Other Information

For the Quarter ended March 31, 2008

a. Staff Cost Rs 21150.00 million

Items exceeding 10% of aggregate expenditure --

b. Details of Other Income
- Interest on deposits with banks and others Rs 1740.00 million
- Dividends on Investment in liquid mutual funds Nil
- Miscellaneous Income Rs 60.00 million
- Exchange differences Rs (470)million

Total (b) Rs 1330.00 million

Status of Investor Complaints for the quarter ended March 31, 2008

Complaints Pending at the beginning of the quarter Nil

Complaints Received during the quarter 182

Complaints disposed off during the quarter 182

Complaints unresolved at the end of the quarter Nil

Total public shareholding as defined under Clause 40A of the listing agreement (excludes shares held by founders and American Depositary Receipt holders)

1. The audited financial statements have been taken on record by the Board of Directors at its meeting held on April 15, 2008. There are no qualifications in the auditors' reports for these periods. The information presented above is extracted from the audited financial statements as stated.

2. Pursuant to The Institute of Chartered Accountants of India's (ICAI) Announcement "Accounting for Derivatives" on the early adoption of Accounting Standard AS 30 "Financial Instruments: Recognition and Measurement, the company has early adopted the Standard for the year under review, to the extent that the adoption does not conflict with existing mandatory accounting standards and other authoritative pronouncements, companies law and other regulatory requirements.

3. The Board of Directors recommended a final dividend of Rs 7.25 per share (145% on an equity share of par value of Rs 5/-) and a special dividend of Rs 20.00 per share (400% on an equity share of par value of Rs 5/-) for fiscal 2008. The payment is subject to the approval of the shareholders in the ensuing Annual General Meeting of the company. Including the interim dividend of Rs 6.00 per share (120% on an equity share of par value of Rs 5/-) declared at the Board meeting held on October 11, 2007, the total dividend recommendation for the year is Rs 33.25 per share (665% on an equity share of par value of Rs 5/-).

4. The company's current financial policy is to pay dividends up to 20% of net profits. The Board has decided to increase the dividend pay-out ratio to up to 30% of net profits effective fiscal 2009.

5. The Finance Act, 2007 included Fringe Benefit Tax ("FBT") on Employee Stock Options Plan (ESOPs). FBT liability crystallizes on the date of exercise of stock options. During the year ended March 31, 2008, 7,85,896 equity shares were issued pursuant to the exercise of stock options by employees under both the 1998 and 1999 stock option plans. FBT on exercise of stock options of Rs 20 million has been paid by the company and subsequently recovered from the employees. Consequently, there is no impact on the profit and loss account.

6. Pursuant to the changes in the Indian Income Tax Act, the company has calculated its tax liability after considering Minimum Alternate Tax (MAT). This has not resulted in an additional tax expense as MAT can be set off against any future tax liability. Accordingly, Rs 1690 million is shown under "Loans and Advances" in the balance sheet as of March 31, 2008.

7. ASB Guidance on Implementing AS 15, Employee Benefits (revised 2005) states that benefits involving employer established provident funds, which require interest shortfalls to be recompensed, are to be considered as defined benefit plans. Pending the issuance of the guidance note from the Actuarial Society of India, the company's actuary has expressed an inability to reliably measure provident fund liabilities. Accordingly the company is unable to exhibit the related information.

8. During the year ended March 31, 2008, the company voluntarily settled with the California Division of Labor Standards Enforcement towards possible overtime payment to certain employees in California for a total amount of Rs 1020 million.

9. The tax provision for the year ended March 31, 2008 and March 31, 2007 includes a reversal of Rs 1210 million (net) and Rs 1250 million respectively relating to liabilities no longer required. The corresponding figures for the quarter ended March 31, 2008 and March 31, 2007 are Rs 200 million (net) and Rs 1240 million respectively.

10. Effective July 1, 2007 the company revised the employee death benefits provided under the gratuity plan, and included all eligible employees under a consolidated term insurance cover. Accordingly, the obligations under the gratuity plan reduced by Rs 370 million,, which has been amortized on a straight line basis to the net profit and loss account over 10 years representing the average future service period of employees.

11. During the year ended March 31, 2008 and March 31, 2007 the company issued 7,85,896 and 2,00,99,902 equity shares, pursuant to the exercise of stock options by certain employees under the 1998 and 1999 stock option plans.

