infosys consolidation v2

7/29/2019 Infosys Consolidation v2

1/13

Assumptions Notes

2.70

2.702.70

2.70

2.70

2.70

2.70

2.70

2.70

2.70

2.70

All items are belong to operations 2.30Assumption is that this is recorded at cost 2.90

Assuming that the capital advances are m 2.10

Restricted deposits are assumed to be

financial Assets since they are held with

LIC and they are deposit accounts

2.11

2.12

2.13

Deposits are treated as financial assets ins 2.13

Margin Money Deposits are trated as Fina 2.13

Assuming that Others are also part of oper 2.14

2.14

2.14

2.14

2.14

2.70

2.70

Branch profit taxes 2.30Long term 2.40

Long term 2.40

Long term 2.40

Long term 2.40

Short term 2.50

Short term 2.50

Short term 2.50

Short term 2.50


2/13

2.50

2.50

Short term 2.50

2.50

Assuming all of these are operationals 2.50

2.50

2.60

2.602.60

This is liability due on trusts controlled by I 2.50

2.90

2.90

2.90

2.132.13

2.13

2.14

2.14

Restricted deposits are assumed to be fina 2.26

Long term 2.40

2.50

2.50

2.60

2.60

2.20

2.20

2.20

2.20

2.10

2.20


3/13

Reformulated Balance sheet (In Millions)

2,012

Net Operating Assets 130,170

Operating Assets 173,500

Building 38,670

Plant and equipment 8,500Office equipment 4,110

Computer equipment 13,860

Furniture and fixtures 6,310

Leasehold improvements 1,320

Vehicles 80

Goodwill 10,910

IPR 490

Land use rights 580

Depreciation of Fixed Assets(tangible and intangible) (36,390)

Capital WIP 5,900

Deferred tax assets 5,350Non current Investment in equity 40

Long term loans and advance(deposits, advanced income tax) 16,670

Restricted Deposit Long Term (580) 16,090

Gratuity 150

Trade receivables 58,820

Current account 190,590

Deposit Accounts (179,510)

Margin Money deposits (1,170) 9,910

Advances(prepaid expenses, supply of goods, etc) 7,790

Unbilled revenue 18,730

MAT credit entitlement 160

Loans and advances to employees 1,590

Electricity, rent and other deposits 530

Other Operating assets 7,110

Land: Freehold 4,250

Land: Leasehold 2,860

Operating Liabilities 50,440

Deferred tax liabilities 2,700Provision for expenses 50

Gratuity - Unamortized amount due to plan amendment 140

Government grant on land use rights 270

Accrued salaries and benefits and bonus 70

Accrued salaries and benefits and bonus 6,440

Provision for expenses 10,850

Government grant on land use rights 10

Gratuity - Unamortized amount due to plan amendment 40


4/13

Unpaid dividend 20

Witholding and other tax payable 5,060

Retention monies 510

Unearned revenue + advances 5,600

Other payables 90

Accrued gratuity 20

Unavailed leave 4,980

Income tax payable 10,540Post sales client suppport 1,330

Trade payables 230

Payable by controlled trusts 1,490

334,670

Net Financial Assets 204,500

Financial assets 205,660

Current Investments - Not Trade

Mutual funds 320

Certificates of deposit 3,360

Cash deposited with Financial institutions 15,320Deposit accounts 179,510

Margin money deposits 1,170

Interest accrued but not due 480

Short Term Marked to Market gain on Forwards & Options -

Restricted Deposits ( Short term and Longterm) 5,500

Financial liabilities 1,160

Payable for acquisition of business 700

Payable for acquisition of business 40

Marked to market forward options contract 420

SSE 334,670

Proposed dividends 18,370

Dividend tax 2,980

Foreign currency translation reserve 2,440

Capital reserve 540

Securities premium 30,690

General reserve 73,560

Share capital 2,860

Surplus 203,230


5/13

2,011

108,200

143,590

36,260 2,012 2,011

9,100 Total Assets 386,270 314,6903,760 Total Liabilities 51,600 41,570

13,310 Total Shareholder equity 334,670 273,120

6,750 Difference - -

950

70 NOA 130,170 108,200

9,160 NFA (204,500) (164,920)

120 SSE 334,670 273,120

- -

(32,660)

