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« Mar 13
Auditor's Report (Infosys) Year End : Mar '14
We have audited the accompanying financial statements of Infosys
 Limited (''the Company'') which comprise the balance sheet as at 31 March
 2014, the statement of profit and loss and the cash flow statement for
 the year then ended and a summary of significant accounting policies
 and other explanatory information.
 
 Management''s Responsibility for the Financial Statements
 
 The Management is responsible for the preparation of these financial
 statements that give a true and fair view of the financial position,
 financial performance and cash flows of the Company in accordance with
 the Accounting Standards referred to in sub-section (3C) of section 211
 of the Companies Act, 1956 (''the Act'') read with the General Circular
 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in
 respect of Section 133 of the Companies Act, 2013. This responsibility
 includes the design, implementation and maintenance of internal control
 relevant to the preparation and presentation of the financial
 statements that give a true and fair view and are free from material
 misstatement, whether due to fraud or error.
 
 Auditor''s Responsibility
 
 Our responsibility is to express an opinion on these financial
 statements based on our audit. We conducted our audit in accordance
 with the Standards on Auditing issued by the Institute of Chartered
 Accountants of India. Those Standards require that we comply with
 ethical requirements and plan and perform the audit to obtain
 reasonable assurance about whether the financial statements are free
 from material misstatement.
 
 An audit involves performing procedures to obtain audit evidence about
 the amounts and disclosures in the financial statements. The procedures
 selected depend on the auditor''s judgment, including the assessment of
 the risks of material misstatement of the financial statements, whether
 due to fraud or error. In making those risk assessments, the auditor
 considers internal control relevant to the Company''s preparation and
 fair presentation of the financial statements in order to design audit
 procedures that are appropriate in the circumstances, but not for the
 purpose of expressing an opinion on the effectiveness of the entity''s
 internal control. An audit also includes evaluating the appropriateness
 of accounting policies used and the reasonableness of the accounting
 estimates made by management, as well as evaluating the overall
 presentation of the financial statements.
 
 We believe that the audit evidence we have obtained is sufficient and
 appropriate to provide a basis for our audit opinion.
 
 Opinion
 
 In our opinion and to the best of our information and according to the
 explanations given to us, the financial statements give the information
 required by the Act in the manner so required and give a true and fair
 view in conformity with the accounting principles generally accepted in
 India :
 
 (i) in the case of the balance sheet, of the state of affairs of the
 Company as at 31 March 2014; 
 
 (ii) in the case of the statement of profit and loss, of the profit for
 the year ended on that date; and
 
 (iii) in the case of the cash flow statement, of the cash flows for the
 year ended on that date.
 
 Report on Other Legal and Regulatory Requirements
 
 1.  As required by the Companies (Auditor''s Report) Order, 2003 (''the
 Order''), as amended, issued by the Central Government of India in terms
 of sub-section (4A) of section 227 of the Act, we give in the Annexure
 a statement on the matters specified in paragraphs 4 and 5 of the
 Order.
 
 2.  As required by section 227(3) of the Act, we report that :
 
 a.  we have obtained all the information and explanations which to the
 best of our knowledge and belief were necessary for the purpose of our
 audit;
 
 b.  in our opinion proper books of account as required by law have been
 kept by the Company so far as appears from our examination of those
 books;
 
 c.  the balance sheet, statement of profit and loss and cash flow
 statement dealt with by this Report are in agreement with the books of
 account;
 
 d.  in our opinion, the balance sheet, statement of profit and loss and
 cash flow statement comply with the Accounting Standards referred to in
 sub-section (3C) of section 211 of the Companies Act, 1956 read with
 the General Circular 15/2013 dated 13 September 2013 of the Ministry of
 Corporate Affairs in respect of Section 133 of the Companies Act, 2013;
 and
 
 e.  on the basis of written representations received from the directors
 as on 31 March 2014, and taken on record by the Board of Directors,
 none of the directors is disqualified as on 31 March 2014, from being
 appointed as a director in terms of clause (g) of sub-section (1) of
 section 274 of the Companies Act, 1956.
 
 The Annexure referred to in our report to the members of Infosys
 Limited (''the Company'') for the year ended 31 March 2014. We report
 that :
 
 (i) (a) The Company has maintained proper records showing full
 particulars, including quantitative details and situation of fixed
 assets.
 
 (b) The Company has a regular programme of physical verification of its
 fixed assets by which fixed assets are verified in a phased manner over
 a period of three years. In accordance with this programme, certain
 fixed assets were verified during the year and no material
 discrepancies were noticed on such verification. In our opinion, this
 periodicity of physical verification is reasonable having regard to the
 size of the Company and the nature of its assets.
 
