印孚瑟斯Infosys Ltd. (INFY) 2003年年度報告「NYSE」.pdf

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1、1C L O C K W O R KWorking across time zones and geographies,committed Infoscions ensure that for yourcompany,time is a resource,not a constraint,and distance,an advantage.In this AnnualReport,we will share with you how Infoscionswork with clockwork precision,amonggeographically distributed,multicult

2、uralteams,to continuously create value for yourcompanys customers.“I must govern the clock,not be governed by it.”Golda Meir2165 Financial statements(unaudited)prepared insubstantial compliance withGAAP requirements ofAustralia,Canada,France,Germany,Japan and theUnited Kingdom and reportsof complian

3、ce with respectivecorporate governancestandardsAnnual General Meeting(AGM)notice3The year at a glance4Clockwork10Awards for excellence14Letter to the shareholder17Certification by CEO and CFO18Directors reportFinancial statements prepared inaccordance with Indian GenerallyAccepted Accounting Princip

4、les(Indian GAAP)37Selective financial data39Managements discussionand analysis of financialcondition and results ofoperations54Auditors report56Balance sheet57Profit and loss account58Schedules75Cash flow statement77Balance sheet abstract andcompanys generalbusiness profile78Consolidated financialst

5、atements prepared inaccordance with Indian GAAP94Section 212 report95Financial statements ofProgeon Limited110 Risk management report117 Corporate governance report137 Shareholder information142Frequently askedquestions146Share performance chart147Intangible assetsscore sheet150Human resourcesaccoun

6、ting andvalue-added statement151Brand valuation153Balance sheet(includingintangible assets)154Current-cost-adjustedfinancial statements156Economic Value-Added(EVA)statement157Ratio analysis160Statutory obligations161ValueReportingTM162Management structure163 Infosys FoundationC o n t e n t s33,6232,

7、6041,901200320022001Year endedMarch 31,Total revenuein Rs.croreExportsin Rs.crore3,5442,5521,874200320022001Year endedMarch 31,623808958200320022001Year endedMarch 31,PATin Rs.croreThe year at a glancein Rs.crore except per share dataMarch 31,2003March 31,2002Growth%For the yearTotal revenue3,6232,6

8、0439Export revenue3,5442,55239Operating profit(PBIDTA)1,2721,03823PBIDTA as a percentage of total revenue35.11%39.85%Profit after tax(PAT)95880819PAT as a percentage of total revenue26.44%31.03%PAT as a percentage of average net worth38.78%46.57%Capital investment219323(32)Dividend per share27.0020.

9、0035Dividend amount17913235Earnings per share(par value of Rs.5/-each,fully paid)Basic144.68122.1218Diluted143.37121.3718At the end of the yearTotal assets2,8612,08038Fixed assets net7737188Cash and cash equivalents1,6391,02760Working capital2,0181,29356DebtNet worth2,8612,08038Equity3333Market capi

10、talization26,84724,6549Market capitalization is calculated by considering the equity price at the National Stock Exchange onMarch 31 of the respective years and the shares outstanding on that date.1 crore=10 million4C L O C K W O R KResponding toclient needsIt is Friday,and the InfosysSouthern Calif

11、ornia team iscelebrating the weeksachievements.Todd MacCallumaddresses the gathering,“Folks,yet another notch in our belt!The client is thrilled with ourquick and innovativedevelopment of the XMLmodule.They realize that weare a responsive solutionprovider!”The team cheers andapplauds Todd.An earlier

12、 moment in the weekhad been really tense.Theprevious Monday,09:00 PST:an intense brainstormingteleconference between theoffshore team in Bangalore,andTodd.The client,a media andentertainment giant in the US,has had a sudden change inrequirement.Prasad,thedelivery manager,points out,“Todd,given the n

13、ew emphasisfor an open architecture,wewill have to replace theElectronic Data Interchange(EDI)module with one basedon XML standards.”Toddqueries,“That sounds tricky.Can we start on a new moduleat this stage and still meet thedeadline?”“Yes,but we willneed our teams of EDI andXML experts working on i

14、tsimultaneously both from Indiaand the US,”says Prasad.After a week of late night andearly morning conference calls,the Infosys team hasconceptualized and developed asimple and effective solution.The client thanks Todd,“Yoursolution delivers just theinteroperable architecture wewanted.”Todd conveys

15、the good news toPrasad and then heads out tocelebrate with his team.A shortwhile later,he drives homebattling the dense LA traffic.After a tense yet fulfilling week,he is really looking forward towhale watching during hisweekend sail!UnderstandingrequirementsAshim enters his meticulouslyorganized of

16、fice on the dot at08:00 IST.The answeringmachine,fax machine,email andtelephone all clamor for hisattention.He reads an emailfrom the CIO of the US arm of alarge European bank.Its greatnews!Infosys has beenprovisionally selected over 14global vendors to restructure theclients IT processes.During aco

17、nference with his group at08:10 IST,Ashim explains,“Theclient is looking to outsource allIT functions supporting its USoperations.We submitted aproposal to streamline itsprocesses using the industrysbest practices as a benchmark.The client wants us to reworkthe solution and extract anotherUS$1 milli

18、on in cost savingsbefore awarding us the contract.”The team quickly swings intoaction.It does a detailed duediligence of all the assumptions.In year one,the savings comemainly from transitioning to anoffshore team in Bhubaneswar.In year two and three,theycome from processimprovement and replacemento

19、f several legacy applications.“If we create a shared servicessupport group for the full suiteof investment bankingapplications,anotherUS$1 million can be saved!”exclaims Shyam.A rigorousthree-hour inspection by theindependent auditor fromanother team confirms that theassumptions are valid andreasona

20、ble.As soon as it is dawn in Chicago,Ashim calls up Greg,theBusiness Development Managerfor the account.Ashim declares,“We can save another US$1million.I will send you thedetailed plan.Confirm it to theclient.”Greg is delighted.“Thisshould seal the deal!Thanks forthe quick turnaround!”Greg willcall

21、the customer as soon as theyopen.Ashim sends his last emailfor the day.He is off to ameeting in the Lingaraja templepremises,to do his bit forOrissas rich heritage!06:00 IST(16:30 PST)Fremont,United StatesTodd MacCallumGroup Manager Sales08:00 ISTBhubaneswar,IndiaAshim Kumar GhoshDelivery Manager5Ma

22、naging risk inuncertain times“I wonder who that is,”ponders SK,as he answers thecall he has just finished anexhaustive client review.Thistime it is Elan from Bangalore.“SK,it is an emergency!Theclient wants to conduct abusiness continuity test rightnow!The simulation exercisefor disaster recovery ha

23、s tostart immediately.”SK,in hisusual efficient manner,activates the BusinessContinuity and DisasterRecovery(BC&DR)plan forthe client,a large US bank.Within minutes,theinfrastructure setup andrestoration activity in Punebegins at clockwork pace.Anhour into the exercise,theteam leader receives alertm

24、essages informing him ofintruders attempting topenetrate the firewall.Hebursts into SKs cabin in panic,revealing,“They are trying toalter the directory entries.Thatwill cripple the system.”SKshoots rapid-fire instructions:“Look at the authentication log.Load the backups.Reroute thenetwork.”Two hours

25、 later,SKsteam successfully completesall activities notification,restoration,recovery,andconnectivity.A typicalseven-hour exercise ends in arecord three hours,despite allthe challenges.Patrick,the security auditorfrom Charlotte,who is visitingBangalore,says,“You guysreally rose up to the challenge!A

26、 full recovery in three hours isamazing!”As the sun is settingon the picturesque SahyadriHills,SKs face glows withpride as he shares the newswith his team.10:00 IST(12:30 SST)SingaporeJosephine TooBusiness DevelopmentManager Sales12:00 ISTPune,IndiaS.K.KulkarniDelivery ManagerReducingtime-to-marketA

27、 national athletic champion,Josephine ignores the waitingelevator and races up the stairsfor the meeting.Her enterprise-solutions team is gathered inthe conference room withsteaming mugs of coffee.Ananimated discussion begins.The Asia Pacific(APAC)regional solution was a hit withthe client,alarge Ge

28、rman automotivemanufacturer.Josephines teamhas now been asked to plan forthe clients Europeanoperations.Systematically,sheruns through the key functionsin the sales,marketing,logistics,and financial controlmodules.At 12:30 SST,stomachs growl,but the team is on a high.Josephine says,“We havedeveloped

29、 the regional solutionsuccessfully.Going forward,reuse is crucial to exceedingclients expectations.We need tomove fast to create an approachthat combines regionalflexibility with the benefits of aglobal template.”Over a pizzalunch,several options aretossed around.Four hours later,a hub-and-spoke del

30、iverymodel has been conceptualized.This will ensure coordinationbetween Infosys and clientteams in the APAC region andEurope the hub being theoffshore team at Bangalore.Pleased with the solution,Josephine adds,“This sharedsolution framework will resultin quicker implementation forthe clients regiona

31、l operations,while adhering to its globalstandards.We will give theclient follow-the-sun service,from Australia to the UK!”The day ends on that decisivenote.Blue-chips leave the mindand are replaced by blue jays,asthe team heads out to abird-watching camp at theSungei Buloh Reserve.6C L O C K W O R

32、KPartnering to delivervalue“This campus is vast,”musesPayal,as she pedals her bicyclefuriously,after lunch at theNorth Campus Food Court,toher office in Building 26.Thisbuilding houses the InfosysEnterprise ApplicationCompetency Center for aleading business integrationprovider.The weekly 14:00 ISTre

33、view meeting is about tocommence.Raghu,the teamleader,and her other colleaguesare already waiting for her inthe conference room.In herusual clockwork style,she kicksoff the meeting,saying,“Folks,today,we have to make animportant decision.I want atypical Infosys meeting debates,arguments,and,finally,

34、closure on the solution toimprove our adapter buildingprocess.Lets finish it by 17:15IST,in time for my swim!”“Yes,we have to decide on theautomation option for the testframework of the adapter,”saysRaghu.Bindu makes a presentation onthree options.This is followedby an animated debate andseveral que

35、stions.It is17:00 IST,and Payal gets theconsensus on option 2.Raghuestimates that this option willimprove the turnaround-time inQuality Assurance(QA)testingby 50%.In fact,Payal isconfident that the team can usethis test framework in severalfuture implementations incapacity planning,workflowand proce

36、ss modeling,andapplication adapterdevelopment for their Fortune500 clients.It is time for Payalsswim,Bindus sauna,andRaghus caf latt at Coffee Day.Another productive day at theCompetency Center.14:00 ISTBangalore,IndiaPayal RaiProject ManagerImplementinginnovative solutionsAditya Narain Lal is const

37、antlypreoccupied with improvingproductivity at the BankingBusiness Unit(BBU)of Infosys.At 16:00 IST,during a teammeeting,Aditya exclaims,“There is no way we can meetthe massive customizationneeds of this large Indian bankin three months!We will haveto come up with an out-of-thebox approach.Any thoug

38、hts?”Bhaskar replies,“I went throughthe feature list.Most of thecustomization requirements arein the loan module ofFINACLETM.This is where ourfocus should be.”Hari,always adeep thinker,deliberates,“Whynot build a rules-based loansengine,where all the differenttypes of loans can be parameter-driven a

39、nd externally set?Wecan do the same for interestcalculations too!”Adityaresponds,“Great idea!This willnot only help the client,butalso reduce time-to-market infuture implementations.”Aback-of-the-envelopecalculation shows that if thisapproach is adopted,development effort will reduceby 30%.The team

40、quickly getsdown to designing the rulesengine.At 18:00 IST,they are going upthe stairs of the BBU buildingfor the annual awards andrecognitions event.Even as theywait for the Master ofCeremonies to start theproceedings,they discuss otherideas that will facilitate ongoingdevelopment for the latestrel

