We are delighted to present the report on our business and operations
 for the year ended March 31, 2011.
 
 1.  Results of operations
 
                                   in Rs. crore, except per share data
                                               2011           2010
 
 Income from software 
 services and products                        25,385         21,140
 
 Software development expenses                14,267         11,559
 
 Gross profit                                 11,118          9,581
 
 Selling and marketing expenses                1,219            974
 
 General and administration expenses           1,485          1,247
 
 Operating profit before interest and
 depreciation (PBIDTA)                         8,414          7,360
 
 Interest                                          –              –
 
 Depreciation                                    740            807
 
 Operating profit before tax                   7,674          6,553
 
 Other income, net                             1,147            919
 
 Net profit before tax and exceptional item    8,821          7,472
 
 Provision for taxation                        2,378          1,717
 
 Net profit after tax and before 
 exceptional item                              6,443          5,755
 
 Income on sale of investments, net of
 taxes (1)                                         –             48
 
 Net profit after tax and after exceptional
 
 item                                          6,443          5,803
 
 Profit and Loss account balance brought
 forward                                      13,806         10,305
 
 Amount available for appropriation           20,249         16,108
 
 Dividend
 
 Interim                                         574           573
 
 30th year special dividend – interim          1,722             –
 
 Final                                         1,149           861
 
 Total dividend                                3,445         1,434
 
 Dividend tax                                    568           240
 
 Amount transferred to general reserve           645           580
 
 Amount transferred to capital reserve             –            48
 
 Balance in Profit and Loss account           15,591        13,806
 
 EPS before exceptional item (2)
 
 Basic                                        112.26        100.37
 
 Diluted                                      112.22        100.26
 
 EPS after exceptional item (2)
 
 Basic                                        112.26        101.22
 
 Diluted                                      112.22        101.10
 
 Notes : Rs. 1 crore equals Rs. 10 million.
 
 (1) Income from sale of investments in On Mobile Systems Inc., U.S.,
 net of taxes and transaction costs.
 
 (2) Equity shares are at par value of Rs. 5/- each.
 
 2.  Building Tomorrows Enterprise
 
 During the year, we formally launched our new corporate strategy,
 Building Tomorrows Enterprise to showcase our plan for leading the
 services industry into the new era as the next generation global
 consulting and services company. In our journey to increase our client
 relevance and sustain industry leadership, we have made organizational
 changes towards creating Infosys 3.0 – a truly global enterprise
 partner for our clients to drive their transformational, operational
 and innovation priorities and helping them build their enterprise of
 the future.
 
 To further our transition towards business-led consulting combined with
 innovative products and solutions, we have regrouped our existing
 industry units globally into the following groups :
 
 - Financial Services and Insurance
 
 - Manufacturing
 
 - Energy, Utilities, Communications and Services
 
 - Retail, Consumer Packaged Goods, Logistics and Life Sciences
 
 This transition will enable us to increase our client relevance,
 strengthen our strategic partnerships with our clients and evolve our
 business model.
 
 It will help us to sharpen our industry vertical focus, allow us to
 invest in capabilities to deliver higher business value and align our
 innovation agenda with that of our clients. The new structure will also
 significantly expand our global market and provide opportunities for
 the next generation of leaders.
 
 3.  Business
 
 Our total income increased to Rs.25,385 crore from Rs. 21,140 crore in
 the previous year, at a growth rate of 20.1%. Our software export
 revenues aggregated to Rs. 24,791 crore, up by 18.8% from Rs. 20,871
 crore in the previous year. Out of the total revenue 66.2% came from
 North America, 20.7% from Europe and 10.7% from the Rest of the World.
 
 Our revenues from India have increased from Rs. 269 crore to Rs. 594
 crore, with a growth rate of 120.8% which is higher than that of the
 other regions. The share of the fixed-price component of the business
 was 42.1%, compared to 40.8% during the previous year.
 
 Our gross profit amounted to Rs.  11,118 crore (43.8% of revenue) as
 against Rs. 9,581 crore (45.3% of revenue) in the previous year.  The
 onsite revenues increased from 48.7% in the previous year to 50.2% in
 the current year. The onsite person-months comprised 26.5% of the total
 billed efforts, compared to 26.1% during the previous year. The Profit
 Before Interest, Depreciation, Taxes and Amortization (PBIDTA) amounted
 to Rs. 8,414 crore (33.1% of revenue) as against Rs. 7,360 crore (34.8%
 of revenue) in the previous year. Sales and marketing costs were 4.8%
 and 4.6% of our revenue for the years ended March 31, 2011 and March
 31, 2010 respectively. General and administration expenses were 5.8%
 and 5.9% of our revenues during the current year and previous year
 respectively. The net profit after tax was Rs. 6,443 crore (25.4% of
 revenue) as against Rs. 5,803 crore (27.5% of revenue) in the previous
 year. The net profit for the previous year includes income from sale of
 investments in OnMobile Systems Inc., U.S., of Rs. 48 crore, net of
 taxes and transaction costs.
 