 (c) Fixed assets disposed off during the year were not substantial, and
 therefore, do not affect the going concern assumption.
 
 (ii) The Company is a service company, primarily rendering information
 technology services. Accordingly, it does not hold any physical
 inventories. Thus, paragraph 4(ii) of the Order is not applicable.
 
 (iii) (a) The Company has granted loans to two bodies corporate covered
 in the register maintained under section 301 of the Companies Act, 1956
 (''the Act''). The maximum amount outstanding during the year was Rs.
 1,950,186,528 and the year-end balance of such loan amounted to Nil.
 Other than the above, the Company has not granted any loans, secured or
 unsecured, to companies, firms or parties covered in the register
 maintained under section 301 of the Act.
 
 (b) In our opinion, the rate of interest and other terms and conditions
 on which the loans had been granted to the bodies corporate listed in
 the register maintained under Section 301 of the Act were not, prima
 facie, prejudicial to the interest of the Company.
 
 (c) In the case of the loans granted to the bodies corporate listed in
 the register maintained under section 301 of the Act, the borrowers
 have been regular in the payment of the interest as stipulated. The
 loans were repayable on demand and have been fully repaid during the
 year.
 
 (d) The loans granted were repaid during the year. Accordingly, there
 are no overdue amounts of more than rupees one lakh in respect of the
 loan granted to a body corporate listed in the register maintained
 under section 301 of the Act.
 
 (e) The Company has not taken any loans, secured or unsecured from
 companies, firms or parties covered in the register maintained under
 section 301 of the Act. Accordingly, paragraphs 4(iii)(e) to 4(iii)(g)
 of the Order are not applicable.
 
 (iv) In our opinion and according to the information and explanations
 given to us, there is an adequate internal control system commensurate
 with the size of the Company and the nature of its business with regard
 to purchase of fixed assets and sale of services. The activities of the
 Company do not involve purchase of inventory and the sale of goods. We
 have not observed any major weakness in the internal control system
 during the course of the audit.
 
 (v) (a) In our opinion and according to the information and
 explanations given to us, the particulars of contracts or arrangements
 referred to in section 301 of the Act have been entered in the register
 required to be maintained under that section.
 
 (b) In our opinion, and according to the information and explanations
 given to us, the transactions made in pursuance of contracts and
 arrangements referred to in (v)(a) above and exceeding the value of Rs. 5
 lakh with any party during the year have been made at prices which are
 reasonable having regard to the prevailing market prices at the
 relevant time.
 
 (vi) The Company has not accepted any deposits from the public.
 
 (vii) In our opinion, the Company has an internal audit system
 commensurate with the size and the nature of its business.
 
 (viii) The Central Government of India has not prescribed the
 maintenance of cost records under Section 209(1)(d) of the Act for any
 of the services rendered by the Company.
 
 (ix) (a) According to the information and explanations given to us and
 on the basis of our examination of the records of the Company, amounts
 deducted / accrued in the books of account in respect of undisputed
 statutory dues including Provident Fund, Investor Education and
 Protection Fund, Income tax, Sales tax, Wealth tax, Service tax, and
 other material statutory dues have been regularly deposited during the
 year by the Company with the appropriate authorities. As explained to
 us, the Company did not have any dues on account of Employees'' State
 Insurance, Customs duty and Excise duty.
 
 According to the information and explanations given to us, no
 undisputed amounts payable in respect of Provident Fund, Investor
 Education and Protection Fund, Income tax, Sales tax, Wealth tax,
 Service tax and other material statutory dues were in arrears as at 31
 March 2014 for a period of more than six months from the date they
 became payable.
 
 (b) According to the information and explanations given to us, there
 are no material dues of Wealth tax and Cess which have not been
 deposited with the appropriate authorities on account of any dispute.
 However, according to information and explanations given to us, the
 following dues of Income tax, Sales tax, and Service tax, have not been
 deposited by the Company on account of disputes :
 
 Name of the statute       Nature of dues            Amount (in Rs.)
 
