印孚瑟斯Infosys Ltd. (INFY) 2000年年度報告「NYSE」.pdf

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1、Only those who dare to fail greatly can ever achieve greatly.Robert Francis Kennedy(19251968)?At the turn of the last millennium,e-commerce created excitement in thehallowed corridors of Harvard Business School as well as the poorest lanes ofHoshiarpur,Punjab,India.The reasons for this are not far t

2、o seek.The twopowerful paradigms of anytime-anywhere and virtualization of the corporationhave demonstrated their tremendous potential to improve business reach,toreduce costs and cycle times,and to enhance productivity in organizationsacross the globe.Consequently,consumers can hope for better comf

3、ort andgreater value-for-money.We,at Infosys,believe that technology has the potentialto bring as much value to the poor of India as to the rich of the United States.However,the task of e-enabling corporations to take advantage of this seminalphenomenon requires deep thought and quick action on the

4、part of businessleaders and IT professionals.This year,Infosys brings you an abridged versionof a very informative panel discussion on the challenges faced by corporationsin harnessing The Power of E-Commerce.?The year at a glance3Awards for excellence 1999-20004Adieu,NSR7Letter to the shareholders9

5、The Power of E-Commerce12Directors report24Risk management38Corporate governance45Report of the committees of the board57Management statement60Auditors report61Financial statements prepared in accordance with64Indian Generally Accepted Accounting Principles(Indian GAAP)Managements discussion and ana

6、lysis of financial condition and results of operations79Statement of cash flows91Balance sheet abstract and companys general business profile93Financial statements prepared in accordance with95the United States Generally Accepted Accounting Principles(US GAAP)Summary of consolidated financial data96

7、Managements discussion and analysis of financial condition and results of operations97Report of management111Independent auditors report112Balance sheets113Statements of income114Statements of stockholders equity115Statements of cash flows117Notes to financial statements118Information in Form 20-F o

8、f United States Securities and Exchange CommissionShareholder information173Frequently asked questions180Additional information to shareholdersShare performance chart184Intangible assets scoresheet185Human resources accounting and value-added statement188Brand valuation190Balance sheet(including the

9、 intangible assets)192Economic value-added(EVA)statement193Ratio analysis194Statutory obligations/segment reporting197Management structure200A historical perspective201Infosys Foundation203Financial statements prepared in substantial compliance with205GAAP requirements of Australia,Canada,France,Ger

10、many,Japan and the United KingdomContents?in Rs.crore,except per share dataMarch 31,2000March 31,1999Growth%For the yearTotal revenues921.46512.7480Export revenues869.70500.2574Operating profit(PBIDT)378.88191.7598Profit after tax(PAT)from ordinary activities285.95132.92115Profit after tax and extra

11、ordinary items293.52135.26117PBIDT as a percentage of total revenues41.12%37.40%PAT from ordinary activitiesas a percentage of total revenues31.03%25.92%Earnings per share(from ordinary activities)*Basic43.2320.10115Diluted42.1519.93112Dividend per share4.503.7520Dividend amount29.7612.11146Capital

12、investment159.8771.68123PAT as a percentage of average net worth40.63%54.16%At the end of the yearTotal assets833.30574.4345Fixed assets-net207.34100.72106Cash and equivalents508.37416.6622Working capital612.13472.9629Total debtNet worth833.30574.4345Equity33.0833.07Market capitalization59,338.179,6

13、72.80513Market capitalization is calculated by considering the Indian market price for shares outstandingat year-end.*Basic and diluted EPS are calculated on profit after tax before considering extraordinary incomeand effect of extraordinary item provision no longer required.The basic and diluted EP

14、S for theyear ended March 31,1999 has been restated for a stock split of 2 for 1(subdivision of 1 share ofRs.10 par value into 2 shares of Rs.5 par value)effected during the year.The year at a glance?from top to bottom?The ADR team?from top to bottom?Comfactory?from top to bottom?Sainsburys?!?Awards

15、 for excellence1999-2000from top to bottom?CMM Level 5 team?from top to bottom?Spurt?#?from top to bottom?Aetna?$?%?&?from top to bottom?E&R team 1?(?)?&?*?!?(?from top to bottom?Kansas CitySouthern Railwaysproject?(?Awards for excellence1999-2000?Nadathur Sarangapani Raghavan or NSR,as he is affect

16、ionately called,has several rare distinctions.He was employeeNumber One at Infosys.He is the oldest amongst the founders.He is the only passable singer and restaurant qualitycook among the gang of founders!I can go on and on because NSR has an inexhaustible set of endearing qualities.NSR worked with

17、 me when I was head of the software division at Patni Computer Systems(PCS).He was the firstperson I spoke to about founding Infosys.When,on a cloudy winter morning in Mumbai,I told him that I was goingto leave PCS and that I would recommend that he take over from me,his reaction was incredulous he

18、just wantedto be with me!He had a wife and two teenage sons to support,and here I was with no concrete idea as to what I wasgoing to do!But,just the comfort that a valued colleague of mine was ready to stake his rosy future at a well-established corporation in favor of an adventurous and somewhat re

19、ckless maverick was a great morale booster forme.Thus,Infosys was born with NSRs house in Matunga as its registered office.In his nineteen years at Infosys,NSR has taken up a variety of responsibilities.He has probably had the most eclecticcareer profile in this organization.He has handled HRD,Deliv

20、ery,Education and Research,Planning and Finance,allwith distinction.He designed the first revenue tracking system for Infosys,The Billing Performance Report(BPR)stilla widely used application despite our becoming an SAP shop.He was even the first ever chauffeur of an Infosysvehicle a rented Vespa sc

21、ooter ferrying me,the eternal pillion rider,across the streets of Bangalore during 1983!The most striking quality of NSR is his pleasantness.I have rarely seen him get upset about anything.He is best knownat Infosys for his saying:You can disagree with me as long as you are not disagreeable.He is al

22、so,probably,the mostenthusiastic window-shopper in the world!NSR continues to be a Trustee of the Infosys Foundation.He will be dearly missed at Infosys.I hope that NSR andhis family are blessed with the best of everything in the future.BangaloreN.R.Narayana MurthyApril 11,2000Chairman and Chief Exe

23、cutive OfficerAdieu,NSR?Board of directorsPhilip YeoDirectorDinesh K.DirectorShibulal S.D.DirectorSusim M.DattaDirectorRamesh VangalDirectorDeepak M.SatwalekarDirectorProf.Marti G.SubrahmanyamDirectorGopalakrishnan S.Deputy Managing DirectorNandan M.NilekaniManaging Director,Presidentand Chief Opera

24、ting OfficerN.R.Narayana MurthyChairman and Chief Executive Officer?Dear shareholders:Infosys has had yet another good year.As in the past,we worked very hard to design,develop and deployhigh quality solutions for our clients,and thereby further strengthened our partnerships with them.Under Indian G

25、AAP,total revenues grew by 80%while profits after taxes from ordinary activities witnessed anincrease of 115%over fiscal 1999.As intended,revenues from the e-business space grew faster thanour other revenue streams.We are delighted to report on the year gone by and invite you to review ourperformanc

26、e and also to learn more about the trajectory that Infosys intends to take in the future.From the very beginning,our approach to doing business has entailed a client-focussed work ethic.To thisend,we have laid great emphasis on harnessing the talents of best-in-class people and on implementingour en

27、gagements using world-class quality processes.This,in turn,has brought about a consistent increase inrevenues and net income from operations 28 quarters in a row,since we went public in India in 1993.We would like to share with you our thoughts on the drivers for our past successes and on the role t

28、hat ourstrategic assets will play in accomplishing our vision for your companys future.While change is the onlyconstant in the world of technology,we firmly believe that our uniquely implemented business strategies,outlined below,will continue to be the cornerstones of our success in the years to co

29、me.1.Aim to be a global corporation and fully exploit the resultant benefitsThe essence of Infosys business model is to access pools of high-quality talent wherever they areavailable at competitive costs and use them to deliver value to target markets that are at the forefrontof using leading-edge t

30、echnology in business.Further,operating from facilities across the globe enablesus to leverage time zone differences to facilitate 24 x 7 partnering with our clients.This approach perfected over the years through our Global Delivery Model has not only resulted in consistently highprofitability level

31、s,but has also assured the stability and scalability of our business model.As part of our continuing efforts at globalization,we set up a Global Development Centre at Toronto,Canada in January 2000.In October 1999,we established two Proximity Development Centres(PDCs)at Fremont,California and Boston

32、,Massachusetts.Plans are also underway to set up a PDC in the U.K.shortly.Further,we recently established sales offices in Australia,Belgium and Sweden.2.Build long-term relationships with clientsA strong focus on satisfying customer needs has enabled us to build long-term partnerships with ourclien

33、ts.Our record of delivering superior solutions to clients is manifested in the high level of repeatbusiness year after year accounting for 87%of fiscal 2000 revenue.3.Recruit,enable and retain high-quality peopleThe success of our business model hinges on attracting the best and the brightest.Today,

34、Infosys hasbecome the employer of choice in India we had approximately 184,000 job applicants in fiscal 2000,and,from them,hired approximately 2,050 new Infoscions.Intensive entry-level training,amounting to nearly 100,000 person-days in fiscal 2000,helps us equipnew recruits with the skills require

35、d to mature into world-class software professionals.And with nearly14,500 person-days of total internet-related training this year,our employees continue to be wellequipped to capitalize on the opportunities thrown up by the explosive growth of the internet.Our stock offer plan,driven by a desire to

36、 share wealth with our highly driven workforce,was andcontinues to be a huge success we have around 270 dollar-equivalent millionaires in our workforcetoday and our attrition rate,at 9.2%for fiscal 2000,is among the lowest in the industry.Letter to the shareholders?4.Be exceptional change managers m

37、aintain a prudent business mix while proactively seeking out newgrowth opportunitiesOver the years,we have evolved a portfolio approach to our basket of service offerings,technologies andclients.Prudent risk management norms,as outlined elsewhere in this annual report,have helped usavoid excessive d

38、ependence on any one service offering or client without compromising on our agilityin tapping new opportunities that the IT services space continues to throw up.This ability to quicklyrespond to changes in the marketplace and to effectuate smooth transitions in business mix is a keystrength of Infos

39、ys.For instance,we successfully managed the transition of our Year 2000 relatedengagements down from contributing 24.0%to our Q1FY1999 revenues to 0.9%of our Q4FY2000revenues.This was accompanied by a sharp rise in revenues from the internet space up from 1.3%of Q1FY1999 revenues to 18.8%of Q4FY2000

40、 revenues.The enabling factors for this performance includedthe delivery of internet-focussed training at all levels of the organization,a special initiative for e-inventingthe company,and a concerted effort to adapt existing methodologies to the needs of the e-solutionsspace.5.Maintain an unwaverin

41、g focus on qualityAfter fully leveraging the value of Level 4 implementation of the Capability Maturity Model(CMM)of theSoftware Engineering Institute at Carnegie Mellon University,USA,we obtained accreditation to Level 5of the CMM.Further,in keeping with our philosophy of sharing our best practices

42、 with the industry,weaccepted the request of Prof.Pankaj Jalote of the Indian Institute of Technology,Kanpur,India to publisha book entitled“CMM in Practice:Processes for Executing Software Projects at Infosys(The SEI series inSoftware Engineering)”.Incidentally,this is the first book ever to be pub