41、ease of FINACLETM,Infosysbanking product.Everyday,Aditya and his team are on thejob looking for ways toinnovate and to simplify.Astechnical architects,they firmlybelieve that efficiency improvesnot from incremental advances,but from new and betterapproaches.16:00 ISTBangalore,IndiaAditya Narain LalT

42、echnical Architect Products7Servicing emergingbusiness needsWolfgang,along with his globaldelivery team,is clockingsmiles.Anita exclaims,“This isa significant milestone!Nowthat the integrated testing hasbeen completed,the applicationis robust,reliable and,mostimportantly,scalable!”Wolfgang,with an u

43、nmistakabletone of satisfaction adds,“Theapplication can also be used bymarketing support,anunplanned bonus!The clientwill love this unexpected valueaddition!And all this well intime.”Five months earlier,Wolfgangsteam was faced with aHerculean task.The client,alarge German car manufacturer,required

44、an intranet portal as agateway to 20 core businessfunctions.In the words of theclient “Complex userinterface,spaghetti legacy codeand a resource hog!”Workingacross geographies,Wolfgangworked out a strategic deliverymodel to integrate the businessrequirements from the clientwith the application-build

45、ingteam at Infosys,located inIndia.As Harish summarizes,“Wecreated a multilingual webinterface,and a 3-tierarchitecture with wrappersaround the legacy code.Thiswas multi-threaded forperformance!”Wolfgangconcludes,“Herr Schneider willnow have a lot of confidence inus!This should lead to severalnew en

46、gagements.”And there ismore reason to smile theOktoberfest weekend has begun!20:00 IST(13:30 CET)Frankfurt,GermanyWolfgang JungfermannBusiness Support ManagerDelivering onpromiseFinishing touches are beinggiven to the second floorworkspace in Building 6,at theInfosys Chennai campus.Sujeetreminisces,

47、“During the last sixweeks,we have experienced areal pressure-cooker situation!”He views with pride thecompleted floor specifically setup for a prominent US financialservices firm.Infosys hadrecently taken over from theteam of 40 that runs productionsupport and maintenance forthe firms banking operat

48、ionsaround the world.The entireteam has had to be relocated tothe Infosys facility.Six weeks ago,Sujeet started bybriefing his facilities team“The entire transition from theiroffice to our campus needs tobe absolutely flawless.Thisgroup cannot afford even aminute of shutdown.Theyprovide 24/7 on-line

49、 supportfor millions of bankingtransactions.”Ashok preparesthe checklist “Transportation,workplace assignment,physicalsecurity,network rerouting,helpdesk!”“Dont forgettransitioning briefs and secureaccess cards for each of the newemployees!”Sujeet adds.“Cabling and hardwarediagnostics,”Ramesh chips

50、in.Working at an incredible pace,with the help of daily activitylists,the team wrapped up theexercise in 42 days!Sujeetpoints out that the client hadnot lost a single hour of workduring the transition.“Ourteam showed exceptional co-ordination like a perfectsymphony orchestra!”Sujeetnow heads home fo

51、r theweekend,with a sense ofaccomplishment.Its time for awell-deserved break.18:00 ISTChennai,IndiaSujeet OommenManager Facilities8C L O C K W O R KManagingknowledgeHaris pulls into the multi-levelcar parking lot in downtownDetroit.After repeated attempts,he has finally managed anappointment with th

52、e directorof Sales Management Systemsfor a large automotivemanufacturer.Two weeksearlier,he had sent an email tothe director on how Infosyshelped corporations improvetheir business productivity.Intrigued,the director hadreplied,“Our sales and ordermanagement applications acrossNorth America operate

53、in silos.We need a formal way to reusebest practices across locationsand have a consistent clientexperience.This will help usprovide better customer serviceand,at the same time,reducecost.Can you help?”Haris had contacted Sanjayfrom the Domain CompetencyGroup(DCG)who combinedknowledge managementexpe

54、rience and automotiveexpertise.“This is very similarto a solution we proposed for aGerman truck company a fewmonths back.We can leveragethat experience to develop asolution for US retail channels,”Sanjay had said.Now,as Haris presents theproposed solution,the clientjumps in,“This looks great!Youhave

55、 clearly understood theproblem.I think we can useyour approach to integrate ourapplications and create aunified customer interface layer.I like the idea of quick wins!”For Haris,another excitinginitiative has just begun.22:00 IST(11:30 EST)Detroit,United StatesHaris Belal FarooqAccount ManagerBuildi

56、ng amulticulturalorganizationAn hour at the gym everymorning helps Victoria focus onthe day ahead.As the HRManager of Infosys GlobalDevelopment Center(GDC)atToronto,each day bringsdiverse challenges that requiremeticulous planning.Today,hermind sequences all the activitiesto be completed before the

57、pooltournament she is organizing atthe GDC.At 13:30 EST,addressing an orientationprogram for new internationalrecruits,she explains,“Infoscions at the GDC are ourmost valuable asset.We ensurethat they get the right kind oforientation and training todeliver to their maximumpotential.”Victoria places

58、special emphasison promoting multiculturalismwhile maintaining an integratedambience.Her efforts havetransformed the GDC into aunique workplace,whereInfoscions from various culturesinteract both at work and play they get together for skiing andice-skating outings in thewinter,and hold cricket andsoc

59、cer matches in the warmermonths!17:00 EST:Victoria is all smilesas she hands over the trophy tothe winner of the pooltournament.The crowd cheers.Exhausted but happy,Victorialooks forward to Puccinis operaat the Hummingbird Centre,where she holds season tickets.00:00 IST(13:30 EST)Toronto,CanadaVicto

60、ria SheaManager Human ResourcesDevelopment9Understanding thebusiness domainSundar Mudaliar returns froman intense meeting,to grab aquick sandwich at his desk.Looking at his watch,hereflects,“Whew!Anothermeeting at 16:00!”This one iswith the clients businessmanagers across Europe and theUS to identif

61、y opportunities tooptimize their supply chain.The client,a high-end fashionhouse,is facing severe marginpressure due to hugemarkdowns and long lead timesin inventory.With intensepressure for radical suggestions,Infosys offshore team,in trueclockwork style,is evaluatingbusiness cases.At 17:30 EST,Sun

62、dars mobilephone rings.Its Ram fromInfosys Bangalore office:“Sundar,after dissecting theissue threadbare,the team hasconcluded that our supplychain optimization blueprintcan lead to an annual recurringbenefit of over$25 million forthe client!”“Great!Flesh out theproposal,”says Sundar,and getsthe tea

63、m to begin the detailingprocess.At the other end of theAtlantic,Sundar declares,“Guys,I have some good news!Our preliminary estimate is thatwe will improve order fill ratesto 95-98%;reduce the lead timefor customer replenishmentfrom 5-10 days to 48 hours;and reduce inventory levelsfrom 14 weeks to l

64、ess than 4weeks!”The client is delightedand wants the full proposal in aweek.For Sundar,it is the endof another hectic day as heheads down the NJ turnpike,humming Simon andGarfunkel!04:00 IST(15:30 EST)New Jersey,United StatesSundar MudaliarAccount ManagerManagingchangeAs Esteban Herrera walks intoh

65、is office,he has a smile foreveryone.He looks forward tohis 14:30 CST meeting,wherehe will present a deliveryframework for the replacementof a back-end bankingapplication.Foreseeing afast-changing macro-economicenvironment,Esteban assumesunpredictable business needsand plans accordingly.14:30 CST:Du

66、ring hispresentation,Esteban says,“Wehave to build a delivery strategythat will provide incrementalvalue,every quarter,throughoutthe duration of the project.”Esteban proposes a switch fromthe traditional,mainframearchitecture to an innovative,component-based one.He tellshis team,“Folks,it is notenou

67、gh to be responsive.Youhave to be able to anticipatechange and roll with thepunches.”Driving his team,within a weeks time,Estebandevelops a new release strategythat helps the client prioritizedeliverables depending onfunctionality,validate theirbusiness benefits,andincorporate them dynamicallywithin

68、 the delivery framework.The customer agrees,“Thisapproach will manage theunpredictability.It willdramatically reduce the risk!”As the clock speeds,there isjust enough time for Esteban toslip out of Friday-dressing andinto his trekking gear.It isgoing to be an adventurousweekend at the Rockies!02:00

69、IST(14:30 CST)Dallas,United StatesEsteban HerreraSenior Associate10The Awards for excellence at Infosys is part of anongoing initiative towards creating andreinforcing a culture of excellence across thecompany.In this challenging businessenvironment,we are increasingly called uponto do more with les

70、s.Hence,the need of thehour is to create a fast-paced,result-orientedwork ethic.The excellence awards seek torecognize and reward those who epitomizesuch a high-performance culture.We believethat the secret to excellence lies in making ahabit of doing even ordinary thingsextraordinarily well.The ind

71、ividuals chosen for the excellenceawards are representative of the many talentedteams that have worked together to produceoutstanding results.They have demonstratedthat they continually strive for improvement ineverything they do.Accordingly,they do notsettle for anything less than the best.We arepr

72、oud to present this years award winners people who have understood that the realcontest is always between what you have doneand what you are capable of doing.Awards for excellence“Four short words sum up what has lifted mostsuccessful individuals above the crowd:a little bitmore.They did all that wa

73、s expected of them and alittle bit more.”A.Lou Vickery11*not present at the award ceremonyExternal Customer DelightAccount/Sales ManagementFinancial Services CompanyAccount Management TeamVenkateswarlu PallapothuBadri Narayanan J.*Madan Mohan*Manish Tandon*Neeraja Shetty*Sanjay Dutt*Sanjay Jalona*Su

74、dhir Singh*Northwestern Mutual Life InsuranceAccount Management Team(From left to right)Shaji MathewBibhu R.PattanayakShubha V.Bikramjit MaitraAmruta Kumar Mohanty*Ananth Vedagarbham*Anuj Kumar*Bhaskar Chicknanjundappa*Jyothi Shriranga Nayak*Padmanabha Seetharam Bhatta*Samson David*Financial Institu

75、tionRelationship Management Team(From left to right)Ritesh Mohan IdnaniElangovan K.Jayanth SelvappullaiSatish H.C.Prabhakar Devdas MallyaAjayan Thulasi Bhai Sankara Narayana Pillai*Mahalingeshwar S.Dhaded*Harsha H.M.*Jaideep Samuel C.M.*Joydeep Mukherjee*Peethamber V.T.*Rohit Khanna*Fidelity Investm

76、entsAccount Management Team(From left to right)Sushil AgarwalDebasish PattanayakSankar Venkata KonduruAbhay M.KulkarniSurendra SwamyAnil Braham Bhatia*Kaladhar G.*Mohit Joshi*Ranganath Dwarakanath Mavinakere*Sreedhar Ekbote S.*Srinivasulu Mallampooty*Tarang S.Puranik*CENAExecutive Council and Suppor

77、t Groups(From left to right)Ramaa SivaramJamuna RaviRamesh M.AdkoliBhaskar GhoshMohan SekharAbhinaya ShettyBiju Mercy VijayanAshok VemuriSajan Verghis MathewArdhendu Sekhar Das*Krishnamurthy R.*Ravi C.*First prizeFirst prize Awards were presented by Mr.N.R.Narayana Murthy,Chairman and Chief MentorNo

78、rdstromOracle Financials Business Release I Team(From left to right)Lokesh VenkatappaSanjay Parthsarthi IyengarRaghupathi PaiAbhishek Saxena*Ajay Shanker*Dinesh Bajaj*Laxminarayan Mishra*Prashant Rohatgi*Sangeeta Das*Tomydas P.A.*Vivek Deep Singh*Awards for excellence 2002 200312Social Consciousness