12. The company recorded health insurance liabilities based on the maximum individual claimable amounts by employees. During the year, the company completed its reconciliation of amounts actually claimed by employees to date, including past years, with the aggregate amount of recorded liability and the net excess provision of Rs. 710 million was written back.

13. Infosys was liable to pay Aeronautical Development Agency (ADA) a maximum amount of Rs 200 million (US$ 4.4 million) by June 12, 2012 through a revenue sharing arrangement towards acquisition of Intellectual Property Rights in AUTOLAY, a commercial software application product used in designing high performance structural systems. During the year ended March 31, 2007, Infosys foreclosed the arrangement by paying the net present value of the future revenue share amounting to Rs 135 million (US$ 3 million). The remainder of the liability amounting to Rs 65 million (US$ 1.4 million) had been written back and disclosed in Other income.

Matters relating to Subsidiaries:

Infosys BPO

During the year ended March 31, 2007 Infosys increased its shareholding in Infosys BPO by:

- Acquiring 87,50,000 of Infosys BPO shares from Citicorp International Finance Corporation (CIFC)

- Acquiring 2,11,909 shares of Infosys BPO from its minority shareholders

- Acquiring 17,37,092 options of Infosys BPO from its employee shareholders

- Additionally, Infosys BPO also bought 11,39,469 of its shares from minority shareholders pursuant to a buy-back offer.

- During the year ended March 31, 2008 Infosys completed the purchase of 3,60,417 of Infosys BPO shares from its employee shareholders consequent to the forward share purchase agreement entered with them in February 2007. Consequent to this, Infosys' holding in Infosys BPO is 99.98%.

- Further, Infosys BPO acquired 100% of the equity shares of P-Financial Services Holding B.V. by entering into a Sale and Purchase Agreement with Koninklijke Philips Electronics NV (Philips). This company was incorporated under the laws of the Netherlands, for acquiring the shared service centers of Philips for finance, accounting and procurement business in Poland, Thailand and India (Philips BPO) for a consideration of Rs 1070 million. The transaction was accounted as a business combination and resulted in goodwill of Rs. 83 crore.

Infosys Consulting

- During the year, an additional investment of US$ 20 million (Rs 810 million) was made in Infosys Consulting Inc., which is a wholly owned subsidiary. As of March 31, 2008, the company has invested an aggregate of US$ 40 million (Rs 1710 million) in the subsidiary.

Infosys Mexico

- During the year, the company incorporated Infosys Technologies. DE R.L. de C.V., a wholly owned subsidiary in Mexico. As of March 31, 2008, the company has invested an aggregate of Mexican Peso 60 million (Rs 220 million) in the subsidiary.

Infosys China

- During the year the company disbursed an amount of US$ 3 million (Rs 100 million) as loan to its wholly owned subsidiary, Infosys Technologies (China) Co. Ltd. The loan is repayable within five years from the date of disbursement at the discretion of the subsidiary. As of March 31, 2008, the company has invested US$ 10 million (Rs 460 million) as equity capital and US$ 8 million (Rs 320 million) as loan in the subsidiary.

Board of Directors:

14. Effective June 22, 2007, the following changes were made to the senior management of the company:

- Mr. Nandan M. Nilekani assumed the role of the Co-Chairman of the Board

- Mr. S. Gopalakrishnan assumed the role of the Chief Executive Officer and Managing Director

- Mr. S. D. Shibulal assumed the role of the Chief Operating Officer

Corporate actions:

15. The final dividend of Rs 6.50/- per share for fiscal 2007 was approved by the shareholders at the Annual General Meeting held on June 22, 2007 and the same was paid subsequently.

Investments:

16. During the year ended March 31, 2007, the company received an amount of US $1 million (Rs 50 million ) being the balance held in escrow account released on fulfillment of the escrow obligations on account of sale of investments in Yantra Corporation. The income is disclosed separately as an exceptional item in the profit and loss account.

17. During the year ended March 31, 2007, the company had received Rs 10 million from CiDRA Corporation towards redemption of shares on recapitalization. The remainder of investments was written off against the provision made earlier.

S Gopalkrishnan
Chief Executive Officer & Managing Director