43、lished on CMM Level 4 implementation.6.Seek out innovative avenues for growthHaving grown organically to over$200 million in revenues,we decided this year to accelerate ourinitiatives to tap alternative means for continued growth.Towards this end,we decided to begin exploringacquisition opportunitie

44、s,to make selective strategic investments,and to encourage budding entrepreneurswithin our highly competent and ambitious family of Infoscions by incubating their ventures.We emphasize that,given the tremendous management attention required in order to unlock value froman acquisition,we will opt for

45、 this step if and only if it brings in significant strategic benefits along withrevenue and net income enhancement commensurate with such effort.We intend to make select investments in leading-edge companies that have the potential to yield substantialbusiness benefits.These benefits would primarily

46、 be in the form of opportunities for revenue and netincome growth and access to the very latest technological developments.We made our first investmentthis year in Massachusetts-based EC Cubed,Inc.,a dynamic application provider for B2B e-commerce,granting it$3 million in funding.Further,we have pro

47、vided an incubation mechanism for our existing employees to launch their ownventures while continuing to derive benefits from a close association with Infosys.Having launchedYantra in 1996,we recently piloted Onscan a web-focussed wireless-enabled notification service.7.Maintain disciplined financia

48、l management practices and tap high-quality sources of capitalConservative financial management policies have enabled us to maintain high and stable profitabilitylevels in the past.We continue to be debt-free,to have conservative budgeting and cost managementprocesses,and to have a strong and health

49、y balance sheet.?N.R.Narayana MurthyChairman and Chief Executive OfficerNandan M.NilekaniManaging Director,Presidentand Chief Operating OfficerN.R.Narayana MurthyChairmanand Chief Executive OfficerNandan M.NilekaniManaging Director,Presidentand Chief Operating Officer?.Certain expectations and proje

50、ctions regarding future performance of the company referenced in this Annual Report are forward-lookingstatements.These expectations and projections are based on currently available competitive,financial,and economic data along with thecompanys operating plans and are subject to certain future event

51、s and uncertainties,that could cause actual results to differ materiallyfrom those that may be indicated by such statements.March 11,2000 was the first anniversary of our listing on the NASDAQ.Apart from meeting ourrequirement for high-quality capital and enabling us to attract high-quality employee

52、s across the globethrough the ADS-linked ESOP,the listing has yielded the expected spin-off brand equity benefits.8.Build world-class physical and technological infrastructureWe continue to provide world-class infrastructure for our client engagements and for our employees.Inaddition to our new over

53、seas development centres,we expanded our operations in India to three new citiesand continued to invest in cutting-edge technological infrastructure.9.Maintain a firm commitment to our core valuesThe strength of our business,in the ultimate analysis,lies in the supreme commitment,strong customer foc

54、usand impeccable integrity of our workforce.Further,asan organization,we continue our quest for increasedtransparency and openness in every transaction.Infosys continues to be a pioneer in adhering to globalbest practices in corporate governance.During the year,the company won the prestigious Nation

55、al Award forExcellence in Corporate Governance instituted by theMinistry of Finance,Government of India andsponsored by the UTI Institute of Capital Markets.Thisyear,we are happy to provide reports on our compliancewith the recommendations of the Shri Kumar MangalamBirla Committee on Corporate Gover

56、nance(constitutedby the Securities and Exchange Board of India)and theBlue Ribbon Committee(constituted by the Securitiesand Exchange Commission,USA).This year,Infosys was voted Indias Most Admired Company by The Economic Times Indias leading businessdaily.Moving forward,we are more enthused than ev

57、er about steering Infosys to greater heights and lookforward to your continued encouragement.As in the past,our success depends strongly on the commitment of our fellow Infoscions.We salute them onyet another year of sterling achievements and appreciate their unwavering trust and support.April 11,20

58、00Bangalore?The turn of the last millennium saw the emergence of what is,probably,the most powerful paradigm thatthe world has witnessed in recent years e-commerce.Advances in communications and computing,andthe realization of the power of the internet have made e-commerce the most revolutionary ins

59、trument forimproving the productivity of both corporations and individuals.In the last twenty years,InformationTechnology(IT)has influenced our lives and the way we do business like no other technology has.Change,speed of change,and adaptability to change have become the key concerns of every Chief

60、InformationOfficer.To understand the challenges involved in harnessing the power of e-commerce,Infosys invitedseveral well-known thinkers and practitioners of IT from across the globe for a panel discussion on thistopic at Minneapolis,USA on September 23,1999.Gopalakrishnan S.,Founder,Deputy Managin

61、g Director Customer Service and Technology,Infosys,moderated the discussion.The participants were:HARSHA KUMARCo-founder and Director Product Strategy,EC CubedJOE PROCHASKACFO&Executive Vice-President,Aon GroupIVO COOLSCIO,Belgacom MobileCRAIG PAGEManaging Director Technology Services,First Data Res

62、ourcesBERNADETTE KIRBYManaging Director IT&Product Development,NCH Marketing ServicesARTUR URBANSKIChief Technology Officer,NetProspectJIM BRACKENVice-President Engineering and Operations,CBS SportslineBOB AUSTRIANManaging Director,Bank of America SecuritiesThe editors of this annual report provide

63、below an abridged version of the panel discussion.Infosysaccepts full responsibility for any possible errors in abridging the views of the panelists.However,Infosysis not responsible for the views expressed by the panelists.Gopalakrishnan S.(Kris)Welcome to this panel discussion on the Power of E-Co

64、mmerce.I am excited about this opportunity tolearn from the scholarship and wisdom of our eminent panelists.Thanks to the anytime-anywhereparadigm and to the virtualization of corporations around the world that the internet has brought about,it is well accepted by now that every corporation should e

65、mbrace this channel for survival and success.Who do you think should drive e-commerce initiatives?The technologists or the business leaders?Joe ProchaskaSurvival and success in any technology-driven business initiative requires both the business and theIT people to jointly drive strategic decisions.

66、The objectives of these two groups have to be aligned inorder to leverage the much-needed mutually exclusive but collectively exhaustive experience andexpertise to harness the power of the web.In my own organization,I have found greater success ine-commerce initiatives implemented in areas where bot

67、h the IT and the business people workedtogether as a well-knit team.GOPALAKRISHNAN S.Founder,Deputy Managing Director Customer Service and Technology,InfosysThe Power of E-Commerce?JOE PROCHASKACFO&Executive Vice-President,Aon GroupKrisIn the future,will you look for business people with technical s

68、kills or technical people with business skills?JoeWe will look for both types of people.Growth in revenue and in profitability will come only if ourbusiness people appreciate the role of IT in creating a competitive advantage for the corporation.Resistance to embracing new technologies is the weakes

69、t link in any corporation.We have to create anenvironment where the technologists and business people are not afraid to interact closely with eachother.In fact,this is one of the fundamental responsibilities of a CIO.This is particularly true in anorganization that has grown rapidly through acquisit

70、ions,and is trying to erect a common informationinfrastructure.Ivo CoolsI agree that e-commerce mandates a joint effort from both the technologists and the business people.However,I believe that business people need not be concerned about the trench-level details oftechnology.They have to look at ho

71、w technology can bring better business benefits to the corporation.The e-commerce paradigm is a great opportunity for the business people to generate new ideas onhow their companys business should be run.They should resist going beyond intelligent users oftechnology.This is especially true in a hi-t

72、ech corporation like ours.Thus,technology knowledgeshould lie with technologists and business knowledge with business people.We have to create suitableinterfaces for dialogue between these two groups.KrisBut,everybody today has to become more IT-savvy.For example,the use of tools is increasing perso

73、nalproductivity.Perhaps,being a hi-tech company,your company is an exception.IvoIf being IT-savvy is to know how to use IT products,I agree with you.Let us remember that,ingeneral,the most successful products are those that bring great benefits to the users and are also theeasiest to use.For example

74、,users of high quality headsets must have an appreciation not for thetechnology that goes into the product but for the quality of music that it produces.Harsha KumarBecause internet applications are becoming ubiquitous and are accessible from anywhere,it is nowpossible for a business person from one

75、 company to visit the website of a competitor and to evaluatehow that competitor leverages technology for the benefit of the stakeholders of the company.This wasnot possible within the client/server environment.Thus,business people need increased awareness andappreciation of technological developmen

76、ts if the organization is to retain its competitive advantage.The converse is also true.Thus,I agree with Joe that business people need more technology awarenessand that technology people need more business awareness.More often than not,it is the businesspeople who lead the strategic thrust for leve

77、raging a new technology paradigm.However,I have seenexceptions.In one of my implementations for a large credit card company,it was actually the ITpeople who drove the whole initiative without even taking permission of the business folks.Thatdoesnt happen too often,though.KrisAnd,what if that initiat

78、ive succeeds?HarshaThis particular initiative will succeed.The system has gone live and is performing well.The technologypeople wanted to prove a point to their business colleagues and worked smart and hard.What wasthought to be impossible even in six to eight months by business people was completed

79、 in six weeks!The technologists got the attention and admiration of the business folks only because they did?something radical.We have to see such radical steps from both sides.Businessmen have to demonstratetheir appreciation for the complexities of IT.And the IT folks have to be more responsive.Ji

80、m BrackenTechnology is changing rapidly and there is a plethora of tools available in the market today.Everyday,we get hundreds of calls from vendors who tell us how good their tools are.In such an environment,it is easy for technologists to lose the business perspective and to get carried away.Thus

81、,potentially,huge amounts of money and time can be wasted.The need of the day is to look at the business benefitsfrom these technologies and to estimate the return on investment that they can offer.Thus,unless wecan have an educated dialogue between the technologists and the business people with eac

82、h groupbringing their expertise to the table,we may not get the desired returns.KrisLet me turn to another important question.Are traditional companies,including technology-driven firms,run differently from dot-com companies?Bob AustrianI believe that every aspiring company traditional or dot-com wi

83、ll have to look at innovation,atusing that innovation to create a strategy,and at ensuring a high velocity of decision making inimplementing that strategy.Whoever does all these things well will be a good bet for the future.There is a lot to be said,and,we all have a lot of affection for the latest

84、in the shopping cart,personalizednews,send the quotes to my pager or phone kind of technology;but,at the same time,we are enteringa level of e-business and a time in the development of e-business where success is not really abouttechnology features and functions.Success is about business strategy.It

85、 is about how technology anda business mindset support that strategy.That level of abstract business thinking is probably notgoing to come from the IT people unless they wear their What is our business strategy?hat.KrisBernadette,do you consider your company closer to the dot-com companies?Bernadett

86、e KirbyNo,I do not think that we are very similar to a dot-com.Our transformation has not been as muchdue to a dot-com mindset as due to asking fundamental questions about our business strategy,ourfocus,and our processes.As a result,we did a lot of re-engineering.In the process,we discovered thatwha

87、t we had traditionally been selling was not what our customers actually wanted to buy.We wereselling paper,process,and handling,when what our customers wanted was information.Coming back to the question of who should drive strategy business people or technologists I agreewith Joe that business peopl

88、e and technologists should work together for a successful solution.I havefound that,often,business people do not adapt to new paradigms as quickly as technologists do.Forexample,it took us a longer time to revamp our pricing strategy than it did to develop a re-engineering solution.The business peop