 We seek long-term partnerships with our clients that enhance their
 value while addressing their IT requirements. Our customer- centric
 approach has resulted in high levels of client satisfaction.  We
 derived 98% of our revenues from repeat business. We, along with our
 subsidiaries, added 139 new clients, including a substantial number of
 large global corporations. The total client base at the end of the year
 stood at 620. Further, we have 366 million-dollar clients (338 in the
 previous year), 187 five-million-dollar clients (159 in the previous
 year), 126 ten-million-dollar clients (97 in the previous year), 28
 fifty-million-dollar clients (26 in the previous year), and 11
 hundred-million-dollar clients (6 in the previous year).
 
 During the year, we added 19.86 lakh sq. ft. of physical infrastructure
 space. The total available space now stands at 276.63 lakh sq. ft.  The
 number of marketing offices as at March 31, 2011 was 64 as compared to
 65 in the previous year.
 
 4.  Subsidiaries
 
 We have nine subsidiaries : Infosys BPO Limited, Infosys Technologies
 (Australia) Pty. Limited, Infosys Technologies (China) Company Limited,
 Infosys Consulting, Inc., Infosys Technologies S. de R. L. de C. V. ,
 Infosys Technologies (Sweden) AB, Infosys Tecnologia do Brasil Ltda,
 Infosys Public Services Inc., U.S., and Infosys Technologies (Shanghai)
 Company Limited. We have four step-down subsidiaries : Infosys BPO
 s.r.o., Infosys BPO (Poland) Sp.Z.o.o, McCamish Systems LLC, and
 Infosys Consulting India Limited.
 
 As per Section 212 of the Companies Act, 1956, we are required to
 attach the Directors report, Balance Sheet, and Profit and Loss
 account of our subsidiaries. The Ministry of Corporate Affairs,
 Government of India vide its circular no. 2/2011 dated February 8, 2011
 has provided an exemption to companies from complying with Section 212,
 provided such companies publish the audited consolidated financial
 statements in the Annual Report. Accordingly, the Annual Report 2010-11
 does not contain the financial statements of our subsidiaries. The
 audited annual accounts and related information of our subsidiaries,
 where applicable, will be made available upon request. These documents
 will also be available for inspection during business hours at our
 registered office in Bangalore, India. The same will also be published
 on our website, www.infosys.com
 
 5.  FinacleTM
 
 Finacle™, our universal banking solution, partners with banks across
 the globe to power their innovation agenda enabling them to
 differentiate their products and services thereby enhancing customer
 experience and achieving greater operational efficiency.  FinacleTM is
 a comprehensive, flexible and fully web-enabled solution that addresses
 the core banking, treasury, wealth management, Islamic banking,
 consumer and corporate e-banking, direct banking, financial inclusion
 and mobile banking requirements of universal, retail and corporate
 banks worldwide. Other offerings in the FinacleTM universal banking
 solution include the FinacleTM Core Banking solution for regional rural
 banks; the FinacleTM Alerts Solution, which enables banks to alert
 end-users on events recorded by diverse business systems; FinacleTM
 Advizor, which combines the convenience of human intervention with
 banking self-service channels through the interplay of video, audio and
 data communication; and FinacleTM WatchWiz, a comprehensive
 new-generation monitoring solution that allows banks to monitor,
 diagnose and resolve issues. Our professional services complement the
 solutions portfolio and include consulting, package implementation,
 independent validation, migration, application development and
 maintenance, system integration, software performance engineering and
 support. These offerings make Finacle™ a strong innovation facilitator,
 enabling banks to accelerate growth, while maximizing value from their
 large-scale business transformation.  FinacleTM is chosen by 140 banks
 across 73 countries to power operations across 47,000 branches. Today,
 FinacleTM enables its customer banks to serve 390 million accounts and
 289 million consumers worldwide. Finacle™ is also leading the financial
 inclusion agenda in India. Of the 82 regional rural banks in the
 country, 45 have opted to leverage FinacleTM across 9,900 branches.
 Independent reports by renowned research firms have positioned
 FinacleTM among the leaders in the global evaluation of retail core
 banking solution vendors.  Finacle™ is one of the most scalable core
 banking solutions in the world with an unparalleled performance
 benchmark of 104 million effective transactions per hour for channel
 (non-branch) transactions and 41 million effective transactions per
 hour for branch transactions.
 
 6.  Quality
 
 We continue our journey of delivering value to our clients through
 significant investments in quality programs. In September 2010, an
 enterprise-wide CMMi assessment was conducted by an SEI-certified
 high-maturity appraiser, and we were assessed at CMMi Level 5. This is
 the highest level of the CMMi assessment. SEI-CMMi
 
 is the Carnegie Mellon Software Engineering Institutes Capability
 Maturity Model, which assesses the quality of an organizations
 processes and methodologies.
 
 Our Quality department handles large change-management initiatives to
 drive quality and productivity improvements across the organization and
 is managed through the Balanced Scorecard and Infosys Scaling
 Outstanding Performance (iSOP) program.
 
 During the year, the Quality department, in collaboration with multiple
 stakeholders across the organization, had developed a framework called
 Business Value Articulation which ensures alignment of our approaches
 to deliver value to our customers. Some of our key initiatives are :
 
 ENCORE : An initiative to promote reuse and reduce cycle time by
 creating and deploying reusable technical and business components.
 
 i-Trim : A framework based on lean practices, focusing on eliminating
 non-compete activities to optimize process performance, addressing
 business and operational challenges in service delivery.
 
