1. INFOSYS TECHNOLOGY LTD. November 3 rd, 2008

2. What does it do? A global technology services firm that designs and delivers information technology (IT)-enabled business solutions to its clients The company provides end-to-end business solutions that leverage technology for its clients, including technical consulting, design, development etc. Infosys also provides software products to many Wall Street investment banks. In fact, financial services firms constitute its biggest clients. Infosys was founded on July 2, 1981 in Pune by N. R. Narayana Murthy and six others.PuneN. R. Narayana Murthy

3. Distinctions In 2001 it was rated "Best Employer in India" by Business Today. 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. 2005: Induced into Global Hall of Fame. 2002: Business World named Infosys "India's Most Respected Company“.Business World 2006: December, became the first Indian company to make it to Nasdaq-100. Global presence in 30 countries in all 5 continents.

4. Corporate Risks US. Economy in recession, banks collapsed in large number. The demand for I.T solution service would decline. But Infosys is diversifying swiftly. Many competitors are trying to take market shares away, e.g. Wipro, Accenture, BearingPoint, Cap Gemini, Deloitte Consulting, HP, IBM etc. Rising wage among Indian engineers, making Infosys service more costly than before. Global downturn might reduce demand for consulting service in the next fiscal year.

5. Competitive Strengths Very large, young, talented workforce graduating from top Indian universities. India’s best I.T and Business graduates dream to start their career at Infosys. Good reputation established among large clients on Wall Street. Merrill Lynch is long time client. Swift global expansion and superb deal making power. Very important acquisitions made lately: –British consultancy Axon Group Plc (Oct 2008) –100% interest in P-Financial Services Holding B.V. (2007) –Expert Information Services Pty Limited, Australia (2003)

6. Rates and Ratios Sale growth 5-yrs annual avg: 40.83%. Net income growth 5-yrs avg: 42.4%. Dividends growth 5-yrs avg: 63.89%. Profit margin 5-yr avg: 42.2%. Net income margin 5-yr avg: 27%. Current ratio: 5.0 Quick ratio: 5.0 Debt to Equity: 0 (NO DEBT !!!) (industry average: 56). Price to book: 4.65 (low for well-run global firm) More rates/ratios on www.reuters.comwww.reuters.com

7. Income Statement Very consistent operating income past 10 years. Never has a loss year whatsoever. No cookie jar, restatement being reported yet in company’s history. No extraordinary items on its balance sheet. Significantly low fixed cost as seen in statement. Average 80% of operating cost is cost of good sold. Expect to do well in 2008 and 2009 despite the slow down in earning growth (Merrill Lynch report)

8. Cash Flow Statement Positive inflow of cash during almost very year of operation since founded. Large chunk of cash being invested as capital expenditure, hence the consistent negative net cash from investment (crucial for I.T firms). This firm is not much affected by the credit crunch Thanks to healthy cash condition, Infosys won’t need to raise cash through stk offerings  won’t dilute current shares. No trouble with collectability: large institutional clients.

9. Balance Sheet Pretty looking balance sheet, no potential problem found. Highly liquid firm with tons of cash, short-term investments and Account receivables. Miniature goodwill and intangibles (which is of no value). A little niche is the high PP&E which may turn out illiquid. Yet, it is a must for I.T firms to maintain top-notch facilities Extremely little liabilities and absolutely NO DEBT seen on the current balance sheet. This is a sweet-heart to look into. It is too good to be true but it is true.

10. Looking forward Despite the global recession, Infosys has a potential to keep developing. Infosys China and Infosys Australia are profitable and would continue to bring in revenue. The firm is selling at 13 earning ($28.90), much lower than the peak of 40 earning in Feb 2000. The outlook for the firm for the period from 2011 to 2013 is bright, though there might exist uncertainties from now ‘till that time. But what is not uncertain nowadays? The firm is fundamentally sound, and the price it is trading right now is at least 20% discount from its fair value. The reason is worries over U.S. reduced spending. Infosys “intrusion into Europe” will pay off handsomely in the foreseeable future.