Bangalore: Software major Infosys chief mentor N R Narayana Murthy on June 14 said the company would continue to make decisions and forecasts, based on a fair assessment of market realities and customer expectations and not necessarily on financial markets expectations.

"It is very important that he or she makes decent profits and then invests part of that profit in initiatives that yield longer term benefits," he told shareholders at the company's annual general meeting.

He said after closely examining all relevant economic and business indicators, the company had made a forecast of 22 to 24 per cent growth in revenues and 11.5 to 13 per cent growth in earning per share (EPS), according to Indian generally accepted accounting principles (GAAP).

Infosys shares, as also of other IT companies, had taken a hard beating in the Bombay Stock Exchange in April, when the company announced guidance for the current fiscal, which fell short of market expectations.

He also said the ability to set a target for the top line and bottom line and to strive hard to achieve or exceed such targets was a basic requirement for a sound organisation and a competent chief executive officer (CEO).

"Any CEO who does not set such targets or refuses to divulge this to investors is either not confident of his own people or does not believe in transparency with investors, or worse, even afraid of the stock market reactions. This is anathema to Infoscions," he said.

He told the shareholders that the company believed in following the "highest degree of transparency and openness with you. Our philosophy towards transparency has always been: when in doubt, disclose."

PTI