89、le could not adapt because we changed so quickly from beinga paper-handling house into being an information provider.Thus,while re-engineering an application,we actually discovered a new product,and maybe even part of a new business model.KrisCraig,any thoughts on re-inventing the business?Craig Pag

90、eWe believe that the marketplace should drive our business strategy.We want our business folks to beout in the field talking to our customers and coming up with new and intelligent business ideas.Theythen bring those ideas to us in the IT function and challenge us to help them thrive in the marketpl

91、ace.Thus,we minimize our interaction with the business folks,often restricting communication to e-mailsince writing improves clarity of ones ideas.IVO COOLSCIO,Belgacom Mobile?On the IT front,we must become more open-minded and solution-oriented.In our company,the roleof IT is to re-engineer and re-

92、architect our business processes and the underlying technology platforms.KrisThanks to the internet,Harsha can now look at what the competition is doing.Do you feel uncomfortableputting up your critical IT applications on the internet or do you see your competitors differently today?Wehave heard Pro

93、f.Prahalad talk about competitors as being possible partners.Artur UrbanskiIn the realm of dot-com companies,competition is heavy and the first-mover advantage is a bigleverage.Hence,unless you are fully ready and have some lead over your competitors,you have to bevery careful in deciding what can b

94、e seen on your website.If you go to our website,you will see onlyone page and no information!KrisUnder construction,right?ArturIn some sense,yes.But that is not the key reason.There are many reasons why we do not disclose toomuch on our website.Let me just give you two of them.First,we do not use ou

95、r website to attractprospective employees because describing critical job profiles may disclose a lot about our idea.Second,with a rapidly and dynamically changing marketplace,we may have to change our directionbased on where our current and potential competitors are.KrisAny other views on the marke

96、tplace and on competition?JoeWe face several challenges in leveraging the power of the web in the marketplace.First,we bring thebest product and price value to the consumer.The net offers a good opportunity there.We havealready leveraged the web for this purpose in some of our smaller products.Secon

97、d,we have focusedon individual cities.But,the web allows us to go much beyond this.However,we have to remainboth hi-tech and hi-touch because our customers want a comfortable relationship with us.HarshaComing back to the issue of the visibility of your prime applications to your competitors,my viewi

98、s that we should not worry about it.You have to do something unique to stay ahead of thecompetition.That will come from the intrinsic worth of your business model.I would argue thatthis is actually embedded in your legacy applications.That is where I completely disagree withProf.Prahalad.Legacy syst

99、ems have value and you may have to bring about a gradual replacementof these systems.KrisAny other views on this issue?JimLet me bring another dimension to our discussion.The life span of any new competitive advantage isfast reducing.We used to talk of a competitive advantage of six months,in fact,a

100、 year plus during thelast decade.The internet has brought down that period from several months to just a few weeks.Wesee it all the time in our business.We launched a new,completely re-designed store in October lastyear.It took only two and half months before all our key competitors completely copie

101、d our userinterface.So,you are constantly working on your next competitive advantage,not just sitting thereand following what other people are doing.You have to be at the cutting edge and keep pushing thosenew ideas that are going to be beneficial to your business.HARSHA KUMARCo-founder and Director

102、 Product Strategy,EC Cubed?KrisAre current structures of traditional organizations hindrances to agility,adaptability and innovationrequired for thriving in these times?CraigYes,I think so.The tendency to build organizational silos has slowed down communication anddecision-making in traditional comp

103、anies.The successful ones focus on teamwork and ensure openlines of communication.That is what I have observed in my company too.Initiatives based onteamwork and shared objectives have succeeded while those that shunned these have failed to take off.KrisWhat are the issues you faced when implementin

104、g e-commerce solutions?How did you solve them?JoeDecentralization of IT,with each of our divisions having its own IT staff,was a big problem.Given theacquisitions that Aon has been through,that was inevitable.Thus,there was a not-yet-inventedsyndrome leading to a lot of duplication of effort and not

105、 too much focus on improving uponsomebody elses existing work.We are now focusing on using the best practices across all these groups.We have fostered the concept of interdependency in Aon.Our objective is to bring all the products andservices of Aon to every individual client.This requires all our

106、business units to interact to enhancetheir collective response to each client.Technology brings the information about all our products andservices,as well as about the client to the desktop,and helps our people identify the best way to servethe client in an integrated value addition framework.BobThe

107、 number one impediment,in my opinion,is the fear of cannibalization of an existing businessmodel or pricing structure.As we heard,it is difficult not to feel that some of the new e-commerceproducts,strategies,services,pricing models and disintermediation effects are a real fear-point.Thiscan happen

108、all the way up to the executive level,to the point where,as we have all read,you getcompanies like Merrill Lynch on the internet,trying to figure out what to do with their entirebrokerage structure and all of its professionals.They have spent so many years building this stuff up;and then they move t

109、o an e-commerce strategy,where all of us in this room can login and,sort of,goaround our brokers.That is a terrifying scenario,and that is also probably the biggest impediment toeffectively implementing an e-business strategy.This stands out when you read about why someonelike Wal-Mart,for instance,

110、takes a long time to engage in a straight-to-the-consumer-over-the-netstrategy.Or when you see that Borders or Barnes&Noble are slow in responding to the e-businessimperative.IvoThe first major issue we face when we engage in e-commerce is the near-zero tolerance that thecustomer has towards errors

111、and delays in transacting business via the internet.The second is thereaction time of the competition,which is now a matter of days in this intensely competitiveenvironment.KrisLet me now come to the technology issues in adopting an e-commerce solution.There have been someconcerns about security,rel

112、iability,performance,and maturity of various platforms for an e-commercesolution.Do you see these as key issues and what,in your opinion,are the solutions?CraigDistrust arising from skepticism about security is certainly an issue in our industry the financial dataprocessing industry.It is a huge iss

113、ue because there are lots of folks out there who do not trust theinternet at all with their credit card numbers.My 70-year old father still does not use an ATM machineARTUR URBANSKIChief Technology Officer,NetProspect?because he swears somebody in that box is going to take his money and not give it

114、back to him.So,it is a very serious issue from our perspective.This can be effectively tackled if we use instruments likecertificates,packaging,and various processes that are available to us today.It is a solvable issue andI am confident that we will overcome it.In fact,we have overcome a number of

115、these issues already.KrisWhat about the maturity of the platform?Traditionally,the mainframe has been in use for over 20 to 30years.We knew that the system was going to work 24 hours a day and 7 days a week without any problem;but,todays software products are very complex and have still not reached

116、that level of stability.CraigWell,stability has certainly a lot to do maturity.I remember the day when it was okay to have 85%availability;and,then it went to 90%availability,and,today,it is 99.9%availability,especially on themainframes.Our clients are demanding similar levels of stability as we get

117、 on to the internet.We doa lot of bill presentment and bill payment through the internet.Our clients can look at their statementsand can review their balances.Their expectations have been raised to very high levels.They are veryunforgiving of response time delays,let alone security lapses.They have

118、multiple choices and loyaltiescan shift quickly.That is why maturity and stability are of paramount importance.JoeI guess I have to confess that I am a CFO and not a CIO.I am really concerned about availability,reliability,maintainability,performance and security from the business angle.Customer con

119、fidencein us depends on these factors.Business growth comes if we can implement customer-friendly processeson IT platforms with these attributes.That is where I depend heavily on our IT people.IvoRecovery from failure of internet systems requires agile responses from the organization.News of suchfai

120、lures spreads like wild fire and corporate reputations can easily be destroyed,thanks to mechanismslike chat,news channels and radio on the internet.HarshaBeing a software vendor operating at the leading edge of technology,we ask these questions veryoften.We aim to bring the benefits of such technol

121、ogy to our customers.Given the rapidity of changein technology,it is unlikely that we will see maturity of platforms like in the past.However,thesecurity issue is pretty much solved.I think people are much more confident now about internettransactions than they were before.Web-based transactions are

122、 probably more secure than paper-based transactions.As far as maturity goes,models like EJB and CORBA have vendors who specializein them.So,the IT departments can focus on their application layer and not have to focus on thesecurity level or distributed component models or applications server infras

123、tructure.BernadetteI tend to agree that security issues are reasonably well-solved in todays environment.The IT peoplehave to remain very close to the business and to the development of new products and services.Icannot expect them to be all things to all people in a very fast moving environment.Thu

124、s,we do usea couple of companies to manage security for our website.ArturI would like to comment on the pain of being a first mover.If you are at the leading edge,themarketplace shows tolerance for errors and delays.People understand the negatives of beta versionsand put up with them.We have seen ma

125、ny examples of that.You can keep working on your producttill you get it right.Of course,once competition comes into play,you do not have this luxury.However,I am not sure if the marketplace will ever show such tolerance if the security of your productor service is not within acceptable levels.JIM BR

126、ACKENVice-President Engineering and Operations,CBS Sportsline?JimSecurity is critical for us because we cannot lose the trust of our consumers.In my opinion,securitycannot be just left to the software developers.We also need the services of security architecture experts.BobIn the current context,it

127、will be unacceptable for a company to fall behind in performance on anyfront whether it is in e-commerce functionality,in security,in response times,or in building newcompetencies.If you are a bank and you do not have the latest features in internet banking,you willsee a huge customer defection rate

128、.For instance,in the cellular business,churn is the number oneenemy.The cost,to the consumer,of defecting to a competitor is falling rapidly because companiesare willing to spend a lot to acquire new customers Will you provide the instrument?Will you givethree months free?Will you give me free night

129、s and weekends for rest of my life?Probably,there is stilla group of loyal consumers because our parents and grandparents are not going to change theirconsumer behavior that rapidly.The problem will become acute in a few years when your son is goingto be amongst the mainstream consumers of P&G or Be

130、ll Atlantic.Then,performance is going to haveto be top class or companies are going to be out of the marketplace.KrisNow,let me come to the funding for all these new initiatives.Is the budget for IT increasing because of thee-business phenomenon?Is IT being funded differently?I know that the VCs loo

131、k at dot-com companiesin a different way from the funding of start-ups in traditional sectors.Near-term profitability does notseem to be a criterion for funding dot-coms today.CraigWell,I think part of the issue within our company is that there is no in-depth understanding amongthe financial folks o

132、f the funding needs of these initiatives.They do not always appreciate the medium-term nature of benefits to the corporation from e-commerce initiatives.The ROI models for e-commerceinitiatives are not yet fully developed.However,things are changing.KrisJoe,do you want to respond to this?JoeThere is

133、 some skepticism about funding e-commerce initiatives since several of them have gone bustin the past.However,we have to recognize that this phenomenon is not unique to e-commerce.Further,at Aon,IT budgeting has traditionally been decentralized and it was done bottom up.Now,we have moved to a model

134、where standards for hardware and software are set centrally.Thus,theamount of money available for non-standard initiatives has come down.Further,we compute overheadcharges for any new common initiative and allocate it to individual businesses.The idea is to fund thepilots for these initiatives,to pr

135、ove them to be useful and then to deploy them across the entireorganization.IvoFunding is hardly a problem in our company due to the highly competitive marketplace we operatein.Revenues are very important to us.Thus,if we make a business case based on revenues,we willget funding.The real problem is