79、Sneham TeamInderjeet Singh TanejaPurushottam PatnekarRajesh GouthamSyed Irfan RafiUsha PattabhiraamanVinith Beryl CanstanceCII EXIM BusinessExcellence Award TeamJude FernandezNirmalya BaruaPurushothaman RajaramanRaj Kumar BansalSanjay PurohitShailesh Arvind GhorpadeThird prizeSystems and ProcessesTh

80、e Extranet TeamAnil S.K.VadlapatlaAshutosh ShankarBalaji Srinivasa Rao GhatJitendra Sangharajka D.Kavitha K.R.Madhur Mohan NandaMurali M.G.Radhakrishna S.Ramesh G.Vijayeendra S.PurohitRole Transition TeamAarti JairamAparna GoenkaDeepak AggarwalDevayani Tilak SenguptaEshan JoshiGeetha KannanKaushik R

81、ayRahul Manikrao LanjewarRamesh Babu S.Santosh ThangaveluSomnath BaishyaVinayak Pai V.Special prizeDevelopment CenterManagementPune DC Management TeamAlok Ratanlal TiwariBabuji S.Chandraketu JhaKrishna Kumar C.Lalit Suresh KathpaliaParikshit Ajit ChitreRajanish VaidyaShailendra JhaSnigdha MitraVijay

82、a Lakshmi ManiInfrastructure(Physical&Technology)Phoenix TeamAmit SahakunduCharles Henry HawkesGanesh Kudva N.John OommenKavitha M.A.Koushik R.N.Ravindranath P.HirolikarShivaprasad Gopalrao KuskurShyam Sundar V.Sreeja S.Sriram SubramanianTomy ThomasInternal Customer DelightFacilities TeamBalakrishna

83、n P.Thiagarajan S.InPTC TeamRadhika SanthanakrishnanSubrahmanya S.V.Recruitment andRecruitment Support TeamAji ArjunAmitava SahaBalachandran T.R.Gagan BhargavaKarthikeya N.SarmaNarasimha Prasad D.Padma Kini K.Ramesh P.JanardhanSheena KunhiramanSuman Shashikant JoshiPractice Unit ManagementBBU PU Man

84、agement TeamGirish G.VaidyaHaragopal MangipudiMerwin FernandesNagaraj R.N.Srinivasan V.Thirumaleshwara Bhat D.Venkataramanan T.S.Awards for excellence 2002 2003Second prizeRajesh Krishna G.Shashidhara S.K.Yezdi M.MehtaSchlumbergerProject Management TeamAashish BansalBiswabarenya MohantyChitra Yeshwa

85、nt PhatakHarshavardhan N.Manohara N.Mihir KumarNithya PrabhakarParthasarathi BandyopadhyayRajesh VenkateswaranSavio DSouzaSrikantan MoorthyLogistics and DistributionCompanySystem Appreciation US and UK TeamPrashant NegiSanjeev RanaSanjiv R.MitragotriShekhar S.PotnisUday BhaskarwarHigh-Tech CompanyRo

86、llout TeamDeepak HangalMahesh Vithal Rao KanagoMohammed Rizwan KhwajaNivedita KrishnamurthyRajeev RanjanRishi Raj PaulSailaja ChintalagiriSameer ChaturvediSridhar R.Sridhar Rao P.Ved VyasBrand ManagementBPM Research TeamBalasubramanian S.Vishwanath Shenoy M.Visweswar B.K.Infy+InitiativesCIMBA Progra

87、m TeamBasab PradhanDheeshjith V.G.Gaurav RastogiKarthik SwaminathanKrishna S.Mandar Kumar AnandaMangal Sudhakar PawarNitin GuptaShobha S.Sivashankar J.Sunil ThakurVishnu G.BhatTelstraIT Effectiveness TeamAveejeet PalitNagarajan SrinivasanNavin KumarPrashant P.PawarPriya KurienPurushottam V.S.Somakum

88、ar KolathurSrikanth S.Srinivasaraghavan GopalakrishnanUpendra KohliWasifur RahmanInnovation.NET TeamDeepak N.HoshingRajeswari RathnamRivi VargheseSrichand J.Vikas GoyalInFlux TeamKanwal RaiKrishnan NarayananManish SrivastavaMayank GuptaNagaraj N.S.Pasupathy M.Raghavan S.Renuka S.R.Sridhar DhulipalaS

89、rinivas ThonseNorthwestern Mutual LifeInsuranceDI Vision TeamManish SubramanianSambit SamalShaji FarooqSyslab TeamAbdul Sakib MondalRajeshwari G.Ramkumar RamaswamyShubhashis SenguptaPeople DevelopmentCENAMangalore Delivery UnitGovindaprakasha C.H.Jacintha D AlmeidaPraveen Kumar K.Sudhir AlbuquerqueC

90、-enabling L&D TeamAruna Chittaranjan NewtonDivya SethiNandini S.Nandita Mohan GurjarSushanth Michael TharappanCross Functional Team PCMMManjula M.K.Milind V.BadkundriPankaj Kumar KeshriPriti Jay RaoRama N.S.Ramesh S.Ravi M.Samir Vasant ChaudhariSamit DebShalini DongreShreeranganath Krishnarao Kulkar

91、niSriram NatarajanProgram/Project Mgmt.AIPORT Project TeamHarish AmurKuntal PaulManoj MishraPadmanabhan A.Pramod Prakash PandaVinay MishraIKON Office SolutionsOracle ApplicationsImplementation TeamAnil Kumar P.N.Guruprakash Pai KarkalaKiran KarankiKrishnarajaMd.IqbalNarendra Kumar GogulaPrakash Bhat

92、 M.Prashanth B.KamathN.R.Narayana MurthyChairman and Chief MentorNandan M.NilekaniChief Executive Officer,President and Managing DirectorS.GopalakrishnanChief Operating Officer and Deputy Managing DirectorT.V.Mohandas PaiDirector and Chief Financial OfficerClaude SmadjaDirectorDeepak M.SatwalekarDir

93、ectorK.DineshDirectorProf.Jitendra Vir SinghDirectorSen.Larry PresslerDirectorProf.Marti G.SubrahmanyamDirectorDr.Omkar GoswamiDirectorPhilip YeoDirectorRama BijapurkarDirectorS.D.ShibulalDirectorSridar IyengarDirectorBoard of directorsSrinath BatniDirectorNandan M.NilekaniChief Executive Officer,Pr

94、esident andManaging Director andChairman Management CouncilDr.G.K.JayaramDirector Infosys Leadership Instituteand Advisor to Management CouncilSanjay PurohitHead Corporate Planning andMember Secretary Management CouncilAyan ChatterjeeAssociate Vice President andRegional Manager Sales(Western America

95、 Region)M.P.RavindraVice President Education&ResearchU.Ramadas KamathVice President Accounts&AdministrationManagement councilDr.P.BalasubramanianSenior Vice President Domain Competency GroupPriti Jay RaoVice President Head Pune Development CenterRamesh M.AdkoliAssociate Vice President Delivery(Canad

96、a&North East Region)Sajan V.MathewAssociate Vice President Delivery(Mid-Atlantic Region)S.D.ShibulalDirector and Head World-wide Customer DeliveryH.R.BinodVice President Commercial&FacilitiesDeepak SinhaAssociate Vice President Computer&Communications DivisionV.G.DheeshjithVice President Delivery(As

97、ia Pacific)K.DineshDirector and Head Human Resources Development,Information Systems,Quality&Productivity and Communication DesignGroupSatyendra KumarVice President Quality&ProductivityAshok VemuriVice President and Regional Manager Sales(Canada&North East Region)V.BalakrishnanCompany Secretary andV

98、ice President FinanceBasab PradhanSenior Vice President and Head World-wide Sales&Retail(North America)J.SivashankarAssociate Vice President Information SystemsS.GopalakrishnanChief Operating Officer,Deputy Managing Director andHead Customer Service&TechnologyJan DeSmetVice President Infosys Busines

99、sConsulting ServicesGirish G.VaidyaSenior Vice President Banking Business UnitHema RavichandarSenior Vice President Human Resources DevelopmentN.SreenathVice President Delivery(South and Mid-WestRegion)B.G.SrinivasVice President Delivery(Enterprise Solutions)G.V.SubramanyamAssociate Vice President S

100、oftware Engineering&Technology LabsV.SriramVice President and Regional Manager Sales(Asia Pacific)Srinjay SenguptaVice President EuropeSubhash B.DharAssociate Vice President andRegional Manager Sales(Communication and ProductServices)Srinath BatniDirector and Head Global Accounts and Asia PacificDr.

101、M.S.S.PrabhuSenior Vice President Engineering&ITSolutions for Aerospace&AutomotiveU.B.Pravin RaoSenior Vice President Retail(North America)T.P.PrasadVice President and Regional Manager Sales(South and Mid-West Region)Peter L.TannenwaldAssociate Vice President andRegional Manager Sales(South and Mid-

102、West Region)Mohan SekharSenior Vice President Delivery(North Americas)Y.ParameswarAssociate Vice President Delivery(Communication and Product Services)T.V.Mohandas PaiDirector,Chief Financial Officer andHead Finance&AdministrationNarendran KoduvattatAssociate Vice President Delivery(Western America)

103、andHead Mangalore Development Center13Board of directorsN.R.Narayana MurthyNandan M.NilekaniS.GopalakrishnanDeepak M.SatwalekarProf.Marti G.SubrahmanyamPhilip YeoProf.Jitendra Vir Singh*Dr.Omkar GoswamiSen.Larry PresslerRama BijapurkarClaude SmadjaK.DineshS.D.ShibulalT.V.Mohandas PaiSrinath BatniSri

104、dar Iyengar#Committees of the boardAudit committeeDeepak M.Satwalekar,ChairmanRama BijapurkarDr.Omkar GoswamiSen.Larry PresslerClaude SmadjaProf.Marti G.SubrahmanyamSridar Iyengar#Compensation committeeProf.Marti G.Subrahmanyam,ChairmanDr.Omkar GoswamiDeepak M.SatwalekarProf.Jitendra Vir Singh*Phili

105、p YeoNominations committeeClaude Smadja,ChairmanSen.Larry PresslerProf.Jitendra Vir Singh*Philip YeoInvestors grievance committeePhilip Yeo,ChairmanRama BijapurkarK.DineshNandan M.NilekaniS.D.ShibulalVoice of the youthAjay S.BhandariDeepak BhallaDinesh GanesanEsteban HerreraKarthikeya N.SarmaMadhu K

106、rishna Rao B.Raja BasuSandeep Deepak DadlaniSourav BanerjeeInfosys FoundationTrusteesSudha Murty,ChairpersonSrinath BatniSudha GopalakrishnanManagement councilinviteesBikramjit MaitraAssociate Vice President andHead Bhubaneswar Development CenterChandra Shekar KakalVice President andHead Hyderabad D

107、evelopment CenterEshan JoshiManager Compensation&Benefits HRDJagdish Krishna VasishthaDelivery Manager andHead Mohali Development CenterJitin GoyalGroup Manager Sales(Europe)Col.Krishna C.V.Associate Vice President Infrastructure&SecurityNandita Mohan GurjarAssociate Vice President Learning and Deve

108、lopment HRDPrabhakar Devdas MallyaAssociate Vice President Security Audit&Architecture GroupRavi C.Associate Vice President andHead Mysore Development CenterSanjay DuttGlobal Relationship ManagerShiv Shankar N.Associate Vice President andHead Chennai Development CenterSridhar MarriHead Communication

109、 Design GroupSrinivas UppaluriGeneral Manager Corporate MarketingSuryaprakash Viswanath K.Manager Delivery ExcellenceVenkataramanan T.S.Associate Vice President Banking Business Unit*Resigned effective April 12,2003#Co-opted on April 10,200314Nandan M.NilekaniS.GopalakrishnanChief Executive Officer,