 BrITe : Our customer centric, systematic, data driven methodology to
 create an impact on the business results and assist in maximizing
 profits.
 
 Proso++ : An empirical model based on the best practices and execution
 experience of the delivery teams at Infosys.
 
 We continue to focus on institutionalizing large initiatives. Some of
 our achievements in the area are listed below :
 
 Infy Swift : Our differentiated methodology for the Global Delivery
 Model (GDM) to achieve faster time to market.
 
 ESTEEM : This is our Centre of Excellence to enhance estimation
 maturity for improved predictability and de-risking of our client
 delivery.
 
 TRANSCEED : Our initiative to enhance program management capabilities,
 including development of integrated systems and tools, relevant
 enabling / certification and ecosystem for collaboration / knowledge
 exchange.
 
 ASCENT : A framework to provide a robust and integrated platform for
 account management that further facilitates account planning,
 monitoring and reviews.
 
 PROSPER : A differentiated methodology for driving excellence in
 production support services.
 
 TIDE : A solution that brings together tools, systems and processes
 across lifecycle stages and enhances data integrity by capturing
 accurate data.
 
 We are certified under various standards to meet our client demands and
 improve value delivery. These certifications include TL 9000-SV, ISO
 9001 : 2008, AS EN 9100, ISO 20000, BS25999, OHSAS 18001, ISO 14001,
 ISO 23026, ISO 27001 and ISO 13485. Infosys BPO has been certified for
 eSCM – SP v. 2.0 Level 5, the eSourcing Capability Model for Service
 Providers developed by a consortium led by Carnegie Mellon Universitys
 Information Technology Services Qualification Center. Our Australia and
 Shanghai centers have been assessed at SEI-CMMi Level 5 and ISO 27001.
 
 7.  Infosys Labs
 
 Infosys Labs, launched as part of our strategic direction Building
 Tomorrows Enterprise, is responsible for driving innovation across
 the mega trends identified by us that will transform the businesses of
 our clients. Building on the successes of the award winning SETLabs,
 Infosys Labs will focus on the Companys vision and enable customer
 co-creation, while continuing its focus on service differentiation and
 developing client-focused business solutions.
 
 Organized as a global network of research labs and innovation hubs,
 Infosys Labs will :
 
 -Undertake research to define the ideas behind Building Tomorrows
 Enterprise
 
 - Identify large, multidisciplinary problem spaces that embody the
 challenges facing our clients and create technological solutions to
 solve them
 
 - Create client-specific innovation agenda through co-creation and
 ensure business value realization
 
 - Collaborate with universities and external research labs worldwide
 
 - Leverage global talent
 
 During the year, more than 96 articles were published by Infosys Labs
 researchers in leading journals, magazines and conference proceedings.
 SETLabs Briefings, our highly respected peer-reviewed journal,
 published multiple issues this fiscal year, in areas such as
 e-Governance, Green IT, Business Platforms for Next-Gen Enterprise
 Packages, Leveraging IT for Better Performance, Service Oriented
 Performance, Digital Convergence and Perspectives on Software
 Engineering. Infosys Labs collaborated with leading national and
 international universities such as the University of Southern
 California, Indian Institute of Technology, Bombay – Monash Research
 Academy Purdue University, IIIT, Hyderabad and IIIT, Bangalore.
 
 During the year, Infosys Labs IP Cell filed 91 patent applications in
 the United States Patent and Trademark Office (USPTO) and the Indian
 Patent Office. We now have an aggregate of 357 patent applications
 pending in India and the U.S. The USPTO has granted us 22 patents.
 
 8.  Branding
 
 The Infosys brand is one of the most important intangible assets that
 we own. As part of the journey towards building a globally respected
 brand, we recently unveiled our new corporate strategy of Building
 Tomorrows Enterprise, to position Infosys as a next generation global
 consulting and IT services company.
 
 During the fiscal year, our brand has been recognized by leading
 publications and independent industry bodies. We were :
 
 - Ranked as Indias Most Admired Company according to the Wall Street
 Journal survey
 
 - Voted the Most Admired Indian Company by peers in the Businessworld
 Most Respected Companies 2011 survey
 
 - Acknowledged by the Harvard Business Review for our best practice in
 The CEOs Role in Business Model Reinvention
 
 - Awarded the NASSCOM Diversity Award for Innovative Programs
 
 - Awarded the Sustainability Leadership award by India Carbon Outlook
 
 - Awarded the CII National Award for Excellence in Energy Management
 2010
 
 Industry analysts rated us as a leader in reports across our key
 services and markets. The offerings for which we were rated highly
 include application outsourcing, infrastructure management, Oracle and
 SAP service providers, comprehensive finance and accounting, business
 process outsourcing, and for the FinacleTM core banking solution.
 
 We saw a substantial increase in the number of visitors to our website
 and continued to add to the million-plus visitors to our blogs on
 business and technology-related topics during the year. Our employees
 contributed and published several thought leadership articles across
 various industry forums and publications. We leveraged social media
 platforms and engaged with our stakeholders and investors on YouTube,
 SlideShare, Twitter and Facebook.
 