136、to find people to execute the projects since we have a centralized ITdepartment,and there is considerable demand for their expertise.BernadetteA lot of e-commerce development takes place under the badge of IT funding.Most of the fundingrequests for such projects come from individual departments sale

137、s,marketing,etc.Thus,IT buildsthe application but the motivation and justification has to be from a particular function.For example,CRAIG PAGEManaging Director Technology Services,First Data Resources?we asked our CFO to reserve 10%of the sales revenue from the new channel towards R&D initiativesto

138、fight the competition in the future.The other concern is the declining marginal benefit fromimproving e-commerce applications.The customers perceive the first wave as new but subsequentimprovements will not generate similar excitement and marginal revenue.ArturLet me put on my old corporate hat for

139、a while and talk about my experience at Bell Atlantic.WhenI started there,IT was a background activity with hardly any visibility.There was a strong emphasison R&D but not on IT.By the time I left,forty to fifty thousand out of a total of one hundred and fortythousand employees were on-line.They cou

140、ld send a message to the chairman and get a directresponse.So,there has been a tremendous change in funding for IT.JimIn obtaining funding,we have to answer two key questions.First,are we doing this just to be quickto market?Second,are we doing this because this is going to be scalable and will supp

141、ort our businessover the next 2 or 3 years?Users do not want to pay incrementally every six months for the nextimprovement.KrisBob,you cover several companies.Do you see a trend of increased IT spending in companies because ofe-commerce?BobIn general,funding for IT has been increasing.E-commerce and

142、 internet initiatives seem to be behindthis increase.In the final analysis,IT has definitely become more popular.Whether it is due to thecultural shift that you have mentioned or due to the fact that there is better appreciation of the ChiefInformation Officer,it is not easy to say.KrisIs the shift

143、in spending dramatic?You say it is increasing;is it increasing by 1-2%,5-10%or 15-20%?BobIt is pretty dramatic if you look at the revenues of companies that sell internet commerce enablingtechnologies because they have gone from zero to a couple of billions in one to two years.That is notjust a one

144、or two percent shift in corporate budgets.However,it is still a small number in the globalIT budget which is a big percentage of total revenue.KrisJim talked about getting resources to do e-commerce and other technology work on the internet.Do you seethat as an issue?And,again,probably,there may be

145、some differences between the companies that are goingfor their IPOs they can attract anybody they want and the companies that do not have that flexibility.Can you throw some light on resources and some innovative ways to cut costs?JimIn the past,you had access to a large talent pool if you wanted to

146、 get a client/server or mainframeapplication.Today,it is extremely difficult to find talent well-versed in internet and web technologies.Thus,today,we do not look for these skills while recruiting.We just look for people with somegeneric skills in programming and design.Then,we get these people well

147、 trained in internet and webtechnologies in-house,and deploy them.KrisSo,are you able to find the resources you need?BERNADETTE KIRBYManaging Director IT&Product Development,NCH Marketing Services?JimI am not going to say that it is easy.We certainly have an advantage of being a dot-com company that

148、is among the Top 50.It is still not easy finding qualified resources that are really skilled and have thebackground to make the transition to working in this fast-paced environment.BernadetteIn the UK,we have used outsourcing for the last four years.Since we have long-term relationshipswith outsourc

149、ers,the internet-driven demand for resources has not made any difference to us.Wehave had to take some of our existing IT people and convert them into business analysts or projectmanagers.I am not terribly sure that all of them were happy in their new role.So we let them off back to coding now and a

150、gain.However,I must say outsourcing has been very popular in the UK fora long time.HarshaThe human resource crunch is a big issue.Since we are a software company,the kinds of people weneed are different from what an IT shop would need.But,it is such a big issue in Connecticut that weare moving our e

151、ntire office to Boston.You know how painful this is if you have been through acompany move.So,the human resource issue is huge.The Boston market has a lot of talent;but thereis also a lot of competition.Silicon Valley is probably another place with a lot of talent.IvoIn Belgium,the situation is same

152、 as in the UK.It has become increasingly difficult to find people inthe last four years.We have resorted to a lot of outsourcing.JoeI agree with what Bernadette said.We too have taken out some of our in-house people and put theminto project management and business analysis.They werent really comfort

153、able there to start with;so,we invested lots of time and resources in training them in new systems,codes,new programminglanguages.We then made them a part of the team in some of the development work we were doing.And so,we kept that embedded knowledge in our company.Thus,we made proactive investment

154、s intraining.This has helped us in making some transitions.But,clearly,we have to do a lot of outsourcingto be able to get the skill-sets we need to move forward.CraigI agree that the difficulty in getting good resources has not just begun this year.I do not think that itis a result of e-commerce.It

155、 is just a result of emphasis on data and information processing.Three orfour years ago,we actually took a group of folks and began to train them on distributed technologyand tried to move them from COBOL and Assembler to C+and Java.And,they did not make thetransition well.Now,we find the situation

156、to be totally different.We have internal people justknocking on our doors asking:When are you going to teach me these new technologies?So,there are alot of opportunities in-house,but there is also a lot of brand new technology out there.This requiresus to go to outsourcing companies with the require

157、d skills.If we do not do this,we will spend six toeight months trying to learn these new technologies ourselves;and,by then,we would have alreadymissed the opportunity.KrisWith that,we conclude the discussion.I am sure that everybody is excited about e-commerce and aboutthe large opportunities it of

158、fers.Today,people are keenly aware of the challenges involved in e-enablingtheir organizations and are working towards addressing them effectively.I would like to thank all the panelists for sharing their wealth of knowledge and insights with all of us.Letus give them a big hand.Thank you.BOB AUSTRI

159、ANManaging Director,Bank of America Securities?from top to bottomNandan M.Nilekani?Mohandas Pai T.V.?!?Ajay Dubey?#?Balasubramanian P.,Dr.?$?from top to bottomBalakrishnan V.?Basab Pradhan%?&?from top to bottomDeepak Sinha,Gp.Capt.?Dinesh K.?(?%?)?*?$?from top to bottomGirish G.Vaidya?+?,?+?-?Gopala

160、krishnan S.?.?Hema Ravichandar?(?%?Management council?from top to bottomJan DeSmet?)?+?Phaneesh Murthy?,?Prabhu M.S.S.,Dr.?#?from top to bottomRaghavan S.?*?Raghupathi G.Bhandi?#?from top to bottomSobha Meera P.R.%?#?Srinath Batni?&?Vasudeva Rao L.?#?Yegneshwar S.,Dr.?#?%?from top to bottomRajiv Kuc

161、hhal?Shibulal S.D.?Management council?Board of directorsAudit committeeDeepak M.Satwalekar,ChairmanSusim M.DattaRamesh VangalProf.Marti G.SubrahmanyamCompensation committeeProf.Marti G.Subrahmanyam,ChairmanSusim M.DattaDeepak M.SatwalekarRamesh VangalNominations committeeSusim M.Datta,ChairmanRamesh

162、 VangalProf.Marti G.SubrahmanyamPhilip YeoInvestor grievance committeeNandan M.Nilekani,ChairmanDinesh K.Shibulal S.D.N.R.Narayana MurthyChairman and Chief Executive OfficerNandan M.NilekaniManaging Director,President andChief Operating OfficerSusim M.DattaDirectorDeepak M.SatwalekarDirectorRamesh V

163、angalDirectorProf.Marti G.SubrahmanyamDirectorPhilip YeoDirectorGopalakrishnan S.Deputy Managing DirectorDinesh K.DirectorShibulal S.D.DirectorShiv Shankar N.Senior Project Manager Development Center ChennaiSivashankar J.Senior Manager Information SystemsSrinivasan V.Associate Vice President Deliver

164、y eBusiness PracticeSrinjay SenguptaRegional Manager andAssociate Vice President Sales EuropeSriram V.Regional Manager andAssociate Vice President Sales Asia PacificSrivathsa P.S.Senior Manager Recruitment Human Resources DevelopmentSubhash DharRegional Manager andAssociate Vice President Sales eBus

165、iness PracticeSubramanyam G.V.Senior Project Manager Software Engineering&Technology LabsSukumar S.Assistant Manager Corporate PlanningSudha KumarSenior Manager Corporate MarketingVenkataramanan T.S.Senior Project Manager Banking Business UnitVijay Kumar C.Associate Vice President Infrastructure Dev

166、elopmentVivekanand P.KochikarSenior Project Manager Education&ResearchManagement council invitees Voice of the YouthBhashyam M.R.Associate Vice President Software Engineering Process GroupBhaskar GhoshAssociate Vice President Development Center BhubaneswarBinod H.R.Associate Vice President Commercia

167、l&FacilitiesDheeshjith V.G.Associate Vice President Delivery Asia PacificHariharan S.MurthyRegional Manager andAssociate Vice President Sales Communication&Product ServicesAshwani K.KhuranaSenior Vice President National and International Sales&Support Banking Business UnitNandita GurjarSenior Manage

168、r Learning&Development HRDNarendran K.Senior Project Manager Development Center MangaloreParameswar Y.Associate Vice President Communication&Product Services Other Telecom BusinessPrasad T.P.Regional Manager andAssociate Vice President Sales South North AmericaPravin Rao U.B.Vice President Delivery

169、South North AmericaPriti Jay RaoAssociate Vice President Development Center PuneRamadas Kamath U.Associate Vice President Accounts&AdministrationManagement council inviteesBhaskar ChakravarthyEshan JoshiIndranil M.Meera RajeevanNagaraj N.S.Sajan V.MathewSrinivas V.Smitha MurthyVinayak Pai V.?Directo

170、rs reportTo the members,Your directors are pleased to present their report on the business and operations of your company for the year ended March 31,2000.Financial resultsin Rs.crore*Year ended March 3120001999Total revenues921.46512.74Total expenditure542.58320.99Operating profit(PBIDT)378.88191.7

171、5InterestDepreciation53.2335.89Profit before tax and extraordinary items325.65155.86Provision for tax39.7022.94Profit after tax before extraordinary items285.95132.92Effect of extraordinary item provision no longer required7.57Extraordinary income,net of tax2.34Net profit after tax and extraordinary

172、 items293.52135.26AppropriationInterim dividend paid9.924.00Dividend recommended final19.848.11Total dividend29.7612.11Dividend tax3.271.21Transferred to capital reserve2.34 general reserve260.49119.60*1 crore equals 10 million.Results of operationsYour company experienced rapid growth this year as

173、well.Total revenues grew to Rs.921.46 crore during the year fromRs.512.74 crore last year,a growth rate of 79.71%.Operating profit grew to Rs.378.88 crore(41.12%of total revenues)fromRs.191.75 crore(37.40%of total revenues),a growth rate of 97.59%.Operating profit margins increased due to enhancedre

174、venue productivity,lower growth in administrative expenses,a broadening of the business mix,and an increase in other income.Profit after tax,from ordinary activities,increased to Rs.285.95 crore(31.03%of total revenue)from Rs.132.92 crore(25.92%of total revenue),an increase of 115.12%.Your company h

175、ad instituted a contingency plan effective October 1,1998 to meet any possible disruption in client support dueto the Year 2000 impact on the technology and communication infrastructure provided to the company by its vendors.Thecontingency plan called for the creation of a total provision of Rs.20.0

