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Infosys Annual Report 2015-16

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Infosys Annual Report 2015-16 BEING INFOSYS. BEING MORE. ANNUAL REPORT 2015-16 BEING INFOSYS. BEING MORE. We inhabit a universe where time and space bend and stretch continuously. For us, the year in which we celebrated the 100th anniversary of the Theory of General Relativity itself appeared to warp, and passed by much too quickly. It was a year during which we focused on our strategy execution, and we saw four quarters of healthy growth. Beyond the financial results, we saw unprecedented achievements by our teams in every aspect of the business. It was a year in which everyone brought home the vision of Renew and New built on a solid foundation of innovation, learning and purpose. In this environment, it is easy to focus on the big picture, and miss seeing the multi-dimensional manner in which true transformation takes hold. In order to return to market leadership in a sustained manner, we need to re-imagine our business in every facet and every detail. From delivery, to sales, consulting, operations, and each and every business enabling function – from people, to processes, infrastructure and systems – we have to bring about change that addresses the new reality of a pervasively digital and inter-connected world. This issue of our annual report celebrates the multiple facets of our transformation. The theme is about transcendence from the ordinary. It is about how innovation and continuous improvement have permeated every corner of our business, and about how we are honing excellence to a fine art form. At Infosys, it is no longer adequate to simply meet expectations – we have to exceed it every time, and in every way. Today, being Infosys means being more. MORE THAN SEEING AND HEARING. LISTENING, MAKING AND IMPROVING. 80,000+ employees and several clients have been trained in Design Thinking, which inculcates a culture of empathy and problem finding. It fosters rapid learning by making and by iterative solution development. MORE THAN CODING. HACKING AS A WAY OF LEARNING. The second edition of the Infosys Global Hackathon, Bangalore campus. Engineers across 18 global locations participated, resulting in 600+ ideas and 400+ prototypes. These included ideas and solutions across technologies such as mobile, analytics, machine learning, image recognition, IoT sensors and blockchain. MORE THAN JUST IDEAS. REAL, PERVASIVE INNOVATION. One of 7,000+ Zero Distance projects, which focuses on a capability that is crucial for the retail industry. Grassroots innovation to gain consumer insights for new product launches and continuous product improvement. Sentiment analysis of consumers using social media enabled the mining of reactions, preferences and intent, which in turn helped the retailer design an effective product launch strategy. MORE THAN GAME STATISTICS. INSIGHTS WHICH CAN CHANGE THE GAME. Three decades of match data and 12 million data points analyzed by the Infosys Information Platform (IIP) for the ATP World Tour, which hosts 62 tournaments in 31 countries. Transforming the experience of the game for players and followers by re‑imagining player performance, ratings and insights like never before. MORE THAN SAVING LIVES. LAYING A FOUNDATION FOR GLOBAL HEALTH AND WELL‑BEING. We developed a comprehensive 3‑D human heart model using CT‑scan imaging. The model captures biomechanics of the heart in the most realistic manner. Combined with modern industrial technologies such as Computer Aided Design (CAD), Finite Element Analysis (FEA), and Computational Fluid Dynamics (CFD), this model enables surgeons to develop complex and customized treatments. It also helps medical equipment manufacturers and regulatory agencies to optimize design, enhance quality, and shorten time‑to‑market for their products, leading to improved and affordable healthcare for all. MORE THAN DIGITAL MODELING. CAPTURING THE ENTIRE DIGITAL FOOTPRINT. Infosys partnered with GE Digital to deliver Industrial IoT solutions with advanced implementations in manufacturing, aviation, transportation and healthcare industries. These IoT solutions, based on GE’s Predix platform and Infosys’ Aikidō services, will help enterprises simplify, automate and transform their business. Re‑creating the entire lifecycle of products digitally, from conceptualization to development and maintenance, helps to visualize the underlying design, structural and functional issues. MORE THAN GOOD RESEARCH. RESEARCH THAT RESULTS IN COMMON GOOD. Across continents, in partnership with the world’s top universities, global consortia, and most influential researchers, Infosys nurtures a robust research and innovation ecosystem to address emerging challenges on the frontiers of data science, artificial intelligence, robotics, software engineering, and ICT, for