1. ABOUT THE INDUSTRY STRUCTURE AND DEVELOPMENT Changing economics and business conditions, evolving consumer preferences, rapid technological innovation and adoption globalisation are driving corporation to transform the manner in which they operate. Companies are now focused on their core business objectives such as revenue growth, profitability and asset efficiency.
There is an increasing need for highly skilled professionals in the market to help corporation transform their business, optimise operation and drive innovation by leveraging technology. However enterprises are reluctant to expand their internal it department and increase cost. These factors have led to increase cost. These factors have led to the increase reliance of corporation on their outsourcing providers and are expected to drive future growth for outsourced technology services.
According to the global tech market outlook for 2012 and 2013, an independent report published by Forrester research Inc. in January 2012 and purchases if IT consulting, system integration services and IT outsourcing by global business and governments are essential to grow by 6.3% in calendar year 2012 when in US dollars.
Corporations are increasingly turning to off shore services provider for higher quality, cost competitive technology solution. as a result , off shore service provider have become critical to the operations of many enterprises and they continue to grow in recognition and sophistication . In view of this, the addressable market foe offshore technology services have expanded.

2. HISTORY
Infosys Ltd is a global technology services firm that defines, designs and delivers information technology (IT)-enabled business solutions to their clients. The company provides end-to-end business solutions that leverage technology for their clients, including technical consulting, design, development, product engineering, maintenance, systems integration, package-enabled consulting. The company also provides software products to the banking industry. They have developed finacle, a universal banking solution to large and medium size banks across India and overseas. Infosys BPO is a majority owned subsidiary. Through Infosys BPO, the company provides business process management services, such as offsite customer relationship management, finance and accounting, and administration and sales order processing. The company is having marketing and technical alliance with FileNet, IBM, Intel, Microsoft, Oracle and System Application Products. Infosys Ltd is a public limited and India's second largest software exporter company was incorporated in the year 1981 as Infosys Consultants Pvt Ltd by Mr.N.R.Narayana Murthy at Karnataka. The company was started by seven people with the investment of USD 250. The company became a public limited company in the year 1992. The company was the first Indian company to be listed on the NASDAQ at the year 1999. Infosys also forms a part of the NASDAQ-100 index. Continuously in the year 2001, 2002 and 2003, the company wins the National award for excellence in corporate governce. In April 2002, Infosys BPO Ltd was incorporated in India to address opportunities in business process management. In the year 2004, the company acquired 100% equity in Expert Information Services Pty Ltd, Australia for USD 24.3 million. The acquired company was renamed as Infosys Technologies (Australia) Pty Ltd. In October 2, 2004, they set up a wholly owned subsidiary in People's Republic of China named Infosys Technologies (China) Co Ltd. In the year 2005, the company established Infosys Consulting Inc, a wholly owned subsidiary in Texas, US to add high-end consulting capabilities. The company was selected as 'Best Outsourcing Partner' by the readers of Waters, a publication covering the needs of chief information officers in the capital market firms. In the year 2007, the company increased the stake value in Progeon to 98.9% after acquiring shares from Citicorp International Financial Company. Infosys had taken over Philips' finance and administration business process outsourcing (BPO) centers spread across India, Poland and Thailand for USD 28 million. Infosys Technologies has 47% of core business assets stagnating. The company scanning the markets of Europe and Japan for acquisitions in the price bands of USD 200 - USD 300 million to energies their non-linear business strategy as well as to expand its geographic reach. Infosys set up various Special Economic Zone that for the company has an additional tax benefit. They set up another Special Economic Zone unit in Chandigarh which will be eligible for 100 % deduction of profit from exports tax calculation for the first five years followed by 50% deduction for next five years. Infosys has been pursuing their expansion plans over the past few years. The future enhancement of the company is to emerge the developing economies changing the business landscape with help of accessible talent pools and the adoption of non-linear growth model, it is a long term strategy. Infosys Technologies Ltd has partnered with ACDI/VOCA for promotes broad-based economic growth and to develop information and communication technology-enabled application to improve efficiencies in the agro supply. In the year 2008, the company established their first Latin American subsidiary, namely Infosys Technologies S de R L de C V in Mexico to improve proximity to their North American clients. They also opened a development center and office for the region in Monterrey, Mexico. As of April 2008, the company acquired Internet Protocol (IP) from an Australian company to add more functionality to finacle. The IP, that provides a comprehensive set of financial tools to company's existing product line. In July 2008, the company launched ShoppingTrip360 to help retailers and consumer packaged goods (CPG) companies achieve visibility into in-store activity. ShoppingTrip360 is a platform that enables a suite of managed-information services to create a 360-degree view of real time in store. The company was ranked among the top 50 most respected companies in the world by Reputation Institute's Global Reputation Pulse 2009. They have been voted the 'Most Admired Indian Company' in The Wall Street Journal Asia 200 for 10 years in a row since 2000. The company was also listed in the Most Admired Knowledge Enterprises (MAKE) 2008 study and Forbes' Asian Fabulous 50. In March 2009, the company incorporated a wholly owned subsidiary in Sweden, namely Infosys Technologies (Sweden) AB. In November 2009, the company opened their second Latin America IT Development Center in Mexico offering global, near-shore, and Latin American clients a full range of information technology (I.T.) services including Business and I.T. Consulting, Business Process Outsourcing (BPO), Packaged Solutions Implementation and Infrastructure Management. In November 12, 2009, the company and NVIDIA Corp. entered into a partnership to develop Nvidia Cuda to compute unified device architecture and technology-enabled software solutions. Also, the company signed a contract with Georgia-Pacific LLC (Georgia-Pacific), a forest and consumer products company, to implement its Supply Chain Visibility and Collaboration Suite. In December 2009, the company has set up a wholly owned unit in the U.S. to tap the multibillion dollar opportunities from government projects. The subsidiary, called Infosys Technologies Inc, will be headquartered in Dallas, Texas. In December 14, 2009, the company launched Flypp, an application platform which will empower mobile service providers to delight digital consumers through a host of ready-to-use experiential applications across the universe of devices and in December 15, 2009, they launched Finacle Advizor, an integrated platform which helps banks to deliver products and services through a fully assisted self-service channel using existing Internet banking capabilities. Also, the company incorporated a wholly owned Brazilian subsidiary, namely Infosys Technologia Do Brasil Ltda. During the year 2009-10, Infosys Consulting Inc incorporated a wholly-owned subsidiary, Infosys Consulting India Ltd and invested Rs 1 crore in the subsidiary. SETLabs' IP Cell filed 31 patent applications in the United States Patent and Trademark Office (USPTO) and Indian Patent Office. In December 2009, Infosys BPO acquired 100% voting interests in McCamish Systems LLC (McCamish), a business process solutions provider based at Atlanta, US. The business acquisition was conducted by entering into Membership Interest Purchase Agreement for a cash consideration of Rs 173 crore and a contingent consideration of Rs 67 crore. In March 2010, the company launched Finacle Treasury-in-a-Box, a rapid implementation framework for an integrated front, middle and back.