176、0 crore based on an initial estimate.This provision wasrequired to be made over six quarters starting October 1998.Accordingly,your company had made a total provision of Rs.9.99crore up to the quarter ended June 30,1999.At this time,your company was led to believe that all its telecommunication serv

177、iceproviders were Year 2000 ready,and therefore did not expect significant disruption of these facilities.During the second quarter ofthis remaining year,your company made an appraisal and re-estimated the provision required for meeting such contingenciesover the next two quarters of fiscal 2000 and

178、 was of the opinion that the provision already made was adequate for the purpose andthat,henceforth no further provisions were required.During the year,an amount of Rs.2.42 crore was spent towards support for the Year 2000 transition activities and the same wasset-off against the provision made earl

179、ier.After such set-off,a balance of Rs.7.57 crore remained in the provision account,whichwas written back as it was no longer required.Your company has been preparing to leverage the opportunities offered by the e-business paradigm,and has taken necessary stepsto do so.This required that your compan

180、y incur business restructuring costs for creating a knowledge infrastructure,acquiring?people with technical skills in the e-commerce area and for e-inventing the company.Accordingly,your company made aprovision of Rs.3.50 crore during the quarter ended September 30,1999.An amount of Rs.3.11 crore w

181、as incurred towardse-inventing the company and was set-off against this provision.After this set-off,a balance of Rs.0.39 crore remains as a provisionfor e-inventing the company as on March 31,2000.DividendAn interim dividend of Rs.1.50 per share(30%on par value of Rs.5)was paid in November 1999.You

182、r directors now recommenda final dividend of Rs.3.00 per share(60%on par value of Rs.5)making,in all,a total dividend of Rs.4.50 per share(90%on parvalue of Rs.5),for the current year.The total amount of dividend is Rs.29.76 crore as against Rs.12.11 crore for the previousyear.Dividend(including div

183、idend tax),as a percentage of net profit after tax from ordinary activities,is 11.55%as compared to10.02%in the previous year.The final dividend is,however,payable pro rata on the equity shares issued upon the exercise ofADS-linked stock options.Under the Indian Income Tax Act 1961,the receipt of di

184、vidend is tax-free in the hands of the shareholders.The tax on distributed profits,payable by the company,increased to Rs.3.27 crore from Rs.1.21 crore.Increase in share capitalDuring the year,upon your approval,a stock split of 2-for-1(a subdivision of every equity share from the par value of Rs.10

185、 eachinto two equity shares of par value of Rs.5 each)was effected.Your company also issued 11,900 shares(equivalent to 23,800 ADS)on the exercise of ADS-linked stock options issued under the 1998 Employee Stock Option Plan.Due to this,the outstandingissued,subscribed and paid-up equity share capita

186、l increased from 3,30,69,400 shares of par value of Rs.10 each during theprevious year to 6,61,50,700 shares of par value of Rs.5 each.BusinessThe Indian software exports industry demonstrated healthy growth during the year.The year saw your company winding downits Year 2000 related engagements,in l

187、ine with its risk management strategy.Your company has successfully managed thetransition of its Year 2000 related work.While Year 2000 engagements contributed to 0.90%of revenues in Q4 of this year,downfrom 24.00%in Q1 of fiscal 1999,internet and e-commerce related work grew to 18.80%of revenues in

188、 Q4 of this year,up from3.70%during Q4 of fiscal 1999.Your companys software export revenues grew by 73.85%to Rs.869.70 crore from Rs.500.25 crore,and 99 new clients were added during the year.Your company continues to focus on offshore software development,re-engineering,maintenance and products.Th

189、e share of the fixed-price component of the business was 31.50%,as compared to 36.70%duringthe previous year.Revenue productivity in dollar terms,grew by 19.80%during the year.Domestic marketThe domestic market witnessed improved performance over the previous year.With the release of the New Generat

190、ion CoreBanking Solution,the successor to Bancs2000,the banking sector in India now has a leading-edge web-enabled product.Thissolution incorporates the latest technology and business trends including internet-based interfaces and an integrated bankingbusiness platform.Further,with banks actively pu

191、rsuing an e-commerce strategy,your companys pioneering efforts in this areahave paid off.BankAway a powerful e-commerce platform,and PayAway the universal bill payment and presentment engine,have emerged as winners in the marketplace.Four out of the six banks in India offering internet banking servi

192、ces are now poweredby BankAway.Further,BankAway was included in the report Ranking International internet Banking Solutions by MeridienResearch,US,a global strategic and technology research company focussing on the financial services industry.BankAway is theonly internet banking solution from Asia t

193、o be covered in the report,and according to Meridien Research,“Infosys is poised tobecome a leading player in the Asian market”.?The Banking Business Unit acquired 4 new clients UTI Bank,IDBI Bank,KarnatakaBank and Federal Bank,increasing its client base to 22 banks in India.The revenue from domesti

194、c sales during the year increasedby 46%over the previous year.Your directors hope that this trend will continue to accelerate in the future.Global Development CentersLast year,as part of its globalization program,your company had stated its intention to start development centers outside India.Based

195、on the recommendations of an internal committee,your company set up a Global Development Center at Toronto,Canadain January 2000.This initiative will help accelerate your companys responses to North American client requirements.In October1999,your company opened two Proximity Development Centers in

196、the U.S.one each at Fremont,California,and Boston,Massachusetts.These centers will further help your company address the requirements of its clients with increased alacrity.?Development centers in IndiaConstruction of the software development center at Infosys Park I-adjoining your companys existing

197、 facility at Electronics City,Bangalore-is progressing well.One more block with a total built-up area of 29,600 sq.ft.and a capacity to accommodate up to225 employees was made operational during this year,as also a food court with a total area of 42,205 sq.ft.Infosys Park I now hasthe capacity to ac

198、commodate up to 1,440 employees on a total built-up area of 2,46,400 sq.ft.Construction of a Customer CareCenter of 77,000 sq.ft at Infosys Park I is in progress.During the year,the construction of Infosys Park II began on a plot of 14.06acres,adjacent to your companys headquarters in Electronics Ci

199、ty,Bangalore.This facility,when completed,will comprise around290,000 sq.ft.of built-up area.Two software development blocks of 70,000 sq.ft.each,with a total capacity to accommodate1,200 employees,were completed in March 2000.Your companys software development facility,with a capacity to accommodat

200、e1,200 employees at the Pune Infotech Park,Hinjewadi,Pune,was completed this year.Phase I of a new development facility toaccommodate 100 employees at Mangalore was inaugurated in February 2000.When completed,this facility will accommodateup to 1,200 employees.Construction of software development ce

201、nters at Chennai and Bhubaneswar commenced during Q4 thisyear.When completed,each of these facilities will accommodate up to 2,400 employees.In addition,your company set up software development centers in Hyderabad,Mohali and Mysore.These cities have excellentpools of trained personnel as well as go

202、od infrastructure and will complement existing development centers located across thecountry at Bangalore,Bhubaneswar,Chennai,Mangalore,and Pune.Overseas branchesTo accelerate the sales effort in overseas markets,sales offices were opened in Australia,Belgium and Sweden.During the comingyear,additio

203、nal sales offices are expected to be opened in North America and Europe.Expansion of the overseas sales network willhelp your company access new markets and broaden its client base.As at the year-end,your company had 16 sales offices overseas.Yantra CorporationThe sales effort at Yantra was further

204、intensified.Your directors are informed that Yantra has installed a high quality managementteam to implement its aggressive growth plans.Such accelerated effort requires funds as well as close links with prospective-clientand prospective-employee networks.Recently,Yantra closed a$15 million venture

205、funding round led by RHO Management andincluded new investors like Boston Millenia.Existing investors of Yantra Charles River Ventures,One Liberty Ventures,Hambrecht&Quist and Draper International also co-invested.With this round of financing,Infosys economic interest in Yantra has comedown to 25.10

206、%(on a fully diluted basis),even though Yantra continues to be a subsidiary under the Companies Act,1956 as theentire common stock is held by your company.The Board of Yantra were of the opinion that its financial information is of a privateand confidential nature,and its publishing may be detriment

207、al to Yantras growth plans.Therefore,given your companys economicinterest in Yantra is below 50%,your company requested the Government of India for an exemption from providing detailsrequired under Section 212 of the Companies Act,1956 and also from attaching the financial statements of Yantra to yo

208、urcompanys balance sheet.The government has granted an exemption,and hence such information is not disclosed.JASDICJASDIC Park Company is an Indo-Japanese consortium founded by Mr.Kenichi Ohmae,a well-known management strategist,along with a few Japanese companies and three Indian companies includin

209、g your company.The aim of JASDIC is to provide high-quality software services from India to the Japanese market.This is in line with your companys strategy to diversify its geographicclient base.This investment is yielding positive results and your company sees further growth in revenues from Japan

210、through thisventure.Incubator fundingYour company is in an industry with great opportunity for highly competent and entrepreneurial professionals,who have highaspirations.In keeping with your companys philosophy of encouraging budding entrepreneurs within the organization,yourcompany has provided an

211、 incubation mechanism for them to launch their own ventures while continuing to derive benefits froma close association with Infosys.Having launched Yantra in 1996,your company recently piloted another idea Onscan-a web-focussed wireless-enabled comprehensive notification service.Your company has pu

212、t in place a management team and is in theprocess of transferring the intellectual property related to the product to Onscan,Inc.The Onscan management team is in theprocess of raising venture capital to fund the companys growth plans.?Strategic investmentsYour company had earlier announced its inten

213、tion to make selective investments in leading-edge companies that have thepotential to yield substantial business benefits.Such investments are also envisaged in select venture capital funds.Benefits fromthese investments would primarily be in the form of revenue and net income enhancements,through

214、technology partnerships andaccess to the latest technological developments.Your company made its first investment this year in Massachusetts-basedEC Cubed,Inc.,a dynamic application provider for B2B e-commerce,granting it Rs.13.08 crore($3 million)in capital.EC Cubed,Inc.,is an existing client of yo

215、ur company and this business relationship has witnessed high growth in the recent past.AcquisitionsYour company has articulated that acquisitions are one of the key instruments of its growth strategy.Accordingly,your companyhas initiated discussions with the Government of India for a blanket approva

216、l for such acquisitions.Benefits from such acquisitions,as envisaged,include access to new clients,new geographical areas and new service offerings as well as an increase in per-capitarevenue productivity.Further,the ability to leverage your companys Global Delivery Model to improve the margins of t

217、heacquired business is an important means for unlocking value from the transaction.Availability of proven methodologies,tools andother intellectual property(IP)would be a key criterion since the IP would be scalable across a large group of people in yourcompany and will help enhance skill levels and

218、 productivity.The government has recently liberalized acquisition guidelines topermit software companies to freely make acquisitions up to ten times their export revenues in the preceding year.QualityAfter fully leveraging the value of Level 4 implementation of the Capability Maturity Model(CMM)of t

219、he Software EngineeringInstitute at Carnegie Mellon University,USA,your company obtained the CMM Level 5 accreditation during the year.In keepingwith its philosophy of openness and sharing its best practices with the industry,your company accepted the request of Prof.PankajJalote of Indian Institute

220、 of Technology,Kanpur,India to publish a book entitled“CMM in Practice:Processes for ExecutingSoftware Projects at Infosys(The SEI series in Software Engineering)”.Incidentally,this is the first book ever to be published onCMM Level 4 implementation.The new information infrastructureYour company fir

