Infosys Ltd Cg.docx

INFOSYS Ltd. INTRODUCTION Infosys Technologies Limited is a multinational information technology Services Company headquartered in Bangalore, India. It is one of India's largest IT companies with 105,453 professionals (including subsidiaries) as of Nov 9, 2009.It has offices in 22 countries and development centers in India, China, Australia, UK, Canada and Japan. Infosys was founded on July 2, 1981 in Pune by N R Narayana Murthy and six others:, N. S. Raghavan, Kris Gopalakrishnan, S. D. Shibulal, K. Dinesh and Ashok Arora,] with N. S. Raghavan officially being the first employee of the company.

Nandan Nilekani Murthy started the company by borrowing INR 10,000 from his wife Sudha Murthy. The company was incorporated as "Infosys Consultants Pvt Ltd.", with Raghavan's house in Model Colony, north-central Pune as the registered office.

In 1982, Infosys opened an office in Bangalore, which soon became its headquarters. Infosys headquarters in Bangalore, India.

Infosys went public in 1993. Interestingly, Infosys IPO was under subscribed but it was "bailed out" by US investment banker Morgan Stanley which picked up 13% of equity at the offer price of Rs. 95 per share. The share price surged to Rs. 8,100 by 1999 making it the costliest share on the market at the time. At that time, Infosys was among the 20 biggest companies by market capitalization on the NASDAQ well ahead of Adobe Systems, Novell and Lycos. According to Forbes magazine, since listing on the Bombay Stock Exchange till the year 2000, Infosys' sales and earnings compounded at more than 70% a year. In the year 2000, President of the United States Bill Clinton complimented India on its achievements in high technology areas citing the example of Infosys.

In 2001, it was rated Best Employer in India by Business Today. Infosys won the Global MAKE (Most Admired Knowledge Enterprises) award, for the years 2003, 2004 and 2005, being the only Indian company to win this award and is inducted into the Global Hall of Fame for the same. Infosys was rated best employer to work for in 2000, 2001, and 2002 by Hewitt Associates. In 2007, Infosys received over 1.3 million applications and hired fewer than 3% of applicants. Business Week reported that Infosys, along with Wipro and Tata accounted for nearly 80% of the [H-1B] visa petitions approved in 2007 for the top 10 participants in the program. In April 2009, Forbes rated Infosys among the 5 best performing companies in the software and services sector in the world. In 2009, Infosys was considered one of the Business Week’s 50 Most Innovative Companies.

From December 2008 till April 2009, Infosys fired over 2500 employees for poor performance. The company has been hit hard by lower income from a crisis hit European and North American market. On April 15, 2009 Infosys reported its first ever-sequential fall in its revenue in a decade during the March 2009 quarter.

Infosys Technologies Limited

TYPE

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Public

BSE

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500209

NASDAQ

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Infy

FOUNDED

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July 2,1981

HEAD QUARTERS -

KEY PEOPLE

Banglore,India

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N.R.Narayana Murthy (chairman) Salil Parekh (CEO) & (Director)

INDUSTRY

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Software services

PRODUCTS

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IT service

SERVICES & solutions

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Information Technoly consulting

services

REVENUE

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US$3.16 billion(2018)

NET INCOME

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US$1.16 billion(2018)

EMPLOYEES

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1,03,905(2018)

WEBSITE

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Infosys.com

Code of Corporate Governance In the late 1990s, the Confederation of Indian Industries (CII) published a code of corporate governance (Refer Exhibit II for the highlights of the report). In 1999, the Securities and Exchange Board of India (SEBI) appointed a committee under the Chairmanship of Kumar Mangalam Birla5 to recommend a code of corporate governance... Infosys was one of India's largest and most famous software companies and provided a range of Information Technology (IT) consulting and software services to leading global organizations. Infosys was involved in customized software development, Internet Consulting, application development and offshore software services. By the late 1990s, Infosys Technologies Limited (Infosys)1 had clearly emerged one of the best managed companies in India. Its corporate governance practices seemed to be better than those of many other companies in India. Because of its good governance practices, Infosys was the recipient of many awards. In 2001, Infosys was rated India's most respected company by Business World2. Infosys was also ranked second in corporate governance among 495 emerging companies in a survey conducted by Credit Lyonnais Securities Asia (CLSA) Emerging Markets. It was voted India's best managed company five years in a row (1996-2000) by the Asiamoney poll. In 2000, Infosys had been awarded the “National Award for Excellence in Corporate Governance” by the Government of India. In 1999, Infosys had been selected as one of Asia's

leading companies in the Far Eastern Economic Review's REVIEW 2000 Survey and voted India's most admired company by The Economic Times.

Corporate Governance-The Infosys Way Infosys had accepted the recommendation of both the CII and the Kumar Mangalam Birla Committee. This section provides an overview of corporate governance practices followed by Infosys. Infosys had an executive chairman and chief executive officer (CEO) and a managing director, president and chief operating officer (COO). The CEO was responsible for corporate strategy, brand equity, planning, external contacts, acquisitions, and board matters. The COO was responsible for all day-to-day operational issues and achievement of the annual targets in client satisfaction, sales, profits, quality, productivity, employee empowerment and employee retention. The CEO, COO, executive directors and the senior management made periodic presentations to the board on their targets, responsibilities and performance...

Infosys-A Benchmark for Corporate Governance Some analysts felt that Infosys'corporate governance practices offered many lessons to corporate India. Infosys had shown that increasing shareholder wealth and safeguarding the interests of other stakeholders was not incompatible. Infosys had given its non-executive directors the mandate to pass judgement on the efficacy of its business plans. Every nonexecutive director not only played an active role in decision making, but also led or served on at least one of the three (Nomination, Compensation and Audit) committees...

Infosys named best Indian company in Corporate Governance Technology behemoth Infosys Technologies has been named as the best company in India in terms of Corporate Governance in The Asset Magazine’s annual Corporate Governance Index 2008. The results have been released and are to be published in the November 2008 issue of The Asset. Dwelling on the theme that Corporate Governance is both an art and a science., The Asset, for the past ten years, has been emphasising on the ‘art’ part by canvassing the opinion of institutional investors, sellside analysts and The Asset’s board of editors. This year, The Asset has drilled down further into understanding corporate governance practices in companies in the region by comparing these with international best standards. Infosys has said that its basis for corporate governance standards is the Combined Code Principles of Good Governance and Code of Best Practice derived by the committee on its final report and from the Cadbury and Greenbury Reports. Besies, the White Paper on Corporate

Governance in Asia produced by the Organization for Economic Cooperation and Development (OECD) has also been a base for the initiatives. Companies were invited to present their annual results in complying with best practices. In addition, participating companies were asked to submit their compliance to best practices in such areas such as composition of board of directors, which was 20 per cent weighted; audit committee (15 per cent); remuneration committee (15 per cent), risk management committee (15 per cent), nomination committee (15 per cent), corporate social responsibility (10 per cent), investor relations (5 per cent) and digital communication (5 per cent). The scores are then weighted and combined with the score achieved in the presentation part of the process with an 85 per cent /15 per cent weighting between compliance and voting by the board of editors. The Asset Magazine is a financial business magazine written for users and providers of financial services in Asia.