110、Chief Operating Officer andPresident and Managing DirectorDeputy Managing Director“It was the best of times;it was the worst of times.”Charles Dickens A Tale of Two CitiesThe theme of our Annual Report is clockwork a concept at the core ofthe Global Delivery Model,pioneered and perfected by your com

111、pany,that continues to bring a unique value proposition to clients worldwide.Working round the clock,across time zones and geographies,yourcompany has successfully created a new paradigm that time is aresource,not a constraint,and distance an advantage.Informationtechnology service providers across

112、the world are racing to changetheir business models,adopt the Global Delivery Model and leveragethe power of asynchronicity.To sustain our first-mover advantage,wecontinue to surge forward with an unwavering focus on creatinginnovative work practices,developing higher process maturity andensuring gl

113、obal deployment through technology.In this context,you would observe that our story has never been morecompelling great quality,great people and great value for money.Customers,investors and employees have grasped the strength of thebusiness model,and the trajectory of its future.Outsourcing andoffs

114、horing to India have well and truly become mainstream.Now,theIT services success has been extended to the promising Business ProcessOutsourcing(BPO)space.Clockwork has been at the core of your companys performance,movingus closer to our vision of becoming a globally respected corporation.Last fiscal

115、 year,under the Indian GAAP,our revenues grew by 39%toRs.3,622.69 crore,an enviable rate.This growth was Rs.452.69 croremore than our initial guidance for the year.Our Profit After Tax(PAT)from ordinary activities increased from Rs.807.96 crore to Rs.957.93crore.For fiscal year 2003,operating Profit

116、 Before Interest,Depreciation,Amortization and Taxes(PBIDTA)as a share of totalrevenues stood at 35.11%;and PAT from ordinary activities as a shareof total revenues was 26.44%.Basic earnings per share from ordinaryactivities increased by 18.47%to Rs.144.68.The overall economic slowdown continues to

117、affect the health ofbusiness across the world.Our clients,faced with increasing costpressures,are requesting their vendor-partners to share the burden.Competitors,under pressure to source business and sustain operations,have taken short-term pricing measures.The blended revenueproductivity for the y

118、ear has declined by 0.8%,onsite billing rateshave decreased by 2.5%;and offshore billing rates have decreased by4.7%.However,onsite effort has increased to 33.7%of the total effortfrom 30.7%in the previous year.Your company has been able to offsetthe decline in revenue productivity partly through an

119、 increase inutilization from 70.1%to 77.6%.Increased sales and marketinginvestments(2.38%),taxes(0.35%)and sub-contractor charges(1.7%)also impacted the margins.In this era,we have to balance growthwith profitability and value creation with cost reduction,all the whilenever taking our eyes off the c

120、ustomer.Under US GAAP,revenues increased from$545.05 million in fiscalyear 2002 to$753.81 million in fiscal year 2003 a growth of 38.3%.Operating income increased by 22.45%,from$178.55 million infiscal 2002 to$218.64 million in fiscal 2003.Operating income,as ashare of revenues,was 29%,while net inc

121、ome,as a share of revenues,stood at 25.85%.Basic earnings per share increased by 18.33%to$2.97.Further,the economic recovery continues to be uncertain.The twinspecters of war to our West and SARS(Severe Acute RespiratorySyndrome)to our East have added to the uncertainty.This has alsoled to the disru

122、ption of visits to India for the second time,a key factorin new client acquisitions the first was during the Indo-Pakistancrisis.Increasing unemployment and economic slowdown in somecountries seem to have generated a rising tide of protectionism acrossthe globe,which is manifesting in several ways.T

123、he software industryin India faces the risk of increased Visa restrictions by various countries.In addition,for the first time since 1978,India has a current accountsurplus,which has led to the rupee appreciating over the past year.Atthe same time,interest in offshoring to India continues to grow.We

124、 have always believed that the external environment is mostly agiven and that we are rarely in a position to change it.What we dohave,however,is our unique structure and the internal levers of changethat govern our operations.It is here that we have focused our efforts,Letter to thesha reh o lde r15

125、by shaping and sizing the organization constantly to be nimble andquick,and,hence,triumph in the most adverse of circumstances.It isthe story of how we have used these internal levers of change that wewant to share with you through the rest of the letter.Client relationships,business solutions andpr

126、edictabilityOutsourcing relationships are becoming increasingly long-term andof strategic importance.In response,global corporations seek robust,trusted,financially strong,world-class partners to outsource their ITrequirements.In this regard,your company enjoys the confidence oflarge marqu clients a

127、nd continues its efforts to deepen relationshipswith clients across the globe.This has improved the predictability ofour business model today we have good visibility and are among thefew companies to have provided guidance for the next fiscal year.One of our core strategies towards becoming a global

128、 organizationhas been to develop strong relationships with global clients.We havewitnessed a 38%increase in the number of clients who account forrevenues of over$1 million annually(one-million-dollar clients);a64%increase in the number of five-million-dollar clients;and around50%increase in the numb

129、er of twenty-million-dollar clients,fromfiscal 2002 to fiscal 2003.To better align with client organizations,to develop multi-levelrelationships and to strengthen its clockwork operations,your companysuccessfully re-structured the client facing teams.The improvedstructure focuses on increasing our u

130、nderstanding of clients businessand further reducing the time required to respond to their rapidlychanging business needs.This,we believe is essential to realize ourvision of becoming a multi-billion dollar global organization.We have taken steps to increase our expertise in clients businessdomains

131、to provide effective business solutions.We enhanced ourfocus on retail,automotive and aerospace domains,leading tosignificant client wins.Further,our relationships with globalcorporations in the health and medical care sector is helping themleverage IT to offer better and faster services to their cu

132、stomers.End-to-end services,growth and efficiencyClients value our relationship due to our end-to-end service capabilitiesand industry expertise.By broadening our service offerings,we haveacquired a higher share of our clients technology spend.We areaggressively pursuing our goal to be an integrated

133、 one-stop-shop forour clients technology needs.Towards this,your company focusedon developing new services to enrich its end-to-end service suite.Inthis context,Progeon Limited,our subsidiary,has established presencein the Business Process Management(BPM)space and is currentlyproviding services to f

134、ive clients from various sectors.During the fiscal year,your company made significant strides in itspackage implementation practice Enterprise Solutions(ES).Westrengthened our PeopleSoft(ERP)and Siebel(CRM)practices,andstarted JD Edwards(ERP)and Manugistics(SCM)practices.Todifferentiate these servic

135、es from competition,we have successfullybundled them with other service offerings.Further,leveragingclockwork,we achieved a significantly higher offshore mix in EScompared to the previous years.Over the fiscal year,revenues fromthese services grew by 55%.The Systems Integration(SI)practice was furth

136、er strengthened throughstrategic alliances and partnerships.IT infrastructure managementservices provided support to mission-critical infrastructure servicesfrom the newly setup state-of-the-art Network Operation Center(NOC)in Bangalore.The Banking Business Unit(BBU)acquired a treasuryproduct and a

137、CRM product.During the year,we successfully scaled up our operations to meetincreasing demand for our services.New services were supported withadequate growth in infrastructure and addition of highly skilledemployees.Employee addition during this year has been the highestever for your company,with a

138、 gross addition of 5,509 including 1,127lateral hires,leading to 4,618 net employee additions.Further,we aregetting closer to our vision of becoming truly multicultural withemployees from 38 nationalities and the number continues to grow.Balancing growth with efficiency,your company is proactivelyma

139、naging costs to meet the profitability challenges.We haveundertaken focused initiatives towards increasing productivity andreducing expenses,including a review of key operational policies.Ourproject management practices were assessed at Level 5 of the IntegratedCapability Maturity Model(CMMi),furthe

140、r endorsing our highstandards of quality and productivity.Trusted brand and global footprintTo propel the company into the next orbit of growth,it is importantthat we continue to build a powerful,globally respected brand.Forthe second year,we have recognized the creative use of technology inbusiness

141、 through the Wharton Infosys Business Transformation Awards.To demonstrate our thought leadership and facilitate peer networkingon contemporary business-technology issues,multiple“CXO CityChat”forums were successfully rolled out in key cities in the US andEurope.Our global presence was further stren

142、gthened with new offices,increasing our presence to 30 locations around the world.To diversify our focus in the global marketplace,we started focusedregional initiatives in the markets outside the US.Your companysflagship customer event,Milan(signifying the meeting of minds),wasintroduced in Europe

143、for the first time.This provided us with a vitalopportunity to interact with our clients on emerging strategies,exchange notes and share best practices.To build an integrated strong brand in the highly competitive bankingsoftware products space,we launched FINACLETM as the umbrellabrand for all our

144、banking products.The FINACLETM suite of productsnow includes,FINACLETM Core Banking,FINACLETM eChannels,FINACLETM eCorporate,FINACLETM CRM and FINACLETM Treasury.Best people,high performance work ethicThe success of your companys business model hinges on attractingthe best and the brightest talent.T

145、owards this,we continue to focuson strengthening our HR practices to create a quality work environmentthat motivates our people.During the year,the HR practices of yourcompany were assessed at Level 5 of the People Capability MaturityModel(PCMM).This makes your company the first in the world to beas

146、sessed at this level of the updated version 2.0 of the model.Successful corporations leverage people as their strongest source ofcompetitive advantage.In this context,your company has strengthenedthe training programs focused on reinforcing the client-centric cultureof employees.The technical traini

147、ng,benchmarked to global standards,was further strengthened through the introduction of role-based design,e-learning and objective assessments.In addition,multipledevelopmental initiatives were taken to strengthen behavioral andmanagerial skills,critical for managing teams and deliverables.To reinfo

148、rce a high performance work ethic,your company completedthe transition to a role-based organization,effective July 1,2002.Subsequently,the compensation practices have been restructured toinclude higher variable components that take into consideration thecompany,unit and individual performance.Going

149、forward,variablecompensation and performance-based recognition would progressivelyreinforce our work ethic.Leadership for the futureA successful company,focused on long-term sustenance,groomseffective leaders who can take business responsibilities and steer theorganization towards its vision.In this

150、 context,your company hadestablished the Infosys Leadership Institute(ILI).The ILI focuses on16consolidating the leadership skills of the company and passing thesame to the next generation of Infoscions.Over the last fiscal year,the ILI has strengthened its roots significantlyand provided developmen

151、tal inputs to the companys high potentialemployees.The senior leaders of Infosys,under the aegis of ILI,held24“Leaders Teach”workshops covering more than 200 high-potentialleaders.In addition,the ILI organized focused seminars,conductedaction-based development programs and facilitated the mentoring

152、ofhigh-potential Infoscions.Changes to the boardProf.Jitendra Vir Singh resigned from the companys board of directors.Your company is grateful to him for his invaluable contributions duringhis tenure,and wishes him the very best for his future endeavors.Mr.Sridar Iyengar,President TiE(The Indus Entr

153、epreneurs),Silicon Valley,and formerly Partner-in-Charge of KPMGs Emerging BusinessPractice,was inducted as an additional director.Mr.Phaneesh Murthyresigned from the companys board of directors and from his role asHead Sales,Marketing and Communications and Product Services(CAPS)effective July 23,2

154、002.To summarizeOverall,it has been an exciting year of opportunities and challenges.Your company continues to enjoy the confidence of global corporationsbecause of its disciplined execution and delivery of services using theglobal delivery model.Our global competitors are attempting toreplicate our

155、 business model and adapt to the principles of clockwork.This,we believe,would pose great challenges for them.Not only wouldthey have to deal with the disruptions caused by business modelreengineering,but also cope with lower revenues.The complexitiesinvolved with managing a new culture,developing m

156、atured processesand the high performance work ethic required to sustain this model,only makes it more difficult.Your company,on the other hand,is well poised to take on the nextset of challenges and move closer to its vision of becoming a globallyrespected corporation.We acknowledge the contribution