221、mly believes that cutting-edge information infrastructure is a strategic asset for its business.The factors that havedriven your company to implement world-class internal systems are:?the challenge of managing consistently high growth,?the strong focus on quality and the resultant dependence on syst

222、ems and processes,?the criticality of having timely information in the dynamic and knowledge-intensive IT industry,and?the need to provide 24 x 7 information availability to a workforce,mobile across various time zones.In the early-and mid-1990s,your company had put in place several homegrown applic

223、ations which were far from beingseamlessly integrated.However,as your companys scale of operations increased and the information requirements of its workforcebecame more sophisticated,your company decided to adopt a standardized platform that would be the cornerstone of its internalinformation archi

224、tecture.The implementation of SAP R/3 in all the core areas of your companys business was a landmark event in its quest to make IS astrategic partner to the line function.Today,this core platform is supplemented by select inhouse web-based applications that areseamlessly integrated into it.Going ahe

225、ad,your companys objective is to focus on state-of-the-art applications with web-based interfaces.Among the projectsin the pipeline is the implementation of a system for Customer Relationship Management that will further strengthen clientpartnerships.Additional information to shareholdersIn earlier

226、years,your company provided additional information in the form of an intangible assets scoresheet,human resourcesaccounting,value-added analysis,brand accounting,economic value-added analysis,and financial statements in substantialcompliance with the GAAP of six countries in addition to the U.S.and

227、India.Such information is provided in this years annualreport also.?Corporate governanceWith increasing globalization,there has been a renewed thrust on corporate governance in India.Your company continues to bea pioneer in benchmarking its corporate governance policies with the best in the world an

228、d its efforts are widely recognized byinvestors in India and abroad.Your company won the first National Award for Excellence in Corporate Governance,1999instituted by the Ministry of Finance,Government of India and sponsored by the UTI Institute of Capital Markets.Your companywas selected from an in

229、itial short-list of approximately 60 companies by a panel headed by the former Chief Justice of India,Mr.P.N.Bhagwati.Further,the Stock Exchange,Mumbai chose your company as the first winner of their Award for Excellencein Corporate Governance.The Shri Kumar Mangalam Birla Committee on Corporate Gov

230、ernance constituted by the Securities and Exchange Board of India(SEBI)submitted its report in November 1999,which was accepted by SEBI in December 1999.The recommendations of thecommittee are mandatory for certain classes of companies effective fiscal 2001.Your company has complied with most of the

231、recommendations in fiscal 2000 itself.The compliance report on various recommendations made by the committee is providedelsewhere in this report.In addition,your directors have documented your companys internal policies on corporate governance.The increasing diversity of the investing community and

232、the integration of global capital markets make corporate governance akey issue in the investment decisions of investors.In line with the committees recommendations,the management discussion andanalysis of the financial position of the company is provided elsewhere in this annual report and is incorp

233、orated here by reference.Capital market developmentsThe Securities and Exchange Board of India(SEBI)mandated the trading of Infosys shares only in the dematerialized form,witheffect from January 4,1999.Over 96%of the companys shares are presently held in electronic form and with this your companyhad

234、 become the largest electronically held listed company in India.The market capitalization of your company increased toRs.58,887.02 crore as on March 31,2000 as compared to Rs.9,672.80 crore as on March 31,1999,based on the quotations onthe Indian stock exchanges.The equity shares listed on the NASDA

235、Q continue to quote at a premium to the Indian price.Employee Stock Offer Plan(ESOP)1994 Stock Offer Plan(the 1994 plan)During the year,your company granted letters of right to acquire 30,000 shares(as adjusted for the 2-for-1 stock split effected inFebruary 2000)originally reserved under the 1994 p

236、lan.As of March 31,2000,letters of right to acquire 341,400 shares(asadjusted for the 2-for-1 stock split effected in February 2000)were in force.The 1994 plan has come to an end and no furtheroptions will be issued under this plan,in future.No grants were made to the senior management during the ye

237、ar.1998 Stock Option Plan(the 1998 plan)Your company had issued 294,300 ADS-linked stock options to 72 employees during the year under the 1998 plan.Details of theoptions granted under the 1998 plan during the year are given below.DescriptionDetails1.Total number of shares3.20 million ADS(Adjusted f

238、or stock split of 2-for-1 announcedduring the year)2.The pricing formulaNot less than 90%of the fair market value as on date of grant3.Ratio of ADS to equity sharesOne share represents two ADS4.Weighted average price per option granted$114.30(100%of fair market value on the date of grant)5.Options g

239、ranted during the year294,300 options representing 147,150 equity shares6.Options exercised during the year23,800 options(granted in 1999)representing 11,900 equityshares7.Total number of options in force689,500 options representing 344,750 equity shares8.Grant to senior managementNo.of optionsPhane

240、esh Murthy8,000Sobha Meera5,000Basab Pradhan5,000Total18,0009.Employees holding 5%or more of the total number of options granted during the year:Nil?1999 Stock Option Plan(the 1999 plan)Your company had issued 10,14,500 stock options to 1,228 employees during the year under the 1999 plan.The details

241、 of theoptions granted under the 1999 plan during the year are given below.DescriptionDetails1.Total number of shares66,00,000 shares(Adjusted for stock split of 2-for-1announced during the year)2.The pricing formulaAt the fair market value as on date of grant3.Weighted average price per option gran

242、tedRs.4,267.80(100%of fair market value on the date of grant)4.Options granted during the year10,14,500 options for 10,14,500 equity shares5.Options exercised during the yearNil6.Total number of options in force10,06,8007.Grant to senior managementNo.of optionsDeepak Sinha4,000Ajay Dubey8,000Raghupa

243、thi G.Bhandi8,000Balakrishnan V10,000Raghavan S.10,000Balasubramanian P.8,000Srinath Batni12,000Hema Ravichandar8,000Vasudeva Rao L.12,000Mohandas Pai T.V.14,000Yegneshwar S.10,000Girish Vaidya8,000Prabhu M.S.S.6,000Total1,18,0008.Employees holding 5%or more of thetotal number of options granted dur

244、ing the year:NilLiquidityA liquid balance sheet is a key element of the financial strategy of your company.Enhanced liquidity reduces financial risk andallows a rapid shift in direction should the market so demand.During the current year,internal cash accruals have more thanadequately covered workin

245、g capital requirements,capital expenditure and dividend payments,and have resulted in a surplus ofRs.83.39 crore.As on March 31,2000,excluding the funds collected under the ADS issue,your company had liquid assets ofRs.231.19 crore as against Rs.137.13 crore at the previous year-end.Including the fu

246、nds collected under the ADS issue,yourcompany had liquid assets of Rs.508.37 crore.These funds have been invested both in rupee and dollar deposits with banks andfinancial institutions.A high level of liquidity reduces return on shareholders funds.However,a balance between high returns onfunds deplo

247、yed in the business and the ready availability of cash for strategic decisions on growth will have to be maintained.Thecreation of physical and technological infrastructure will absorb a significant part of the liquid assets over the next three years.Year 2000 risks and issuesThe Year 2000 transitio

248、n has been smooth,for both your company as well as its clients.Your directors believe that this has beena result of the preparatory work done for the transition as well as the changes already made to the systems.The company provided24 x 7 transition support to its users and clients by setting-up a Y

249、ear 2000 War Room.Very few calls came in and all of them werehandled immediately.The financial impact of the transition was insignificant.Your directors are happy to report that the transitionwas completed smoothly and,going forward,see no material financial impact arising from Year 2000 issues.Orga

250、nizational changesDuring the year,your company re-organized and aligned its delivery and marketing channels in order to decentralize operations,to ensure better responses to client needs,to focus on developing domain expertise,and to develop the next-generation businessleaders.The revised management

251、 structure is provided elsewhere in the report.Research and education initiativesIn fiscal 1999,your company instituted the Infosys Fellowship Program at five Indian Institutes of Technology,the Indian Instituteof Science,the National Center for Software Technology,Pune University,three Indian Insti

252、tutes of Management,the National?Law School of India University and the Institute of Chartered Accountants of India for Ph.D.programs in computer science,management,law and accounting.This was part of your companys initiative to foster excellence in education.During the currentyear,an amount of Rs.7

253、5 lakhs was allocated by way of a one year grant to these institutions to continue this initiative.Inaddition,your company has donated Rs.1.0 crore to the Indian Institute of Information Technology,Bangalore.Infosys FoundationYour company is committed to contribute to its social milieu and,in 1998,e

254、stablished Infosys Foundation as a not-for-profit trustto support initiatives that benefit society-at-large.The Foundation supports organizations devoted to the cause of destitutes,therural poor,spastics,senior citizens and illiterates.It also helps preserve certain arts and cultural activities of I

255、ndia which are underthreat of fading out.A summary of the work done by the Foundation appears elsewhere in this report.On your behalf,your directors express theirgratitude to the honorary trustees of the Foundation for sparing their valuable time and energy for the activities of the Foundation.Commu

256、nity servicesYour company continued the three social programs initiated last year-Catch Them Young,Train the Trainer and Rural Reach.TheCatch Them Young program identified 150 promising students for intensive computer training.The Rural Reach program,conducted in four languages,brought elementary co

257、mputer literacy to over 1500 participants from rural India.The Train theTrainer program familiarized 75 faculty members from various universities with the latest developments in the IT industry.Further,your company launched a new program,ComputersClassrooms,jointly with Microsoft Corporation.As part

258、 of thisinitiative,your company committed to donate 282 computers from its purchases in earlier years to over 100 institutions acrossIndia.Your directors expect these numbers to increase significantly in the future.AwardsYour directors are happy to report on some of the awards that your company rece

259、ived during the year.?For the fifth year in succession,your company received the Silver Shield from the Institute of Chartered Accountants of Indiafor the Best Presented Accounts,amongst the entries received from non-financial,private sector companies,for the year 1998-99.?The Asiamoney poll of fina

260、ncial analysts voted Infosys the best in management among the listed companies in India for thefourth time in a row.?Your company was unanimously awarded the first“National Award for Excellence in Corporate Governance”for the year1999 by a panel of judges chaired by former Chief Justice of India,Mr.

261、P.N.Bhagwati.This award is conferred by theGovernment of India and is sponsored by the UTI Institute of Capital Markets.Your company also received the first“Awardfor Excellence in Corporate Governance”instituted by the Stock Exchange,Mumbai.?In a survey conducted among 1636 senior mangers of the Ind

262、ian industry by The Economic Times,Infosys was voted theMost Admired Company in India.?The Software Magazine,USA has ranked Infosys as one of the top 100 companies in its Software 500 rankings.Fixed depositsYour company has not accepted any fixed deposits and,as such,no amount of principal or intere

263、st was outstanding as of thebalance sheet date.DirectorsAs per Article 122 of the Articles of Association,Mr.Nandan M.Nilekani,Mr.K.Dinesh and Mr.S.M.Datta retire by rotation inthe forthcoming Annual General Meeting.Mr.Nandan M.Nilekani and Mr.K.Dinesh being eligible,offer themselves for re-appointm

264、ent.Mr.S.M.Datta has expressed his intention not to seek re-election.Your directors place on record their deepappreciation of the yeoman service rendered by Mr.S.M.Datta during his tenure on the board.Mr.S.M.Datta participatedactively in the deliberations of the board and your company benefited imme

265、nsely from his insights.Your directors have expanded the board and co-opted Mr.Philip Yeo,Executive Chairman of the Economic Development Board,Government of Singapore as an additional director.Mr.Yeos appointment as director requires the approval of the members at theensuing Annual General Meeting.?

