NAVIGATE YOUR NEXT - infosysbpm.com

1 NAVIGATE YOUR NEXT. TM. Infosys BPM Limited Annual Report 2017-18. (formerly Infosys BPO Limited). This page is left blank intentionally Board and Committees Infosys BPM Limited The Board of Directors Nomination and remuneration Investment committee Ravikumar Singisetti committee Ravikumar Singisetti Chairman Prof. Jayanth R. Varma Chairperson Anantharaman Radhakrishnan Chairperson Anantharaman Radhakrishnan Managing Director and Chief Executive Officer Prahlad Member Member Nishit Ajitkumar Shah Prahlad Independent Director Ravikumar Singisetti Member Member Prof. Jayanth R. Varma Independent Director Corporate social responsibility Sangita Singh committee Director Ravikumar Singisetti Chairperson Board committees Anantharaman Radhakrishnan Audit committee Member Prof.

2 Jayanth R. Varma Prahlad Chairperson and Financial Expert Member Prahlad Member Ravikumar Singisetti Member As on April 11, 2018. This page is left blank intentionally Contents Board's report.. 1. Annexures to the Board's report .. 11. Corporate governance report .. 27. Management's discussion and analysis .. 37. Risk management report .. 53. Report on health, safety and environment .. 55. CEO and CFO certification .. 56. Standalone financial statements .. 57. Consolidated financial statements.. 96. Ratio analysis.. 137. Global presence.. 138. Notice to the 16th Annual General Meeting.. 140. Proxy form .. 146. This page is left blank intentionally Board's report Dear members, The Board of Directors hereby submits the report of the business and operations of your Company ( the Company'), along with the audited financial statements, for the financial year ended March 31, 2018.

3 The consolidated performance of the Company and its subsidiaries (Group) has been referred to wherever required. 1. Results of our operations and state of affairs in ` crore, except per equity share data Particulars Standalone Consolidated For the year ended For the year ended March 31, March 31, 2018 2017 2018 2017. Revenue from operations 3,061 2,940 4,518 4,019. Cost of sales 2,192 1,993 3,369 2,819. Gross profit 869 947 1,149 1,200. Selling and marketing expenses 166 156 169 165. General and administration expenses 280 262 409 388. Operating profit 423 529 571 647. Other income, net 219 221 210 242. Profit before tax 642 750 781 889. Tax expenses 173 198 209 160. Profit for the year 469 552 572 729.

4 Other comprahensive income Items that will not be reclassified subsequently to profit or loss (3) (4) (4) (4). Items that will be reclassified subsequently to profit or loss (2) (0) 95 (44). Total other comprahensive income, net of tax (5) (4) 91 (48). Total comprahensive income for the year 464 548 663 681. Earnings per share (EPS) (1). Basic Diluted Notes: The above figures are extracted from the audited standalone and consolidated financial statements as per Indian Accounting Standards (Ind AS).1 crore = 10 million (1). Equity shares are at par value of ` 10 per share. Infosys BPM Limited Annual Report 2017-18 Board's report | 1. Financial Position in ` crore, except equity share and per equity share data Particulars Standalone Consolidated 2018 2017 2018 2017.

5 Cash and cash equivalents 1,303 2,061 1,928 2,534. Current investments 458 279 458 279. Assets held for sale - - - - Net current assets 895 899 2,683 3,137. Property, plant and equipment (including capital work-in-progress) 252 269 278 300. Goodwill 19 19 387 378. Other intangible assets - - 16 27. Other non-current assets 27 10 88 10. Total assets 3,980 4,443 5,257 5,225. Liabilities directly associated with assets held for sale - - - - Non-current liabilities 10 - 34 - Retained earnings opening balance 3,961 3,413 4,435 3,754. Add : Profit for the year 469 552 572 729. Exchange differences on translation foreign operations and re measurement differences (5) (4) 91 (48). Transfer from Special Economic Zone Re-investment Reserve on utilization(1) 24 - 24 - Less : Dividends including dividend distribution tax (1,018) - (1,018) - Transfer to general reserve - - - - Transfer to Special Economic Zone Re-investment Reserve(1) (24) - (24) - Retained earnings closing balance 3,407 3,961 4,080 4,435.

6 Other equity 34 34 34 34. Total equity 3,441 3,995 4,114 4,469. Total equity and liabilities 3,980 4,443 5,527 5,225. Number of equity shares 3,38,27,751 3,38,27,751 3,38,27,751 3,38,27,751. The Special Economic Zone (SEZ) Re-investment Reserve has been created out of the profit of eligible SEZ units in terms of the provisions of Section (1). 10AA(1)(ii) of the 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 Section 10AA(2) of the Income-tax Act, 1961. 2 | Board's report Infosys BPM Limited Annual Report 2017-18. Company's overview Performance overview (standalone). Infosys BPM Limited, (IBPM), formerly Infosys BPO Limited, Our revenue from operations aggregated to ` 3,061 crore, up the business process management subsidiary of Infosys by from ` 2,940 crore in the previous year.

7 Limited, provides end-to-end transformative services to Our gross profit amounted to ` 869 crore as against ` 947. its clients globally. The company's integrated IT and BPM crore in the previous year. The operating profit amounted solutions approach enables it to unlock business value across to ` 423 crore as against ` 529 crore in the previous year. industries and service lines, and address business challenges Sales and marketing costs were ` 166 crore and ` 156 crore for its clients. The primary focus for Infosys BPM is to enable for the years ended March 31, 2018 and March 31, 2017. its clients to achieve their cost reduction objectives, improve respectively. General and administration expenses were ` 280.

8 Process efficiencies, enhance effectiveness, and deliver crore and ` 262 crore during the current year and previous superior customer experience. year respectively. The net profit after tax was ` 469 crore as Infosys BPM Limited is a leader in providing innovative against ` 552 crore in the previous year. The profit after tax solutions to its clients in today's ever changing technology for the year is of revenue. landscape. Whether it is about utilizing innovative business excellence frameworks, ongoing productivity improvements, Performance overview (consolidated). process reengineering, automation, and cutting-edge Our revenue from operations aggregated to ` 4,518 crore, up technology platforms, we are able to add value to our clients.

9 By from ` 4,019 crore in the previous year. Some of the new age services that have become an integral Our gross profit amounted to ` 1,149 crore as against ` 1,200. part of the basket of services that we provide are: Business crore in the previous year. The operating profit amounted to of Digital; Robotic Process Automation (RPA); Mortgage ` 571 crore as against ` 647 crore in the previous year. Sales Origination Services; Business Transformation Services (BTS); and marketing costs were ` 169 crore and ` 165 crore for the Analytics and McCamish Insurance Utilities. years ended March 31, 2018 and March 31, 2017 respectively. We are also building new solutions to focus on enhancing the General and administration expenses were ` 409 crore and efficiency, effectiveness and experience through End-to-End ` 388 crore during the current and previous year, respectively.

10 Digital solutions across processes of client's Digital Ecosystem. The net profit after tax was ` 572 crore as against ` 729 crore Infosys has been ranked globally among ITES digital in the previous year. The Group's profitability after tax for the marketing vendors by Nelson Hall in its ability to meet both year is % of revenue. current and future marketing needs of clients. A OneInfy The Company continues to be amongst the most profitable GTM approach will be followed in the digital world to provide BPM companies in India. The Company has 187 customers as Technology + BPM + Consulting services eventually leading to on March 31, 2018. The Company ended FY18 with 35,058. become partners for our existing and new clients.