 Leading global publications commended us on our leadership, talent and
 performance. We continued to have a leadership presence at premier
 industry events like Oracle® Open World and Sapphire. Our annual client
 event, Confluence, in the U.S. and Europe were well attended, and
 highly appreciated. At the World Economic Forum
 
 in Davos, Switzerland, our lunch panel discussion witnessed a full
 audience and the evening get-together hosted by us was attended by some
 of the most influential and powerful global business leaders.
 
 9.  Awards and recognition
 
 In 2010, as in previous years, awards and recognition marked our
 accomplishments in various fields. We were :
 
 - The winners of the RMMY Best in Show award for the third year in a
 row
 
 Among the top 20 global companies to win the Most Admired Knowledge
 Enterprises (MAKE) Award 2010 Named the best company for corporate
 governance in the Asiamoney poll
 
 - Ranked among the top 10 value-creating technology and
 telecommunications companies by the Boston Consulting Group
 
 - The winners (along with Telstra) of the Best ITSM (IT Service
 Management) Project of the Year, the top industry award given by itSMF
 Australia
 
 - Voted the best company in management, corporate governance, investor
 relations, and corporate social responsibility (India) in a survey by
 FinanceAsia
 
 10.  Capital expenditure
 
 During the year, we capitalized Rs. 1,017 crore excluding Rs. 3 crore,
 which was due to the movement in land from leasehold to freehold to our
 gross block. This comprises of Rs. 251 crore for investment in computer
 equipment. The balance of Rs.764 crore was due to infrastructure
 investment along with Rs. 2 crore on vehicles.  We invested Rs. 225
 crore to acquire 267 acres of land in Bangalore, Delhi and Mangalore.
 
 During the previous year, we capitalized Rs. 787 crore to our gross
 block.  This comprised of Rs. 140 crore for investment in computer
 equipment.  The balance of Rs. 646 crore was due to infrastructure
 investment along with Rs.  1 crore on vehicles. We invested Rs. 43
 crore to acquire 161 acres of land in Hyderabad, Mysore and Mangalore.
 
 11.  Liquidity
 
 We continue to be debt-free, and maintain sufficient cash to meet our
 strategic objectives. We clearly understand that the liquidity in the
 Balance Sheet has to balance between earning adequate returns and the
 need to cover financial and business risks. Liquidity also enables us
 to make a rapid shift in direction, should the market so demand.
 During fiscal 2011, internal cash flows have more than adequately
 covered working capital requirements, capital expenditure, investment
 in subsidiaries and dividend payments. As at March 31, 2011, we had
 liquid assets of Rs. 15,284 crore as against Rs.  14,794 crore at the
 previous year-end.
 
 These funds have been invested in deposits with banks, highly rated
 financial institutions, certificates of deposits and liquid mutual
 funds.
 
 12.  Increase in share capital
 
 During the year, we issued 3,26,367 shares on the exercise of stock
 options under the 1998 and 1999 Employee Stock Option Plans.  As a
 result of this, the outstanding issued, subscribed and paid-up equity
 shares increased from 57,38,25,192 to 57,41,51,559 shares as at March
 31, 2011.
 
 13.  Appropriations
 
 Dividend
 
 Our policy is to pay dividend of up to 30% of the consolidated net
 profit after tax of the group.
 
 In October 2010, we paid an interim dividend of Rs. 10/- per share and
 a 30th year special dividend of Rs. 30/- per share. We recommended a
 final dividend of Rs. 20/- per share (par value of Rs. 5/- each),
 making in all Rs. 60/- per share as dividend for the year.
 
 The total dividend amount paid out is Rs. 3,445 crore, as against Rs.
 1,434 crore in the previous year. Dividend (including dividend tax)
 excluding 30th year special dividend as a percentage of consolidated
 profit after tax is 29.3% as compared to 26.9% in the previous year.
 
 The register of members and share transfer books will remain closed
 from May 28, 2011 to June 11, 2011 (both days inclusive). Our Annual
 General Meeting has been scheduled to be held on June 11, 2011.
 
 Transfer to reserves
 
 We propose to transfer Rs. 645 crore (10% of the net profit for the
 year) to the general reserve. An amount of Rs. 15,591 crore is proposed
 to be retained in the Profit and Loss account.
 
 14.  Corporate governance
 
 We continue to be a pioneer in benchmarking our corporate governance
 policies with the best in the world. Our efforts are widely recognized
 by investors in India and overseas. We have undergone the corporate
 governance audit by ICRA and Credit Rating Information Services of
 India Limited (CRISIL). ICRA has rated our corporate governance
 practices at CGR 1. CRISIL has assigned CRISIL GVC Level 1 rating to
 us.
 
 We have complied with the recommendations of the Narayana Murthy
 Committee on Corporate Governance constituted by the Securities and
 Exchange Board of India (SEBI). For fiscal year 2011, the compliance
 report is provided in the Corporate governance section of the Annual
 Report. The auditors certificate on compliance with the mandatory
 recommendations of the committee is provided in the Annexure to the
 directors report section.
 
 We have documented our internal policies on corporate governance.  In
 line with the committees recommendations, the Managements Discussion
 and Analysis of the financial position of the Company is provided in
 this Annual Report.
 