socio‑economic development. MORE THAN JUST US. LEVERAGING THE POWER OF A THRIVING ECOSYSTEM. We are funding early‑stage start‑ups to amplify their reach, bring them to market, and help them scale. This year, we have invested in six start‑ups, working in areas such as air quality monitoring, wearable technology, data wrangling, and 3‑D imaging. The Infosys Innovation Fund has a corpus of US $500 million to boost the global innovation ecosystem. MORE THAN DOING THE RIGHT THING. MAXIMIZING THE BUSINESS VALUE. #Sitwithme campaign, launched on International Women’s Day, March 8, 2016, to foster a more balanced, diverse leadership at Infosys. From Bangalore to Palo Alto, London to Lodz, Melbourne to Belo Horizonte, Infosys leaders, including independent board members, have taken the pledge across 15 locations worldwide to work towards a balanced leadership. MORE THAN CONSERVATION OF RESOURCES. RESPECTING THE MIRACLE OF LIFE ON EARTH. With a total capacity of 6.6 MW, generating 12 million kWh of electricity every year, and avoiding 9,800 tons of CO2 emissions, the new solar plant at our Hyderabad campus helps us meet 100% of our electricity needs with renewable energy. This takes us a step closer to our goal of becoming carbon‑neutral. MORE THAN PASSIVE CONSUMERS. CREATING A WORLD FULL OF CREATORS. New York‑based OHorizons was one of the winners of the Infy Maker Awards (sponsored by Infosys Foundation USA). 5,000 people in underdeveloped villages in Bangladesh will get clean water in 2016, and 1,000,000 by 2021, thanks to the innovative, low‑budget wood mold bio‑sand filters designed by OHorizons. The group is currently running pilot projects in Mali, Ecuador and Bangladesh. Infosys Annual Report 2015-16 CONTENTS Letter to the stakeholder ..................................................02 So we may be more ..........................................................06 Being more. Making it real. ..............................................07 A tribute to K. V. Kamath ..................................................09 The Infosys Board of Directors .........................................10 Key trends ..........................................................................14 The year at a glance .........................................................15 Board's report ...................................................................17 Annexures to the Board's report .................................29 Management’s discussion and analysis ...........................61 Corporate governance report ..........................................74 Risk management report ..................................................90 CEO and CFO certification ..............................................93 Standalone financial statements ......................................94 Consolidated financial statements ................................125 Shareholder information ................................................153 Business responsibility report ........................................159 Global presence ..............................................................184 Infosys Annual Report 2015-16 Dr. Vishal Sikka Chief Executive Officer and Managing Director LETTER TO THE STAKEHOLDER Dear Stakeholder, We live in extraordinary times. Technology is It is with this new reality in mind that we embraced reshaping our world in a fundamental way : new three simple ideas in our strategy : renew ourselves CPUs from Intel built on 14 nanometer processor and help our clients renew their businesses; drive technology deliver unprecedented performance innovation and new opportunities in our business and analysts recently reported that hardware unit and with our clients; and do all of this based on a sales for cloud are approaching those for enterprise. culture of education and collaboration. Indeed, Technology companies are making cars and watches, when we think about it, this blueprint applies to all and creating new kinds of transportation, hospitality, businesses. retail, insurance, and other services, disrupting entire Renew is about being better. Better than we have industries. And recently, a fleet of driverless trucks been. Automation is a key part of this. It is how made by various vendors, drove thousands of miles we improve solutions to the known, well-defined across Europe, demonstrating vividly that the end of problems and improve the businesses we are already a key job category is upon us. The world of our future in. It is about driving grassroots innovation in every looks vastly different from what we see today – an project and in every service. The repetitive tasks increasingly digital world, a deeply connected world, can be automated by bringing Artificial Intelligence a collaborative world. to our existing services and existing customer It was clear nearly two years ago,
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