157、 and team-spirit of the over 15,000 Infoscions,whose dedication,hard workand personal commitment make this journey exciting and rewarding.As always,we look forward to your feedback and suggestions toimprove your company.BangaloreNandan M.NilekaniS.GopalakrishnanApril 10,2003Chief Executive Officer,C

158、hief Operating Officer andPresident and Managing DirectorDeputy Managing Director17Certification by Chief Executive Officer(CEO)and Chief Financial Officer(CFO)of the corporationWe,Nandan M.Nilekani,Chief Executive Officer,President and Managing Director and T.V.Mohandas Pai,Chief Financial Officer

159、and Head-Finance and Administration,of Infosys Technologies Limited,to the best of our knowledge and belief,certify that:1.We have reviewed the balance sheet and profit and loss account,and all its schedules and notes on accounts,as well as the cash flowstatements and the Directors report;2.Based on

160、 our knowledge and information,these statements do not contain any untrue statement of a material fact or omit to state a materialfact necessary to make the statements made,in light of the circumstances under which such statements were made,not misleading withrespect to the statements made;3.Based o

161、n our knowledge and information,the financial statements,and other financial information included in this report,fairly present inall material respects the financial condition,results of operations and cash flows of the registrant as of,and for,the periods presented in thisreport,and are in complian

162、ce with the existing accounting standards and/or applicable laws and regulations;4.The companys other certifying officers and we,are responsible for establishing and maintaining disclosure controls and procedures for thecompany,and we have:a)designed such disclosure controls and procedures to ensure

163、 that material information relating to the company,including its consolidatedsubsidiary,is made known to us by others within that entity,particularly during the period in which this report is being prepared;andb)evaluated the effectiveness of the companys disclosure controls and procedures.5.The com

164、panys other certifying officers and we have disclosed,based on our most recent evaluation,to the companys auditors and the auditcommittee of the companys board of directors(and persons performing the equivalent functions):a)all significant deficiencies in the design or operation of internal controls

165、,which could adversely affect the companys ability to record,process,summarize and report financial data,and have identified for the companys auditors,any material weaknesses in internalcontrols;andb)any fraud,whether or not material,that involves management or other employees who have a significant

166、 role in the companys internalcontrols;andc)the companys other certifying officers and we have indicated in this report whether or not there were significant changes in internalcontrols or in other factors that could significantly affect internal controls subsequent to the date of our most recent ev

167、aluation,includingany corrective actions with regard to significant deficiencies and material weaknesses.6.In the event of any materially significant misstatements or omissions,the signing officers will return to the company,that part of any bonusor incentive or equity-based compensation,which was i

168、nflated on account of such errors,as decided by the audit committee.Nandan M.NilekaniT.V.Mohandas PaiBangaloreChief Executive Officer,Chief Financial Officer andApril 10,2003President and Managing DirectorDirector Finance and Administration18Directors reportTo the members,Your directors are pleased

169、to present their report on the business and operations of your company for the year ended March 31,2003.Financial resultsin Rs.crore except per share data*Year ended March 3120032002Income3,622.692,603.59Software development expenses1,813.301,224.82Gross profit1,809.391,378.77Selling and marketing e

170、xpenses266.98129.79General and administration expenses270.37211.35Operating profit(PBIDTA)1,272.041,037.63InterestDepreciation and amortization188.95160.65Operating profit after interest,depreciation and amortization1,083.09876.98Other income99.6166.41Provision for investment23.77Profit before tax1,

171、158.93943.39Provision for tax201.00135.43Profit after tax957.93807.96AppropriationsInterim dividend82.7649.63Final dividend Proposed96.0582.73Total dividend178.81132.36Dividend tax12.305.06Transferred to general reserve766.82670.54Earnings per share(equity shares,par value Rs.5/-each)Basic144.68122.

172、12Diluted143.37121.37*1 crore equals 10 million 1 lakh equals 100,000Results of operationsTotal revenues increased to Rs.3,622.69 crore from Rs.2,603.59 crore in the previous year a growth rate of 39.1%.Export revenues increasedto Rs.3,543.51 crore from Rs.2,552.47 crore in the previous year a growt

173、h rate of 38.8%.The operating profit increased by 22.6%,fromRs.1,037.63 crore(39.8%of total revenues)in the previous year to Rs.1,272.04 crore(35.1%of total revenues).The profit after tax increasedto Rs.957.93 crore(26.4%of total revenue)from Rs.807.96 crore(31.0%of total revenue),a growth rate of 1

174、8.6%.DividendIn November 2002,we paid an interim dividend of Rs.12.50 per share(250%on par value of Rs.5).Your directors recommend a final dividendof Rs.14.50 per share(290%on par value of Rs.5),aggregating to Rs.27.00 per share(540%on par value of Rs.5),for the current year.Thetotal amount of divid

175、end is Rs.178.81 crore,as against Rs.132.36 crore for the previous year.Dividend(including dividend tax),as a percentageof profit after tax from ordinary activities,is 19.95%,as compared to 17.0%in the previous year.The register of members and share transfer books will remain closed from May 30,2003

176、 to June 14,2003,both days inclusive.The AnnualGeneral Meeting of the company has been scheduled for June 14,2003.The Finance Bill 2003 provides that after April 1,2003,dividend incomewill be exempt from tax for shareholders and that domestic companies will be liable to pay a dividend distribution t

177、ax at the rate of 12.50%,plusa surcharge at the time of distribution.Accordingly,the company has provided for an amount of Rs.12.30 crore towards dividend distribution taxon the final dividend of Rs.96.05 crore declared by the board on April 10,2003.Increase in share capitalYour company issued 56,94

178、8 shares on the exercise of stock options,under the 1998 and 1999 employee stock option plans.Due to this,theoutstanding issued,subscribed and paid-up equity share capital increased from 6,61,86,130 shares during the previous year,to 6,62,43,078shares as at March 31,2003.BusinessIt was a challenging

179、 year for the Indian software industry.Its growth was impacted by several factors.The United States,which is one of the majormarkets for Indian software exports,has witnessed an economic slow down.Due to the adverse economic environment,global corporations havereduced their spending on technology an

180、d are seeking increased return on their IT investments.At the same time,clients are looking to consolidatetheir IT spend with fewer,financially robust,high-quality vendors that provide comprehensive end-to-end services.Around the world,more andmore companies are offshoring their IT operations to val

181、ue-for-money destinations such as India.For your company,these changes are an opportunity for growth.Your company continues to optimize its offshore delivery model to service itsclients.At the same time,your company is transforming itself into a comprehensive end-to-end service provider,leveraging t

182、echnology to bringbusiness benefits to its clients.Your companys service suite includes consulting,application design,development,re-engineering and maintenance,systems integration,package evaluation and implementation,and business process management.Your companys superior delivery capabilities,broa

183、d services spectrum and innovative application of technology continue to delight its clients.19At the beginning of the year,your company estimated a growth in software development services and product revenues,under Indian GAAP,at18.5%to 21.8%.This was later revised as 31.9%to 33.2%.Despite the chal

184、lenging environment,your company has grown by 39.1%in softwaredevelopment services and products revenues.Your companys software export revenues aggregated Rs.3,543.51 crore,up 38.8%from Rs.2,552.47 crore the previous year 72.8%of therevenues came from America,17.7%from Europe,and 9.5%from the rest o

185、f the world.The share of the fixed-price component of the businesswas 36.7%,as compared to 31.6%during the previous year.Blended revenue productivity,in dollar terms,has declined by 0.8%.The gross profit amounts to Rs.1,809.39 crore(49.9%of revenue)as against Rs.1,378.77 crore(53.0%of revenue)in the

186、 previous year.Thegross margins have largely been affected by higher onsite revenues,that have increased from 50.8%in the previous year,to 54.7%.The onsiteperson-months comprised 33.7%of total billed efforts during the year as compared to 30.7%during the previous year.The operating profitamounted to

187、 Rs.1,272.04 crore(35.1%of revenue)as against Rs.1,037.63 crore(39.8%of revenue).Operating margins were affected primarilydue to higher sales and marketing costs,which increased from 5.0%of our revenue in the previous year to 7.4%of our revenue in the currentyear.The net profit after tax was Rs.957.

188、93 crore(26.4%of revenue)as against Rs.807.96 crore(31.0%of revenue)in the previous year.Your company seeks long-term partnerships with clients while addressing their various IT requirements.Your companys customer-centricapproach has resulted in high levels of client satisfaction.Your company derive

189、d 92%of its revenues from repeat business during the year.Yourcompany defines repeat business as revenues from a customer who also contributed to our revenues during the prior fiscal year.Your companyadded 92 new clients during the year,which includes a substantial number of large corporations.The t

190、otal client base at the end of the year stoodat 345.Further,your company has 115 million-dollar clients(83 in the previous year),41 five-million-dollar clients(25 in the previous year)and16 ten-million-dollar clients(16 in the previous year).The year also saw your company scaling up its infrastructu

191、re.Your company added another 7.68 lakh square feet of physical infrastructure space,taking the total space available to 34.31 lakh square feet.The number of overseas marketing offices as on March 31,2003 was 26,compared to24 as on March 31,2002.During the year,your company reorganized its client so

192、lution delivery groups.There are four objectives for this reorganization.The first is to pilotfully integrated vertical industry groups.In this context,two units were created:Retail,and Automotive&Aerospace,with the objective ofproviding effective business solutions in these business domains.The sec

193、ond objective is to give more independence to our Europe and AsiaPacific units.Our focus on these geographies has yielded results in the form of increased business.The third objective is to service our largeclients more effectively by identifying global accounts and key accounts.Global accounts are

194、handled centrally under a separate unit.The fourthobjective is to create a new unit focused on Greater China that includes China,Hong Kong and Taiwan.Your company is also planning to set upa development center in China.Your company believes that the environment will remain challenging in the near fu

195、ture.Customers will continue to focus on higher return ontheir investments that would put tremendous pressure on your companys billing rates.The environment demands that your company continueto rigorously focus on managing costs.While the short-term uncertainties pose tremendous challenges,the long-

196、term opportunities remainexciting.Your company continues to aggressively pursue new opportunities for growth.Banking Business Unit(BBU)The Banking Business Unit grew at 62%over the previous year.Your companys product FINACLE the enterprise banking e-platform hasnow emerged as an end-to-end suite of

197、seamlessly integrated,best-of-breed banking software products.FINACLE is uniquely positioned toaddress the needs of new-age banks across their core banking,consumer e-banking,corporate e-banking,multi channel,CRM and treasuryrequirements.FINACLE being a new generation solution designed around the We

198、b paradigm,open industry standards and the services model,provides banks with a powerful and flexible platform to respond to changing business needs.Supporting powerful and unique capabilities like24x7 banking,Straight Through Processing(STP),workflow automation,and a personalized and consistent mul

199、ti-channel customer experience,it enables banks to delight their customers,create competitive differentiation,reduce costs and gain time-to-market.During the year,your company made several strategic moves to strengthen the FINACLE suite on all fronts.Your company launched FINACLE CRM,a specialty ban

200、king CRM product,covering the complete CRM functionality and offering severalunique capabilities targeted exclusively at banks.FINACLE CRM provides a unified view both internally and externally of a customersrelationship with the bank across multiple channels such as call centers,branches,mobile,web

201、,etc.and also across various back-end,product processing systems.This greatly enhances the banks ability to retain and expand customer relationships and improve customerprofitability.Since its launch,your company has already acquired four new customers for FINACLE CRM.Your company acquired a treasur

202、y product.The product,now re-branded FINACLE Treasury,has added a world-class,integrated treasurymanagement solution to the FINACLE suite.FINACLE Treasury covers Forex,Money Markets,Securities and their derivatives acrossfront,middle and back office treasury operations.It also provides powerful Stra

203、ight Through Processing capability and has live sites acrosssome of the largest Tier 1 investment and commercial banks in Europe,USA and Japan.Since acquisition,we have already added one newcustomer for this product.Your company also launched FINACLE eChannels and FINACLE eCorporate the consumer and

204、 business e-banking,EBPP,EIPP,web-based Cash Management and mobile pay products with a multi-channel framework and powerful alerting capability.With their uniquefuture-proof architecture supporting both J2EE and.NET platforms through a single code base,these products have generated both mindshare an

205、d market share.In fact,they have been featured in case studies by both Intel and Microsoft,and also in research reports by Gartner.Your company has acquired eight new clients since the launch of these products.Finally,your companys flagship product FINACLE Core Banking continues its growth momentum.