During the year 2010-11, the company formally launched their new corporate strategy, Building Tomorrow's Enterprise to showcase our plan for leading the services industry into the new era as the next generation global consulting and Services Company. Infosys Labs' IP Cell filed 91 patent applications in the United States Patent and Trademark Office (USPTO) and the Indian Patent Office. In February 2011, the company incorporated a wholly-owned subsidiary, Infosys (Shanghai) Company Ltd. Also, they inaugurated their first Software Development Block (I) at their Technopark Campus II (SEZ) in Thiruvanthapuram, Kerala. A 1,800 seater Software Development Block (II) is also currently under construction at their Technopark Campus II (SEZ) in Thiruvanthapuram, Kerala. The name of the company was changed from Infosys Technologies Ltd to Infosys Ltd with effect from June. In November 2011, Atlas Copco AB entered into an agreement with the company to handle parts of its financial processes, such as accounting to reporting and processing of supplier invoices. The project will affect approximately 230 positions within Atlas Copco, and of these Infosys will offer employment to around 70 staff working in the Czech Republic.

3. OPERATING EFFICIENCY:
Revenue segmentation- consolidated basis expect where specified otherwise FY 12 FY 11
Revenue by geography
North America 65.1% 65.8%
Europe 21.2% 23.0%
India 2.3% 1.2%
Rest of the world 11.4% 10.0% total 100.00% 100.00%

