual and organizational capability building remained one of the strategic focus areas. The workforce management strategy was executed optimally to deliver a sustained utilization rate throughout the year helping business grow while maintaining employee costs at the desired level. Focused initiatives towards health and safety and other non-work related employee engagement programs helped develop the personality and confidence level of the employees enhancing their motivation and engagement with the organization. Low attrition rate of 10.6% achieved during this year, a benchmark in the industry.

Corporate Social Responsibilities Education & Skill Building Adult Literacy Program (ALP) A Computer Based Functional Literacy Program. ALP developed and deployed by the Company is among the first instances of use of IT core competence for social good in India. UDAAN - Initiative for increasing employability of Kashmiri Youth Project UDAAN is a joint initiative between TCS, National Skill Development Corporation (NSDC), Government of India and Special Industry Initiative to help Kashmiri youth improve their employability and employment opportunities. EMPOWER - Training program for vendors The program provides training to support service staff of vendors deployed in TCS. The training aims at building capability in spoken English, operating computers and building other soft skills. Academic Interface Program (AIP) The Company continues to invest on AIP initiatives with objectives of developing faculty for academic institutes, improve employability of students and develop curricula as per industry requirements. Advanced Computer Training Center (ACTC) ACTC was set up with the objective of providing computer training and personality development to enhance the employability of individuals with visual impairment. The program also seeks to create employment TCS IT Wiz TCS IT Wiz, Indias biggest IT Quiz for schools started in 1999 for students studying in 8th to 12th grades to build awareness about technology and hone IT skills. Health Med Mantra An integrated Hospital Management System along with IT infrastructure including a comprehensive and fully integrated, web-based solution has been provided free of cost to the Cancer Institute at Chennai. Tata Medical Center (TMC) TCS designed and implemented a comprehensive Hospital Management System running on a state of art IT infrastructure for TMC, Kolkata. Projects undertaken by the CSR TECH Team The CSR TECH Team uses technology as a key enabler to assist and resolve business challenges faced by social organizations while empowering them to be efcient and accountable.