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1. Submitted by:
Aadyant Vashishth
Akshay Kumar
Dipti Soni
Lavi Varshnaey
Mohit Gehani
Vikash Kumar
Financial Accounts Analysis of
Tata Consultancy Services(TCS)

2. About TCS
1. Tata Consultancy Services (TCS), a part of the Tata group, provides information
technology and management consultation services to organizations in more than 53
countries.
2. The company was founded in the year 1968 and is based in Mumbai.
3. It has over 89,000 trained IT consultants in 47 countries.
4. The company offers e-business, application development and maintenance, architecture
and technology consulting, engineering, security, infrastructure development and
management and quality consulting services.

3. CONTINUED…..
 The company disclosed rise of 25.30% in consolidated net profit on y-o-y basis to Rs 36.58 billion, while
total income increased 26.31% y-o-y basis to Rs 168.73 billion for the quarter ended March 2013. In addition,
TCS offers software packages for electronic banking, insurance billing, customer relationship management,
and hospital management. It caters to finance and banking, insurance, telecommunication, transportation,
retail, manufacturing, pharmaceutical, energy and utility industries.
 The company generates around 19% of its revenues from the manufacturing industry, and 6% of its revenues
from its engineering and industrial services (EIS) business
The company generated consolidated revenues of USD 4.3 billion for the fiscal year ended March 2007. TCS
went public in 2004, raising USD 1.17 billion in one of the largest initial public offerings.

4. Future Prospects
Diligenta, a subsidiary of TCS, has announced that it has entered the UK BPO
life assurance market having secured a USD 486 million deal with Pearl, the
Peterborough based closed fund group. Diligenta will provide BPO services
over an initial 12-year period for Pearl group in processing and administration.
TCS has been recommended enterprise-wide for ISO 9001:2000, BS 7799-
2:2002 and BS 15000-1:2002 certifications. This is the largest, enterprise-wide
multiple certification of an IT solutions organization to date. It is the company`s
second enterprise-wide achievement after it became the first company to be
assessed enterprise-wide, for CMMI and PCMM at Level 5 in 2004.

5. CONTINUED….
TCS has planned a CAPEX of Rs 10,000 million for the current financial year. It employs more than 60,000
people and will be adding more than 30,000 this year. This will amount to net addition of around 25,000
employees. The company plans to increase its headcount in Hyderabad to 10,000 by 2010 from over 4,200
now.
TCS is planning to open an outsourcing center in Poland and thereby mark its presence in 34 countries across
the world.
Tata Consultancy Services is negotiating about 5 to 10 IT services deals of USD 50 to USD 100 million each
across various verticals.

6. Past Performance
 By 2008, TCS's e-business activities were generating over US$500 million in
annual revenues.
 On 25 August 2004, TCS became a publicly listed company.
 In 2005, TCS became the first India-based IT services company to enter the
bioinformatics market.
 In 2006, TCS designed an ERP system for the Indian Railway Catering and Tourism
Corporation.
 In 2008, TCS undertook an internal restructuring exercise which aimed to increase
the company's agility.

7. CONTINUED….
 TCS entered the small and medium enterprises market for the first time in 2011, with cloud-based
offerings.[25] On the last trading day of 2011, TCS overtook RIL to achieve the highest
market capitalization of any India-based company.
 In the 2011/12 fiscal year, TCS achieved annual revenues of over US$10 billion for the first
time.
 In May 2013, TCS was awarded a six-year contract worth over INR 1100 crores to provide
services to the Indian Department of Posts.
 In 2013 TCS moved from the 13th position to 10th position in the League of top 10 global IT
services companies

8. POLICIES ADOPTED BY TCS
ACCOUNTING POLICY ACCOUNTING
STANDARD
PROVISION AVAILABLE UNDER
ACCOUNTING STANDARD
Disclosure of Accounting
Policies
AS-1 -
Cash Flow Statements AS-3 Small and Medium sized Entities may not
disclose their cash flow statement.
Net Profit And Loss AS-5 Special Disclosure for disposal of items of
fixed assets and long term investments.
Litigation Settlements.
Depreciation AS-6 Not Applicable on Assets with Unlimited
Life.
Revenue Recognition AS-9 Not Applicable on Revenue Arising from
Construction Contracts, Lease Agreements
and Government Grants.
Earnings Per Share AS-20 Small and Medium sized Entities may not
disclose their diluted earning per share.