 During the year, we continued to fully comply with the U.S. Sarbanes-
 Oxley Act of 2002. Several aspects of the Act, such as the
 Whistleblower Policy and Code of Conduct, have been incorporated in our
 Company policy. Our Code of Conduct was updated to make it relevant and
 responsive to the changing needs of our business.
 
 15.  Conservation of energy, research and development, technology
 absorption, foreign exchange earnings and outgo
 
 The particulars as prescribed under Sub-section (1)(e) of Section 217
 of the Companies Act, 1956, read with the Companies (Disclosure of
 particulars in the report of the Board of Directors) Rules, 1988, are
 provided in the Annexure to the directors report section.
 
 16.  Particulars of employees
 
 In terms of the provisions of Section 217 (2A) of the Companies Act,
 1956, read with the Companies (Particulars of Employees) Rules, 1975,
 the names and other particulars of employees are set out in the
 Annexure to the directors report. However, having regard to the
 provisions of Section 219 (1)(b)(iv) of the Companies Act, 1956, the
 Annual Report excluding the aforesaid information is being sent to all
 the members of the Company and others entitled thereto. Any member
 interested in obtaining such particulars may write to the Company
 Secretary at the registered office of the Company. The same will also
 be published on our website www.infosys.com
 
 17.  Directors responsibility statement as required under Section 217
 (2AA) of the Companies Act, 1956
 
 The financial statements are prepared in accordance with the accounting
 standards issued by the Institute of Chartered Accountants of India and
 the requirements of the Companies Act, 1956, to the extent applicable
 to us; and guidelines issued by SEBI on the historical cost
 
 convention; as a going concern and on the accrual basis. There are no
 material departures from prescribed accounting standards in the
 adoption of the accounting standards.
 
 The Board of Directors accepts responsibility for the integrity and
 objectivity of these financial statements. The accounting policies used
 in the preparation of the financial statements have been consistently
 applied except as otherwise stated in the notes accompanying the
 respective tables. The estimates and judgments related to the financial
 statements have been made on a prudent and reasonable basis, in order
 that the financial statements reflect in a true and fair manner the
 form and substance of transactions, and reasonably present our state of
 affairs and profits for the year.
 
 We have taken proper and sufficient care for the maintenance of
 adequate accounting records in accordance with the provisions of the
 Companies Act, 1956, to safeguard the assets of the Company and to
 prevent and detect fraud and other irregularities.
 
 18.  Directors
 
 The Board inducted R. Seshasayee and Ravi Venkatesan to the Board.  We
 seek your support in confirming their appointment as directors liable
 to retire by rotation.
 
 In accordance with the retirement policy for the Companys Board of
 Directors (the Board), Claude Smadja, Independent Director, retired
 from the Board effective August 30, 2010. We place on record our deep
 sense of appreciation for the services rendered by Claude Smadja during
 his tenure as a Board member.
 
 As per Article 122 of the Articles of Association, K. Dinesh, Srinath
 Batni, Sridar A. Iyengar, Deepak M. Satwalekar and Dr. Omkar Goswami
 retire by rotation in the forthcoming Annual General Meeting.  All of
 them, being eligible, seek re-appointment, except K. Dinesh.
 
 K. Dinesh has expressed his intention not to seek re-appointment.  The
 Members of the Board place on record their deep sense of appreciation
 for the services rendered by K. Dinesh during his tenure as Member of
 the Board and Head of Quality, Information Systems and the
 Communication Design Group.
 
 T. V. Mohandas Pai has resigned as Member of the Board and has
 requested the Board to relieve him of the responsibilities post the
 Companys Annual General Meeting on June 11, 2011.
 
 The Board of Directors considered and accepted the resignation of T. V.
 Mohandas Pai. The resignation is effective June 11, 2011, post the
 Companys Annual General Meeting. The Members of the Board have placed
 on record their deep sense of appreciation for the services rendered by
 T. V. Mohandas Pai during his tenure as Member of the Board, and
 Director and Head – Administration, Education & Research, Finacle,
 Human Resources Development, and Infosys Leadership Institute.
 
 19.  Auditors
 
 The auditors, B S R & Co., Chartered Accountants, retire at the ensuing
 Annual General Meeting and have confirmed their eligibility and
 willingness to accept office, if re-appointed.
 
 20.  Fixed deposits
 
 We have not accepted any fixed deposits and, as such, no amount of
 principal or interest was outstanding as of the Balance Sheet date.
 
 21.  Human resources management
 
 Employees are our vital and most valuable assets. We have created a
 favorable work environment that encourages innovation and meritocracy.
 We have also set up a scalable recruitment and human resources
 management process, which enables us to attract and retain high-caliber
 employees. We added 15,321 (net) and 32,247 (gross) employees this
 year, taking our total strength to 1,08,009 from 92,688 at the end of
 the previous year. We added 17,024 (net) and 43,120 (gross) employees
 this year, taking the total strength of the Infosys group to 1,30,820
 from 1,13,796 at the end of the previous
 
 year. Our attrition rate stands at 17.0% compared to 13.4% for the
 previous year. Over the last year, we received 8,29,800 applications
 from prospective employees and we continue to remain an employer of
 choice in the industry.
 