2,640

4,97040

14,660

(700) 13,960

46,530

150,950

(142,260)

(920) 7,770

6,550

12,430

150

1,370

360

5,530

4,070

1,460

40,920

1,760100

180

40

7,280

7,810

40


6/13

30

3,290

260

5,400

40

20

3,990

8,170880

440

1,190

164,920

165,570

210

1,190

15,710142,260

920

250

660 2.14

4,370 2

650

610

40

273,120

11,490

1,870

1,010

540

30,620

65,090

2,860

159,640


7/13

Note Infosys consolidated balance sheet 2,012 2,011 2012 2011

Operating assets

Given Tangible assets 43,750 43,190 13% 16%

Given Intangible assets 11,800 9,160 4% 3%

Given Capital work-in-progress 5,900 2,640 2% 1%

Given Non-current investments 40 40 0% 0%

Given Deferred tax assets 5,350 3,210 2% 1%

Given Long-term loans and advances 16,670 14,660 5% 5%

Given Trade receivables 58,820 46,530 18% 17%

Given Cash and Cash Equivalents 205,910 166,6601.00 Less : Deposit with financial institutions (15,320) (15,710)

2.00 Less : In Deposit Accounts (179,510) 11,080 (142,260) 8,690 3% 3%

Short-term loans and advances 34,200 25,440

3.00 Less :Interest Accrued but not due (480) (250)

4.00 Less: Mark-to-market gain on forward and options contratcs 33,720 (660) 24,530 10% 9%

Given Other non-current assets 150 - 0% 0%

Total Operating Assets 187,280 152,650 56% 56%

Operating liabilities

Given Trade payables 230 440 0% 0%

Given Other current liabilities 30,590 25,400

5.00 Less: Mark-to-market Losses on Forward Contracts (420) 30,170 - 25,400 9% 9%

Given Short-term provisions 38,200 26,400

6.00 Less: Proposed Dividend (18,370) (11,490)

7.00 Less: Provision for Tax on Dividend (2,980) 16,850 (1,870) 13,040 5% 5%

Given Other long-term liabilities 1,230 930 0% 0%

Given Deferred tax liabilities 2,700 1% 0%

Total Operating Liabilities 51,180 39,810 15% 15%

Net Operating Assets (NOA) 136,100 112,840 41% 41%


8/13

Financial assets

Given Current investments 3,680 1,400 1% 1

1.00 Term deposits with Financial Institutions 15,320 15,710 5% 6

3.00 Interest Accrued but not due 480 250 0% 0

4.00 Mark-to-market gain on forward and options contratcs - 660 0% 0

2.00 In Deposit Accounts 179,510 142,260 54% 52

198,990 160,280 59% 59

Financial liabilities 420 - 0% 0

5.00 Mark-to-market Losses on Forward Contracts 420 0% 0

Net financial assets (NFA) 198,570 160,280 59% 59

NOA + NFA 334,670 273,120 100% 100

- -

Common shareholders' equity

Given Share capital 2,860 2,860 1% 1

Given Reserves and surplus 310,460 256,900 93% 94

6.00 Proposed final dividend 18,370 11,490 5% 4

7.00 Dividend distribution tax 2,980 1,870 1% 1

CSE 334,670 273,120 100% 100


9/13

1 Deposits with Financial Instituions is trated as Financial Asset. Refer Note 2.13

2 Deposits in Accounts is trated as Financial Asset. Refer Note 2.13

3 Interest accrued is treated as Financial Asset as per note 2.14 are treated as Financial assets

4 Marked-to-Market Gain on Forward and Options contracts as per note 2.14 are treated as Financial Assets

5 Mark to Market losses on forward contracts are considered as Financial Liabilities

6 Proposed Dividend is not an Operating Liability. Hence it is moved to CSE Section

7 Provision for Tax on Dividend is not an Operating Liability. Hence it is moved to CSE Section.


10/13

2,012 2,011 2

Notes Core operating revenues

Given Net Sales 337,340 337,340 275,010 275,010 100

123%

Core operating expenses

Given Employee benefit expenses 183,400 148,560 54.37%

1.00 Expected Return on Plan assets 490 183,890 360 148,920 0.15% 54Given Cost of technical subcontractors 7,770 6,030 2.30%