266、As part of the globalization process,your directors consider it necessary to increase the size of the board upto 18 members.Thenecessary resolutions for obtaining the approval of the members are incorporated in the notice for the ensuing Annual GeneralMeeting.The increase also requires the approval

267、of the Government of India under Section 259 of the Companies Act,1956.AuditorsThe auditors,Bharat S Raut&Co.Chartered Accountants,retire at the ensuing Annual General Meeting and have confirmed theireligibility and willingness to accept office,if re-appointed.FII investment limitRecently,the Govern

268、ment of India has raised the investment limit in an Indian company for Foreign Institutional Investors,from30%to 40%,subject to the approval of the board of the investee company,and a special resolution of the shareholders of such acompany.Your directors are of the opinion that it would be in the in

269、terest of the company to increase the limit of such investmentto 40%.The necessary resolutions are being placed before the members in the ensuing Annual General Meeting.Conservation of energy,research and development,technology absorption,foreign exchangeearnings and outgoThe particulars as prescrib

270、ed under subsection(1)(e)of section 217 of the Companies Act,1956,read with the Companies(Disclosure of particulars in the report of board of directors)Rules,1988,are set out in the annexure included in this report.Particulars of employeesAs required under the provisions of section 217(2A)of the Com

271、panies Act,1956,read with the Companies(Particulars ofemployees)Rules,1975,as amended,the names and other particulars of employees are set out in the annexure included in thisreport.AcknowledgmentsYour directors thank the clients,vendors,investors and bankers for their continued support of your comp

272、anys growth.Yourdirectors place on record their appreciation of the contribution made by the employees at all levels,who,through their competence,hard work,solidarity,cooperation and support,have enabled the company to achieve rapid growth.Your directors thank the Government of India,particularly th

273、e Department of Electronics,the Customs and Excise departments,Software Technology Parks Bangalore,Chennai,Hyderabad,Mohali,Mysore,Pune,Bhubaneswar and New Delhi,the Ministryof Commerce,the Reserve Bank of India,VSNL,the Department of Telecommunications,the state governments,and othergovernment agen

274、cies for their support during the year,and look forward to their continued support in the future.For and on behalf of the board of directorsNandan M.NilekaniN.R.Narayana MurthyBangaloreManaging Director,PresidentChairmanApril 11,2000and Chief Operating Officerand Chief Executive Officer?Annexure to

275、the directors reporta)Particulars pursuant to Companies(disclosure of particulars in the report of the board ofdirectors)Rules,19881.Conservation of energyThe operations of your company are not energy-intensive.Adequate measures have,however,been taken to reduce energyconsumption by using energy-eff

276、icient computer terminals and by the purchase of energy-efficient equipment incorporatingthe latest technology.Your company has replaced the existing incandescent lamps with CFL fittings and has shifted to the useof electronic ballast to reduce the power consumption of fluorescent tubes.Your company

277、 constantly evaluates new technologiesand invests in them to make its infrastructure more energy-efficient.Energy-efficient transformers and UPS systems havebeen purchased.Energy-saving air conditioners are being purchased and air-conditioned areas have been treated with heat-resistant material to r

278、educe heat absorption.These measures have enhanced energy efficiency.As energy cost forms a verysmall part of the total cost,the impact on cost is not material.2.Research and development(R&D)Research and development of new services,designs,frameworks,processes and methodologies continue to be of imp

279、ortanceat Infosys.This allows your company to reuse designs across projects,and thereby increase quality and productivity.a.R&D initiative at institutes of national importanceThis initiative has been described in the directors report.b.Specific areas for R&D at InfosysSince businesses and technologi

280、es are changing constantly,continuous investments in research and development need to bemade.Your company has taken the approach that its research must be beneficial to the company and to its clients either inthe short term or in the medium term.As in earlier years,your company continues to conduct

281、research in the areas ofsoftware engineering,offshore project management,the Global Delivery Model,emerging technologies,and new tools andtechniques.Continuous education is required to keep up with changes around.The traditional form of classroom training issynchronous,and requires the trainer and t

282、rainee to be physically present in the same location at the same time.Effectivenessof non-traditional and asynchronous modes of training is an area of research at your company.Your company has,as a result of research,been able to develop processes and methodologies for engineering services.Thiswas i

283、nstrumental in your company getting quality certification for the engineering services group.A consulting methodologyhas also been developed.Research has been initiated in the areas of software architecture and performance engineering.Thisis to help projects deliver high performance/high transaction

284、 volume software solutions to clients.Research has also beenstarted in object and component technologies to create modules for repeatability of projects.Your company continues to undertake research in the following areas:?General software engineering Your company is constantly improving its methodol

285、ogies to increase quality andproductivity and to reduce time-to-market for its clients.Since time-to-market is important,your company also needsto deliver features on an ongoing basis almost every month.?New technologies Your company has developed a Rapid Application Development methodology for e-co

286、mmerceand internet projects.?Products Your company continues to enhance and add additional products in the Banking area.Infosys has various groups engaged in R&D.The Education and Research division looks at short-term and long-termresearch in the areas of Knowledge Management,Education&Training,meth

287、odologies,and techniques.Software Engineeringand Technology Labs(SETLabs)looks at emerging technology trends in the short term and consists of two divisions.SysLablooks at emerging technology trends in the long term.Comfactory looks at object technology,reuse,component libraries,and related areas.c.

288、Benefits derived as a result of R&D activityYour company has been able to maintain margins despite changes in technology and increased personnel costs.For instance,your company successfully managed to reduce its exposure to Year 2000 based services,down to 0.9%of revenues in Q4this year.This was acc

289、ompanied by an increase in internet and e-commerce revenues,up to 18.8%in Q4 this year.?d.Future plan of actionThere will be continued focus and increased investment in the above R&D activities.Future benefits are expected to flowin from initiatives undertaken this year.e.Expenditure on R&D for the

290、year ended March 31in Rs.crore20001999Revenue expenditure8.089.51Capital expenditure0.150.30Total R&D expenditure8.239.81R&D expenditure as a percentage of total revenue0.89%1.91%3.Technology absorption,adaptation and innovationDuring this year,your company has standardized the use of Pentium III 50

291、0 MHz system with 128 MB RAM and at least10 GB hard disk space as the standard desktop PC.All personnel traveling frequently to client sites are given Pentium notebookcomputers.Your company has made significant additions to the number of servers used for software development as well asfile and print

292、 servers.During the year,your company has also provided video conferencing facility to all its SoftwareDevelopment Centers and offices across the world.Your company has made investments in several engineering workstationsand in software required for engineering design work.Your company has also inve

293、sted in middleware technologies,mobiletechnologies as well as Palm computing technologies;your company is now capable of integrating these to provide totaltechnology solutions to its clients.4.Foreign exchange earnings and outgoa.Activities relating to exports,initiatives taken to increase exports,d

294、evelopment of new exportmarkets for products and services,and export plansIn the past,your company has had a strong export focus.In fiscal 2000,94.38%of revenues were derived from exports.Your company has,over the years,built up a substantial direct marketing network all over the world.Its marketing

295、 offices aresituated in North America,Europe and Asia Pacific,and are staffed with sales and marketing specialists who directly sell yourcompanys services to large,international clients.The export thrust of your company will continue in the future.During the year,your company opened marketing office

296、s in Melbourne in Australia,Brussels in Belgium and Stockholm inSweden.It also set up development centers in Toronto,Canada,and Fremont and Boston in the U.S.Your company has alsolaunched an initiative to increase the awareness of the Infosys brand,and of its products and services,globally.Several p

297、ressand public relations exercises have been launched in the U.S.to enhance your companys visibility.Further,your companyplans to take part in several international exhibitions to promote its products and services.During the year,your companys Banking Business Unit won new clients in Maldives and Ma

298、uritius.The long-term goal of your company is to be a highly respected name in the global market for its services and products,andto continue to realize a significant portion of its revenue from exports.b.Foreign exchange earned and used for the year ended March 31in Rs.crore20001999Foreign exchange

299、 earnings851.72477.44Foreign exchange outgo(including capital goods and imported software packages)336.58192.56For and on behalf of the board of directorsNandan M.NilekaniN.R.Narayana MurthyBangaloreManaging Director,PresidentChairmanApril 11,2000and Chief Operating Officerand Chief Executive Office

300、r?Annexure to the directors reportInformation as per Section 217(2A)of the Companies Act,1956,read with the Companies(Particulars of employees)Rules,1975,and forming part of the directorsreport for the year ended March 31,2000Sl.NameDesignationQualificationAgeDate of joiningExperienceGrossPrevious e

301、mployment DesignationNo.(Years)(Years)Remuneration(Rs.)1.Ajay DubeyVice PresidentB.Tech.(IIT)4207.06.199318828,328ANZ Bank,New Zealand Technical Team Leader*2.Ajay Vishwanath Gokhale Associate Project ManagerB.Sc.,MMS3619.07.199913423,938Siemens Information Systems Limited Associate Consultant3.Amit

302、 Kumar BhadraManager(Customer Support)B.Sc.,M.Sc.3422.01.199814672,990Unit Trust of India Asst.General Manager Systems4.Ardhendu Sekhar DasAssociate Project ManagerB.E.3423.01.199813636,468ICIM Intl Inc.Consultant5.Aseem PurohitRegional ManagerMMS3217.06.199610640,293Dataline&Research Technologies(I

303、)Ltd.General Manager*6.Ashok V.ArunachalamSenior Project ManagerB.Tech.,MS3703.05.199911552,629New Bridge Networking Corpn.Manager Advanced Technical Support7.Babuji S.Senior Project ManagerB.E.5017.12.199726944,952Mahindra British Telecom Ltd.Chief Manager*8.Badrinarayanan Jagannathan Project Manag

304、erB.E.(Hon.),PGD3302.08.199911447,028Oxford Health Plans Incorporations Sr.Technical Analyst9.Balakrishnan V.Associate Vice President(Finance)B.Sc.,ACA,ACS,AICWA3502.09.199115842,977Amco Batteries Ltd Senior Accounts Executive10.BalashankarProject ManagerB.E.4417.12.199720664,481B.E.L Manager11.Bala

305、subramaniam T.A.Assistant Project ManagerB.Sc.,PGD3722.05.199714632,076Mastek Limited.Project Leader12.Balasubramanian P.Senior Vice PresidentB.Tech.(IIT),M.Tech.(IIT),5001.10.1995271,235,001Hitek S/W Engineers Ltd.CEO Technical DirectorPh.D(PURDUE)*13.Balwant Chitubhai SurtiManager Business Consult

306、ancyLLB,AICWA3916.08.199918395,821The Saraswat Co-Operative Bank Limited Senior Manager14.Bhashyam M.R.Senior Manager(Quality)B.E.,M.E.4907.07.199526779,420Aeronautical Dev.Agency Scientist15.Bhaskar GhoshSenior Project ManagerB.Sc.,MBA4003.02.199718659,185Philips India Ltd.Sr.Marketing Manager16.Bi