10. RELEVANT SECTIONS USED BY TCS
SECTION DETAIL OF SECTION
303 Registration of Directors
305 Duty of directors etc. to make disclosures
313 Appointment and term of office of alternate directors.
317 Managing director not to be appointed for more than five years at a time
319 Payment to director, etc. for loss of office ,etc. in connection with transfer of
undertaking, etc.
337 Removal for Fraud or Breach or Trust
353 Time of Payment Of Remuneration

12. REVENUE PART OF P&L A/C:
REVENUE GRAPH
DISTRIBUTION OF REVENUE
40789
50656
60000
50000
40000
30000
20000
10000
0
2012 2013
TOTAL REVENUE OF THE COMPANY HAD RISEN from
BY 24.19%
operation,
96%
other
income, 4%
from operation
other income
WHAT ARE
THE
REVENUE
FROM
OTHER
INCOME?

13. REVENUE FROM OTHER INCOMES INCLUDE:

14. EXPENSES PART OF P&L A/C:
REVENUE GRAPH
27423
34953
40000
35000
30000
25000
20000
15000
10000
5000
0
2012 2013
HOW HAD
DEPRICIATION
BEEN
TOTAL EXPENSE OF THE COMPANY HAD RISEN BY 27.45%
CHARGED?

15. DETAILS OF DEPRICIATION CHARGED IN P&L A/C

16. METHOD USED FOR CHARGING DEPRICIATION:
 THEY ARE USING BOTH METHOD FOR DEPRICIATION OF
FIXED ASSET
1. STRAIGH LINE METHOD
2. WRITTEN DOWN VALUE METHOD

17. STRAIGHT LINE METHOD OF DEPRICIATION:
 UNDER THIS METHOD OF DEPRICIATION
DEPRICIATION IS EVENLY DISTRIBUTED
THROUGH OUT THE USEFUL LIFE OF FIXED
ASSET

18. WRITTEN DOWN VALUE METHOD:-
 UNDER THIS METHOD OF DEPRICIATION AMOUNT OF
DEPRICIATIN CHARGED IN STARTING YEARS IS HIGHER
THAN THE DEPRICIATION CHARGED IN LATER YEARS.

19. DEPRICIATION A/c

20. DETAILS OF PROFIT BEFORE AND AFTER TAX EARNED IN P&L A/C:
13366
10975
Chart Title
15703
12786
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
PROFIT BEFORE TAX PROFIT AFTER TAX
2012 2013
PROFIT BEFORE TAX OF THE COMPANY HAD RISEN BY 17.48%
PROFIT AFTER TAX OF THE COMPANY HAD RISEN BY 16.50%

21. P & L A/c ANALYSIS 2012-13
24.19%
P&L ANALYSIS
27.45%
16.50%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
% RISE IN REVENUE % RISE IN EXPENDITURE % RISE IN PROFIT
Series 1
• THOUGH THE PERCENTAGE RISE IN EXPENDITURE IS MORE THAN THE
PERCENTAGE RISE IN REVENUE BY 3.26% BUT THE COMPANY HAD
MADE A RISE IN OVERALL PROFIT OF 16.50% FROM 2012 TO 2013

22. RISE IN THE VALUE OF SHARE:
RISE IN VALUE OF SHARES
55.95
66
64
62
60
58
56
54
52
PERCENTAGE RISE IN SHARE VALUE IS 16.50%
65.22
50
2012 2013
Series 1