206、Your company has further strengthenedits market dominance in South Asia and Africa,and made inroads into new markets.Today,six out of the eight banks in India that havedeployed centralized core banking across over 100 branches,are powered by FINACLE Core Banking.With 24 of the 25 customers signedpri

207、or to March 31,2002 being“live”today,FINACLE Core Banking has built an impeccable implementation track record.BBU has been consolidating its position in the South Asian and African markets.At the same time,it has been making steady inroads into newmarkets.During the year,BBU acquired nine new client

208、s for its products two in India and seven overseas.20Development centers in IndiaYour company incurred capital expenditure aggregating Rs.219.26 crore as compared to Rs.322.74 crore during the previous year.Of theamount,Rs.76.11 crore was spent on technological infrastructure as compared to Rs.67.40

209、 crore in the previous year.In Bangalore,yet another software development block of 96,800 square feet,with a capacity of 575 seats,and a food court of 21,000 square feet,was completed.Three wings of a new software development block were also completed and leased to Progeon Limited,a subsidiary.The H

210、eritagebuilding was refurbished.Another two software development blocks and a power block are nearing completion with a built up area of 2,45,000square feet capable of accommodating 2,000 professionals.Existing capacity at Bangalore now comprises 13,46,600 square feet,capable ofaccommodating 6,340 p

211、rofessionals.At Pune,an Employee Care Center with a built up area of 55,000 square feet was completed.A Customer Care Center with a built-up area of85,000 square feet,capable of accommodating 350 professionals is in the advanced stage of completion.The campus has a built-up area of5,03,000 square fe

212、et with a capacity of 2,880 seats.In Chennai,an additional software development block of 75,000 square feet capable of accommodating 495 professionals was completed as partof our Phase II expansion.A Customer Care Center of 75,000 square feet built-up area capable of seating 250 professionals is in

213、an advancedstage of completion.The campus has a built-up area of 3,45,700 square feet with a capacity of 2,400 seats.In Hyderabad,the remainder of 355 seats in the first software development block and another software development block with a capacity of 965personnel,was completed.A food court with

214、a built up area of 70,000 square feet was also completed.The campus has a built-up area of3,17,000 square feet with a capacity of 1,645 seats.In Mysore,the remaining 400 seats of the software development block and the food court with a built up area of 40,000 square feet werecompleted.The campus has

215、 a built-up area of 4,19,000 square feet and houses the Infosys Leadership Institute.As of March 31,2003,the company has 34,31,350 square feet of space capable of accommodating 16,970 professionals and an additional4,07,400 square feet nearing completion.Sales and marketingYour company continues to

216、enhance its sales and marketing infrastructure.This is important as an investment towards the future.Your companyopened sales offices at Dublin,Ohio,USA and Beijing,China during the year.Your company has 26 marketing offices overseas,as at the end ofthe year.During the coming year,additional sales o

217、ffices are expected to be opened in North America,Europe and Asia to help your company access newmarkets and to broaden its client base.Note on sexual harassment litigationThe lawsuit filed by a former employee against your company and its former director,Mr.Phaneesh Murthy,is in the early stages of

218、 discovery.A September 2003 trial date has been set.An unfavorable resolution could adversely impact Infosys results of operations,or financialcondition.Progeon LimitedDuring the year,your company invested Rs.12.25 crore in Progeon Limited,which is a majority owned subsidiary of your company,purchas

219、ing1,22,49,993 equity shares at Rs.10/-each fully paid up with a par value of Rs.10/-each.Progeon Limited was incorporated on April 3,2002 andwas established to provide business process management services.It seeks to leverage the benefits of service delivery globalization,processredesign and techno

220、logy,to drive efficiency and cost effectiveness in customer business processes.Progeon obtained its financial closure,bysecuring funding,of Rs.49 crore from Citicorp International Finance Corporation,USA,through investment in redeemable preferred shares offace value of Rs.100/-each at a premium of R

221、s.12/-per share.During the year,Progeon added five clients and generated a revenue of Rs.20.85crore.The employee strength as on March 31,2003 was 539.Strategic investmentsDuring the year,your company invested Rs.0.27 crore in M-Commerce Ventures Pte Limited,Singapore(“M-Commerce”)for 10 ordinary sha

222、resof face value Singapore$(“S$”)1/-each fully paid at par and 90 redeemable preference shares of face value S$1/-each fully paid at a premiumof S$1,110.Accordingly,the aggregate investment in M-Commerce Ventures Pte Limited went up to Rs.2.11 crore as at March 31,2003,ascompared to Rs.1.84 crore as

223、 of March 31,2002.Your company evaluates all its investments for any diminution in their carrying values that is other than temporary.Based on the financial conditionof the investee companies as well as their business environment,your company provided an aggregate amount of Rs.23.77 crore,which cons

224、isted ofRs.0.75 crore towards JASDIC Park Company,Japan;Rs.6.85 crore towards Asia Net Media(BVI)Ltd.,the British Virgin Islands;Rs.8.96 croretowards OnMobile Systems Inc.(formerly OnScan Inc.),USA;Rs.7.21 crore towards Workadia Inc.,USA;Rs.10,350/-towards The SaraswatCo-operative Bank Limited,India

225、 and Rs.10/-towards Software Services Support Education Center Limited,India during the current year.AcquisitionsDuring the year,your company acquired intellectual property(“IP”)in a treasury product for its Banking Business Unit and entered into anagreement to transfer the IP in a commercial softwa

226、re application used in the design of high performance structural systems.Your company alsopurchased a non-exclusive global license to a signature display software for use along with its banking products.Human resource managementEmployees are your companys most valuable resource.Your company has been

227、 able to create a favorable work environment that encourages21innovation and meritocracy.Your company has also put in place a scalable recruitment and human resource management process.This enablesit to attract and retain high-caliber employees.We added 4,618 employees,net of separations,taking the

228、total strength to 15,356 up from10,738 at the end of the previous year.Your companys attrition rate,at 6.9%for the year(6.2%for the previous year),is testimony to its abilityto retain high-quality talent.In order to ensure a safe and congenial work environment,your company has formulated positive-wo

229、rk-environment workshops for all employees.Process improvements have also been made in the areas of recruitment,training and visa processing.Your companys employee management and HR practices have been widely acclaimed in various forums.The Pune Development Center wasassessed at Level 5 of version 2

230、 on the People Capability Maturity Model(PCMM).Your company was ranked the Best Employer in India byBusiness Today-Hewitt in their annual survey.QualityYour company firmly believes that“pursuit of excellence”is one of the most critical components for competitive success in the global market.Your com

231、pany has achieved high maturity through rigorous adherence to highly evolved processes,which have been systematically benchmarkedagainst world-class operating models.These includes ISO 9001-TickIT,SEI-CMM and the Malcolm Baldrige Framework.Your company is ratedat Level 5 of the Capability Maturity M

232、odel(CMM),which is the world-class benchmark in software process management.Regular and rigorousassessments are conducted by reputed external assessors vis-vis CMM,CMMI,PCMM and CII-EXIM(based on EFQM/Baldrige models)toassess the progress and identify areas that need improvement.Implementation of su

233、ch world-class frameworks has resulted in tangible businessbenefits.To address the challenges of the future and to ensure performance improvement in an integrated manner,your company has launched the InfosysExcellence Initiative(IEI),which is a single umbrella for all quality initiatives within the

234、organization.This initiative spans various functions inthe organization,namely core delivery processes,functional and cross-functional processes,and organizational management processes.It envisagesleveraging CMM Level 5 for delivery processes,the EFQM/Malcolm Baldrige Framework for organizational ma

235、nagement processes andSix Sigma Cross Functional Process Mapping(CFPM)techniques for improving cross-functional processes.Your companys best practices and processes in the area of project management are showcased in the book“Software Project Management inPractice”by Dr.Pankaj Jalote(Addison Wesley,2

236、002),published under the SEI series.Your company has helped many of its clients improve their processeses and systems by providing high-end software process consulting services.This is testimony to your companys process leadership.Infosys Leadership InstituteDuring the fiscal year,the Infosys Leader

237、ship Institute successfully facilitated the development of more than 200 Infosys leaders.The“LeadersTeach”series of workshops was conducted by the top management to pass on the skills acquired over the years to the next generation of leaders.Now,the leadership development model has been further refi

238、ned to improve its integration with succession planning across various levels of thecompany.InStep Global Internship ProgramInStep,your companys Global Internship Program,seeks to attract students from the top academic institutions around the world,and plays a keyrole in our international recruitmen

239、t initiative.Your company selects students for summer projects from the leading global educational institutionsand places them in live business and technical projects.InStep is also part of your companys initiative to promote a multi-cultural environment.Your company recruits interns from diverse ac

240、ademic backgrounds,spanning technology students from Stanford to business students fromWharton.This year,your company has held InStep Information Sessions in the United States of America,Canada,the United Kingdom,France,Germany,India,Australia and Japan,and has received over 2,000 applications for 3

241、3 internship positions.The new information infrastructureYour company believes that its internal IT initiatives are key drivers to scalable and sustained corporate excellence.Accordingly,during the year,several key focus areas were identified.This includes:driving information availability to a globa

242、l work force;enabling scalable,sustained excellencein execution;enhancing employee and process productivity;increasing accountability of project managers for their project profitability;integratingcross-functional processes;and creating a Disaster Recovery(DR)structure for the information infrastruc

243、ture backbone.Towards this,your companys Information Systems(IS)team has upgraded all production servers to be available on state-of-the-art Storage AreaNetwork(SAN)solutions to make IS infrastructure more secure and more reliable.Further,your company implemented the first phase ofDR solution(in-cam

244、pus)covering all back-end servers.This ensures high performance,high availability,reliability,scalability and better managementof the IS portfolio of applications.Your company also completed the deployment of its homegrown CRM solution(CIMBA)throughout its customer touch-points worldwide.Inaddition,

245、your company deployed a project budgeting solution to enable tracking of the budgeted versus actual parameters at the project level.This helps reinforce project managers accountability for the profitability of projects.Additionally,your company focused on setting up a globallyscalable.NET infrastruc

246、ture that leverages investments made in its intranet backbone,secure extranet,SAP R/3 4.6 and state-of-the-artDR management infrastructure to enhance global delivery and 24x7 operations.Additional information to shareholdersYour company has provided additional information in the form of intangible a

247、ssets scoresheet,human resources accounting,value-added statement,brand valuation,economic value-added statement,current-cost-adjusted financial statements,and financial statements in substantial compliancewith the GAAP of six countries.22Corporate governanceThe current economic downturn,the unprece

248、dented events of September 11,the Enron issue and recent business failures have combined tocreate a very challenging financial reporting environment.As a result,companies have started focusing more on corporate governance issues.Your company continues to be a pioneer in benchmarking its corporate go

249、vernance policies with the best in the world.Our efforts are widelyrecognized by investors in India and abroad.Your company has complied with all the recommendations of the Kumar Mangalam Birla Committee on Corporate Governance constituted bythe Securities and Exchange Board of India(SEBI).For fisca