 22.  Education & Research
 
 Continuous education of our employees is of prime significance for us.
 We believe that this is necessary not only for our own sustainability
 and growth as an organization but also for enabling the professional
 development of our employees. In addition to the six month residential
 foundation program that we conduct for every fresh engineer who joins
 us, we also lay significant emphasis on the continuous education of our
 employees. The foundation program is designed to aid students in
 effectively transitioning from the academic world to the corporate
 world as qualified professionals.
 
 During the financial year, the total training provided for Infoscions
 was over 1.5 million person days. During the year, we launched several
 novel programs to help enhance the business competency of our
 employees, in addition to introducing new programs aligned to evolving
 business needs.
 
 We have made significant progress with the Campus Connect program aimed
 at building a robust industry-academia partnership.  We deepened our
 relationship with several engineering institutions across India through
 the co-creation of several new electives introduced into their
 curricula. During the financial year, we engaged with 1,040 faculty
 members who in turn trained 33,000 students. With this the total number
 of faculty covered under the program is 5,600 and the number of
 students trained is 1,20,000 from 530 engineering institutions. The
 program has received international accolades such as the Corporate
 University Xchange Award for Excellence and Innovation for the year
 2011. As part of SPARK, an Infosys program to expose students from high
 schools and universities to the world of IT and raise their
 aspirations, we engaged with over 1,75,000 students during the
 financial year. From its launch a little over two years ago, the
 program has reached out to over 2,80,000 students.
 
 Our internationally acclaimed Knowledge Management program won the
 Global MAKE (Most Admired Knowledge Enterprise) award for the seventh
 time, the Asian MAKE award for the eighth time, and the India MAKE
 award for the sixth time during the financial year.
 
 Our researchers published their articles and white papers in
 prestigious journals and conferences as well as in books and invited
 chapters in reputed publications.
 
 23.  Infosys Leadership Institute
 
 The Infosys Leadership Institute (ILI) was established with the aim of
 developing world-class corporate leaders. The institute helps to
 identify potential candidates and earmarks them for the training
 required to take on key leadership positions within the Company. The
 ILIs Tier Leadership development hopes to produce and mould business
 leaders of tomorrow. The institute aims to be a globally recognized
 institution with a focus on training leaders capable of tackling
 current and future business challenges. The work done by the ILI helps
 not only in the identification of leaders but also in the nurturing of
 a leadership mindset and culture across the organization.
 
 Over the last year, ILI has engaged in several activities to support
 and grow our group of high potential tier leaders as well as advance
 the field of leadership development. The institute rolled out the
 Leadership Journey Series Assessment and conducted assessment feedback
 sessions as well as helped leaders plan and execute their personal
 development plans. It also developed structured roadmaps guiding
 development around the seven key Infosys leadership dimensions, as well
 as key initiatives such as Creating Client Value.
 
 In 2010-11, ILI showcased thought leadership through collaborations
 with leading researchers from India and abroad, 12 conference
 presentations, one peer-reviewed journal article, several keynote
 presentations and most importantly, the release of the book, Leadership
 @ Infosys, which combines research and practice perspectives to capture
 the essence of what it means to excel as a leader at Infosys.
 
 24.  Sustainability initiatives
 
 Sustainability is a commitment for us to align our strategy in all
 aspects of our business with our stakeholders in various dimensions
 such as economic, social and environment. Our focus areas are embodied
 in the following themes – social contract, resource intensity and green
 innovation – and are articulated in our Sustainability Policy. Social
 contracts are our implicit responsibility to the larger society, to
 factor in social and environmental aspects as important dimensions of
 our business. Resource intensity is about doing more with less
 resources - energy, water or material. Green innovation is about
 leveraging the opportunity for business leadership through
 sustainability
 
 The Infosys Sustainability Executive Council (ISEC) oversees the
 planning and progress of all our sustainability initiatives.
 
 As part of our sustainability journey, many of our business units are
 pursuing innovation in green technologies and many of these have been
 implemented as solutions for our clients. Some of them are :
 
 - iSustain : An enterprise carbon energy and resource management tool
 with sustainability reporting and performance management capabilities.
 
 - InGreen Energy Management : Enables enterprises to reduce energy
 usage through automated tracking and identifcation of consumption
 patterns; opportunities for changes and reduction, reporting and
 analysis. It has helped us save energy usage and costs to the tune of
 20%.
 
 - InGreen Personal Carbon Calculator : Helps organizations create
 awareness among employees and measure their daily carbon footprint.
 
 - iSmart : An intelligent power strip that can not only supply power
 from an electrical source to devices connected to it in enterprise
 environments, but also monitor their energy consumption level on a
 continuous basis.
 
 - Integrated Real time Campus Management System (iRCMS) : An enterprise
 monitoring system that tracks and allows efficient energy management
 and prolong the life of energy equipment through surveillance. iRCMS
 helps enterprises with their manpower savings by allowing the
 facilities and business managers to take informed decisions based on
 consumption and demand related parameters of energy thereby helping
 buildings and real estates go green and sustainable.
 