23. BALANCE SHEET

24. EQUITY and LIABLITY PART OF BALANCE SHEET :

25. SHARE CAPITAL AND SHAREHOLDER’S FUND:
%DISTRIBUTION OF
PREFER
ENCE
SHARE
34%
EQUITY
SHARE
66%
SHARES
PREFERENCE
SHARE
EQUITY SHARE
RISE IN SHAREHOLDER’S FUND
24856
30562
35000
30000
25000
20000
15000
10000
5000
0
2011-12 2012-13
THERE IS 22.95% RISE IN SHAREHOLDER’S FUND FROM 2012 TO 2013

26. RESERVES AND SURPLUS DISTRIBUTION:
76% NET PROFIT
76%
0.80%
6% SECURITIES
PREMIUM RESERVE
6%
0.20%
17%
GENERAL
RESERVE
Sales
76% NET PROFIT
6% SECURITIES PREMIUM RESERVE
0.8% FOREIGN CURRENCY TRANSLATION RESERVE
0.2% HEDGING RESERVE A/C
17% GENERAL RESERVE

27. DISTRIBUTION OF EQUITY AND LIABLITY:
SHAREHOL
DER'S
FUND
76%
NON-CURRENT
LIABLITY
2%
CURRENT
LIABLITY
22%
2012-13
SHAREHOLDER'S FUND
NON-CURRENT
LIABLITY
CURRENT LIABLITY
SHAREHOL
DER'S
FUND
72%
NON-CURRENT
LIABLITY
2%
CURRENT
LIABLITY
26%
2011-12
SHAREHOLDER'S FUND
NON-CURRENT
LIABLITY
CURRENT LIABLITY

29. DISTRIBUTION AND RISE OF ASSET:
FIXED
ASSET
45%
CURREN
T ASSET
55%
Sales
FIXED ASSET
CURRENT ASSET
17719
16538
RISE OF ASSET
19503
23508
25000
20000
15000
10000
5000
0
FIXED ASSET CURRENT ASSET
2012 2013
THEIR IS 10.06% RISE IN FIXED ASSET AND 42.14% RISE IN CURRENT ASSET.
OVERALL INCREASE IN ASSET IS 25.53 %

30. CASH FLOW FROM OPERATING EXPENSES:
CASH FLOW
3174
9156
10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
2012 2013
THERE HAD BEE 188.5 % RISE IN CASH FROM OPERATING ACTIVITY

31. CASH FLOW FROM INVESTING ACTIVITY:
433
CASH FLOW
-3482
1000
500
0
-500
-1000
-1500
-2000
-2500
-3000
-3500
-4000
2012 2013
THERE HAD BEEN 904% DECREASE IN CASH FLOW FROM INVESTING ACTIVITY.

32. CASH FLOW FROM FINANCING ACTIVITIES:
CASH FLOW
3280
4054
4500
4000
3500
3000
2500
2000
1500
1000
500
0
2012 2013
THERE HAD BEEN 23.60% RISE IN CASH FROM FINANCIAL ACTIVITIES.

33. RATIO ANALYSIS

34. CURRENT RATIO=(CURRNT ASSET/CURRENT LIABLITY) CURRENT RATIO C.A/C.L 2.42
NET WORKING CAPITAL C.A-C.L 13831
QUICK RATIO LIQUID ASSET/C.L 2.32
DEBT EQUITY RATIO LONG TERM
DEBT/(OWNERS
CAPITAL-INTANGIBLE
ASSET)
0.02
GROSS PROFIT RATIO (PROFIT BEFORE
TAX/NET SALES)*100
31%
OPERATING PROFIT
RATIO
(REVENUE FROM
OPERATION-EXPENSE
ON OPERATION)/NET
SALES
62%
NET PROFIT RATIO PROFIT AFTER
TAX/TOTAL REVENUE
25.24%