Given Travel expenses 11,220 9,540 3.33%

Given Cost of software 6,540 4,890 1.94%

Given Communication charges 2,740 2,370 0.81%

Given Professional charges 4,830 3,440 1.43%

Given Depreciation and amortization 9,280 8,540 2.75%

Given Other expenses 13,610 10,500 4.03% 0

2.00 Less: Provision for doubtful Debts (620) (40) -0.18%

3.00 Less:Provision for post sales client support and warranties (600) (50) -0.18%

4.00 Less: Miscellaneous Expense (530) (550) -0.16%

5.00 Less: Donations (260) 11,600 (10) 9,850 -0.08% 3

Total Core Operating Expense 237,870 193,580 70

123%

Core operating income from sales before tax 99,470 81,430 29122%

Tax as reported

Given Current tax 33,130 26,030 9.82% 0

Given Deferred tax 540 (1,130) 0.16%

Given Total Tax as Reported 33,670 24,900 9.98%

Less: Tax on other operating income (42) 13 -0.01%

Less: Tax on Unusual Income 308 (104)

Less: Tax on financial income (5,950) (3,744) -1.76%

Tax on operating income 27,986 21,065 8

Core operating income after tax 71,484 60,365 21

118%

Other Operating income

6.00 Miscellaneous income 170 150 0.05%

1.00 Expected Return on Plan assets 490 360 0.15%4.00 Less: Miscellaneous Expense (530) (550) -0.16%

Less: Tax on other operating income @ 32.445% (42) 88 13 (27) -0.01%

Core operating income 71,573 60,338 21

119%


11/13

Unusual Income

7.00 Gains on Foreign Currency 530 420 0.16%

2.00 Less: Provision for doubtful Debts (620) (40) -0.18%

3.00 Less: Provision for post sales client support and warranties (600) (50) -0.18%

5.00 Less: Donations (260) (10) -0.08%

Less: Tax on Unsual Income @32.445% 308 (104)

Total Unusual Income (After Tax) (642) 216 -0.19%Operating income (after tax) 70,932 60,554 21

117%

Net Financial income

8.00 Interest receieved on deposits with banks 18,070 11,330 5.36%

9.00 Dividend received from mutual fund investments 270 210 0.08%

Taxable Financial Income 18,340 11,540 5.44%

Tax on Net Financial Income at 32.445% (5,950) (3,744) -1.76%

Net financial income after tax 12,390 7,796 3

159%

Comprehensive Income after tax 83,321 68,350 24

122%

1 Tax Rate is 32.445% as mentioned in Management Discussion and Analysis page 25 of the report


12/13

No. Ratios

9 RNOA

10 Core RNOA

11 NBC

12 PM

13 Net Comprehensive Profit Margin

14 OLLEV

15 Capitalization ratio

16 FLEV

17 Short-term borrowing rate (after tax)

18 SPREAD

19 ROOA

20 OLSPREAD

21 ATO

22 Growth rate in sales

23 Growth rate in operating income

24 Growth in NOA

25 Growth in CSE

26Implicit interest on operating liabilities

after tax

27 ROA


13/13

Definition Formula 2012

Return on Net Operating AssetsOperating income after

tax /(NOAt-1)

Core Return on Net Operating AssetsCore operating income

after tax /( NOAt-1)

Net Borrowing Cost NFE after tax / [NFOt-1]

Operating profit margin OI after tax / Sales

Comprehensive income /

Sales

Operating Liability LeverageOperating liability / Net

operating assets

NOA/CSE

Financial Liability Leverage

(NFOt+NFOt-1)/(CSEt+CSEt-

1)

Short-term borrowing

rate*(1-T)

RNOA-NBC

Return on Operating Assets

(Operating income after

tax + Implicit Interest

after tax)/ [OAt-1]

Operating Liability Leverage Spread

ROOA - Short-term

Borrowing Rate (after

tax)Asset Turnover Sales / NOA(t-1)

Change in sales / Prior

period's sales

Change in OI after tax /

Prior period's OI

Change in NOA /

Beginning NOA

Change in CSE /

Beginning CSE

Short-term borrowingrate (after tax) *

Operating liabilities

Return on Assets

[Net income+Interest

Expense (after

tax)]/Average total assets

infosys consolidation v2

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