Extract of audited IFRS financial statements

Financial statements included in our annual filing with the U.S. Securities and Exchange Commission (SEC) in the Form 20-F have been prepared in compliance with the International Financial Reporting Standards as issued by International Accounting Standards Board (IFRS).

As in the previous year we will be availing NASDAQ’s rule amendment which allows a company to furnish its annual reports to its ADS holders on its website in lieu of physical distribution. Accordingly the annual report and the filing with the SEC in the Form 20-F is available on our website www.infosys.com. However, a physical copy will be made available to shareholders on request.

The extract of the audited Balance Sheet and Statement of Comprehensive Income as per IFRS is provided here under :

Consolidated Balance Sheets as of March 31,

United States Dollar (US$) in million, except share data

	2011	2010
ASSETS
Current assets
Cash and cash equivalents	$3,737	$2,698
Available-for-sale financial assets	5	561
Investment in certificates of deposit	27	265
Trade receivables	1,043	778
Unbilled revenue	279	187
Derivative financial instruments	15	21
Prepayments and other current assets	206	143
Total current assets	5,312	4,653
Non-current assets
Property, plant and equipment	1,086	989
Goodwill	185	183
Intangible assets	11	12
Available-for-sale financial assets	5	8
Deferred income tax assets	85	78
Income tax assets	223	148
Other non-current assets	103	77
Total non-current assets	1,698	1,495
Total assets	$7,010	$6,148
LIABILITIES AND EQUITY
Current liabilities
Trade payables	$10	$2
Current income tax liabilities	183	161
Client deposits	5	2
Unearned revenue	116	118
Employee benefit obligations	31	29
Provisions	20	18
Other current liabilities	451	380
Total current liabilities	816	710
Non-current liabilities
Deferred income tax liabilities	–	26
Employee benefit obligations	58	38
Other non-current liabilities	14	13
Total liabilities	888	787
Equity
Share capital- 5 ($0.16) par value 600,000,000 equity shares authorized, issued and outstanding 571,317,959, and 570,991,592, net of 2,833,600 treasury shares as of March 31, 2011 and 2010, respectively	64	64
Share premium	702	694
Retained earnings	5,294	4,611
Other components of equity	62	(8)
Total equity attributable to equity holders of the Company	6,122	5,361
Total liabilities and equity	$7,010	$6,148

Consolidated statements of comprehensive income for the years ended March 31,

United States Dollar (US$) in million, except share data

	2011	2010
Revenues	$6,041	$4,804
Cost of sales	3,497	2,749
Gross profit	2,544	2,055
Operating expenses :
Selling and marketing expenses	332	251
Administrative expenses	433	344
Total operating expenses	765	595
Operating profit	1,779	1,460
Other income, net	267	209
Profit before income taxes	2,046	1,669
Income tax expense	547	356
Net profit	$1,499	$1,313
Other comprehensive income
Reversal of impairment loss on available-for-sale financial asset	–	$2
Gain transferred to net profit on sale of available-for-sale financial asset	–	(1)
Fair value changes on available-for-sale financial asset, net of tax effect	(2)	6
Exchange differences on translating foreign operations	72	555
Total other comprehensive income	$70	$562
Total comprehensive income	$1,569	$1,875
Profit attributable to :
Owners of the Company	1,499	1,313
Non-controlling interest	–	–
	$1,499	$1,313
Total comprehensive income attributable to :
Owners of the Company	1,569	1,875
Non-controlling interest	–	–
	$1,569	$1,875
Earnings per equity share
Basic ($)	2.62	2.30
Diluted ($)	2.62	2.30
Weighted average equity shares used in computing earnings per equity share
Basic	571,180,050	570,475,923
Diluted	571,368,358	571,116,031

Note :1.

The functional currency of the Company is the Indian rupee. These financial statements have been presented by translating revenue and expenditure at an average rate during the year; current assets, current liabilities, property, plant and equipment, long-term borrowings at the year-end rate; and accretions to stockholder’s equity at an average rate for the year. The difference arising on translation is shown under other components of equity.

Exchange rates (1 US$ =)

	2011	2010
Average rate	45.54	47.43
Period end rate	44.60	44.90