 This fiscal year, our Green Initiatives and the Voice of Youth teams
 successfully implemented several campaigns and initiatives for creating
 awareness and influencing our employees and stakeholders in reducing
 their carbon footprint. Some of the key employee-driven activities have
 been :
 
 - Earth Hour : The global drive of WWF which led to 3,136 units (over
 3.1 MWh) of electrical equipment load turned off during one hour across
 nine DC-locations in India.
 
 - Infosys Megawatt Challenge : The Infosys Megawatt Challenge was
 launched at our U.S. offices to reward employees who brought about a
 reduction in their energy consumption over a period of six months and a
 positive outreach at their local communities.
 
 - COP16 : Representation at the United Nations Climate Change
 Conference (COP16) held at Cancun as a member on the delegation from
 World Business Council for Sustainable Development.
 
 As part of our commitment to social contracts, several of our employee-
 driven clubs and groups are actively involved in building an equitable
 society Some of the significant programs this fiscal year have been :
 
 - Notebook Drive : This initiative targets students of government
 schools who are not in a position to afford notebooks and stationery to
 pursue their academics. The NBD provides them stationery typically
 required by the beneficiaries for one academic year. We now reach out
 to 45,000 children in 400 schools and distribute more than 1,72,000
 notebooks. More than 4,000 Infoscions worldwide are actively involved
 in organizing donation campaigns, purchasing notebooks, managing the
 logistics, and overseeing the distribution of school kits.
 
 - SPARK : This program offers a learning environment that helps
 students realize their potential and assess their industry
 preparedness. The program partners with academic institutions to
 enhance talent pool as well as meet the demands of the IT industry.
 Launched in August 2008, SPARK is managed by 2,400 Infosys
 
 volunteers across development centers. This year it has benefitted more
 than 1,75,000 students, 1,450 institutions and 6,200 faculty members.
 
 - Karnataka food relief : Infosys always responds to a humanitarian
 crisis by volunteering and pledging support. In October 2009, the
 northern districts of Karnataka were severely affected by foods after
 torrential rainfall. It claimed hundreds of lives and rendered millions
 of villagers homeless. Our employees joined hands to rebuild villages
 and undertake a mass housing project. Infoscions, together with the
 Board of Directors and the Infosys Foundation, contributed Rs. 30 crore
 towards relief, rehabilitation and reconstruction.  Under the auspices
 of the state governments Aasare scheme, we partnered with local NGOs
 to construct homes across 18 villages.  The ongoing housing project
 serves as a model for sustainable development.
 
 For more details on our sustainability initiatives, visit
 www.infosys.com
 
 25.  Employee Stock Option Plan (ESOP)
 
 We had introduced various stock option plans for our employees. The
 details of options granted under the 1998 Stock Option Plan (the 1998
 Plan) and the 1999 Stock Option Plan (the 1999 Plan) are as follows :
 
                                       1998 Plan           1999 Plan
 
 Total grants authorized by 
 the plan (no.)                        1,17,60,000 
                                               ADS        5,28,00,000
                                                               shares
 
 Pricing formula on date of grant    Not less than 
                                     90% of               Fair market 
                                                                value
                                       fair market 
                                             value
 
 Variation in terms                             NA                 NA
                        
 Ratio of ADS to equity shares           1 ADS = 1 
                                      equity share                 NA
 
 Options granted during 
 the year (no.)                                  –                  –
 
 Weighted average price 
 per option granted (Rs.)                       NA                 NA
 
 Options vested as at
 March 31, 2011 (no.)                       50,070             40,232
 
 Options exercised during 
 the year (no.)                           1,88,675           1,37,692
 
 Total number of shares arising 
 as a result of exercise of options       1,88,675           1,37,692
 
 Money raised on exercise 
 of options (Rs. crore)                         13                 11
 
 Options forfeited and lapsed 
 during the year (no.)                       3,519             18,052
 
 Total number of options in force 
 at the end of the year (no.)               50,070             48,720
 
 Grant to senior management                      –                  –
 
 Employees receiving 5% or more of 
 the total number of options granted
 during the year                                 –                 –
 
 Employees granted options equal 
 to or exceeding 1% of the issued
 capital                                         –                 –
 
 Diluted EPS on issue of shares on 
 exercise calculated in accordance
 with AS 20                                 112.22            112.22
 
 SEBI has issued the Employee Stock Option Scheme and Employee Stock
 Purchase Scheme Guidelines, 1999. This is effective for all stock
 option schemes established after June 19, 1999. In accordance with
 these guidelines, the excess of the market price of the underlying
 equity shares as of the date of the grant over the exercise price of
 the option, including up-front payments, if any, is to be recognized
 and amortized on a straight line basis over the vesting period.
 
 We have the 1998 Stock Option Plan and 1999 Stock Option Plan, where
 the options are issued to the employees at an exercise price not less
 than the fair market value.
 
 If the compensation cost on account of stock options granted after June
 30, 2003 (as required by the amendment effective June 30, 2003) under
 1998 and 1999 Plans was computed using the fair value method, our
 compensation cost would have been higher by Rs. 1 crore.  Our profit
 would hence be less by Rs. 1 crore for fiscal 2010. The impact on EPS
 for fiscal 2010 would be Rs. 0.01. For fiscal 2011 there was no stock
 compensation cost. During fiscal 2011 and 2010, stock options under the
 1998 Plan and 1999 Plan have not been granted. Hence, the weighted
 average fair values of grant during these years are nil.
 