 Income Tax Act, 1961      Interest on                     5,084,704
                           Income tax demanded
 
 Income Tax Act, 1961      Income tax                 (1) 29,595,642
 
 Service tax               Service tax and            (2) 57,563,973
                           penalty demanded
 
 Service tax               Service tax demanded       (2) 25,784,864
 
 Service tax               Service tax and           (2) 231,521,178
                           penalty demanded
 
 Service tax               Service tax demanded       (2) 41,972,658
 
 Service tax               Service tax demanded       (2) 64,654,051
 
 Service tax               Service tax and                60,643,700
                           penalty demanded
 
 APVAT Act, 2005           Sales tax demanded       (1)(2) 3,112,450
 
 MVAT Act, 2005            Sales tax                  (1)(2) 935,455
 
 MVAT Act, 2005            Sales tax                      45,250,506
 
 Central Excise Act, 1944  Excise duty & penalty     (2) 386,148,018
 
 Central Excise Act, 1944  Excise duty & penalty      (2) 26,746,497
 
 Central Excise Act, 1944  Excise duty & penalty          45,132,885
 
 Central Excise Act, 1944  Excise duty & penalty      (2) 32,344,749
 
 Central Excise Act, 1944  Excise duty & penalty      (2) 42,003,700
 
 KVAT Act, 2003            Sales tax, interest
                           and                    (1)(2) 481,461,456 
                           penalty
                           demanded
 
 
 
 Name of the Status        Period to which the 
                           amount                    Forum where dispute
                                                     is
                           relates                   pending
 
 Income Tax Act, 1961      Assessment year 2006-2007 CIT (Appeals),
                                                     Bangalore
 
 Income Tax Act, 1961      Assessment year 2009-2010 CIT (Appeals), 
                                                     Bangalore
 
 Service tax               July 2004 to October 2005 CESTAT, Bangalore
 
 Service tax               January 2005 to March
                           2009                      CESTAT, Bangalore
 
 Service tax               February 2007 to March    CESTAT, Bangalore
                           2009
 
 Service tax               April 2009 to March 2010  CESTAT, Bangalore
 
 Service tax               April 2010 to March 2011  CESTAT, Bangalore
 
 Service tax               April 2007 to March 2008  Commissioner,
                                                     Bangalore
 
 APVAT Act, 2005           April 2007 to March 2008  High Court of
                                                     Andhra Pradesh
 
 MVAT Act, 2005            April 2006 to December    Joint Commissioner
                                                    (Appeals)
                           2007
 
 MVAT Act, 2005            September 2008 to October Specified Officer
                                                     of SEZ
                           2011
 
 Central Excise Act, 1944  March 2006 to December    CESTAT, Bangalore
                           2009
 
 Central Excise Act, 1944  January 2010 to December  Commissioner,
                                                     Bangalore
                           2010
 
 Central Excise Act, 1944  January 2011 to June 2011 CESTAT, Bangalore
 
 Central Excise Act, 1944  July 2011 to December 
                           2011                      CESTAT, Bangalore
 
 Central Excise Act, 1944  January 2012 to November  CESTAT, Bangalore
                           2012
 
 KVAT Act, 2003            April 2005 to March 2009  High Court of 
                                                     Karnataka
 
 (1) net of amounts paid under protest
 
 (2) a stay order has been received against the amount disputed and not
 deposited.
 
 (x) The Company does not have any accumulated losses at the end of the
 financial year and has not incurred cash losses in the financial year
 and in the immediately preceding financial year.
 
 (xi) The Company did not have any outstanding dues to any financial
 institution, banks or debenture holders during the year
 
 (xii) The Company has not granted any loans and advances on the basis
 of security by way of pledge of shares, debentures and other
 securities.
 
 (xiii) In our opinion and according to the information and explanations
 given to us, the Company is not a chit fund / nidhi / mutual benefit
 fund / society.
 
 (xiv) According to the information and explanations given to us, the
 Company is not dealing or trading in shares, securities, debentures and
 other investments.
 
 (xv) According to the information and explanations given to us, the
 Company has not given any guarantee for loans taken by others from
 banks or financial institutions.
 
 (xvi) The Company did not have any term loans outstanding during the
 year.
 
 (xvii) The Company has not raised any funds on short-term basis.
 
 (xviii) The Company has not made any preferential allotment of shares
 to parties and companies covered in the register maintained under
 section 301 of the Act.
 
 (xix) The Company did not have any outstanding debentures during the
 year.
 
 (xx) The Company has not raised any money by public issues during the
 year.
 
 (xxi) According to the information and explanations given to us, no
 material fraud on or by the Company has been noticed or reported during
 the course of our audit.
 
                                       for B S R & Co. LLP
 
                                     Chartered Accountants
 
                      Firm''s registration number : 101248W
 
                                              Akhil Bansal
 
 Bangalore                                         Partner
 
 15 April, 2014                  Membership number. 090906
Source : Dion Global Solutions Limited
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