4. SWOT ANALYSIS OF INFOSYS
4.1. Strengths
• Since the company is based in India its competitive advantage is enhanced. The Indian economy, despite weak economic indicators such as relatively high rates of inflation, has low labor costs. The workforce has relatively high skills levels in Information Technology. Couple these two elements together and you have an operational basis that offers low-cost based, highly skilled competitive advantage. Trained Indian personnel often speak very good English and are sensitive to Western culture, underpinned by India's colonial past.
• Infosys is in a strong financial position. The business turned over more than $4 billion in 2008. This means that it has the capital to expand, and also the basis to leverage potential investors.
• The company has bases in 44 global development centres, most of which are located in India, although the company has offices in many developed and developing nations. This means not only that Infosys is becoming a global brand but also that it has the capability to support the global operations of multinational clients.
4.2. Weaknesses
• Infosys on occasion struggles in the US markets, and has particular problems in securing United States Federal Government contracts in North America. Since these contracts are highly profitable and tend to run for long periods of time, Infosys is missing out on lucrative business. Added to this is the fact that its competitors do well in terms of securing the same Federal business (and one should also take into account that many of its competitors are domiciled in the US and there could be political pressure on the US Government to award contracts to domestic organizations).
• Despite being a huge IT company in relation to its Indian competitors, Infosys is much smaller than its global competitors. As discussed above, Infosys generated $4 billion in 2008, which is relatively low in comparison with large global competitors such as Hewlett-Packard ($91 billion), IBM ($91 billion), EDS ($21 billion) and Accenture ($18 billion).
• It is sometimes argued that Infosys is weaker when it comes to high-end management consultancy, since it tends to work at the level of operational value creation. Competitors such as IBM and Accenture tend to dominate this space.
4.3. Opportunities
• At a time of recession in the global economy, it may appear that some companies will reduce take up of services that Infosys offers. However, in tough times clients tend to focus upon cost reduction and outsourcing - with are strategies that Infosys offers. So hard times could be profitable for Infosys.
• There is a new and emerging market in China as the country undergoes a huge industrial revolution.
• The strategic alliance between Infosys and Schlumberger gives the IT company access to lucrative business in the gas and oil industries.
• There has been a trend over recent years for European and North American companies to base some or all of their operation in India. This is called an offshore service. Essentially there is a seamless link between domestic operations and services hosted in India. Examples include telecommunications companies such as British Telecom and banks such as HSBC that have customer service and support centres based in India. Think about the times that you have made calls to a support line to find that the adviser is in Mumbai or Bangalore and not in your home market.
4.4. Threats
• India is not the only country that is undergoing rapid industrial expansion. Competitors may come from countries such as China or Korea where there are large pools of low-cost labor, and developing educational infrastructures such as universities and technology colleges.
• Customers may switch to other offshore service companies in other countries such as China or Korea.
• Other global players have realised that India has the benefit of low-cost, highly-skilled labor that often speaks English and is culturally sensitive to Western practices. As with all global IT players, Infosys has to compete for skilled labor and this may have the effect of driving up wage levels, and making it more difficult to recruit and retain staff.

5. FINANCING POLICY
COST OF CAPITAL (Re)=dividend/price+ growth Dividend yield% =1.64 Share price (march 22 2013) =Rs 287.12 Growth rate= 9.14% Re= (1.64/287.12)+.0914 =0.09714 = 9.7% Weighted average cost of capital =cost of capital as the company is debt free company
BETA Value = 0.83 BETA measures the sensitivity of the stock return to the market return here in this case we can see that the beta is around .83 and this means that if there 1 percent change in the BSE returns it will cause .83 percent change in the Infosys stock returns. Hence this proves that the Infosys stocks are less volatile. It also means that its systematic risks are more. The company's stock return and the index return moves in the same direction as it gives a positive BETA value.

6. INVESTING policy Return on investment = EBIT/invested capital ( i.e. net worth + deferred tax liabilities) 2012 ROI= 11699/ (31332+393) =0.36873 2011 ROI= 9325/ (25976+93) =.37705 On comparing ROI with cost of capital, 2012 cost of capital= 0.097 < return on investment =0.36873, therefore the value of the firm is maximum. It means its value addition of firm. It is Capital work-in-progress Capital work-in-progress Rs 590 crores. The firm is focusing towards the expansion as the firm has procured funds from its retained earnings to invest in fixed assets. The company has invested in computer equipment, intellectual property rights and rest balance amount is invested on infrastructure. They have invested capital to acquire land.
7. DIVIDEND POLICY
The company’s policy is to pay dividend of up to 30% of the consolidated net profit after tax.they pay interim dividend of Rs 15 per share, final dividend of Rs22 per share and special dividend of Infosys BPO operations of Rs 10 per share (on account of completion of 10 years).
The company is a regular dividend provider to his shareholder
The company’s policy is to pay dividend of up to 30% of the consolidated net profit after tax.they pay interim dividend of Rs 15 per share, final dividend of Rs22 per share and special dividend of Infosys BPO operations of Rs 10 per share (on account of completion of 10 years).
Dividend pay-out ratio= dividend / profit after tax = 2699 / 11699 * 100 = 23.07%
8. WORKING CAPITAL POLICY

2012 2011
Current assets 30261 24003
Current liabilities 6902 5224

The company has sufficient current assets to pay off its liabilities. So its way of financing working capital is aggressive as they do not have long term debts there can be more ownership dilution.
Current ratio: current assets / current liabilities
=30261 / 6902 = 4.38
Working capital financing policy
They are acquiring their debt soon from their debtors.
The company has positive working capital and they are following aggressive way of financing

Working capital Investment policy
Revenue = Rs 35638 crores
Policy Current assets Current assets turnover ratio
Restricted 30261 1.17

The company has restricted policy as the company is holding of current assets is minimum