250、l 2003,the compliance report is provided in the Corporate Governance Report in thisAnnual Report.The auditors certificate on compliance with the mandatory recommendations of the committee is annexed to this report.In addition,your directors have documented your companys internal policies on corporat

251、e governance.In line with the committeesrecommendations,the managements discussion and analysis of the financial position of the company is provided in this Annual Report and isincorporated here by reference.Your company continues its practice of providing a report on its compliance with the corpora

252、te governance requirements of six countries,in theirnational languages,for the benefit of our shareholders in those countries.Responsibility statement of the board of directorsThe directors responsibility statement setting out the compliance with the accounting and financial reporting requirements s

253、pecified underSection 217(2AA)of the Companies(Amendment)Act,2000,in respect of the financial statements,is annexed to this report.Employee Stock Option Plan(ESOP)Your company has introduced various stock option plans for its employees.Details of these,including grants to senior management,are given

254、below.Senior management includes directors of your company and members of its management council.1994 Stock Offer Plan(the 1994 plan)The 1994 plan came to an end in fiscal 2000.No further options will be issued under this plan.1998 Stock Option Plan(the 1998 plan)Your company has issued 5,80,200 ADS

255、-linked stock options to 223 employees during the year under the 1998 plan.Details of such optionsgranted under the 1998 plan are given below.DescriptionDetails1.Total number of shares32 lakh ADS representing 16 lakh shares2.The pricing formulaNot less than 90%of the fair market value as on date of

256、grant3.Ratio of ADS to equity sharesOne share represents two ADSs4.Options granted during the year5,80,200 options representing 2,90,100 equity shares5.Weighted average price per option granted$61.85(Rs.2,988/-);100%of fair market value on the date ofgrant during the year6.Options vested(as of March

257、 31,2003)6,30,004 options representing 3,15,002 equity shares7.Options exercised during the year89,540 options representing 44,770 equity shares8.Money raised on exercise of options$21,14,348(Rs.10.22 crore)9.Options forfeited during the year2,49,748 options representing 1,24,874 equity shares10.Tot

258、al number of options in force at the end of the year25,03,406 options representing 12,51,703 equity shares11.Grant to senior managementNil12.Employees receiving 5%or more of the total number ofoptions granted during the yearNil1999 Stock Option Plan(the 1999 plan)Your company has issued 6,16,850 sto

259、ck options to 3007 employees and one independent director during the year under the 1999 plan.Thedetails of such options granted under the 1999 plan are given below.DescriptionDetails1.Total number of shares66 lakh shares2.The pricing formulaAt the fair market value as on date of grant3.Options gran

260、ted during the year6,16,850 options representing 6,16,850 equity shares4.Weighted average price per option grantedRs.3,754(100%of fair market value on the date of grant)during the year5.Options vested(as of March 31,2003)12,22,639 options representing 12,22,639 equity shares6.Options exercised durin

261、g the year12,178 options representing 12,178 equity shares7.Money raised on exercise of optionsRs.3.30 crore8.Options forfeited during the year2,12,316 options representing 2,12,316 equity shares9.Total number of options in force at the end of the year50,61,171 options representing 50,61,171 equity

262、shares10.Grant to senior management and independent directorsClaude SmadjaNo.of options:2,00011.Employees receiving 5%or more of the total number ofoptions granted during the yearNil23LiquidityYour company continues to be debt-free,and maintains sufficient cash to meet its strategic objectives.Liqui

263、dity in the balance sheet needs tobalance between earning adequate returns,and the need to cover the financial and business risk.Liquidity also enables your company to makea rapid shift in its direction,should the market so demand.During the current year,internal cash accruals have more than adequat

264、ely coveredworking capital requirements,capital expenditure of Rs.219.26 crore and dividend payments,and have resulted in a surplus of Rs.611.55 crore.As on March 31,2003,your company had liquid assets of Rs.1,638.51 crore as against Rs.1,026.96 crore at the previous year-end.These fundshave been in

265、vested in deposits with banks and highly rated financial institutions.Research and education initiativesYour company trained over 3,370 employees as part of its Foundation Program training.Continuing education is imparted in advanced technologiesand managerial skills.A centralized Assessment and Cer

266、tification Center is being set up for enhanced competency measurement.The aggregatetraining imparted by your company to its employees exceeded 2,00,000 person days.The Infosys Fellowship Program,instituted by your company at 14 premier academic institutions in India to support research work leading

267、to aPh.D.,has been well received.At present,there are 41 Infosys Fellowship awardees undergoing Ph.D.programs at various institutions.Yourcompany spent Rs.14.44 crore of its revenue on R&D activities during the year.Your company continues to leverage the collective knowledge of the organization for

268、competitive advantage.The Knowledge Management(KM)program,initiated in August 2000,has resulted in the active generation and widespread use of reusable knowledge.For instance,there are 200+knowledge assets published per month in the KM portal in the companys intranet.The central knowledge repository

269、 has,as of date,5,900knowledge assets.Additionally,more than 15,000 artifacts were created by employees as direct deliverables,and over 9,000 system-generatedartifacts were collated from the rich data captured at key check points,during the process of project execution.On an average,two knowledgeass

270、ets are downloaded by an Infoscion every work-minute.Incentive schemes are in place to encourage knowledge sharing.A dedicated centralteam of experts,aided by a network of knowledge champions across various development centers,ensures smooth functioning of KM at yourcompany.The knowledge-sharing cul

271、ture in your company is growing stronger nearly 25%of the knowledge workers have contributed at leastone knowledge asset to the companys central knowledge store.Your companys KM program has received widespread recognition amongst customers,practitioners,benchmarking agencies and academicians.Your co

272、mpany has been adjudged one of the winners of the prestigious Most Admired Knowledge Enterprises(MAKE)award(administered byTeleos,an independent KM research organization)in the Asia region,for the year 2002.This award recognizes the mature knowledge managementpractices of the company.Incidentally,yo

273、ur company is the only Indian company to have won this award.Your company has also established alliances with global IT product vendors in order to acquire specialized knowledge about their products.Thisis an ongoing activity.Infosys FoundationYour company is committed to contribute to its social mi

274、lieu and,in 1996,established the Infosys Foundation as a not-for-profit trust to supportinitiatives that benefit the society at large.The Foundation supports programs and organizations devoted to the cause of the destitute,rural poor,mentally challenged,senior citizens and the uneducated.It also hel

275、ps preserve certain arts and cultural activities of India,which are under thethreat of fading out.Grants to the Foundation during the year aggregated Rs.5.53 crore,as compared to Rs.3.75 crore in the previous year.A summary of the work done by the Foundation appears in the Infosys Foundation section

276、 of this report.On your behalf,your directors expresstheir gratitude to the honorary trustees of the Foundation for sparing their valuable time and energy for the activities.Community servicesYour company,through its ComputersClassrooms initiative launched in January 1999,has donated 1,490 computers

277、 to various institutionsacross India.Additionally,your company has applied to the relevant authorities for permission to donate computers to educational institutions onan on-going basis in the future.Microsoft continues to participate in this initiative by donating relevant software.We would like to

278、 place onrecord our appreciation for its continued support.AwardsYour directors are happy to report some of the awards that your company received during the year.Ranked as the No.1 Employer in the IT sector by Dataquest for the second time in a rowRanked the Best Employer in India by Business Today-

279、Hewitt in their annual surveyRated among the best“Under a Billion Forbes Global”200 small companies for 2002 by Forbes GlobalWon the Most Admired Knowledge Enterprise Award for AsiaWon the Corporate University Xchange Excellence Award for“Aligning Corporate Learning to Business Strategies”Awarded th

280、e Global Corporate Achievement Award 2002 for Asia Pacific Region by Economist Intelligence Unit EUIWon the CII Exim Award for Business ExcellenceAwarded Diamond Award for the marketing initiative WIBTA by Information Technology Services Marketing Association IMTARanked as the Best Managed Company I

281、n India by AsiamoneyBest Annual report award of the Institute of Chartered Accountants of India for seventh successive yearRanked No.1 among Asias Leading Companies in India by Far Eastern Economic ReviewRated the Most Respected Company in India by BusinessworldRated the Most Globally Competitive Co

282、mpany,Most Dynamic Company,Most Ethical Company and Best IT Company by BusinessworldFeatured among the first 250 companies of the Deloitte Touche Tohmatsu Asia Pacific Technology Fast 500A Financial Times-PwC survey listed Infosys among 50 companies that demonstrate the most integrity24Fixed deposit

283、sYour company has not accepted any fixed deposits and,as such,no amount of principal or interest was outstanding as of the balance sheet date.DirectorsDuring the year,Mr.Phaneesh Murthy resigned from the companys board of directors to defend a sexual harassment case filed against him by aformer empl

284、oyee.Your directors inducted Mr.Sridar Iyengar,President of The Indus Entrepreneurs(TiE),as an additional director of the company.His appointmentrequires the approval of the members at the ensuing Annual General Meeting.As per Article 122 of the Articles of Association,Mr.Srinath Batni,Mr.Omkar Gosw

285、ami,Mr.Larry Pressler and Ms.Rama Bijapurkar retire byrotation in the forthcoming Annual General Meeting.All of them,being eligible,offer themselves for reappointment.Also,Mr.Jitendra Vir Singh has resigned from the board effective April 12,2003.Your directors place on record their deep appreciation

286、 of theyeoman service rendered by him during his tenure on the board.Mr.Jitendra Vir Singh participated actively in the deliberations of the board andyour company immensely benefitted from his insights.AuditorsThe auditors,Bharat S.Raut&Co.Chartered Accountants,retire at the ensuing Annual General M

287、eeting and have confirmed their eligibility andwillingness to accept office,if reappointed.Secondary American Depositary Shares(ADS)offeringYour directors had recently announced the sponsorship of an international American Depositary Shares(ADS)issue program,against shares heldby its existing shareh

288、olders in India,at a price to be determined by the lead managers to the offering.Your directors also had decided that theoffering size would be between 20,00,000 equity shares(or 40,00,000 ADSs)to 30,00,000 equity shares(or 60,00,000 ADSs).This was approvedby the members in the Extraordinary General

289、 Meeting held on February 22,2003.Your directors are of the opinion that it would be in the best interest of the company to increase the liquidity for its shares in the NASDAQ market.Your company had appointed Goldman Sachs(Asia)LLC,Merrill Lynch&Co.,and Citigroup as the global book runners,and Deut

290、sche BankSecurities and UBS Warburg as the co-managers to this program.FII investment limitThe members had approved the increase in investment limit by Foreign Institutional Investors(FIIs)from 49%to 100%at the Annual GeneralMeeting held on June 8,2002.The Reserve Bank of India had approved the incr

291、ease on July 4,2002.Conservation of energy,research and development,technology absorption,foreign exchange earningsand outgoThe particulars as prescribed under Subsection(1)(e)of Section 217 of the Companies Act,1956,read with the Companies(Disclosure ofparticulars in the report of Board of Director

292、s)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 Companies Act,1956,read with the Companies(Particulars of employees)Rules,1975,as amended,the names and other particulars of employees are set out in the

293、 annexure included in this report.AcknowledgmentsYour directors thank the companys clients,vendors,investors and bankers for their continued support during the year.Your directors place onrecord their appreciation of the contribution made by employees at all levels.Your companys consistent growth wa

294、s made possible by their hardwork,solidarity,cooperation and support.Your directors thank the Government of India,particularly the Ministry of Communication and Information Technology,the Customs and ExciseDepartments,the Software Technology Parks Bangalore,Chennai,Hyderabad,Mohali,Mysore,Pune,Bhuba

295、neswar and New Delhi,the Ministryof Commerce,the Ministry of Finance,the Reserve Bank of India,the state governments,and other government agencies for their support,andlook forward to their continued support in the future.For and on behalf of the board of directorsBangaloreNandan M.NilekaniN.R.Naray