 All stock options under the 1998 and 1999 Employees Stock Option Plans
 were granted at the prevalent market price on the date of grant.
 Accordingly, we have calculated the compensation cost arising on
 account of stock options granted using the intrinsic value method.
 
 Hence, the disclosure in terms of Clause 12.1 (n) of SEBI (Employees
 Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines,
 1999, is not applicable.
 
                                                   2011           
                                    No. of options    Weighted average  
                                                      exercise price 
                                                      (Rs.) 
 
 1998 Plan 
 
 Outstanding at the 
 beginning of the year                  2,42,264         613   
 
 Forfeited                                (3,519)        722  
 
 Exercised                             (1,88,675)        600 
 
 Outstanding at the end of the year        50,070        683   
 
 Vested at the end of the year             50,070        683 
 
 1999 Plan 
 
 Outstanding at the beginning 
 of the year                             2,04,464        869 
 
 Forfeited                               (18,052)        964 
 
 Exercised                             (1,37,692)        823 
 
 Outstanding at the end of the year        48,720        962 
 
 Vested at the end of the year             40,232        717 
 
                                                   2010           
                                    No. of options    Weighted average  
                                                      exercise price 
                                                      (Rs.) 
 
 1998 Plan 
 
 Outstanding at the 
 beginning of the year                   9,16,759        904 
 
 Forfeited                               (60,424)      1,550 
 
 Exercised                             (6,14,071)        854 
 
 Outstanding at the end of the year      2,42,264        613 
 
 Vested at the end of the year           2,42,264        613
 
 1999 Plan 
 
 Outstanding at the beginning 
 of the year                             9,25,806      1,248 
 
 Forfeited                             (3,40,264)      1,968 
 
 Exercised                             (3,81,078)        821 
 
 Outstanding at the end of the year      2,04,464        869 
 
 Vested at the end of the year           1,84,759        735
 
 
 26.  Infosys Science Foundation
 
 The Infosys Science Foundation, a not-for-profit trust set up to
 promote research in pure and applied sciences, presented the Infosys
 Prize to scientists and researchers in the five categories of research
 listed below :
 
 - Physical Sciences - Physics, Chemistry and Earth Sciences
 
 - Mathematical Sciences - Mathematics and Statistics
 
 - Engineering and Computer Science - All branches of Engineering
 
 - Life Sciences - Biology, Medicine and Plant Science
 
 - Social Sciences and Economics - History, Sociology, Anthropology
 Political Science, Economics and International Relations
 
 Nominations were evaluated by an eminent jury in each area, comprising
 outstanding international personalities selected by the trustees of the
 Foundation.
 
 The Infosys Prize 2010 presentation was held in Mumbai on January 6,
 2011. Laureates were felicitated by the Prime Minister of India, Dr.
 Manmohan Singh. The prize in each category comprised a 24 karat gold
 medallion, a citation and a cash grant of Rs.50 lakh.
 
 For more details on the Infosys Science Foundation, refer to the
 website www.infosys-science-foundation.com
 
 27.  Infosys Foundation
 
 We are committed to contributing to the society and established Infosys
 Foundation in 1996 as a not-for-profit trust to support our social
 initiatives. The Foundation supports programs and organizations devoted
 to the cause of the destitute, the rural poor, the mentally challenged,
 and the economically disadvantaged sections of the society.  The
 Foundation also helps preserve certain cultural forms and dying arts of
 India.
 
 A summary of the work done by the Foundation is provided in the
 Additional Information Report published on our website www.infosys.com.
 On your behalf, we express our gratitude to the honorary trustees of
 the Foundation for sparing their valuable time and energy for its
 activities.
 
 28. Green initiative
 
 During the previous fiscal, we started a sustainability initiative with
 the aim of being green and minimizing our impact on the environment.
 Like last year, this year too we are publishing only the statutory
 disclosures in the print version of the Annual Report along with the
 Abridged standalone financial statements prepared in compliance with
 the Section 219 of the Companies Act, 1956. Additional details are
 available on our website, www.infosys.com.
 
 Acknowledgments
 
 We thank our customers, vendors, investors and bankers for their
 continued support during the year. We place on record our appreciation
 of the contribution made by our employees at all levels. Our consistent
 growth was made possible by their hard work, solidarity, cooperation
 and support.
 
 We thank the governments of various countries where we have our
 operations. We also thank the Government of India, particularly the
 Ministry of Communication and Information Technology, the Ministry of
 Commerce, the Ministry of Finance, the Customs and Excise Departments,
 the Income Tax Department, the Reserve Bank of India, the state
 governments, the Software Technology Parks (STPs) – Bangalore,
 Bhubaneswar, Chandigarh, Chennai, Gurgaon, Hyderabad, Jaipur,
 Mangalore, Mysore, Pune, and Thiruvananthapuram and other government
 agencies for their support, and look forward to their continued support
 in the future.
 
                       for and on behalf of the Board of Directors
 
                        S. Gopalakrishnan        S. D. Shibulal
                        Chief Operating Officer  Chief Executive Officer 
                        and Managing Director    and Director
 
 
 Bangalore 
 April 15, 2011