307、bhu R.PattanayakSenior Project ManagerB.Tech.,M.Tech.(IIT)4211.08.199717737,683AT&T Project Manager17.Bikramjit MaitraSenior Project ManagerB.Sc.,B.Tech.4522.02.199920714,834R.S.Software Vice President-Technology18.Binod H.R.Sr.Manager(Customer Support)B.E.3702.08.199314738,947Motor Industries Co.Lt

308、d.Senior Engineer19.C.S.SrinivasAssociate Vice PresidentB.E.4315.10.199818845,951Tektronics Manager20.Chandra Shekar KakalSenior ConsultantB.E.,MBA3901.03.199917718,207Ramco Systems Product Manager*21.Chandrakanth DesaiManager(CCD)B.Tech.,M.Tech.(IIT)4417.01.200023128,632Indian Air Force Wing Comman

309、der22.Chandramouli J.Senior Project ManagerB.E.3215.06.198812611,41423.Col.Krishna C.V.Advisor(Infrastructure)B.E.,MBA5301.04.199824719,001Indian Army Signal Intteligence Decorate*24.D.T.BhatManager-Testing(BBU)B.Sc.,M.Sc.4502.08.199923403,342Infosys Technologies Limited Consultant25.Deepak SinhaSen

310、ior Manager(CCS)B.Sc.(Hon.)(IIT)5206.04.199831723,808Indian Air Force Group Captain26.Deepak N.HoshingSenior Project ManagerB.Tech.(IIT)3710.10.199615635,515Unisys Distr.Sr.Systems Analyst27.Dheeshjith V.G.Associate Vice PresidentB.Sc.,M.E.(IISc)3614.09.198712757,75328.Dinesh KrishnaswamyDirectorB.S

311、c.,M.Sc.4501.09.1981241,294,343Patni Computer Systems Pvt Ltd.Sr.Software Engineer29.Ganesh G.Senior Project ManagerB.E.(Hon.),PGD3702.05.199413722,015Asian Paints Systems Executive30.Gautam ParijaManager(F&A)B.E.,MBA4127.03.199719630,021Osedc Limited Deputy General Manager Planning31.Geetha G.Assoc

312、iate Project ManagerB.E.3401.12.199513757,866I.T.I.Limited Senior Engineer32.Girish G.VaidyaSenior Vice PresidentB.E.,PGD(IIM)4922.01.1999251,220,619ANZ Grindlays Bank Ltd.Head&Director Operations33.Gopalakrishnan S.Deputy Managing DirectorB.Sc.,M.Tech.(IIT)4401.02.1981201,233,480Software Sourcing C

313、o.V.P.Technical Group34.Guruprasad R.A.Assistant Project ManagerB.E.3105.10.199810765,581Spectrum Infotech Pvt.Ltd.Sr.Design Engineer35.Hema RavichandarSenior Vice President(HRD)BA,PGD(IIM)3830.12.199817935,112Empower Associates Proprietrix36.Ishwar C.HalalliProject ManagerB.E.,M.Tech.3719.01.199613

314、711,141At&T SSTL Manager Technical*37.Jayaram B.G.Project ManagerB.Sc.(Hon.),M.Sc.4610.12.199923202,647Raffler Software Project Manager(Education&Research)38.Kannan IyerProject ManagerB.Sc.,PGD3801.10.199718689,518Ramco Systems Manager Technical39.Khurana A.K.Senior Vice PresidentB.Tech.(IIT)4901.06

315、.1992281,047,142New Building Material Project Chief Executive?Sl.NameDesignationQualificationAgeDate of joiningExperienceGrossPrevious employment DesignationNo.(Years)(Years)Remuneration(Rs.)40.Krishnamoorthy Ananthasivam Associate Vice PresidentB.Tech.(IIT),M.Sc.3810.01.198616967,953Urban Transport

316、 Development Corpn.Research Asst.41.Krishnamurthy T.S.Senior Project ManagerB.E.(Hon.)3726.10.198715684,875Zenith Electro Systems Pvt Ltd.Software Executive42.Krishnan S.Manager(International Taxation)B.Com.,ACA3215.09.19979672,767Bennett,Coleman&Company Limited Senior Business Correspondent43.Latha

317、 K.Project ManagerB.Sc.,MA3622.08.199711669,480Riyam Computer Services Project leader44.Lilly VasanthiniAssociate Project ManagerB.E.,PGD3728.05.199715624,368C-Dot Programme Engineer45.Madhav Dattaraj KulkarniAssociate Project ManagerB.Tech.(IIT),M.Tech.(IIT)3304.05.199811664,687PRT(Barbados)Ltd.Pro

318、ject Manager46.Mallya P.D.Associate Vice PresidentB.Tech.,M.Tech.(IIT)4515.12.198622704,637IDS A.V.P47.Merwin FernandesSenior ManagerBCOM4006.08.199718755,561DSQ Software Ltd Business Development Manager(Sales&Marketing)48.Milind S.DeshpandeProject ManagerB.E.3315.12.199311600,561Reesan Imr Senior A

319、P*49.Mini V.SarasammaConsultantB.E.3123.08.19997345,648Softline/KPMG SAP Consultant50.Mohammed Hussain Naseem Manager-International SalesB.Tech.(IIT),MS3407.09.199810645,298Wipro GE Medical Systems National Product Manager(Banking)51.Mohan SekharAssociate Vice PresidentB.E.,MS3717.08.199813812,116AT

320、&T Operations Manager52.Mohan M.M.Senior Manager(HRD)B.Com.,PGDBM5511.07.199230693,732Motor Industries Co Ltd.Asst.Officer HRD53.Mohandas Pai T.V.Senior Vice President(FinanceB.Com.,LLB,FCA4117.10.1994201,171,588Prakash Leasing Limited Executive Director&Admn.)and CFO*54.Nadathur S.RaghavanJoint Man

321、aging DirectorB.E.5601.09.1981361,052,713Patni Computer Systems Pvt.Ltd Asst.Manager55.Nagaraj R.N.Senior Manager(Product Support)LLB,M.A.4506.03.199524649,798State Bank of Hyderabad Manager56.Nandakumar N.Project ManagerB.Sc.4102.12.199619613,323Mastek Limited Training Manager(Education&Research)57

322、.Nandan M.NilekaniManaging Director,B.Tech.(IIT)4401.07.1981221,302,458Patni Computer Systems Pvt Ltd.Asst.Project ManagerPresident&COO*58.Nandita Mohan GurjarCorporate Development Manager B.A.,M.A.3920.12.19998199,068Wipro Infotech Corporate Manager HRD59.Narasimman R.Associate Project ManagerB.Sc.

323、,M.Tech.(IIT)3603.04.199815637,473DRDO Scientist60.Narayana Murthy N.R.Chairman&CEOB.E.,M.Tech.(IIT)5318.03.1982311,416,068Patni Computer Systems Pvt Ltd.Head-Software Group61.Narendran KoduvattatProject ManagerB.Sc.3308.03.199314604,514PSI Data Systems Ltd.Senior Software Engineer62.Padmanabhan D.S

324、enior Project ManagerB.Sc.3702.11.199216705,665PSI Data Systems Ltd.Product Manager*63.Palanisamy PalaniappanProject ManagerB.E.,M.Tech.(IIT),Ph.D(IISc)4121.09.19997350,910C.S.T.Inc.,Director Asia-Pacific64 Parameswar Y.Associate Vice PresidentB.E.,M.Tech.(IIT)4414.10.1996201,073,076C-Dot Divisional

325、 Manager*65.Parthasarathy M.A.Senior Project ManagerB.E.5030.08.199928430,488IMR Global Ltd.Group Manager66.Poornima HarekrishnaAssociate Project ManagerB.Sc.,PGD3602.11.199813608,145ICON Information Technologies Services Project Manager67.Prabhakara H.R.Project ManagerM.Tech.(IIT)3904.03.199615611,

326、063ITI Limited Senior Engineer68.Prabhu M.S.S.Senior Vice PresidentB.E.,Ph.D(IISc)5201.08.1997261,154,474Tata Consultancy Services V.P.Systems Manager69.Pravin Rao U.B.Associate Vice PresidentB.E.3804.08.198614847,238Indian Institute of Science Trainee Programmer70.Priti Jay RaoAssociate Vice Presid

327、entB.Sc.,M.Sc.(IIT)4002.07.199717882,084L&T Project Manager71.Raghavan S.Associate Vice PresidentB.E.3816.04.198716861,139B.H.E.L.Maintenance Engineer*72.Raghu PonnapalliSenior Project ManagerB.Sc.,MS3509.12.199914213,057Sun Microsystems Inc.IR Technical Consultant*73.Raghunath K.Banking Customer Su

328、pport Manager BCOM4616.09.199923329,038Canara Bank Manager*74.Raghupathi N.CavaleSenior Consultant(ERP)B.E.,MS(IIT)3813.12.19998224,148Price Waterhouse Coopers-Principal Consultant75.Raghupati BhandiVice PresidentB.E.,M.Tech.(IIT)3907.07.198816887,462Wipro Information Technology Ltd.Sr.Systems Engin

329、eer76.Raghuveer B.K.Associate Project ManagerB.E.3216.04.199210630,420Ashok Leyland Ltd.Head77.Rajasekaran K.S.Senior Manager(Business Consultancy)B.Sc.,M.Sc.,PGD4108.11.198316713,352Voores High School Teacher*78.Rajeev Easwara WarrierProject ManagerB.E.3302.11.199911260,174Aspect Development Group

330、Leader*79.Rajgopal S.KishoreProject ManagerB.Tech.(IIT),M.Tech.(IIT)3509.08.199912556,154Novell Manager80.Rajiv KuchhalAssociate Vice PresidentB.Tech.(IIT)3405.02.199013699,751Telecommunications Consultants(I)Ltd.Asst.Manager*81.Raju BannurProject ManagerB.E.,M.Tech.(IIT)3617.01.200011139,759IMR Glo

331、bal Group Manager?Annexure to the directors report(contd.)Sl.NameDesignationQualificationAgeDate of joiningExperienceGrossPrevious employment DesignationNo.(Years)(Years)Remuneration(Rs.)82.Rama N.S.Senior Project ManagerB.E.5031.03.199927943,427Satyam Computer Services Consultant83.Ramadas Kamath U

332、.Senior ManagerBBM,FCA3901.07.199415804,496Manipal Printers&Publishers Ltd.Accountant(Accounts&Administration)84.Ramakrishnan M.Associate Project Manager(Quality)B.Sc.4304.09.199623608,960Canara Bank Officer85.Ramanamurthy M.S.Project ManagerB.E.,M.Tech.(IIT)3408.10.199713646,247Tata Consultancy Ser

333、vices Asst.Consultant86.Ravi KiranProject ManagerB.E.3615.02.199613916,254Asea Brown Boveri Ltd.Sr.Engineer Marketing87.Ravi C.Senior Project ManagerB.E.3402.05.198812666,87688.Ravishankar M.R.Project ManagerB.E.,M.E.(IISc)3416.01.199812646,759Tata Consultancy Services Associate Consultant*89.Rohan JoshiSenior Manager B.E.,MBA3802.11.199313261,635Philips Internationals Junior Vice PresidentCorp Ma