296、ana MurthyApril 10,2003Chief Executive Officer,Chairman and Chief MentorPresident and Managing Director25Annexure to the directors reporta)Particulars pursuant to Companies(Disclosure of particulars in the report of theBoard of Directors)Rules,19881.Conservation of energyThe operations of your compa

297、ny are not energy-intensive.However,significant measures are taken to reduce energy consumption by usingenergy-efficient computers and by the purchase of energy-efficient equipment.Your company constantly evaluates new technologies and investsto make its infrastructure more energy-efficient.Currentl

298、y,your company uses CFL fittings and electronic ballasts to reduce the power consumptionof fluorescent tubes.A building automation system to control the working of air conditioners and to make them more energy-efficient,has beenimplemented.Air conditioners with energy efficient screw compressors for

299、 central air conditioning and air conditioners with split air conditioningfor localized areas are used.High efficiency,hydro-pneumatic pumps are being used in water pumping systems.As energy costs comprise a verysmall part of your companys total expenses,the financial impact of these measures is not

300、 material.In addition,your company is using amorphous core transformers in place of conventional transformers in all its locations,which operate at anefficiency of over 98%.Your company is also using power factor correctors at the supply level of the state grid power to achieve high energyefficiency

301、.2.Research and Development(R&D)Research and development of new services,designs,frameworks,processes and methodologies continue to be of importance at your company.This allows your company to enhance quality,productivity and customer satisfaction through continuous innovation.a.R&D initiative at in

302、stitutes of national importanceThis initiative has been described in the Research and education initiatives section in the directors report.b.Specific areas for R&D at your companyYour company spent Rs.14.44 crore on R&D in the financial year 2003.Of this,Rs.0.87 crore was spent on enhancing and dev

303、eloping newfunctionalities in the banking product suite FINACLE.As a result,today,FINACLE is one of the premier banking product suites in the worldwith over 76 customers across 21 countries.The remainder amount of Rs.13.57 crore was spent on methodologies and new technologies which allow your compan

304、y to improve its servicecapabilities.Your company has further enhanced the requirements modeling tool InFlux to include performance modeling.Increased deploymentis helping your company capture software requirements better and is reducing requirements-related defects in its development projects.Thisa

305、llows the company to differentiate its development methodology.Your companys Domain Competency Group is developing new models for several vertical industry segments.These industry solutions addresssome of the current problems faced by these industries.Examples are Straight Through Processing for the

306、 financial services industry,PerishablesManagement for the grocery industry,and HIPAA for the health care industry.Your companys employees have published several papers in international and domestic journals and magazines on various topics.A book hasbeen brought out based on the research done by our

307、 Software Engineering and Technology Labs(SETLabs)called“The Art and Technology ofSoftware Engineering”.Your companys employees have also participated as speakers in several international and domestic conferences.c.Benefits derived as a result of R&D activityYour companys performance testing center

308、and the e-commerce research labs have been instrumental in building expertise in the areas ofsoftware performance solutions,testing,architecture and prototype development.d.Future plan of actionThere will be continued focus on,and increased investment in the above R&D activities.Future benefits are

309、expected to flow in from initiativesundertaken this year.e.Expenditure on R&D for the year ended March 31in Rs.crore2003%2002%Revenue expenditure13.77%14.40%Capital expenditure0.67%0.46%Total R&D expenditure14.44%14.86%R&D expenditure as a percentage of total revenue0.40%0.57%3.Technology absorption

310、,adaptation and innovationYour company has identified three thought leadership areas Knowledge Management,Collaborative Technologies and Convergence Technologies.Your company create technology roadmaps in these areas that anticipate changes based on the evolution of technology in two to five years.B

311、asedon these technology roadmaps,your company has created various scenarios in vertical industry segments and has developed proof-of-conceptapplications,along with clients and technology partners.For instance,your company has created proof-of-concept applications in collaborativetechnologies such as

312、.NET along with Microsoft.This has been demonstrated to its clients,and has resulted in your company getting several new26projects in the.NET technology area.As mentioned earlier,your company has won the prestigious“Most Admired Knowledge Enterprise(MAKE)”award for its knowledge management practices

313、.4.Foreign exchange earnings and outgoa.Activities relating to exports,initiatives taken to increase exports,development of new export markets forproducts and services,and export plansIn fiscal 2003,97.8%of revenues were derived from exports.Over the years,your company has established a substantial

314、direct-marketingnetwork around the world,including North America,Europe and the Asia Pacific regions.These offices are staffed with sales and marketingspecialists,who sell your companys services to large,international clients.During the year,your company opened marketing offices in Dublin,Ohio,USA a

315、nd Beijing,China.Your company also launched a globalinitiative to increase the awareness of the Infosys brand,and of its products and services.Several press and public relations exercises werelaunched in the US to enhance your companys visibility.Further,your company plans to take part in several in

316、ternational exhibitions to promoteits products and services.b.Foreign exchange earned and used for the year ended March 31,in Rs.croreForeign exchange20032002Earnings3,377.872,495.50Outflow(including capital goods and imported software packages)1,593.851,072.15For and on behalf of the board of direc

317、torsBangaloreNandan M.NilekaniN.R.Narayana MurthyApril 10,2003Chief Executive Officer,Chairman and Chief MentorPresident and Managing Director27Annexure to the directors reportb)Information as per Section 217(2A)of the Companies Act,1956,read with the Companies(Particulars of employees)Rules,1975,an

318、d forming part ofthe directors report for the year ended March 31,2003Sl.NameDesignationQualificationAgeDate ofExperienceGrossPrevious Employment DesignationNo.(Years)Joining(Years)Remuneration(Rs.)*1.Aaron CoxPrincipalBE,MSc4123.05.20021467,00,075Alysida Solutions,Director,Business Development2.Aas

319、hish BansalBusiness Development Manager SalesBTech,PGD3817.02.20001469,62,686HSBC Capital Markets India Pvt.Ltd.Senior Manager*3.Abhimanyu AcharyaBusiness ManagerBTech4406.01.20032213,12,491Silverline Technologies Inc,Senior Project Manager*4.Achuth Gopinath MenonProject ManagerBTech,MS3504.11.20029

320、18,45,556i2 Technologies,Sr.Software Engineer*5.Aditya SrivastavaSenior AssociateBTech,MBA3223.07.2002840,81,751PWC Financial Services Consulting,Consultant*6.Adrian ToppleTest PlannerBTech3219.06.2002520,92,200IQ Financial Services Inc.,Senior QA Tester*7.Ahmerin HussainTechnical Support EngineerBA

321、(H),MSc3219.06.2002626,61,127IQ Financial Services Inc.,UNIX Administrator*8.Ajit SagarSenior Technical ArchitectBE(H),MS3802.01.20031312,90,845Controlling Factor,Senior Solutions Architect*9.Ajita KiniPrincipalBSc,PGD3716.10.20001478,12,315KPMG Consulting Pvt.Ltd.,Manager10.Akash MaitiSenior Associ

322、ateBE(H),MA,PGD3205.07.2000862,04,598Andersen Consulting,Senior Consultant11.Akihiro KomiyamaBusiness Development Manager SalesMBA4319.11.20011747,60,234Breit Consulting Co.,Ltd.,Managing Director12.Albert Denis LewisVice President and Senior Program ManagerMS,MBA4305.02.20012164,28,243Profitech,Con

323、sultant*13.Alejandro Jose CaraoTechnical ArchitectBSc,MS3101.08.2002829,26,398Sapient Corporation,Manager14.Alex W.YangSenior AssociateBS,MBA3430.07.2001864,70,699Onsite Access,Inc.,Senior Manager Ebusiness15.Alexander Graham Mcgregor Pringle Account ManagerBSc,Diploma5016.07.20013032,21,216Syntel I

324、nc,Senior Project Manager*16.Alexander ZmoiraSenior PrincipalBS,MBA3825.06.200193,14,056Intl.Business CGE&Y,Senior Manager Consulting Services17.Alexandre Elvis RodriguesBusiness Development Manager SalesBTech,MBA3203.08.1998971,40,565Modi Xerox,Production Sales Manager18.Amar VaidyaBusiness Develop

325、ment Manager SalesBE,MBA3330.11.20001056,01,233Andersen Consulting,Consultant19.Ameer SaithuAssociateBTech,PGD3027.03.2000749,28,126PricewaterhouseCoopers,Consultant20.Amit DuaBusiness Development Manager Banking Business UnitBE,MBA3316.11.1998945,50,981Microland Ltd,Business Development21.Amit Nang

326、aliaSoftware EngineerBA2425.06.2001234,01,66022.Amitabh Pushparaj MudaliarSenior AssociateBE,PGD3120.03.2000852,29,618PricewaterhouseCoopers,Consultant23.Amy(Yuen Chun)WongSoftware EngineerBSc2522.01.2001330,40,729Hewitt Associates,Quality Assurance Analyst*24.Amy VelozAdministrative AssistantBBA302

327、1.06.20011214,41,584Eclubbuy San Juan Capistrano,Senior Product MarketingAssociate/Supervisor*25.Anand Gopalan RengarajanProject ManagerBE2925.11.2002914,79,167PricewaterhouseCoopers,Senior Associate26.Anand KrishnaSenior PrincipalBE,MBA3712.07.20001377,58,761PricewaterhouseCoopers,Sr.Manager Transa

328、ction Services27.Anand NarayanaswamyProgrammer AnalystBCom2902.04.20011034,58,400Paras International Gmbh,Prokurist(General Manager)*28.Anand NatarajGroup Manager-SalesBE,MBA3809.09.20021428,11,529Logica Global Solutions Pvt Ltd,Regional Sales Director29.Anand P.ArkalgudBusiness Development Manager

329、SalesBE,MBA3119.11.2001965,68,400Techone Inc.,Sr.Manager,Business Development*30.Anand UppiliBusiness Development Manager SalesBE(H)3614.12.2000158,19,311Tellabs International Inc.,Product Manager31.Ananda RaoBusiness Development Manager SalesBE,MSc4425.10.19991651,58,400Se IT Technologies,Regional

330、General Manager*32.Anandaraju H.N.SettySenior Consultant Enterprise SolutionsBE,MS3810.02.2003146,67,885i2 Technologies,Project Manager33.Anant NatekarProject ManagerBE2709.02.2001532,82,385Fourth Technologies,Inc.,Consultant34.Andi BerkowitzAdministrative AssistantBA,ASL5012.04.19991324,71,443Newto

331、n Wellesley Chinopractic,Office Manager*35.Andrew Fleix John ElliotDeveloperBA(H),MSc2819.06.200255,72,489IQ Financial Services Inc.,Developer*36.Andrew KunzeModule Leader Banking Business UnitBE(H),PGD,PhD3119.06.2002827,81,146IQ Financial Services Inc.,Developer Support/Team Leader*37.Andrew R.Fri

332、edmanPrincipalBSc,MBA4026.11.20011636,06,201Convergent Group,Director,Customer Relationship Mgmt.Practice38.Aniket Kishore UllalBusiness Development Manager SalesBA,PGD2728.05.2001649,13,744Indstudent.Com,Co-promoter39.Aniket Rajiv MaindarkarBusiness Development Manager SalesBSc,MBA3101.06.2001946,7

333、3,646Patni Computer Systems,Manager Business Development*40.Anil RoyProgrammer AnalystBE2819.02.2001621,01,864Air Check Virginia,Database Administrator41.Ankur GuptaBusiness Development Manager SalesBA(H),PGD,ACA3017.07.2000852,49,798Arthur Andersen India Pvt.Ltd.,Senior Consultant42.Ankush PatelBusiness Development Manager SalesBE,MBA3501.10.19991171,97,396Nortel Networks,Account Manager*43.Anoop